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5 November 2015
New Yorker Wen Ping Chen Pleads Not Guilty to Credit Card ScamRead the Press Release
The United States Attorney for the District of Vermont announced that Wen Ping Chen, 47, of Brooklyn, New York, pleaded not guilty today in United States District Court in Burlington to charges of credit card fraud. U.S. Magistrate Judge John M. Conroy released Chen on conditions pending trial, which has not been scheduled.
On October 15, 2015, a federal grand jury in Burlington returned a three-count indictment charging Chen with conspiring to commit access device fraud, possessing 15 or more counterfeit access devices, and using counterfeit access devices. The charges stem from an incident in August 2014 which resulted in the arrests in South Burlington of alleged co-conspirators Shao Qing Chen (no relation) and Kewang Lin.
According to the indictment, between about 2013 and August 22, 2014, Wen Ping Chen conspired with Shao Chen, Kewang Lin and others to commit credit card fraud. As part of the conspiracy, the defendants would travel from New York to other states and use counterfeit credit cards to make purchases, primarily of gift cards. The merchandise acquired through the fraudulent purchases would then be resold on a black market. According to the indictment, Wen Ping Chen, Shao Chen and Lin drove from New York to Vermont in August 2014. Shao Chen and Lin spent two days in Vermont making purchases with counterfeit credit cards provided to them by Wen Ping Chen. On August 22, 2014, Shao Chen and Lin were arrested and have since been charged in federal court with access device fraud. Wen Ping Chen was also arrested but was then released. More than 80 counterfeit credit cards were recovered, as well as thousands of dollars worth of gift cards.
Shao Chen has pleaded guilty and is awaiting sentencing. Charges against Lin are still pending.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Wen Ping Chen faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the South Burlington Police Department; the United States Secret Service, and the Bureau of Immigration and Customs Enforcement.
Chen is represented by Paul Brenner. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New Orleans Man Sentenced for Defrauding Gulf Coast Claims FacilityRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL CUTRER, age 39, of New Orleans, was sentenced after previously pleading guilty to a one count Bill of Information charging him with conspiracy to commit wire fraud relating to a fraudulent application he made to the Gulf Coast Claims Facility (GCCF) for financial assistance in the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico.
U.S. District Judge Eldon E. Fallon sentenced CUTRER to three years probation and ordered payment of $15,000 in restitution to the Deepwater Horizon Oil Spill Trust.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On November 4, 2010, the GCCF received CUTRER’s online claim form seeking an emergency 6-month payment in the amount of $10,000, wherein CUTRER falsely stated he lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of CUTRER’s claim included copies of fraudulent earning statements indicating that prior to the oil spill, CUTRER had worked at Country Inn & Suites, when, in fact, he was never so employed. As a result of these false representations and documentation contained in the claim, the GCCF paid CUTRER approximately $15,000.00.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Loan A. "Mimi" Nguyen.
New Jersey Man Sentenced to Prison for Stealing from Charitable OrganizationRead the Press Release
ALBANY, NEW YORK – Ian Finn, age 39, of Summit, New Jersey, was sentenced yesterday to 21 months of imprisonment for a wire fraud conviction arising from his theft of $238,000 from a charity, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special-Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
United States District Judge Gary L. Sharpe also ordered Finn to pay restitution of $238,000 to his victim and sentenced him to three years of supervised release to be served after he is released from prison.
As part of his November 2014 guilty plea, Finn admitted that, while serving as the elected corporate treasurer on the Board of Directors for Rensselaer Acacia Corporation, a charitable organization that holds assets for the Acacia Fraternity at Rensselaer Polytechnic Institute in Troy, New York, he stole $238,000 from the organization’s accounts for his personal use and the use of his friends and family. Finn used the stolen funds to pay personal expenses, including for vacations, bar tabs and electronics. Finn attempted to cover up the theft by making misrepresentations to the organization’s Board of Directors over many years.
This case was investigated by the United States Attorney’s Office for the Northern District of New York and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Wayne A. Myers.
New Castle Man Pleads Guilty to Robbing Two Neighborhood BanksRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, pled guilty in federal court to charges of bank robbery, United States Attorney David J. Hickton announced today.
Calvin Douglas Smith, 43, formerly of New Castle, Pennsylvania, pleaded guilty to two counts before United States District Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Nov. 5, 2014, Smith robbed Huntington Bank located at 101 E. Washington St., in New Castle, and on Dec. 2, 2014, Smith robbed First Commonwealth Bank located at 27 E. Washington St., in New Castle. The banks are both insured by the Federal Deposit Insurance Corporation.
Judge Hornak scheduled sentencing for March 11, 2016, at 1:30 p.m. For each count, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the New Castle City Police Department conducted the investigation leading to the prosecution of Smith.
Nassau Man Indicted for Unlawfully Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Cory M. Saddlemire, age 34, of Nassau, was indicted today for unlawfully possessing multiple firearms, announced United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
The charges filed against Saddlemire carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.
Saddlemire is prohibited from possessing firearms because of a Protective Order pending against him and his prior felony conviction.
The charges in the Indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the ATF and the Village of Nassau Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock in coordination with the Rensselaer County District Attorney’s Office.
Mexican National Pleads Guilty to Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN ALBERTO SANCHEZ-ROMERO, age 25, a citizen of Mexico, pled guilty today to a one-count Bill of Information for violations of the Federal Gun Control Act.
According to the court documents, on or about August 20, 2015, SANCHEZ-ROMERO, an alien present illegally in the United States, was found in possession of a firearm.
SANCHEZ-ROMERO faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for February 11, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Metairie Man Pleads Guilty to Trafficking a Minor into New Orleans to Work as a ProstituteRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TORREY LEDELL DAVIS, age 44, most recently from Metairie, pled guilty today to interstate transportation of a minor for the purpose of engaging in criminal sexual activity.
According to the court documents, in November 2012 DAVIS was contacted by an individual living in the Jackson, Mississippi area. That individual inquired whether DAVIS would be willing to train the victim, who had just turned 16-years-old, to work as a prostitute. DAVIS agreed, and on November 26, 2012, DAVIS drove to the Scottish Inn in Jackson, picked up the victim, and drove her back to DAVIS’s residence in Metairie. Once at the residence, DAVIS forced the victim to dress provocatively and pose for sexually suggestive photographs, which he saved on his computer. The pictures were then used to create a prostitution advertisement on an online classified advertisement website often used to promote prostitution. DAVIS also instructed the victim how to work as a prostitute, how to get clients, and how to avoid being caught by law enforcement officials. DAVIS further arranged for the victim to be paired with a female who worked as a prostitute for DAVIS for approximately one year. At DAVIS’s instruction, the female drove the victim to the French Quarter of New Orleans to work as a prostitute. While in the French Quarter that evening, law enforcement officials arrested the minor for prostitution after an undercover officer arranged for the victim to perform a sexual act on the officer in exchange for $500.
DAVIS faces a mandatory minimum term of imprisonment of ten years and a maximum of life, followed by up to a life term of supervised release, and a $250,000 fine. DAVIS can also be required to register as a sex offender. U.S. District Judge Sarah S. Vance set sentencing for February 24, 2016.
“The FBI New Orleans Division is committed to investigating all aspects of Human Sex Trafficking, stated Acting Special Agent in Charge Jeff Dutton. “Through our law enforcement collaboration, we are making every attempt to eradicate human trafficking statewide.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigations, the New Orleans Police Department, and the Louisiana State Police Special Victims Unit for investigating this matter. Assistant United States Attorneys Jordan Ginsberg and K. Paige O’Hale are in charge of the prosecution.
Maryland U.S. Attorney’s Office Announces Supervisory AppointmentsRead the Press Release
The Maryland U.S. Attorney’s Office announced several new supervisory appointments to fill vacancies flowing from the retirement in October of veteran federal prosecutor Barbara S. Sale. Sale served as an Assistant U.S. Attorney for 35 years and retired as chief of the Criminal Division. The U.S. Attorney’s Office named the criminal chief’s conference room in her honor.
“Maryland is fortunate to have a deep bench of exceptionally talented Assistant U.S. Attorneys who are dedicated to the goals of promoting justice, enhancing public safety and security, protecting government property and building confidence in law enforcement,” said U.S. Attorney Rod J. Rosenstein. “Barbara Sale earned universal admiration for her intelligence, fairness and devotion to public service. Our new supervisors and their colleagues will carry forward the proud legacy of the Maryland U.S. Attorney’s Office and maintain its commitment to excellence, integrity and achievement.”
CRIMINAL DIVISION CHIEF
James A. Crowell IV is the new chief of the U.S. Attorney’s Office Criminal Division, which includes 66 Assistant U.S. Attorneys and 12 full-time Special Assistant U.S. Attorneys statewide. Crowell has been a prosecutor for 15 years, including eight years as a Maryland Assistant U.S. Attorney (AUSA). He has served in the U.S. Army Reserves since 1994 and is now a major commanding a company of the 437th Civil Affairs Airborne Battalion. Crowell graduated in 1996 from Hampden-Sydney College, with a B.A. cum laude in History and French. He earned a J.D. in 1999 from Boston University School of Law, where he was note editor of the technology journal. From 1999 to 2001, Crowell was a law clerk to U.S. District Judge Charles A. Pannell, Jr. in the Northern District of Georgia. He joined the National Criminal Enforcement Section of the U.S. Justice Department’s Antitrust Division in 2001 through the Attorney General’s Honors Program, then moved in 2003 to the Public Integrity Section of the Department’s Criminal Division, where he supervised undercover investigations and prosecuted government contract fraud and bribery. He joined the Maryland U.S. Attorney’s Office in 2007. Crowell received the Attorney General’s Distinguished Service award in 2011. He won the U.S. Attorney’s fraud prosecution award in 2009 and the public corruption award in 2011.
SOUTHERN DIVISION SUPERVISORS
Arun Rao replaces Crowell as Chief of the U.S. Attorney’s Office’s Southern Division, which includes 21 Assistant U.S Attorneys and 5 full-time Special Assistant U.S. Attorneys who are responsible for federal criminal cases from Montgomery, Prince George’s, Charles, Calvert and St. Mary’s Counties. Rao has been a prosecutor for 12 years, including five years as a Maryland AUSA and two years as the Southern Division’s deputy chief. He earned a B.A. with high honors from the University of Virginia in 1998, majoring in Government and Foreign Affairs. Rao received his J.D. in 2001 from New York University School of Law, where he was on the moot court board. After law school, Rao worked for one year as an associate at Cravath, Swaine & Moore. He then clerked for Judge Julia Smith Gibbons of the U.S. Court of Appeals for the Sixth Circuit from 2002 to 2003. After completing his clerkship, Rao served as an Assistant District Attorney in Manhattan for four years. He was an AUSA for the Western District of Tennessee for three years before he transferred to Maryland in 2010. Rao also served on detail at the Office of the White House Counsel from 2012 to 2013 and as the Professional Responsibility Officer for the Southern Division.
Kristi O’Malley is the Principal Deputy Chief for the Southern Division. O’Malley has been a Maryland AUSA for five years. She earned a B.A. summa cum laude in International Relations from Claremont McKenna College in 1999. She then completed a year of course work at Moscow State University and worked for two years as a program analyst with the Justice Department’s Office of Overseas Prosecutorial Development, Assistance & Training. O’Malley received a J.D. in 2005 from the University of Virginia School of Law, where she was a member of the Order of the Coif, an editor of the international law journal and a winner of the moot court competition. She worked for one year as an associate at Latham & Watkins, then clerked for one year for U.S. District Judge Emmet G. Sullivan in Washington, DC. O’Malley returned to Latham & Watkins from 2007 until she joined the U.S. Attorney’s Office in 2010. O’Malley started in the Baltimore Major Crimes Section and later transferred to the Southern Division, where she has managed the Project Safe Childhood and law clerk programs and served as the civil rights coordinator. She won the U.S. Attorney’s fraud prosecution award in 2013.
Bryan Foreman is the Southern Division’s Deputy Chief for Litigation. Foreman has been a prosecutor for 25 years, including 18 years as a Maryland AUSA. Foreman earned a B.A. in Government from Georgetown University in 1984 and a J.D. from the University of Maryland in 1987. He was an attorney with the Office of General Counsel for the Securities & Exchange Commission from 1987 until 1990. From 1990 to 1995, Foreman was a trial attorney with the Justice Department’s Fraud Section and a member of the Dallas Bank Fraud Task Force. Foreman then worked for two years as an AUSA for the District of Columbia before joining the Maryland U.S. Attorney’s Office in 1997. At the Maryland U.S. Attorney’s Office, Foreman was the Project Safe Childhood coordinator from 1998 to 2004 and the Computer Hacking and Intellectual Property coordinator from 2007 to 2011. He also served on detail as the First Assistant U.S. Attorney for the District of the Virgin Islands from 2011 to 2013.
SENIOR LITIGATION COUNSEL
Deborah A. Johnston has been reappointed to another term as Senior Litigation Counsel for the Southern Division, responsible for training AUSAs. Johnston has been a prosecutor for 32 years, including 21 years as a Maryland Assistant U.S. Attorney. She earned a B.A. in Economics from Catholic University in 1975 and a J.D. from Catholic University’s Columbus School of Law in 1978. Johnston was a law clerk to Prince George’s County Circuit Court Judge Audrey E. Melbourne for one year, then an Assistant State’s Attorney for Prince George’s County from 1979 to 1984. She served from 1984 to 1985 as an Assistant Public Defender for Prince George’s County, then worked from 1985 to 1988 as an associate with a private law firm. Johnston rejoined the Prince George’s County State’s Attorney’s Office in 1988 and served as Chief of the Homicide/Narcotics Unit and as Deputy State’s Attorney. Johnston joined the Maryland U.S. Attorney’s Office in 1994 and served as chief of the Southern Division from 1999 to 2001. She won the U.S. Attorney’s Barney Skolnik award for prosecuting of a case of unusual public significance in 2000, the U.S. Attorney’s Gary Jordan award for exemplary performance in 2006, and the Justice Department’s Director’s Award for superior performance in 1998 and 2001.
Manhattan U.S. Attorney Announces Conviction of Michael Danilovich on Racketeering, Securities Fraud, Health Care Fraud, Mail Fraud, Wire Fraud, and Money Laundering ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL DANILOVICH was found guilty today on racketeering conspiracy, securities fraud, health care fraud, mail fraud, wire fraud, and money laundering charges following a five-week jury trial before United States District Judge Deborah A. Batts. The jury convicted DANILOVICH of racketeering arising out of his operation, from 2007 through 2012, of the largest single no fault automobile insurance fraud scheme ever charged; his operation, from 2007 to 2009, of two investment fraud schemes, Lyons Ward & Associates and the Rockford Group; and his attempted operation, from 2011 to 2012, of a third investment fraud scheme, Baron & Caplan, including after he was arrested and released on bail in this case.
U.S. Attorney Preet Bharara said: “Michael Danilovich has been convicted by a unanimous jury of committing several frauds. As the jury found, he took a lead role in scamming insurance companies of over $100 million in fraudulent medical treatments and in engaging in other investment scams that swindled investors out of another $18 million. Today's verdict ensures that Danilovich will be punished for the wide-ranging frauds he perpetrated.”
According to the Superseding Indictment and evidence admitted at trial:
From 2007 through 2012, DANILOVICH was a leader of an enterprise engaged in a pattern of racketeering that included a massive scheme to defraud automobile insurance companies under New York’s no fault insurance law, multiple securities fraud schemes, money laundering, and the operation of illegal gambling businesses.
Under New York State Law, every vehicle registered in the State is required to have no fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault (the “No Fault Law”). The No Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State Law also requires that all medical clinics in the State be incorporated, owned, operated, and controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical professional.
From 2007 through 2012, DANILOVICH’s organization defrauded automobile insurance companies of more than $100 million by, among other things, creating and operating medical clinics that provided unnecessary and excessive medical treatments in order to take advantage of the No Fault Law. In addition, Danilovich’s organization fraudulently owned and controlled more than a dozen medical professional corporations (“PCs”) – including no fault clinics, MRI offices, and acupuncture and chiropractic PCs – by paying licensed medical professionals to use their licenses to incorporate the professional corporations. DANILOVICH and his co-conspirators paid kickbacks of thousands of dollars to runners to recruit patients to receive the same battery of tests and treatments, and received kickbacks from other co-conspirators for referring patients for additional unnecessary treatments. All told, Danilovich’s organization billed insurance companies for tens of millions of dollars in fraudulent medical treatments. Furthermore, DANILOVICH and his co-conspirators laundered the proceeds of the fraud through check cashing entities and shell companies, and used the money to pay for luxury cars, watches, and vacations.
In addition to the no fault insurance fraud scheme, DANILOVICH was convicted for operating two investment fraud schemes that swindled innocent victims out of nearly $18 million. Both schemes – Lyons Ward & Associates and the Rockford Group – purported to be settlement claims funding companies that invested in lawsuits in return for a portion of future settlements. DANILOVICH also attempted to operate a third scheme, Baron & Caplan, including after he was arrested and released on bail in this case. As part of these schemes, DANILOVICH and his co-conspirators created bogus documents and account statements used by cold-callers to solicit victims through false representations. In reality, there was no investment fund at all; instead, DANILOVICH and his co-conspirators simply stole the money invested by victims and laundered the proceeds by wiring them overseas to shell companies in Eastern Europe, which were then turned into cash in the United States.
DANILOVICH’s organization also operated high-stakes illegal poker games and illegal sports books.
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DANILOVICH was convicted of one count of conspiracy to commit racketeering, which carries a maximum sentence of 20 years in prison. In addition, DANILOVICH was convicted of conspiracies to commit securities fraud, health care fraud, mail fraud, wire fraud, and money laundering, as well as substantive counts of securities fraud, health care fraud, mail fraud, wire fraud, and money laundering, which, in total, carry a maximum sentence of 260 years in prison. In total, DANILOVICH faces a maximum sentence of 280 years in prison. DANILOVICH is scheduled to be sentenced on March 8, 2016, at 11:00 a.m., before Judge Batts. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
DANILOVICH, 41, of Brooklyn, New York, is the thirty-sixth defendant convicted in this case. DANILOVICH was remanded pending sentencing following his conviction.
At DANILOVICH’s first trial in the fall of 2013, a mistrial was declared after the jury failed to reach a unanimous verdict on all counts.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. Mr. Bharara also thanked the National Insurance Crime Bureau, the investigative units of the insurance companies, the Manhattan District Attorney’s Office, and the Alabama Securities Commission for their valuable assistance with the investigation.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Daniel S. Noble, Joshua A. Naftalis, and Jaimie L. Nawaday are in charge of the prosecution.
Longmeadow Man Pleads Guilty to Tobacco Tax Fraud and Illegal Check-Cashing BusinessRead the Press Release
BOSTON – A Longmeadow, Mass. man pleaded guilty in two cases in U.S. District Court in Springfield in connection with evading payment of tobacco sales tax and operating an illegal check-cashing business.
Satish Kumar, 60, pleaded guilty in one case to one count of conspiracy, three counts of wire fraud and one count of money laundering. In the second case, Kumar pleaded guilty to one count of failure to register a money transmitting business. U.S. District Court Judge Mark. G. Mastroianni scheduled sentencing for April 13, 2016.
In 2006, Kumar purchased a wholesale warehouse business in Berlin, Conn. Kumar systematically evaded Connecticut state tobacco taxes, in selling cigars and smokeless tobacco to convenience stores and gas stations. Kumar consistently filed false tobacco tax returns with Connecticut state tax authorities, paying just two percent of the tax owed. In 2008, Kumar sold the business, but he continued to receive proceeds from the continuing tobacco tax fraud that occurred at the Berlin warehouse. In June 2012, the fraud ceased when federal agents executed a search warrant at the Berlin warehouse and 12 other locations in Massachusetts, Connecticut, and Pennsylvania. During the six-year scheme, Kumar and others helped to evade over $16 million in taxes owed to the state of Connecticut.
In the illegal check cashing case, Kumar owned a liquor store in Springfield, Mass. that also acted as an unregistered money transmitting business. Kumar cashed checks without the required registration despite warnings from his bank. Among the checks cashed were 195 United States Treasury tax refund checks worth approximately $1.2 million obtained through fraudulent returns filed with the IRS.
The charges of conspiracy and failure to register a money transmitting business provide for sentences of no greater than five years in prison, three years of supervised release and a $250,000 fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Commissioner Mark Nunnelly of the Massachusetts Department of Revenue; Commissioner Kevin B. Sullivan of the Connecticut Department of Revenue Services; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The tobacco tax fraud case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office. The illegal check-cashing case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office and Sarah Devlin of the Justice Department’s Asset Forfeiture and Money Laundering Section.
Logan County man pleads guilty in Federal court to selling oxycodoneRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Jonathan Belcher, 37, of Mt. Gay, West Virginia, pleaded guilty today in federal court in Charleston to distributing oxycodone. Belcher admitted to selling oxycodone to a confidential informant at his residence on August 25, 2014. He further admitted to having sold oxycodone pills for approximately two years prior to his arrest. Belcher faces up to 20 years in federal prison and a $1,000,000 fine when he is sentenced in federal court in Charleston on February 22, 2016.
This case was investigated by the U.S. 119 Drug Task Force. The prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Leader of Maryland to West Virginia heroin trafficking operation convicted in federal courtRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brian Alexander Hall, 27, of Windsor, Maryland, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Hall orchestrated an extensive, multi-state heroin distribution network in which a large group of individuals repeatedly travelled across state lines to procure quantities of heroin from Hall in Baltimore, Maryland, and the surrounding region. The individuals then returned to locations in West Virginia, Maryland, Virginia, and Pennsylvania to redistribute the heroin obtained from Hall.
Federal authorities interrupted the operation in June 2015 when 41 individuals were charged in 163-count indictment. Three of the individuals that participated in the operation have been sentenced, and an additional 30 defendants have pled guilty in federal court and will be sentenced in the coming months.
Hall pled guilty today to one count of “Conspiracy to Distribute Heroin.” He 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 seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Justice Department Asks Federal Court to Stop Maryland Tax Preparer from Promoting Tax Fraud SchemeRead the Press Release
The United States filed a complaint seeking to permanently bar an Aberdeen, Maryland, woman and the tax preparation business she operates from preparing federal tax returns and promoting a frivolous tax avoidance scheme, the Justice Department announced today.
The complaint against Charese Johnson, doing business as Prodigy Accounting Services, was filed in the U.S. District Court for the District of Maryland. According to the complaint, Johnson prepares income tax returns for customers that fraudulently overstate the refunds due by claiming false withholdings or credits.
The complaint alleges that Johnson promotes a tax avoidance scheme based upon the bogus “redemption” theory, in which individuals assert that the federal government maintains secret accounts for U.S. citizens that can be accessed by issuing various forms to the Internal Revenue Service (IRS). According to the complaint, Johnson prepares fraudulent IRS Forms 1099-A (Acquisition or Abandonment of Secured Property) and 8281 (Information Return for Publicly Offered Original Issue Discount Instruments) for her customers and files them with the IRS in order to claim enormous tax refunds on their behalf. The IRS and the courts have repeatedly made clear that the theories Johnson uses in filing the refund claims are frivolous and pure fiction, according to the complaint. The complaint further alleges that Johnson’s dozens of customers have sought millions of dollars in bogus refunds as a result of Johnson’s conduct.
Return preparer fraud, inflated refund claims and frivolous tax arguments are all among 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 Justice Department’s 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.
Jury Finds a Convicted Felon Guilty of Possessing a Firearm and AmmunitionRead the Press Release
TULSA, Okla.—On Tuesday, a federal jury found Phillip Lamont Morgan, 40, guilty of possession of a firearm by a convicted felon, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Judge James H. Payne will sentence Morgan on January 17, 2016.
On September 28, 2013, Morgan was stopped by a Tulsa Police officer for committing traffic violations on his bicycle. Morgan then gave a false name, date of birth and social security number to the officer. Morgan became physical with the officer after the officer tried to prevent Morgan from reaching into his left pants pocket. Other Tulsa police officers assisted in taking Morgan into custody. After being taken into custody, Morgan was searched and a loaded revolver was found in his left pants pocket.
Prior to this offense, Morgan had been convicted of multiple felonies. Morgan was previously convicted for possession of a firearm by a convicted felon in the Northern District of Oklahoma on October 15, 2003.
This case was investigated by the Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Neal C. Hong and Timothy L. Faerber prosecuted the case.
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Individual Sentenced to 14 Years in Prison for His Participation in A Drug Trafficking Organization That Operated at the Luis Muñoz Marín International AirportRead the Press Release
SAN JUAN, Puerto Rico – Today, Carlos I. Arce-López, aka “Ferretero,” was sentenced to 14 years in prison for conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On April 23, 2015, the defendant pled guilty to three counts from two separate indictments, charging conspiracy to possess with intent to distribute controlled substances. He also pled guilty to money laundering in relation to a drug trafficking crime.
In the first indictment, Criminal Case 12-413(FAB), 20 individuals were charged for aiding and abetting each other, and conspiring to possess with intent to distribute in excess of 9,000 kilograms of cocaine, aboard American Airlines commercial flights. At times pertinent to this indictment, convicted felon Wilfredo Rodríguez-Rosado, aka “Mogoyo” recruited and organized a group of individuals to package, transport and deliver suitcases loaded with kilograms of cocaine to the American Airlines cargo area at the Luis Muñoz Marin International Airport. Moreover, he recruited and organized a group of American Airlines employees to ensure that those suitcases were smuggled into American Airlines flights destined to Miami and Orlando, Florida and Newark, NJ.
In the second indictment, Criminal Case 13-148(FAB), Arce-López participated in a conspiracy in which $800,000 of illegal proceeds were going to be used to purchase over 150 kilos of cocaine in the Dominican Republic to import into Puerto Rico. The defendant’s role was to provide the money and to coordinate with other coconspirators the importation of multi-kilogram quantities of cocaine from the Dominican Republic to Puerto Rico. Arce-López also traveled to the Dominican Republic from Puerto Rico to meet with other co-conspirators to plan and coordinate the transportation of multi-kilogram loads of cocaine by boat.
The cases were investigated by the DEA, the PRPD, and the FBI, with the collaboration of the San Juan Municipal Police. The defendant was sentenced by United States District Court Judge Francisco A. Besosa. The case was prosecuted by Assistant U.S. Attorney Olga Castellón-Miranda.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE ALEXANDER LOPEZ-LOPEZ, age 20, a citizen of Honduras, pled guilty today to a one-count indictment with illegal reentry of a removed alien.
According to court documents, LOPEZ-LOPEZ reentered the United States on or about September 28, 2015, after having been previously deported on April 2, 2014. LOPEZ-LOPEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for December 3, 2015.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Haydenville Woman Indicted for Stealing Social Security BenefitsRead the Press Release
BOSTON – Shirley Warner, 52, of Haydenville, was indicted in U.S. District Court in Springfield for stealing her deceased mother’s social security benefits for almost four years.
The indictment alleges that between August 2010 and March 2014, after her mother died, Warner stole over $45,000 worth of Social Security benefits intended for her mother.
The charge of theft of public money provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Harvey Woman Sentenced for Disaster Fraud and TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JENNIFER WILLIAMS, 33, of Harvey, was sentenced after previously pleading guilty to two-count Indictment charging her with one count of disaster fraud and five counts of theft from the United States.
U.S. District Judge Nanette Jolivette Brown sentenced WILLIAMS to one day of incarceration. In addition to incarceration, WILLIAMS was sentenced to 30 days of home detention as part of her five years of supervised release, a $600 special assessment, and restitution in the amount of $17,040 to be repaid to FEMA.
According to the court records, on or about October 15, 2012, following Hurricane Isaac, WILLIAMS filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA). WILLIAMS claimed that she needed rental assistance due to damage in her home and made false statements to FEMA with regard to where she was temporarily living. After receiving a total of $17,040 in rental assistance, Department of Homeland Security investigators determined that WILLIAMS in fact never rented another property after Hurricane Isaac and that her application and supporting documentation was false.
U.S. Attorney praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant United States Attorney Edward J. Rivera of the Fraud Unit was in charge of the prosecution.
Hartford Man Sentenced to Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERROD HALL, also known as “Slime,” 22, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months and one day of imprisonment, followed by one year of supervised release, for his role in a crack cocaine trafficking ring.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of Westhell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the Westhell street gang who, along with his associates distributed crack cocaine in the Westland Street area of Hartford. HALL was intercepted over wiretaps engaging in conversations related to the distribution of crack cocaine.
At the time of this offense, HALL was released on a state bond based on his arrest in July 2011 for carrying a pistol without a permit, second degree burglary and interfering/resisting arrest. In October 2011, HALL was shot in the vicinity of 129 Barbour Street in Hartford.
On April 1, 2015, HALL pleaded guilty to one count of using a telephone to facilitate a narcotics trafficking offense.
HALL was arrested on April 30, 2014, and had been released on bond. At the conclusion of today’s court proceeding, he was remanded to begin serving his sentence.
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Hammond Man Pleads Guilty to Gun and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RYAN BINNER, age 43, of Hammond, pled guilty today to violations of the Federal Controlled Substances and Federal Gun Control Acts.
According to court documents, in November and December 2014, BINNER made multiple sales of methamphetamine to law enforcement agents working undercover. On December 2, 2014, BINNER agreed to meet an undercover agent for purposes of selling additional methamphetamine. As BINNER attempted to leave his house to meet with the agent, law enforcement arrested BINNER, and found him to be in possession of approximately one ounce of methamphetamine, along with a loaded, sawed-off Winchester 20-gauge shotgun.
BINNER pled guilty to distributing a quantity of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1) and 841(b)(1)(C), and possessing a short-barreled shotgun in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(B)(i) and 921(a)(6). For the drug offense, BINNER faces a maximum term of imprisonment of twenty years, a fine of up to $1,000,000.00, a period of not less than three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment. For the gun offense, BINNER faces a minimum consecutive term of imprisonment of ten years, a fine of up to $250,000, a period of not more than five years of supervised release following any term of imprisonment, and a mandatory $100 special assessment. U.S. District Judge Susie Morgan set sentencing for February 10, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Tangipahoa Parish Sheriff’s Office, and the Hammond Police Department for investigating this matter. Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.
Grove City Man Admits He Took His Dead Mother’s Social Security BenefitsRead the Press Release
PITTSBURGH -- A Mercer County resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Alexander Viskovatoff, 57, of Grove City, PA, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in and around January 2011, through in and around September 2012, Viskovatoff converted to his own use approximately $38,000 in funds of the Social Security Administration that had been intended to be benefits for his deceased mother.
Judge Bissoon scheduled sentencing for March 17, 2016, at 2:15 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation that led to the prosecution of Viskovatoff.
Gloversville Man Indicted for Failing to Register as A Sex OffenderRead the Press Release
ALBANY, NEW YORK – James Newland, age 30, was indicted today for moving to Gloversville, New York, from California without updating his sex offender registration, announced United States Attorney Richard S. Hartunian.
The charge filed against Newland carries a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.
Newland was arrested last month on a Criminal Complaint. On October 13, he appeared before United States Magistrate Judge Christian F. Hummel in Albany and was detained following a detention hearing.
Newland was charged with a violation of the Sex Offender Registration and Notification Act (“SORNA”), also known as the Adam Walsh Protection and Safety Act, which requires a convicted sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current.
The charges in the Indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Newland’s arrest is the result of an investigation by the United States Marshals Service Sex Offender Investigation Branch, North East Region; the United States Marshals New York/New Jersey Regional Fugitive Task Force; the Johnston Police Department; and the Gloversville Police Department. The case is being prosecuted by Assistant United States Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Four men with Ohio ties indicted for providing support to Al Qaeda in the Arabian PeninsulaRead the Press Release
A four-count indictment was unsealed today in the U.S. District Court of the Northern District of Ohio charging four men with conspiring to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio, U.S. Attorney Barry R. Grissom of the District of Kansas and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Yahya Farooq Mohammad, 37; Ibrahim Zubair Mohammad, 36; Asif Ahmed Salim, 35; and Sultane Room Salim, 40, were each indicted on one count of conspiracy to provide and conceal material support and resources to terrorists, one count of providing material support and resources to terrorists and one count of conspiracy to obstruct justice. Farooq Mohammad and Ibrahim Mohammad both face an additional count of conspiracy to commit bank fraud.
“According to the allegations in the indictment, Farooq Mohammad, Ibrahim Mohammad, Asif Salim and Sultane Salim conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“The charges in this case outline a plan to send thousands of dollars to a known terrorist, a plan which came to fruition shortly before one of the most notorious attempted attacks in recent memory – an attack supported by that same terrorist,” said U.S. Attorney Dettelbach. “This indictment is a testament to the perseverance of those who stand watch over our nation and is a clear message to those who support terrorism – we will not forget and you will face justice.”
“In today’s world, Kansas is not far removed from the battlefields of the war on terror,” said U.S. Attorney Grissom. “We will do everything in our power to prevent funding and material support from finding its way from the heart of America to terrorists in foreign lands.”
“These individuals conspired and then acted on their radical beliefs by providing support to a known terrorist organization,” said Special Agent in Charge Anthony. “The identification of their conspiracy and the subsequent investigation demonstrate how members of the FBI’s Joint Terrorism Task Force continue to work with our international law enforcement partners to mitigate terrorist’s threats in order to protect our citizens.”
Farooq Mohammad was an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. In or around March 2008, he married a U.S. citizen. His brother, Ibrahim Mohammad, was also an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago-area from 2006 through 2012, until he moved to the Columbus area.
According to the indictment, from January 2005 through January 2012, the four defendants conspired to provide money, equipment and other assistance to Anwar Al-Awlaki. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, was designated a global terrorist in 2010. The indictment also alleges that the defendants’ support was to be used in furtherance of violent jihad against the U.S. and U.S. military in Iraq, Afghanistan and throughout the world.
The defendants made various financial transactions in 2008 and 2009, and communicated about raising funds for a trip to the Middle East. Allegations in the indictment charge that Farooq Mohammad and Ibrahim Mohammad obtained money by opening credit cards and withdrawing money with no intention of repaying the amounts obtained from the financial institutions.
The indictment further alleges that on July 22, 2009, Farooq Mohammad travelled with two other people to Yemen to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki.
An indictment is only a charge 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.
If convicted, the defendants’ sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos Georgalis of the Northern District of Ohio, Assistant U.S. Attorney David Smith of the District of Kansas and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section.
Four Men Charged with Providing Material Support to Al Qaeda in the Arabian PeninsulaRead the Press Release
A four-count indictment was unsealed today in the U.S. District Court of the Northern District of Ohio charging four men with conspiring to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio, U.S. Attorney Barry R. Grissom of the District of Kansas and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Yahya Farooq Mohammad, 37; Ibrahim Zubair Mohammad, 36; Asif Ahmed Salim, 35; and Sultane Room Salim, 40, were each indicted on one count of conspiracy to provide and conceal material support and resources to terrorists, one count of providing material support and resources to terrorists and one count of conspiracy to obstruct justice. Farooq Mohammad and Ibrahim Mohammad both face an additional count of conspiracy to commit bank fraud.
“According to the allegations in the indictment, Farooq Mohammad, Ibrahim Mohammad, Asif Salim and Sultane Salim conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“The charges in this case outline a plan to send thousands of dollars to a known terrorist, a plan which came to fruition shortly before one of the most notorious attempted attacks in recent memory – an attack claimed by that same terrorist,” said U.S. Attorney Dettelbach. “This indictment is a testament to the perseverance of those who stand watch over our nation and is a clear message to those who support terrorism – we will not forget and you will face justice.”
“In today’s world, Kansas is not far removed from the battlefields of the war on terror,” said U.S. Attorney Grissom. “We will do everything in our power to prevent funding and material support from finding its way from the heart of America to terrorists in foreign lands.”
“These individuals conspired and then acted on their radical beliefs by providing support to a known terrorist organization,” said Special Agent in Charge Anthony. “The identification of their conspiracy and the subsequent investigation demonstrate how members of the FBI’s Joint Terrorism Task Force continue to work with our international law enforcement partners to mitigate terrorist’s threats in order to protect our citizens.”
Farooq Mohammad was an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. In or around March 2008, he married a U.S. citizen. His brother, Ibrahim Mohammad, was also an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago-area from 2006 through 2012, until he moved to the Columbus-area.
According to the indictment, from January 2005 through January 2012, the four defendants conspired to provide money, equipment and other assistance to Anwar Al-Awlaki. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, was designated a global terrorist in 2010. The indictment also alleges that the defendants’ support was to be used in furtherance of violent jihad against the U.S. and U.S. military in Iraq, Afghanistan and throughout the world.
The defendants made various financial transactions in 2008 and 2009, and communicated about raising funds for a trip to the Middle East. Allegations in the indictment charge that Farooq Mohammad and Ibrahim Mohammad obtained money by opening credit cards and withdrawing money with no intention of repaying the amounts obtained from the financial institutions.
The indictment further alleges that on July 22, 2009, Farooq Mohammad travelled with two other people to Yemen to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki.
An indictment is only a charge 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.
If convicted, the defendants’ sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos Georgalis of the Northern District of Ohio, Assistant U.S. Attorney David Smith of the District of Kansas and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section.
Farooq Mohammad et al Indictment
Four Home Healthcare Workers Charges with Defrauding MedicaidRead the Press Release
St. Louis, MO – Two area home health care workers entered guilty pleas this week for billing Medicaid for home healthcare services that were not provided, while three other individuals were indicted with similar Medicaid home healthcare fraud charges. The charges include a home health care worker billing Medicaid when she was actually taking the bar examination in Jefferson City, Missouri, to become a lawyer. Another home health care worker billed Medicaid when his patient was actually in Florida; another home care worker billed Medicaid the day after she was discharged from the hospital after giving birth to a newborn baby and another home health care worker billed Medicaid for taking care of her husband.
JANISE LAMPLEY, St. Louis, Missouri, pled guilty today to three counts of making false statements to the Missouri Medicaid program. According to court documents, during 2014, Lampley submitted weekly timesheets to Medicaid in which she claimed to be providing 6-8 hours of home care services for two different patients. But Lampley was actually in Las Vegas, Chicago, Atlanta and Florida during the days that she told Medicaid that she was working in Missouri at the two patients’ homes. Lampley, a licensed Missouri lawyer, also billed Medicaid for daily home care services when she was actually taking the bar examination in Jefferson City, Missouri, to become a lawyer. After Medicaid funded payments to her for the home health care services, Lampley sometimes gave the two patients cash payments of $100-$200 per pay check.
MYKEILA McKINDALL, St. Louis County, Missouri, pled guilty today to three counts of making false statements to Medicaid. In her court documents, McKindall admitted that she was discharged from the hospital after delivering a baby on December 15, 2013, and received a doctor’s note to stay off work until January 23, 2014. However, McKindall then submitted false time sheets to Medicaid claiming that she provided daily home health care starting December 16, 2013, through January 23, 2014. Actually, McKindall was at home taking care of her newborn baby. McKindall also billed Medicaid for days when one of her patients was not at the patient’s home for days at a time, and during some time frames when McKindall was actually working at another full-time job at a restaurant.
Both Lampley and McKindall pled guilty before United States District Judge John A. Ross. Each will be sentenced on February 9, 2015. Each charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
JEFFERY WINN, St. Louis, Missouri, was indicted Wednesday on five counts of making false statements to Medicaid. His indictment states that he submitted home health care time sheets for two patients at the same time as he also worked at a nursing home and for the State of Missouri. Winn routinely claimed over 20 total hours of work between his four jobs, and sometimes submitted work hours for all four jobs totaling over 23 or even 24 hours per day.
Finally, ANGELA WASHINGTON and ERIC HARVEY, both of St. Louis, Missouri, were indicted Wednesday on two counts of making false statements to Medicaid and one count of conspiring to defraud the Social Security Administration (SSA). The indictment alleges that under Medicaid’s rules, a wife cannot be paid for taking care of her spouse as a home health care aide. Washington and Harvey concealed their marriage from Medicaid, with Washington repeatedly asking Medicaid for money for taking care of her husband at home on a daily basis. Harvey and Washington also submitted a time sheet to Medicaid claiming reimbursement for home health care services when both Harvey and Washington were actually testifying in a SSA disability hearing. At the disability hearing, the indictment alleges that both defendants provided false testimony to SSA that they were unmarried and Harvey lived alone.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Offices of Inspector General for the U.S. Department of Health and Human Services and the Social Security Administration, with assistance from the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
Former Investment Bank Associate Pleads Guilty in Manhattan Federal Court to Theft of Confidential Information from the Federal Reserve Bank of New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the guilty plea of ROHIT BANSAL, who was formerly employed as an associate at an investment bank headquartered in New York, New York (the “Investment Bank”), to the theft of confidential information from the Federal Reserve Bank of New York (“FRBNY”). Between July and September of 2014, at the direction of BANSAL, another individual, Jason Gross, without authorization, took confidential information from the FRBNY, which related to the FRBNY’s supervision of banks, and which Gross obtained during the course of his employment with the FRBNY, and sent that information to BANSAL. BANSAL then used the confidential information in an effort to further his employment at the Investment Bank. BANSAL entered his guilty plea today before U.S. Magistrate Judge Gabriel W. Gorenstein. Gross, who was charged with the same offense as BANSAL, pled guilty yesterday before Judge Gorenstein.
According to the Information filed today in Manhattan federal court:
The Federal Reserve System (“Federal Reserve”) fulfills several roles in the nation’s economy, including managing the nation’s money supply through monetary policy, supervising and regulating banking institutions, and generally overseeing the stability of the financial system. The Board of Governors of the Federal Reserve (the “Board”) is the Federal Reserve’s main governing body, and the FRBNY is one of the banks that is part of the Federal Reserve. Among other things, the FRBNY supervises and conducts examinations of banks that are members of the Federal Reserve and bank holding companies. Federal regulations protect the disclosure of certain “confidential supervisory information” (“CSI”) related to the Board’s and the FRBNY’s supervision of banks, including reports of examination of banks and information derived from, related to, or contained in, such reports.
From in or about August 2007 up to and including in or about March 2014, BANSAL was employed as a supervisory manager at the FRBNY, where he had responsibility for supervising certain banks. Thereafter, from in or about July 2014 until in or about October 2014, BANSAL was employed as an associate at the Investment Bank, which, among other things, provided advice on regulatory issues to certain client banks, including banks supervised by the FRBNY. During the relevant time period, Jason Gross was employed by the FRBNY and, prior to April of 2014, BANSAL and Gross had worked together at the FRBNY.
From at least in or about July 2014, up to and including in or about September 2014, at the direction of BANSAL, who had left the FRBNY and had begun to work at the Investment Bank, Gross emailed documents containing CSI (the “Confidential Documents”) to BANSAL. Gross sent the Confidential Documents, which he obtained during and through his employment at the FRBNY, to BANSAL without authorization from the Board or the FRBNY. Upon receiving the Confidential Documents from Gross, BANSAL utilized certain of the Confidential Documents in an effort to further BANSAL’s employment at the Investment Bank. In particular, BANSAL disseminated certain of the Confidential Documents to other Investment Bank employees for the purpose of assisting with the Investment Bank’s work for its client banks.
For example, on or about August 10, 2014, BANSAL sent Gross a text message asking Gross to send to BANSAL particular Confidential Documents regarding two banks (“Bank-1” and “Bank-2”). BANSAL further asked Gross to send the documents to BANSAL’s personal email account. Thereafter, on or about August 19, 2014, Gross sent from his personal email account to the personal email account of BANSAL one of the Confidential Documents (“Confidential Document-1”). Gross knowingly sent Confidential Document-1, which was labeled as confidential, to BANSAL without authorization from the Board or the FRBNY. Confidential Document-1 related to the supervision of Bank-2, a bank that BANSAL had previously been responsible for supervising when he worked at the FRBNY. Notwithstanding that BANSAL knew that he was not entitled to receive or disseminate any Confidential Documents, BANSAL sent Confidential Document-1 from his email account at the Investment Bank to the email accounts of other individuals employed by the Investment Bank. In a cover email attaching Confidential Document-1, BANSAL told these employees that, with respect to certain supervisory issues, Confidential Document-1 “gives you [an] idea of what [the] Board was looking at . . . Please don’t distribute.”
* * *
BANSAL, 30, of New York, New York, pled guilty to one count of theft of government property the value of which property did not exceed $1,000 and faces a maximum sentence of one year in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BANSAL is scheduled to be sentenced by Judge Gorenstein on March 9, 2016, at 10:00 a.m.
Mr. Bharara praised the investigative work of the FBI and thanked the FRBNY and the Board for their support and assistance with the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Drew Johnson-Skinner and Sarah E. Paul are in charge of the prosecution.
Former Investment Adviser at Global Bank Pleads Guilty in Manhattan Federal Court to Multimillon-Dollar Scheme to Defraud ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL OPPENHEIM pled guilty today to embezzlement and securities fraud for using his position as an investment adviser at a global financial institution based in New York City (the “Bank”) to defraud multiple Bank clients out of approximately $22 million over the course of a seven-year period. Among other false and misleading statements, OPPENHEIM lied to his clients by claiming to have invested their money in low-risk municipal bonds and sending them doctored account statements purportedly reflecting those investments and profits earned. In truth, OPPENHEIM used the clients’ money for his own personal benefit and, in certain circumstances, to pay back other investors. OPPENHEIM was arrested on April 16, 2015, and pled guilty today before United States District Judge Analisa Torres.
Manhattan U.S. Attorney Preet Bharara said: “Michael Oppenheim has now admitted he lied to his clients about how he would handle their money and embezzled $22 million in clients’ money to make his own personal investments and to pay his own expenses.”
According to the Complaint, the Information, and other statements made in open court:
From at least March 2008 to March 2015, OPPENHEIM, a former investment adviser at the Bank, a global financial institution based in New York City, abused his relationship of trust with his clients in converting to his own use and personal benefit more than $22 million belonging to ten clients whose investment advisory accounts at the Bank he purported to manage. OPPENHEIM did not invest these clients’ money in low-risk municipal bonds at the Bank as promised. Instead, after taking a client’s money, OPPENHEIM, without the client’s knowledge, used the client’s money to obtain cashier’s checks purporting to be remitted by the clients. OPPENHEIM then deposited the cashier’s checks in at least three online brokerage accounts OPPENHEIM controlled at financial institutions other than the Bank. OPPENHEIM used clients’ funds for his own personal use, including on-line trading in accounts he controlled, and to pay for personal expenses such as a home loan and bills.
In an effort to cover up his fraudulent scheme, OPPENHEIM provided some clients with fraudulent Bank account statements. The purported Bank account statements reflected bonds held by other clients of the Bank, but OPPENHEIM caused his clients’ names to appear on the statements in order to give the false impression that OPPENHEIM had purchased bonds on behalf of those clients, as he had promised. In a further effort to conceal his fraud, on several occasions, and without his clients’ consent or authority, OPPENHEIM withdrew funds from one client and deposited those funds into the account of another client.
OPPENHEIM continued the fraud until he was terminated by the Bank in March 2015.
* * *
OPPENHEIM, 48, of Livingston, New Jersey, pled guilty to one count of embezzlement and one count of securities fraud. The embezzlement count carries a maximum of 30 years in prison. The securities fraud count carries a maximum sentence of 20 years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. According to the terms of the plea agreement, OPPENHEIM has agreed to forfeit $22,432,375, and to pay $27,292,856 in restitution.
OPPENHEIM is scheduled to be sentenced by Judge Torres on February 15, 2016, at 4:30 p.m.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) has pending civil charges against OPPENHEIM.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC and the Financial Industry Regulatory Authority (“FINRA”) for their assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Janis Echenberg and Brooke Cucinella are in charge of the prosecution.
Former Contracting Officer Sentenced to 15 Months in Prison for Bribery in Connection with Awarding of U.S. Postal Service ContractsRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service contracting officer, today to 15 months in prison, followed by three years of supervised release, for receiving bribes in connection with the awarding of mail delivery contracts. Judge Hazel also entered an order that Cooper forfeit $25,931.76.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
According his plea agreement, in May 2015, Cooper had pleaded guilty to accepting more than $25,000 in bribes from a co-defendant who owned two companies that bid on and secured transportation contracts with the Postal Service for mail delivery. Those bribes came in a variety of forms, ranging from fitness equipment delivered to Cooper’s Maryland home, $15,900 in cash, and the payment of a $7,355 tuition bill for Cooper’s daughter. Cooper admitted that in exchange for these payments, he gave favorable consideration to his co-defendant’s companies in the bidding process for nine Postal Service contracts, all of which were awarded to the co-defendant’s companies.
U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of Inspector General for its work in the investigation. The case was prosecuted by Assistant U.S. Attorneys David Salem and Arun G. Rao, and Trial Attorneys Monique Abrishami and Mark Cipolletti of the Criminal Division’s Public Integrity Section.
Former Contracting Officer Sentenced for Bribery in Connection with Awarding of U.S. Postal Service ContractsRead the Press Release
A Glenn Dale, Maryland, man and former U.S. Postal Service contracting officer was sentenced today to 15 months in prison for receiving bribes in connection with the awarding of mail delivery contracts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service’s Office of Inspector General made the announcement.
In May 2015, Gregory Cooper, 59, pleaded guilty to accepting more than $25,000 in bribes from a co-defendant who owned two companies that bid on and secured transportation contracts with the Postal Service for mail delivery. Those bribes came in a variety of forms, ranging from fitness equipment delivered to Cooper’s Maryland home to a semester’s worth of college tuition for Cooper’s daughter, in addition to $15,900 in cash. Cooper admitted that in exchange for these payments, he gave favorable consideration to his co-defendant’s companies in the bidding process for nine Postal Service contracts, all of which were awarded to the co-defendant’s companies.
In addition to his prison sentence, U.S. District Judge George J. Hazel of the District of Maryland ordered Cooper to forfeit the amount of the bribes, $25,931.76, and to serve three years of supervised release following his prison sentence.
This case was prosecuted by Trial Attorneys Mark J. Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys David Salem and Arun G. Rao of the District of Maryland. The case was investigated by special agents from the U.S. Postal Service Office of Inspector General.
Former Bookkeeper Pleads Guilty to Defrauding Fort Campbell CharityRead the Press Release
Anita Marshall, 43, of Daphne, Alabama and formerly of Fort Campbell, Kentucky, pleaded guilty yesterday to defrauding a Fort Campbell charitable organization, announced David Rivera, United States Attorney for the Middle District of Tennessee.
“While fraud is always wrong, the theft of charitable funds that were to be used to help military members and their families is particularly troubling,” said U.S. Attorney David Rivera. “Defrauding a charity for personal gain simply cannot be tolerated.”
During a hearing before U.S. District Court Judge Aleta A. Trauger, Marshall pleaded guilty to a charge of bank fraud associated with her theft and subsequent use of checks from the Fort Campbell Thrift Shop, where she served as the assistant manager and bookkeeper. Marshall admitted that she stole blank checks from the thrift shop, issued these checks to herself, forged the signature of the thrift shop manager and then deposited these checks into her own accounts. Marshall’s fraudulent activity occurred from August 2009 until November 2010 and involved 91 checks totaling more than $54,000.
The Fort Campbell Thrift Shop is operated by the Fort Campbell Officers’ Spouses’ Club and donates its proceeds to the club’s Welfare Fund, which funds scholarships for family members of military personnel and donates money to charities, including those supporting military personnel and their families.
Marshall faces up to 30 years in prison and a fine of up to $1,000,000, and will also be ordered to pay restitution to the Fort Campbell charity. Marshall will be sentenced by Judge Trauger on February 5, 2016.
The case was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Final Defendants Sentenced in Smuggling Organization Spanning from Brownsville to HoustonRead the Press Release
BROWNSVILLE, Texas – The final of seven defendants residing in the Brownsville area have been sentenced for their respective roles in an alien smuggling operation operating throughout South Texas, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) - San Antonio. All had pleaded guilty to charges at varying times in 2015.
Ruth Fernanda Morales-Lopez, 33, pleaded guilty to bringing in and harboring aliens and money laundering. Today, U.S. District Judge Hilda Tagle ordered her to serve a total of 34 months in federal prison. Also sentenced today was Esteban Castro-Medina, 41, and Alfredo Prieto-Garcia, 44. Castro-Medina received a sentence of 18 months for bringing in and harboring the aliens, while Prieto-Garcia was sentenced to 47 months for his convictions of conspiracy to bring in and transport aliens as well as conspiracy to commit money laundering.
The remaining defendants - Abram Erasmo Rodriguez, 22, Olegario Reyes-Bonola, 51, Digma Salinas-De Rivera, 42, and Jose Antonio Marin-Sanchez, 44 - were sentenced previously. Rodriguez was convicted of conspiracy to bring into and transport certain aliens within the United States and received 14 months, while Reyes-Bonola, Salinas-De Rivera and Marin-Sanchez were all convicted of bringing in and harboring the aliens. Reyes-Bonola and Salinas-De Rivera each received 12 months and one day in prison, while Marin-Sanchez was sentenced to eight months.
“Today’s sentencing illustrates HSI’s aggressive stance against human smuggling organizations and their illicit laundering of proceeds through U.S. financial institutions,” said Dawson. “HSI investigates complex criminal and money laundering organizations and brings to justice those who elect to circumvent the laws of this nation. HSI will continue to leverage its resources to further identify, disrupt and dismantle these types of transnational criminal organizations.”
All had been implicated in a conspiracy to transport undocumented aliens to stash houses in the Brownsville area, where they were concealed until being transported north to Houston.
Reyes-Bonola, Castro-Medina and Salinas-De Rivera, all illegal aliens who resided in San Benito, were arrested in San Benito at a stash house harboring 30 aliens on Nov. 19, 2014. All admitted they were responsible for concealing and harboring the aliens at the direction of Morales-Lopez.
Rodriguez, of Los Fresnos, had admitted that from November 2013 through August 2014 he participated in the conspiracy. Specifically, he was instructed to pick up the aliens and transport them to the stash house. The plea agreement further indicates that he opened a bank account at the direction of Morales-Lopez. He then accepted cash deposits from families of the smuggled aliens as payment and turned it over to Morales-Lopez.
Further investigation into the organization revealed more than $1 million in smuggling fees being laundered through bank accounts and money services businesses.
Morales-Lopez, of Laguna Vista, admitted she was the person who decided who could stay and who could go at the San Benito stash house based on whether they paid their smuggling fees. She further admitted $1,091,229.90 in her bank account was for alien smuggling fees and that she structured her withdrawals from that account to circumvent the Bank Secrecy Act.
Prieto-Garcia admitted that he operated stash houses in Cameron County and coordinated their movement from Cameron County to Houston. He also admitted to accepting payment for the alien smuggling in an amount of $1,091,229.90. As part of his sentence today, Prieto-Garcia was assessed a money judgment against him for that amount.
HSI led the investigation with assistance from Border Patrol. Assistant U.S. Attorneys Ana Cano and Karen Betancourt are prosecuting the case.
Federal Jury Delivers Guilty Verdict Against Methamphetamine TraffickerRead the Press Release
STATESVILLE, N.C. B A federal jury sitting in Statesville delivered a guilty verdict against Eduardo Trejo-Munoz, a/k/a “Lalo,” 23, of Hickory, N.C., for trafficking high purity crystal methamphetamine worth over $5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Following a two-day trial which ended late yesterday, Trejo-Munoz was convicted of five charges, including conspiracy to distribute and to possess with intent to distribute methamphetamine and possession of methamphetamine with intent to distribute.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Sheriff Coy Reid of the Catawba County Sheriff’s Office; and Chief Tom R. Adkins of the Hickory Police Department.
According to evidence presented at trial, from in or about 2013 through September 2014 in Catawba and Mecklenburg counties and elsewhere, Trejo-Munoz trafficked more than 50 kilograms of near-pure crystal methamphetamine, which constitutes approximately 500,000 dosage units, with a street value of more than $5 million. Evidence presented at trial established that, over the course of the investigation, law enforcement purchased 133 grams of methamphetamine from Trejo-Munoz. Law enforcement also seized another 54 grams of methamphetamine from the defendant, as well as drug paraphernalia and a handgun with laser site from his residence.
This prosecution stems from Operation “Lay Low,” codenamed after Trejo-Munoz’s nickname, which is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 55 defendants on methamphetamine trafficking and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Trejo-Munoz has been in federal custody since September 16, 2014, and will remain in custody until his sentencing date, which has not yet been set. Trejo-Munoz faces a statutory mandatory minimum sentence of 10 years to life in prison, as well as a fine of up to $10,000,000.
The case was investigated by the DEA, HSI, the Catawba County Sheriff’s Office, Hickory Police Department, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol.The prosecution of this OCDETF investigation is being handled by Assistant U.S. Attorney Steven R. Kaufman.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the November 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Elizer Bailon. Reentry of Removed Alien. Bailon, 36, is charged with having returned to the United States unlawfully after being deported in December 2011 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Gabriela Rodriguez De Rangel. Possession of Methamphetamine with Intent to Distribute. Rodriguez De Rangel, 40, is charged with possession of methamphetamine with the intent to distribute. If convicted, the statutory maximum penalty is not more than 20 years in prison and a $1,000,000 fine. In addition, Rodriguez De Rangel would face the forfeiture of criminal proceeds and facilitating property, including a .22 caliber pistol. The Drug Enforcement Administration is the investigating agency.
Fernando Gonzalez-Leyva. Reentry of Removed Alien. Gonzalez-Leyva, 45, is charged with having returned to the United States unlawfully after being deported in January 2011 near El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Luis Manuel Leyva. Reentry of Removed Alien. Leyva, 35, is charged with having returned to the United States unlawfully after being deported in September 2009 near El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Abraham Martinez. Possession of an Unregistered Destructive Device. Martinez, 36, of Tulsa, is charged with possession of an unregistered destructive device, specifically, a molotov cocktail. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Jose Bruno Piedra-Ayvar, Jorge Antonio Piedra-Ayvar, Carlos De Los Santos and Adalid Valdez-Nava. Possession of Methamphetamine with Intent to Distribute. Jose Piedra-Ayvar, 26, Jorge Piedra-Ayvar, 22, De Los Santos, 19, and Valdez-Nava, 39, all of Tulsa, are charged with possession with intent to distribute 500 grams or more of methamphetamine. If convicted, the statutory maximum penalty is not less than 10 years in prison and up to life in prison and a fine of $10,000,000. The defendants also face forfeiture of facilitating property and proceeds, including entry of a money judgment of at least $1,000,000. The Drug Enforcement Administration is the investigating agency.
Cody Jacob Wheeler. Felon in Possession of a Firearm and Ammunition. Wheeler, 30, is charged with possession of a .25 caliber pistol and ammunition after a prior felony conviction. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearm and Explosives is the investigating agency.
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Federal Detainee Charged with Solicitation to Commit Crimes of ViolenceRead the Press Release
CLEVELAND – A Pittsburgh man currently being detained in federal custody in Ohio has been indicted by a federal grand jury in Cleveland, Ohio, on charges of solicitation to commit crimes of violence, United States Attorney David J. Hickton of the Western District of Pennsylvania and United States Attorney Steven M. Dettelbach of the Northern District of Ohio announced today.
The two-count indictment, returned on Nov. 4, named Price Montgomery, 35, formerly of Pittsburgh, Pa., as the sole defendant.
According to the indictment, from April 2015 until August 2015, in the Northern District of Ohio, Montgomery solicited or endeavored to persuade two persons known to the grand jury as “P1” and “B” to kill a person known to the grand jury as IV-1 (Intended Victim 1). Additionally, from April 2015 until August 2015, in the Northern District of Ohio, Montgomery solicited or endeavored to persuade “P1” to kill a person known to the grand jury as IV-2 (Intended Victim 2).
According to a criminal complaint filed on Oct. 30 in the Northern District of Ohio, Montgomery solicited the murder of IV-1 because Montgomery believed that IV-1 was cooperating with law enforcement in a money laundering investigation against him. In addition, the complaint states that Montgomery solicited the murder of IV-2 in retaliation for her suspected cooperation or testimony against him.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $250,000 or both at each of the two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Montgomery is currently incarcerated at the Northeast Ohio Correctional Center in Youngstown, Ohio, on federal drug trafficking and firearms charges out of the Western District of Pennsylvania.
Assistant U.S. Attorney Shaun E. Sweeney from the Western District of Pennsylvania has been specially designated to handle this case for the government.
The Western Pennsylvania offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation and the U.S. Marshals Service, along with the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Kansas Man One of Four Charged with Providing Material Support to Al Qaeda in the Arabian PeninsulaRead the Press Release
WASHINGTON – A four-count indictment was unsealed today in the U.S. District Court of the Northern District of Ohio charging four men with conspiring to travel to Yemen to provide thousands of dollars to Anwar Al-Alwaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. One of the men used to live in Kansas.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio, U.S. Attorney Barry R. Grissom of the District of Kansas and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Yahya Farooq Mohammad, 37; Ibrahim Zubair Mohammad, 36; Asif Ahmed Salim, 35; and Sultane Room Salim, 40, were each indicted on one count of conspiracy to provide and conceal material support and resources to terrorists, one count of providing material support and resources to terrorists and one count of conspiracy to obstruct justice. Farooq Mohammad and Ibrahim Mohammad both face an additional count of conspiracy to commit bank fraud.
“According to the allegations in the indictment, Farooq Mohammad, Ibrahim Mohammad, Asif Salim and Sultane Salim conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“The charges in this case outline a plan to send thousands of dollars to a known terrorist, a plan which came to fruition shortly before one of the most notorious attempted attacks in recent memory – an attack claimed by that same terrorist,” said U.S. Attorney Dettelbach. “This indictment is a testament to the perseverance of those who stand watch over our nation and is a clear message to those who support terrorism – we will not forget and you will face justice.”
“In today’s world, Kansas is not far removed from the battlefields of the war on terror,” said U.S. Attorney Grissom. “We will do everything in our power to prevent funding and material support from finding its way from the heart of America to terrorists in foreign lands.”
“These individuals conspired and then acted on their radical beliefs by providing support to a known terrorist organization,” said Special Agent in Charge Anthony. “The identification of their conspiracy and the subsequent investigation demonstrate how members of the FBI’s Joint Terrorism Task Force continue to work with our international law enforcement partners to mitigate terrorist’s threats in order to protect our citizens.”
Farooq Mohammad was an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. In or around March 2008, he married a U.S. citizen. His brother, Ibrahim Mohammad, was also an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago-area from 2006 through 2012, until he moved to the Columbus-area.
According to the indictment, from January 2005 through January 2012, the four defendants conspired to provide money, equipment and other assistance to Anwar Al-Awlaki. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, was designated a global terrorist in 2010. The indictment also alleges that the defendants’ support was to be used in furtherance of violent jihad against the U.S. and U.S. military in Iraq, Afghanistan and throughout the world.
The defendants made various financial transactions in 2008 and 2009, and communicated about raising funds for a trip to the Middle East. Allegations in the indictment charge that Farooq Mohammad and Ibrahim Mohammad obtained money by opening credit cards and withdrawing money with no intention of repaying the amounts obtained from the financial institutions.
The indictment further alleges that on July 22, 2009, Farooq Mohammad travelled with two other people to Yemen to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki.
An indictment is only a charge 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.
If convicted, the defendants’ sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos Georgalis of the Northern District of Ohio, Assistant U.S. Attorney David Smith of the District of Kansas and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Effingham, Illinois, Doctor Sentenced for Illegal Dispensation of Controlled SubstancesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Naeem Mahmood Kohli, 61, a medical doctor from Effingham, Illinois, was sentenced to 24 months in federal prison and ordered to pay $10,500 in fines as well as $700 in special assessments, to be followed by 3 years of supervised release after incarceration. Kohli was also ordered to forfeit to the United States his office building located at 500 North Maple, as well as $34,419.72, as a result of his drug convictions.
United States Attorney Wigginton stated, "The evidence heard by the jury and judge in this case established that Dr. Kohli abandoned his role as a medical professional for a price. In a community, and a nation, where medical doctors are held up as the trusted gatekeepers, Kohli, for a price, sold the keys to the pharmacy to patients with drug addictions. My office will continue to seek out those willing to peddle their professional integrity for financial gain. The abuse of prescription drugs is at an epidemic level in our communities and those responsible for putting these drugs on the street will be found and prosecuted."
Kohli, who operated the Kohli Neurology and Sleep Center, located at 500 North Maple in Effingham, Illinois, was indicted by a Federal Grand Jury in March of 2014 and went to trial in United States District Court during January 2015. On January 27, 2015, after a 17-day jury trial, Kohli was found guilty on seven counts of illegally dispensing Schedule II Controlled Substances to patients who suffered from drug addiction. The Benton, Illinois, jury concluded that Kohli illegally dispensed Oxycodone and Hydromorphone, both highly addictive controlled substances, outside the usual course of the medical practice and not for a legitimate medical purpose.
The prosecution arose from a law enforcement investigation titled Operation Doctor Feelgood. The joint law enforcement investigation focused on "pill mills" where doctors provided prescription drugs to addicts for a fee.
The successful prosecution is the result of an investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigation; the Illinois State Police, Medicaid Fraud Control Bureau; the Federal Bureau of Investigation; and the Effingham Police Department. The prosecution was handled by Assistant United States Attorneys Ranley R. Killian and Michael J. Quinley.
East Haddam Man Involved in Fraud Scheme Sentenced to 20 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON TORRANCE, 44, of East Haddam, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 20 months of imprisonment, followed by three years of supervised release, for engaging in a fraud scheme.
According to court documents and statements made in court, between approximately March 2008 and August 2012, TORRANCE and Adam Meyers devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves. TORRANCE worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and Meyers was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1. In addition, Daniel Wall operated Bob Wall and Associates, a Cheshire-based distributor of electrical and other related equipment.
As part of the scheme, Meyers identified to TORRANCE projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware. Meyers would submit a purchase order for materials to TORRANCE. TORRANCE then submitted a purchase order to Wall for the goods listed on the purchase order sent by Meyers. Wall then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Bob Wall and Associates. Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1. Wall then hand-delivered a business check to TORRANCE for approximately 90 percent of the money that had been paid by Distributor-1 to Bob Wall and Associates, and Wall retained the remaining 10 percent as his share of the proceeds from the scheme. TORRANCE then paid out a portion of the proceeds of the scheme to Meyers.
At no time did any product on the purchase orders actually ship to the customer.
The victim companies lost more than $600,000 as a result of this scheme.
On February 23, 2015, TORRANCE and Meyers each pleaded guilty to one count of conspiracy to commit mail fraud. On July 15, 2015, Wall pleaded guilty to one count of misprision of a felony. On October 30, 2015, Meyers, 44, of Southbury, was sentenced to 18 months of imprisonment, followed by three years of supervised release, and Wall, 59, of Bridgeport, was sentenced to three years of probation, the first 12 months of which he must serve in home confinement.
Restitution will be determined after additional court proceedings.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys David E. Novick and William J. Nardini.
Dorchester Real-Estate Broker Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
BOSTON – A real-estate broker was sentenced today for conspiracy to defraud mortgage lenders of $4 million relating to more than two-dozen properties in Dorchester.
Joan Ruggiero, 78, was sentenced by U.S. District Court Judge William G. Young to nine months in prison and nine months of home detention, and was ordered to pay a fine of $100,000 and restitution of $4.1 million to the lenders. In October 2013, Ruggiero pleaded guilty to one count of conspiracy.
Ruggiero, who owned a real-estate business in Dorchester, and her co-conspirator identified buildings for sale in Dorchester that they could purchase and then convert into individual condominium units. After this conversion, Ruggiero and the co-conspirator recruited individuals to pose as purchasers of the condominiums, promising them that they were making a good investment. Ruggiero, who held herself out as a broker, and her co-conspirator actually owned the units. After she recruited the “buyers,” Ruggiero arranged for the submission of mortgage applications to various lenders, which contained false information about the “buyers’” income, assets, and intentions to live in the properties. The scheme also involved creating entirely fictitious documents, such as phony leases, bank documents, and verifications of employment. Relying on the false information provided, the lenders approved the mortgages and provided the required funds at the property closings. Ruggiero and her co-conspirator took those funds – over $4 million – and deposited them into their own accounts.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
District Man Sentenced to Six Years in Prison for Theft at Georgetown University Student's ApartmentRead the Press Release
WASHINGTON - Antoine Gibson, 36, of Washington, D.C., has been sentenced to six years in prison for burglarizing an apartment on the Georgetown University campus while a student was asleep inside, U.S. Attorney Channing D. Phillips announced today.
Gibson pled guilty in July 2015, in the Superior Court of the District of Columbia, to first-degree burglary as well as a violation of the Bail Reform Act. He was sentenced on Nov. 4, 2015, by the Honorable Patricia A. Broderick. Following his prison term, Gibson will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 6, 2015, at about 8 p.m., Gibson entered the Henle Village apartment complex on the Georgetown University campus. He went to the fourth floor and entered the victims’ apartment, which was occupied at the time by a sleeping student. Gibson stole a laptop from the living room before heading to the upstairs bedrooms.
The sleeping student awoke to find Gibson, a stranger, standing in the hallway, and confronted him. Gibson denied doing anything illegal and left. The student called the campus police, who found Gibson a short time later within blocks of the main campus gate with the laptop in his backpack. Gibson later failed to appear for the first status hearing in the case in Superior Court. He was later arrested on a bench warrant executed by the U.S. Marshals Service.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers of the Georgetown University Department of Public Safety, as well as the crime scene officers and detectives and officers of the Metropolitan Police Department’s Second District. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including David Foster, La June Thames, and Katina Adams-Washington of the Victim/Witness Assistance Unit; Paralegal Specialist Tiffany Fogle, and Litigation Technology Assistant Aneela Bhatia. Finally, he praised the efforts of Assistant U.S. Attorney Katherine Earnest, who investigated and prosecuted the case.
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
The Department of Justice announced today the first 10 tribes to participate in an initial User Feedback Phase of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
The User Feedback Phase will grant access to national crime information databases and technical support to the following tribes: the Cherokee Nation of Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community of Michigan, the Oneida Indian Nation of New York, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation of Washington, the Shoshone-Bannock Tribes of the Fort Hall Reservation of Idaho, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla of Oregon and the White Mountain Apache Tribe of the Fort Apache Reservation of Arizona.
“This innovative program will allow an unprecedented sharing of critical information between tribal, state and federal governments, information that could help solve a crime or even save someone’s life,” said Deputy Attorney General Sally Quillian Yates. “This initial phase of TAP will help us understand the information gaps and the best ways to use this service to strengthen public safety in Indian country. The TAP program is a reflection of the Justice Department’s commitment to the government-to-government relationship, to overcoming barriers, and building strong partnerships with American Indian and Alaska Native people. The department will continue to work with Congress for additional funding to more broadly deploy the program.”
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART) and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA Purpose Code X Program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services, which will conduct name-based checks in situations where parents are unable to care for their children.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
PORTLAND, Ore. – The Department of Justice announced today the first 10 tribes to participate in an initial User Feedback Phase of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
In the District of Oregon, the Confederated Tribes of the Umatilla Indian Reservation (CTUIR) have been selected to participate in this initial phase of the TAP.
The User Feedback Phase will grant access to national crime information databases and technical support to the following tribes: the Cherokee Nation of Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community of Michigan, the Oneida Indian Nation of New York, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation of Washington, the Shoshone-Bannock Tribes of the Fort Hall Reservation of Idaho, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla Indian Reservation of Oregon, and the White Mountain Apache Tribe of the Fort Apache Reservation of Arizona.
“This innovative program will allow an unprecedented sharing of critical information between tribal, state and federal governments, information that could help solve a crime or even save someone’s life,” said Deputy Attorney General Sally Quillian Yates. “This initial phase of TAP will help us understand the information gaps and the best ways to use this service to strengthen public safety in Indian country. The TAP program is a reflection of the Justice Department’s commitment to the government-to-government relationship, to overcoming barriers, and building strong partnerships with American Indian and Alaska Native people. The department will continue to work with Congress for additional funding to more broadly deploy the program.”
“Providing the Confederated Tribes of the Umatilla Indian Reservation of Oregon access to federal criminal information databases through the Tribal Access Program for National Crime Information will address a longstanding tribal request for access to national databases and will assist tribal law enforcement in protecting and keeping tribal communities safe,” said Acting U.S. Attorney Billy J. Williams.
“The Tribal Access Program will be critical in protecting native women on the Umatilla Indian Reservation by ensuring all tribal domestic violence protection orders are entered into federal criminal databases. Currently, the CTUIR does not have this ability. My hope is that this will prove to be a program that will eventually be available to all tribes and help protect tribal communities throughout the nation. It has been something tribes have long requested and I'm happy the CTUIR has been chosen to be among the pilot tribes.” Brent Leonhard, CTUIR Tribal Attorney, Office of Legal Counsel.
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mug shots, and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA Purpose Code X Program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services, which will conduct name-based checks in situations where parents are unable to care for their children.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
WASHINGTON – The Department of Justice announced today the first 10 tribes to participate in an initial User Feedback Phase of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
In the Western District of Washington, the Tulalip and Suquamish Tribes have been selected to participate in this initial phase of the TAP.
The User Feedback Phase will grant access to national crime information databases and technical support to the following tribes: the Cherokee Nation of Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community of Michigan, the Oneida Indian Nation of New York, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation of Washington, the Shoshone-Bannock Tribes of the Fort Hall Reservation of Idaho, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla of Oregon, and the White Mountain Apache Tribe of the Fort Apache Reservation of Arizona.
“This innovative program will allow an unprecedented sharing of critical information between tribal, state and federal governments, information that could help solve a crime or even save someone’s life,” said Deputy Attorney General Sally Quillian Yates. “This initial phase of TAP will help us understand the information gaps and the best ways to use this service to strengthen public safety in Indian country. The TAP program is a reflection of the Justice Department’s commitment to the government-to-government relationship, to overcoming barriers, and building strong partnerships with American Indian and Alaska Native people. The department will continue to work with Congress for additional funding to more broadly deploy the program.”
“I am pleased that the Tulalip and Suquamish Tribes will be on the leading edge of this new data sharing effort,” said U.S. Attorney Annette L. Hayes. “As we discovered after the shooting last year at Marysville-Pilchuck High School, gaps in data sharing allowed a prohibited person to purchase a handgun and possess it at his home. That gun was used in the school shooting with the tragic consequences that we all now know. This pilot program will improve the ability of tribal law enforcement to meet their public safety mission and will improve the reliability of background check information to keep those who do not have a right to possess firearms from obtaining them.”
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots, and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA Purpose Code X Program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services, which will conduct name-based checks in situations where parents are unable to care for their children.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal. For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
Delaware County Man Charged with Running Second Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Mohamed Mansaray, 39, of Springfield, Pennsylvania, was charged by indictment, unsealed today, in an identity theft and tax fraud scheme, announced United States Attorney Zane David Memeger. The indictment includes 10 counts of wire fraud, nine counts of aggravated identity theft, and 10 counts of aiding or assisting in preparation or filing of false income tax returns. Mansaray was arrested this morning.
According to the indictment, defendant Mansaray defrauded the Internal Revenue Service by preparing and filing fictitious federal income tax returns that used the names and Social Security numbers of children as false dependents. The indictment alleges that Mansaray charged clients $800 to $1,000 to falsely include a dependent on their income tax return. By falsely adding dependents to the returns, Mansaray wrongfully claimed for clients a tax exemption for each false dependent, the child tax credit, the child and dependent care credit, and the earned income tax credit.
On July 2, 2014, Mansaray pleaded guilty to an information that charged him with conspiracy and 13 counts of aiding or assisting in preparation or filing of false income tax returns in a similar scheme. Mansaray admitted falsifying federal income tax returns for clients by fraudulently adding dependents to returns for the tax years 2008 through 2012. He is awaiting sentencing for those charges.
If convicted, the defendant faces a possible advisory sentencing guideline range of 51 to 57 months in prison for the new charges, including a mandatory minimum terms of 24 months in prison for aggravated identity theft, possible fines, up to three years of supervised release, and a $3,000 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
An indictment is an accusation. A defendant is presume innocent unless and until proven guilty.
Defendant Sentenced in Jury Tampering CaseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Jonathan Lawrence Oneal, 42, of Monroeville, was sentenced to three years of probation for attempted jury tampering. Oneal was sentenced by United States District Callie V.S. Granade, and in addition to the prison term, sentenced Oneal to pay a fine of $3,000.
Oneal pled guilty to corruptly endeavoring to influence, obstruct and impede the due administration of justice in the trial of United States v. Hastie. According to the plea agreement filed in the case, Oneal received a telephone call from one of the defendants in that trial and was asked if he knew any of the individuals identified as potential jurors. Oneal did, and agreed to pass a message to the potential jurors through the potential juror’s wife. Oneal contacted the wife of the potential juror at least twice in an attempt to influence the trial.
The case was investigated by the Federal Bureau of Investigation and the Monroe County Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Sean P. Costello.
Darrell L. Duncan Sentenced for Being A Felon in PossessionRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Darrell L. Duncan, age 34, of South Bend, Indiana, was sentenced Wednesday, November 4, 2015, in federal court by Judge Robert L. Miller, Jr. after his guilty plea of being a felon in possession of a firearm.
Duncan was sentenced to 15 years’ imprisonment and 3 years supervised release.
According to documents in the case, May 14, 2015, the United States Marshals Service along with Task Force Agents and other officers from the South Bend Police Department attempted to apprehend Duncan for outstanding warrants. During the operation, Duncan tried to back into a police vehicle and fled on foot. Officers located a .25 caliber firearm that was loaded with one round in the chamber and seven rounds of ammunition in the magazine that was dropped by Duncan during the pursuit. Duncan also dropped a bag containing approximately 3.1 grams of methamphetamine, approximately 24.4 grams of marijuana and 21 oxycodone pills. Also located in Duncan’s vehicle was a backpack containing 22 rounds of .25 caliber ammunition as well as 2.7 grams of marijuana and additional rock like substances. Duncan’s criminal history qualifies under the armed career criminal act for enhanced sentencing.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the South Bend Police Department. The case was handled by the Assistant United States Attorney Donald J. Schmid.
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Child Pornography Charges Filed Against River Ridge ManRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CRAIG QUINTAL, age 40, of River Ridge, was indicted today for crimes involving the sexual exploitation of children.
According to today’s indictment, beginning at an unknown time to on or about July 15, 2015, QUINTAL knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors. The indictment alleges that QUINTAL accessed visual depictions of minors under the age of twelve years-old engaging in sexually explicit conduct.
If convicted, QUINTAL faces a penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations and the Louisiana Attorney General’s Office, High Tech Crime Unit in investigating this matter. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Cherokee Nation of Oklahoma to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
TULSA, Okla. – The Department of Justice announced today the first 10 tribes to participate in an initial User Feedback Phase of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
In the Northern District of Oklahoma the Cherokee Nation of Oklahoma has been selected to participate in this initial phase of the TAP.
The User Feedback Phase will grant access to national crime information databases and technical support to the following tribes: the Cherokee Nation of Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community of Michigan, the Oneida Indian Nation of New York, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation of Washington, the Shoshone-Bannock Tribes of the Fort Hall Reservation of Idaho, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla of Oregon, and the White Mountain Apache Tribe of the Fort Apache Reservation of Arizona.
“This innovative program will allow an unprecedented sharing of critical information between tribal, state and federal governments, information that could help solve a crime or even save someone’s life,” said Deputy Attorney General Sally Quillian Yates. “This initial phase of TAP will help us understand the information gaps and the best ways to use this service to strengthen public safety in Indian country. The TAP program is a reflection of the Justice Department’s commitment to the government-to-government relationship, to overcoming barriers, and building strong partnerships with American Indian and Alaska Native people. The department will continue to work with Congress for additional funding to more broadly deploy the program.”
“The TAP program will provide Cherokee Nation of Oklahoma access to and allow information to be shared with federal crime databases,” said United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr. “The new program will support Cherokee Nation in analyzing their needs for national crime information, help provide appropriate solutions, and provide specialized training and assistance.”
TAP will help provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots, and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA Purpose Code X Program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services, which will conduct name-based checks in situations where parents are unable to care for their children.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
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Chaka Fattah Jr. Convicted of Fraud and Tax ChargesRead the Press Release
A federal jury today convicted Chaka Fattah Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service (IRS) and the Philadelphia School District of hundreds of thousands of dollars. Senior U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania scheduled a sentencing hearing for Feb. 3, 2015. The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment and supervised release.
Between 2005 and 2012, Fattah Jr.: made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration (SBA) to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
The evidence at trial showed that Fattah Jr. obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses – including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees and personal credit card expenses – rather than business expenses, as the loan terms required. These false statements involved fictitious earnings information that Fattah Jr. supplied for entrepreneurial companies which he claimed that he operated, including 259 Strategies LLC (259 Strategies) and Chaka Fattah Jr. & Associates. Fattah Jr. claimed that 259 Strategies provided educational consulting, diversity consulting and audit services, technical assistance, community relations and organizational development services to a select group of clients. He claimed that Chaka Fattah Jr. & Associates performed research and consulting concerning the development of computer centers.
In 2011, Fattah Jr. received a loan from United Bank for $50,000 intended for “working capital to support business operations.” Instead, he used the funds to make car payments, to pay down more than $15,000 in personal credit card debt and to pay more than $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
Fattah Jr. defaulted on several lines of credit and provided false information to two banks, to the SBA, which had insured the bank loans, and to an SBA investigator in order to attempt to settle the debts for less than what was owed. Fattah Jr. falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. In fact, during 2010, 259 Strategies was intact and, through this company, Fattah Jr. was earning between $6,250 and approximately $37,500 per month.
Fattah Jr. also stole funds supplied by the federal government to the Philadelphia School District, while acting as the chief operating officer of a Philadelphia company that provided educational services to “at risk” and other students through contracts with the school district. Fattah Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.
For tax years 2005, 2006 and 2008, Fattah Jr. filed false federal income tax returns and failed to pay federal income tax on a timely basis of approximately $51,141 on more than $150,000 in reported income during 2010.
The case was investigated by the FBI, IRS-Criminal Investigation and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.
Chaka Fattah Jr. Convicted of Fraud and Tax ChargesRead the Press Release
PHILADELPHIA – A federal jury today convicted Chaka Fattah, Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service, and the Philadelphia School District of hundreds of thousands of dollars. U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for February 2, 2015. The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment, and supervised release.
Between 2005 and 2012, Fattah, Jr. made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
Fattah, Jr., obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses - including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees, and personal credit card expenses - rather than business expenses, as the loan terms required. These false statements involved fictitious earnings information that Fattah, Jr., supplied for entrepreneurial companies which Fattah claimed he operated, including 259 Strategies, LLC (“259 Strategies”) and Chaka Fattah, Jr. & Associates. Fattah, Jr., claimed that 259 Strategies provided educational consulting, diversity consulting & audit services, technical assistance, and community relations, and organizational development services to a select group of clients. He claimed that Chaka Fattah, Jr. & Associates performed research and consulting concerning the development of computer centers.
In 2011, Fattah, Jr., received a loan from United Bank for $50,000 intended for "working capital to support business operations." Instead, he used the funds to make car payments, to pay down over $15,000 in personal credit card debt, and to pay in excess of $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
Fattah, Jr., defaulted on several lines of credit and provided false information to two banks, to the United States Small Business Administration, which had insured the bank loans, and to a Small Business Administration investigator, to attempt to settle the debts for less than what was owed. Fattah, Jr., falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. In fact, during 2010, Fattah, Jr.’s 259 Strategies was intact and, through this company, he was earning between $6,250 per month and approximately $37,500 per month.
Fattah, Jr., also stole funds supplied by the federal government to the Philadelphia School District, while acting as Chief Operating Officer of a Philadelphia company which provided educational services to "at risk" and other students through contracts with the school district. Fattah, Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.
For tax years 2005, 2006, and 2008 Fattah, Jr., filed false federal income tax returns and he failed to timely pay federal income tax of approximately $51,141 on reported income in excess of $150,000 during 2010.
The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.
Caseyville Man Sentenced for Stealing Funds from Railroad Retirement BoardRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Harold French, 53, of Caseyville, Illinois, was sentenced following his guilty plea to charges that he stole disability benefits from the U.S. Railroad Retirement Board. The United States District Court in East Saint Louis sentenced French to three years of probation. The court also ordered him to pay restitution of $82,763.47 to the U.S. Railroad Retirement Board and a special assessment of $100.
At his plea, French admitted that from May 2009 through June 2012, French fraudulently obtained benefits from U.S. Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive occupational disability benefits.
The case was investigated by agents of the U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board=s Office of Inspector General by calling 1.800.772.4258 or by e-mailing a complaint or information to: [email protected].