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Thursday 10 September 2015
Muskogee Man Sentenced to 168 Months for RobberyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MATTHEW EUGENE TRIPLETT, age 44, of Muskogee, Oklahoma, was sentenced to 168 months imprisonment, followed by 36 months of supervised release for CONSPIRACY TO INTERFERE WITH COMMERCE BY ROBBERY, in violation of Title 18, United States Code, Section 1951.
The charge arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation Violent Crime Task Force. The defendant pled guilty in May, 2015.
The Indictment alleged that from on or about January 15, 2014, through on or about January 22, 2014, in the Eastern District of Oklahoma, the defendant, MATTHEW EUGENE TRIPLETT, conspired with others, known and unknown to the grand jury, to commit robbery, which unlawfully obstructed, delayed, and affected commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Montgomery Man Sentenced to 465 Months for Federal Carjacking, Drug Crimes, and Gun CrimesRead the Press Release
Montgomery, Ala. – Seandarius Savage (21), a resident of Montgomery, was sentenced on September 3, 2015, by visiting United States District Judge Roy B. Dalton, Jr., from the United States District Court for the Middle District of Florida to 465 months in prison and 5 years of supervised release for federal carjacking, drug crimes, and gun crimes, announced U.S. Attorney George L. Beck, Jr. for the Middle District of Alabama.
Previously, a federal grand jury returned an indictment against Savage charging him with possession of marijuana with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, carjacking, and using a firearm during the carjacking.
According to the evidence presented at trial, in August of 2013 Savage was found with one pound of marijuana, a firearm, and over $4500 in cash in Montgomery. Additional evidence showed that Savage also committed a carjacking after using force to enter a home in Wetumpka. During that crime, Savage masked his face and used a gun to take the vehicle. Upon questioning by law enforcement, Savage admitted that the marijuana belonged to him and that the money was from selling drugs. Savage also admitted to going to the Wetumpka residence in disguise to commit a robbery, but he denied the carjacking. After hearing the evidence presented at trial in April of this year, a jury found Savage guilty of all four-counts in the indictment.
Visiting United States District Judge Roy B. Dalton Jr., sentenced Savage to 465 months in federal prison to be followed by 5 years of supervised release. Savage remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
"This significant sentence handed down by Judge Dalton marks the culmination of the efforts by ATF and our Federal, state and local law enforcement partners to remove yet another violent criminal from the streets of Montgomery." - William Bass, Resident Agent in Charge, ATF Montgomery Field Office
FBI Mobile Special Agent in Charge Robert Lasky stated: “The FBI’s commitment to our Federal, state and local law enforcement partners to investigate violent offenders remains unwavering.”
“My office remains committed to prosecuting those who have no regard for the law or the safety of our communities,” stated U.S. Attorney Beck. “I applaud the hard work and dedication of each agency that was involved in bringing this violent offender to justice.”
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Violent Gang Task Force; the Montgomery Police Department; and the Elmore County Sheriff’s Office. Assistant United States Attorneys Hollie Worley and Jerusha T. Adams prosecuted the case.
Moldovan Citizens Charged in Skimming ScamRead the Press Release
Viktor Popa, 23, and Ianic Repesciuc, 25, both citizens of Moldova, were charged today by indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. These offenses arise from the defendants’ scheme to place card reading devices, commonly known as “skimmers,” and hidden cameras in a position to capture access device numbers and Personal Identification Numbers (PINs) from unsuspecting customers using ATM facilities at TD Bank branches in Pennsylvania, New York and Connecticut, in order to steal money under the care, custody, and control of TD Bank using those stolen account numbers and PINs.
If convicted, each defendant faces a maximum possible sentence of 39 years in prison.
The case was investigated by Homeland Security Investigations (“HSI”) and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Minnesota National Guardsman Pleads Guilty to Producing Child Pornography While Deployed to AfghanistanRead the Press Release
A Minnesota National Guardsman pleaded guilty today to inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota made the announcement.
Andrew Schiller, 28, of Lakeville, Minnesota, pleaded guilty before U.S. District Judge Susan Richard Nelson of the District of Minnesota to one count of production of child pornography. The sentencing hearing will be scheduled at a later date.
According to his guilty plea, between Sept. 23, 2013, and Jan. 12, 2014, while deployed to Afghanistan, Schiller contacted a 14-year-old female from Minnesota online, and requested that she create and forward to him via the Internet sexually explicit photos of herself. The victim did, in fact, send several images in response to Schiller’s requests, including at least one sexually explicit image. Schiller further admitted that he communicated online with numerous other minors, including a 14-year-old and a 15-year-old, and that he attempted to convince the minors to send to him via the Internet sexually explicit videos or images of themselves.
This case is being investigated by the Army Criminal Investigative Division and the FBI, and anyone with additional information about this case should call the FBI Minneapolis Field Office at 763-569-8000. This case is being prosecuted by Trial Attorney Jeffrey H. Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Schiller Plea Agreement
Minnesota National Guardsman Pleads Guilty to Producing Child Pornography While Deployed to AfghanistanRead the Press Release
U.S. Attorney Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the guilty plea of a Minnesota National Guardsman to inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan.
Andrew Schiller, 28, of Lakeville, Minnesota, pleaded guilty before U.S. District Judge Susan Richard Nelson of the District of Minnesota to one count of production of child pornography. The sentencing hearing will be scheduled at a later date.
According to his guilty plea, between Sept. 23, 2013, and Jan. 12, 2014, while deployed to Afghanistan, Schiller contacted a 14-year-old female from Minnesota online, and requested that she create and forward to him via the Internet sexually explicit photos of herself. The victim did, in fact, send several images in response to Schiller’s requests, including at least one sexually explicit image. Schiller further admitted that he communicated online with numerous other minors, including a 14-year-old and a 15-year-old, and that he attempted to convince the minors to send to him via the Internet sexually explicit videos or images of themselves.
This case is being investigated by the Army Criminal Investigative Division and the FBI, and anyone with additional information about this case should call the FBI Minneapolis Field Office at 763-569-8000. This case is being prosecuted by Trial Attorney Jeffrey H. Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Merrimack College Professor Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – The former chairman of Merrimack College’s Civil Engineering Department pleaded guilty yesterday to possession of child pornography.
Gary S. Spring, 61, of Danvers, pleaded guilty to one count of possession of child pornography after being charged in September 2014. U.S. District Court Judge Richard G. Stearns scheduled sentencing for December 9, 2015. Spring was also the administrator of the college’s residential summer camp for middle and high school aged children.
In June 2014, Merrimack College in North Andover uncovered suspicious activity associated with one of the college’s loaner computers through virus threat detection alerts. An internal investigation determined that the computer had been loaned out to Spring, and that Spring had been logged on when the alerts were triggered. Further investigation determined that the computer was used to access child pornography.
Search warrants were executed at Spring’s office at Merrimack College and his residence in Danvers. During an interview with law enforcement officers, Spring admitted to viewing and saving child pornography on various electronic media devices, destroying evidence of his child pornography collection by throwing away two thumb drives, and by wiping and recycling his personal computer. Forensic examination revealed that over 300 images of child pornography were viewed on the computer.
The charging statute provides a sentence of no greater than 20 years in prison, five years to a lifetime 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; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; North Andover Police Chief Paul J. Gallagher; and Merrimack College Police Chief Michael DelGreco, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
McPherson Couple Pleads Guilty to Employing Undocumented WorkersRead the Press Release
WICHITA, KAN. – A married couple from India having no lawful status in the United States pleaded guilty Thursday to charges related to unlawful employment of undocumented workers, U.S. Attorney Barry Grissom said.
The couple, Satishkumar A. Patel, 47, and Daxaben S. Patel, 36, both of McPherson, Kan., entered their guilty pleas Thursday before U.S. District Eric F. Melgren. Judge Melgren set sentencing for Nov. 25.
Satishkumar Patel pleaded guilty to engaging in a pattern or practice of employing undocumented workers, failure to collect federal income and Social Security taxes, and operating an unlicensed money remitting business. His wife, Daxaben Patel, pleaded guilty to the unlicensed money remitting business charge. The charges carry maximum penalties of five years in prison and a $250,000 fine.
As part of the plea agreement, the Patels agreed to forfeit more than $700,000 in cash, money from bank accounts, and gold seized by the government in the case. Those assets represent proceeds of the Patel’s unlawful activities.
“This is what happens when employers ignore U.S. employment, business and tax laws,” Grissom said. “They face prosecution for their crimes and the loss of assets obtained in connection with those crimes. Contrary to what some may think, it is not legal to employ people not authorized to work in this country, nor is it legal to ignore our business and tax laws.”
The case came about when inspectors from the Kansas Department of Revenue Alcohol Beverage Control division observed employees at the Route 56 Express gas station and convenience store in McPherson selling tobacco products to minors. The investigators determined that several employees at Route 56 Express were not lawfully in the United States, nor were they authorized to be employed. Local and federal investigators then assisted, which led to the return of federal indictment in June.
Grissom praised the investigative agencies that worked on the case, which included the KDOR Office of Special Investigations, Homeland Security Investigations, the McPherson, Kan., Police Dept., the Kansas Department of Labor and the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.
McAllen Area Durable Medical Equipment Company Owner Pleads Guilty to Health Care FraudRead the Press Release
McALLEN, Texas ‐ The owner of Illusion Medical Equipment and Illusion Medical Equipment II LLC in McAllen has been convicted of health care fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson. Willie Chester Mitchell, 33, of McAllen, entered his guilty plea today before Chief U.S. District Judge Ricardo Hinojosa.
Mitchell admitted to submitting fraudulent claims to Texas Medicaid for incontinence and diabetic supplies that were not delivered as claimed. Mitchell further admitted that to conceal his fraud, phony delivery tickets were created and doctors’ signatures were forged on the required durable medical equipment prescription forms also known as Title XIX forms. Mitchell illegally used the identity of a former employee on numerous unlawful billings.
Sentencing has been set for Dec. 11, 2015, at 9:00 a.m. At that time, Mitchell faces up to 10 years in federal prison and a possible $250,000 fine for the health care fraud. For the aggravated identity theft, he faces a mandatory two years in prison which must be served consecutively to any other prison sentence imposed.
The investigation leading to the charges was conducted by the Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services‐Office of Inspector General. Assistant United States Attorney Michael Day is prosecuting the case
Massachusetts Man Sentenced on Charge of Being A Felon in Possession of A FirearmRead the Press Release
CONCORD, N.H. – Ira Grayson, 29, of Dorchester, Massachusetts, was sentenced today in the United States District Court for the District of New Hampshire to 42 months after pleading guilty to being a felon in possession of a firearm announced Acting United States Attorney Donald Feith.
On December 8, 2014, the Boston Police Department Youth Violence Strike Force captured two videos of Grayson possessing firearms at a firing range. Law enforcement obtained documentation that showed on December 7, 2014, Grayson rented two firearms: an IMI, model UZI, 9 mm, machine gun and a Sig Sauer, model M400, 5.56 ml, semi-auto rifle. Grayson is a convicted felon and barred from possessing a firearm. Both firearms traveled through interstate commerce prior to Grayson possessing them.
"Prosecuting individuals who violate the federal firearms laws is a high priority for our office," stated Acting United States Attorney Donald Feith. "We will work with our law enforcement partners to identify, investigate, and bring to justice those persons who possess firearms when they are prohibited from doing so, whether that possession occurs on the street or on a firing range."
The case was investigated by the Boston Police Department Youth Violence Strike Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Man Sentenced to 24 Months in Federal Prison for Carrying Out "Romance" Scam on Internet Dating SiteRead the Press Release
DALLAS — A Canadian resident who ran a “romance” scam on an Internet dating site that caused nearly $300,000 in losses to victims, including some in North Texas, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Oluwaseun Oyesanya, 25, was sentenced by U.S. District Judge Jane J. Boyle to 24 months in federal prison and ordered to pay $287,103 in restitution. He pleaded guilty in October 2014 to one count of conspiracy to commit wire fraud. A co-conspirator in the case, Olusegun Damiola Fajolu, 30, of Oklahoma City, pleaded guilty to the same offense earlier this month and is scheduled to be sentenced on December 17, 2015.
Oyesanya has been in custody since his arrest in March 2014 at the Minneapolis/St. Paul airport by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on a related federal complaint. Fajolu was arrested in Oklahoma City on a separate, but related, federal criminal complaint in April 2015.
According to documents filed in the case, beginning at least in late March 2012 and continuing to March 10, 2014, Oyesanya used the internet alias of “Trisha Jones” to carry out a “romance” scam on the internet dating website, tagged.com. Oyesanya created an online profile for “Trisha Jones,” and using that alias, befriended individuals on the site, and then cultivated a relationship through email and instant messages until an online romantic relationship blossomed.
After establishing the relationship, Oyesanya convinced his victims into believing “she” was in trouble in a foreign country and needed funds wired to “her” as soon as possible. Once the victims agreed to assist “Trisha,” in what they believed was “her” hour of need, Oyesanya directed the victims where to wire the funds.
Co-defendant Fajolu received the funds either directly from the victims or through another co-conspirator. Fajolu would then wire the funds to Oyesanya or to Oyesanya’s family members in various countries, including Nigeria, knowing these funds were the proceeds of a fraud being perpetrated by Oyesanya. For his assistance, Fajolu would keep approximately 30 percent of the funds he received from victims. In addition, according to the filed complaint, Fajolu and another individual purchased a vehicle in Burleson, Texas, with funds from the “romance” scam and had it shipped to Nigeria for Oyesanya.
ICE HSI investigated. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Man Pleads Guilty to PossessingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Pablo Bacilio Miranda, 45, of Ransomville, NY, pleaded guilty to fraud involving immigration documents, before U.S. District Judge Richard J. Arcara. The charge carries maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P Grisanti, who is handling the case, stated that on three occasions between September 2014 and June 2015, the defendant possessed and sold six sets of fraudulent Lawful Alien Registration Cards and social security cards. A valid Lawful Alien Registration Card verifies that the holder is lawfully admitted to the United States for permanent residence and gives the bearer the right to live and work permanently in the United States. The card is also provided to U.S. employers as proof of authorization to work in the United States.
The plea is the culmination of an investigation by the Immigration and Cistoms Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-In-Charge J. Michael Kennedy.
Sentencing is scheduled for December 23, 2015, at 12:30 p.m. before Judge Richard J. Arcara.
Louisiana Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Karl David Audirsch, 40, of Louisiana, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 87 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to forfeit $945,000 in cash.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the investigation focused on the drug trafficking activities of Letorrance Travis and his associates. On November 6, 2011, agents from the Drug Enforcement Administration and the Federal Bureau of Investigation seized approximately 14 kilograms of cocaine, $176,790 in United States currency, and four vehicles through a series of controlled acquisitions of cocaine and searches of several residences. The organization used minivans with hidden traps, one of which was later found to contain an additional 10 kilograms of cocaine, to transport kilograms of cocaine from Dallas, Texas to Buffalo.
The defendant was arrested in November 2011 along with Letorrance Travis, of Buffalo, and Luis Manuel Zuniga of Texas. Zuniga has also entered a plea and is awaiting sentencing, while Travis was recently indicted in a Racketeering Conspiracy which remains pending as well as this Indictment.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lockport Police Department, under the direction of Chief Lawrence Eggert, the Tonawanda Police Department, under the direction of Chief Jerome Uschold, the Amherst Police Department, under the direction of Chief John Askey, the Lancaster Police Department, under the direction of Chief Gerald Gill and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Long Prison Sentences for Modesto Man and Shasta County Man for Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — A Modesto man was sentenced today to 23.5 years in prison for producing child pornography, and a Shasta County man was sentenced today to eight years and one month in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
“Protecting the most vulnerable members of society is one of this office’s top priorities, and no one is more vulnerable than child victims of sexual exploitation crimes,” said U.S. Attorney Wagner.
“All children deserve a safe and healthy childhood free from abuse and exploitation. These crimes are among the most heartbreaking and abhorrent we investigate, especially when such are committed by someone the child trusts,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “We are committed to identifying and investigating individuals who commit crimes against children to ensure justice for the young victims and safety for others.”
“The sexual exploitation of children is wrong and will not be tolerated,” said Tatum King, deputy special agent in charge of HSI San Francisco. “Together with our law enforcement partners, Homeland Security Investigations will bring to justice anyone involved in such heinous acts.”
United States District Judge Troy Nunley sentenced Danny M. Shatswell Jr., 44, of Modesto, to 23 years and six months in prison for producing visual depictions of a minor engaged in sexually explicit conduct. According to court documents, Shatswell used a webcam to produce sexually explicit images of a minor. The minor victim reported to law enforcement that Shatswell was abusing her, and when Shatswell’s electronic devices were searched, sexually explicit images were found that Shatswell produced of his victim in 2010 and 2011.
This case was the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Sacramento County Sheriff's Office’s High Tech Crimes Task Force. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
Judge Nunley also sentenced Jason B. Scarcello, 45, of Anderson, today to eight years and one month in prison for receipt of child pornography. According to court documents, between April and June 2012, Scarcello used a file-sharing program to download multiple movies depicting the sexual exploitation of children. Scarcello was arrested on July 25, 2012, after agents executed a federal search warrant at his residence and discovered CDs and DVDs containing sexually explicit images and videos of children. According to the search warrant affidavit, suspicions about Scarcello first arose after investigators determined that he had engaged in computer chats with a previously charged suspect in Kansas. From August 2010 through March 2012, Scarcello and the Kansas man discussed in computer chats the abuse of child victims.
This case was the product of an ongoing investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Matthew Morris prosecuted the case.
These cases were 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Local Woman Heads to Federal Prison for Two Separate Fraud SchemesRead the Press Release
HOUSTON – A 38-year-old resident of Humble has been ordered to federal prison following her convictions in two separate schemes to defraud, announced U.S. Attorney Kenneth Magidson.
Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed pleaded guilty to engaging in a conspiracy to commit bank, mail and wire fraud as well as making false statements to a bank and wire fraud in the first case as well as conspiracy to commit mail and wire fraud, conspiracy to make false claims to the IRS and making a false claim to the IRS in another case.
Today, U.S. District Judge Gray Miller, who accepted the guilty pleas in both cases, ordered Johnson serve a total of 151 months in federal prison to be immediately followed by three years of supervised release. She was further ordered to pay $2,742,018.25 in restitution to her victims.
In the first scheme, Johnson illegally used various Social Security numbers not assigned to her by the Commissioner of Social Security from approximately January 2005 through February 2014. She would use those numbers in order to obtain loans from banks and other lending institutions to purchase houses and vehicles as well as to obtain credit cards and personal loans.
The second case was a tax refund fraud conspiracy. This scheme involved the electronic submission of federal tax returns in the names of numerous individuals, each of which falsely claimed tax credits that resulted in a refund. Johnson and others claimed more than $2.2 million in false first time home buyer credits on 2008 returns they filed with the IRS. The fraudulent claims resulted in Johnson and her co-conspirators claiming more than $2.3 million in fraudulent refunds. The defendants directed most of those refunds into their bank accounts or those of their co-conspirators
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Both cases are the result of investigations conducted by the U.S. Postal Inspection Service and IRS - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Last Defendant Sentenced in Case Involving Unregistered SecuritiesRead the Press Release
SACRAMENTO, Calif. — Ken Sarna, 50, of Vallejo, was sentenced today by United States District Judge Troy L. Nunley to two years and six months in prison for one count of selling unregistered securities, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sarna was the Director of Operations for Heaven Investments Holding Corporation (HIHC), a Sacramento company that was family-owned and operated by, among others, codefendants Akbar Bhamani, Zain Bhamani, and Aly Bhamani. From February 2007 through August 2008, HIHC solicited investors to participate in its investment programs, including the Tenants in Common (TIC) program. The TIC program was to use investor money to develop four properties, including a hotel in Oakland. HIHC sold fractionalized ownership interests to investors in each of the properties. These fractionalized interests qualified as securities, but were never registered with the SEC. Investors in HIHC lost between $2.5 million and $7 million.
In sentencing memoranda previously filed with the District Court in this case, the government argued that the sale of unregistered securities was related to the operation of HIHC as a Ponzi scheme, and that the company made various misrepresentations to investors about its holdings and how the investors’ money would be secured. At the sentencing of Akbar Bhamani, the government argued that none of the investors were told that HIHC was on the verge of collapse, and as late as May and June of 2008 — just months before the company declared bankruptcy — the defendants were still bringing in large investments with promises that HIHC was a “slam dunk” investment.
The court previously sentenced Akbar Bhamani, the founder and CEO of HIHC, to eight years in prison after hearing from a number of investors who described the devastating impact of their losses to HIHC. In some cases, investors lost their retirement and life savings. The court sentenced co-defendants, Zain Bhamani to two years and nine months in prison and Aly Bhamani to 11 months in prison. Shaun Bhamani was sentenced to four months in prison for his failure to report a mortgage fraud that was related to HIHC’s failed investment programs. Judge Nunley has ordered the defendants to pay restitution, the amount of which will be determined at a later proceeding.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith prosecuted the case.
Laredo Jury Convicts Laredo Man of Transporting Undocumented AliensRead the Press Release
LAREDO, Texas – A federal jury sitting in Laredo has convicted a local man of conspiracy and transporting undocumented immigrants for private financial gain, announced United States Attorney Kenneth Magidson. Jose Javier Villafranca, 46, of Laredo, was convicted on all counts as charged after only two hours of deliberation today.
Villanfranca had attempted to smuggle six undocumented immigrants through a United States Border Patrol checkpoint in the tractor trailer that he was operating on July 5, 2015. The undocumented immigrants were discovered when a U.S. Border Patrol canine unit alerted to their presence in the truck’s trailer.
At trial, the jury heard testimony from Border Patrol agents who described the circumstances leading to their discovery of the undocumented Guatemalans and Villafranca’s arrest. Two of the illegal aliens testified at trial detailing how they had been transported to Villafranca’s tractor-trailer where Villafranca instructed them to get inside where they remained until discovered at the checkpoint.
U.S. District Judge Marina Garcia Marmolejo presided over the trial and has set sentencing for Jan. 6, 2016. At that time, Villafranca faces a maximum of 20 years in prison and a possible $250,000 fine.
The investigation leading to the charges was conducted by Border Patrol. Assistant U.S. Attorneys Mike Eaton and Homero Ramirez prosecuted the case.
Justice Department awards Cuyahoga County Prosecutor's Office nearly $2 million to bring rapists to justiceRead the Press Release
The United States Department of Justice announced that the Cuyahoga County Prosecutor’s Office and its partners will receive nearly $2 million over the next three years to accelerate the work of bringing rapists to justice, assisting the survivors of those crimes and changing the culture of law enforcement here and throughout the country when it comes to investigating sexual assaults.
The announcement was part of $41 million in grant awards to 20 jurisdictions to eliminate or reduce the number of untested sexual assault kits across the country. The announcment was made in New York by Vice President Joe Biden and Attorney General Loretta E. Lynch.
“Rape kits are an essential tool in modern crime fighting — not only for the victim, but, for the entire community. Studies show we solve up to 50 percent of previously unsolved rapes when these kits are tested. When we solve these cases, we get rapists off the streets. For most survivors, seeing their rapists brought to justice, and knowing that they will not return, brings peace of mind and a sense of closure. The grants we’re announcing today to reduce the national rape kit backlog will bring that sense of closure and safety to victims while improving community safety,” Vice President Biden said.
“The groundbreaking initiative we are announcing today is part of the Justice Department’s longstanding efforts to support survivors of sexual violence and to bring abusers to justice,” said Attorney General Loretta Lynch. “For anyone who has felt isolated and afraid, left out and left behind as a result of a sexual crime, our message is clear: we will not forget you. We will not abandon you. You are not alone.”
“The Department of Justice is proud to provide this $2 million to help Prosecutor McGinty and his office pursue and solve these tragic cases,” U.S. Attorney Steven M. Dettelbach said. “Rape survivors carry around the scars of these heinous crimes for decades, and we in law enforcement owe it to them to do everything in our power to track down rapists no matter how long and how difficult the road. Today’s DOJ grant recognizes that Tim McGinty’s vision and drive to do that is worthy of real support.”
“We are proud to be taking violent criminals off the streets, preventing future crimes and making Cleveland and Cuyahoga County safer,” Cuyahoga County Prosecutor Timothy J. McGinty said. “This money from the Justice Department will enable us to do even more and do it faster. We appreciate the vote of confidence and intend to earn every cent of this money.”
The National Sexual Assault Kit Initiative, a competitive grant program administered by the Justice Department’s Bureau of Justice Assistance (BJA), supports the comprehensive reform of jurisdictions’ approaches to evidence found in sexual assault kits that have never been submitted to a crime laboratory for testing. BJA created the initiative in consultation with the National Institute of Justice (NIJ), Office for Victims of Crime, (OVC), and Office on Violence Against Women (OVW). The goals of the initiative are to create a coordinated community response that ensures just resolution to these cases whenever possible through a victim-centered approach, as well as to build jurisdictions’ capacity to prevent conditions that lead to high numbers of untested kits. The funding awarded through DANY’s program will pay directly for testing kits, and the combined effort between BJA and DANY is projected to achieve testing of approximately 70,000 sexual assault kits. BJA and DANY partnered to reach as many jurisdictions as possible and also to identify jurisdictions where funding could be combined to adequately address kit backlogs.
The initiative is part of the Justice Department’s larger ongoing effort to comprehensively address the problem of sexual assault and to support victims. For example, NIJ maintains a webpage on Sexual Assault Investigations, Sexual Assault Kits: Using Science to Find Solutions, which provides information ranging from improving forensic sexual assault examinations to research findings on untested evidence in sexual assault cases. OVC provides a Sexual Assault Response Team Toolkit, which has over 1.4 million views to date and includes a checklist of recommendations for victim-centered policies and practices in developing a sexual assault response. OVW updated the National Protocol for Sexual Assault Medical Forensic Examinations and released a companion document on Recommendations for Administrators of Prisons, Jails, and Community Confinement Facilities for Adapting the U.S. Department of Justice's National Protocol for Sexual Assault Medical Forensic Examinations, Adults/Adolescents.
Since 2008, the National Institute of Justice (NIJ) has provided more than $825 million for DNA analysis in crime laboratories and for activities such as research dedicated to strengthening the accuracy and reliability of forensic science.
A complete listing of today’s federal award recipients can be found at www.bja.gov/SAKI
Jury Convicts Alabama Man of Importing MethamphetamineRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a conviction against an Alabama man for importing and possessing with intent to distribute approximately 16 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. James Marcus Malone, 42, of Boaz, Alabama, was convicted on all four counts as charged following two days of testimony and less than two hours of deliberation.
During trial, the jury heard that on March 20, 2015, Malone entered the U.S. at the Hidalgo, Texas Port of Entry, driving a Chevrolet Tahoe with Alabama license plates. Authorities soon determined he was linked to another vehicle and individual which subsequently arrived at the same Port of Entry just a few minutes later. The second vehicle, a Dodge Ram pickup truck, was driven by a man who presented an Alabama driver’s license. At the primary inspection area, a Customs and Border Protection (CBP) officer made initial contact with Malone and noticed he appeared nervous and incoherent when responding to questions regarding the purpose of his trip into Mexico. The officer then referred Malone to secondary inspection.
There, Malone denied knowing the other individual in the Dodge Ram pickup who was also from Alabama.
During a subsequent search of the Dodge Ram, CBP officers discovered approximately 16 kilograms of methamphetamine concealed within the muffler.
The jury also heard that Malone eventually admitted, during a post-Miranda interview, to knowing the other man from Alabama but claimed he was only dropping him off in Mexico to visit a recently deported girlfriend. Malone further stated during that interview that he assumed his travel companion was transporting narcotics, but that he forced himself to believe the story concerning the girlfriend and did not want full details.
However, the government presented evidence showing that Malone drove a group of conspirators from Alabama all the way to Reynosa for the purpose of picking up the Dodge Ram which was loaded with the narcotics. There was also evidence to suggest Malone, along with other conspirators, fabricated the story regarding the recently deported girlfriend in an attempt to ward off attention from law enforcement at the Port of Entry. A Homeland Security Investigations (HSI) agent testified and phone records proved Malone was in constant communications with a conspirator waiting for the load of narcotics to arrive in the Houston area prior to continuing back to Alabama.
Sentencing has been set for Dec. 17, 2015. At that time, Malone faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million fine on each count of conviction. He will remain in custody pending that hearing.
The investigation leading to charges was conducted by CBP and HSI. Assistant U.S. Attorneys Alex Benavides and Michael Day are prosecuting the case.Independence Man Pleads Guilty to Drug-Trafficking Conspiracy Resulting in Two DeathsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to his role in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence and the shooting of a 12-year-old boy in the home.
Kevin M. Finley, also known as “Tubbs,” 36, of Independence, pleaded guilty before U.S. District Judge Beth Phillips to participating in a conspiracy to distribute methamphetamine and to two counts of using a firearm during and in relation to the drug-trafficking conspiracy, causing the deaths of two persons.
Under the terms of today’s plea agreement, Finley will be sentenced to 27 years in federal prison without parole.
By pleading guilty today, Finley admitted that he and several co-defendants planned to steal as much as three pounds of methamphetamine by robbing the residence of Martin “Tomas” Dominguez-Gregorio in Independence. During the robbery attempt, in the early morning hours of Nov. 16, 2012, Martin “Tomas” Dominguez-Gregorio, his girlfriend, Maria Guadalupe Hernandez-Corona, and her son, Antonio Hernandez, were killed; Miguel Hernandez, Maria Hernandez’s then-12–year-old son, was wounded.
Finley met with co-defendants Raul Soto, also known as “Choch,” 24, of Kansas City, Kan., Carlos Zambrano, Jr., also known as “Los,” 29, of Kansas City, Mo., and Antonio Cervantes, III, also known as “Taz,” 34, of Independence, to plan the robbery on Nov. 15, 2012. Afterward, co-defendant Bobbi Jo Phillips, 39, of Independence, drove Finley to the victims’ residence on Pope Street in the truck she was driving. Zambrano drove Soto and Cervantes to the victims’ residence. Finley and Soto were both in possession of firearms.
Finley and Soto entered a shed behind the house. Finley admitted that they bound and beat two occupants inside the shed. One of those occupants was Antonio Hernandez. Finley and Soto then dragged Antonio Hernandez into the main house. Finley and Soto demanded drugs and money from the occupants, but the victims denied having any drugs or money. Finley and Soto both fired their weapons inside the house. Finley was responsible for the deaths of Dominguez-Gregorio and Hernandez-Corona, who were both killed by the gunfire. Soto was responsible for the death of Antonio Hernandez, who was killed by the gunfire. Miguel Hernandez was wounded as a result of the gunfire.
Following the robbery, a motorcycle and a TV were removed from the residence and placed into the back of Phillips’ truck.
Soto was sentenced on Nov. 18, 2014, to 27 years in federal prison without parole. Zambrano and Cervantes have pleaded guilty and await sentencing.
A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose and Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.
Houston Cousins Sentenced for Conspiring to Commit Bank FraudRead the Press Release
HOUSTON – Two family members have been ordered to federal prison following their convictions for conspiracy and committing bank fraud, announced United States Attorney Kenneth Magidson. Tonya Beverly, 39, and her cousin Demetria Jones, 41, pleaded guilty in February 2015 and August 2014, respectively.
Today, U.S. District Judge Gray H. Miller ordered Beverly to serve a total of 63 months in federal prison to be immediately followed by three years of supervised release. Jones received a sentenced of 12 months and one day in prison at a hearing held yesterday. Both were ordered to pay restitution in the amount of $106,383.51.
Beverly admitting to creating false and fraudulent USAA Federal Savings Bank accounts using stolen personal and financial identification information and stealing $205,719 from those accounts. Beverly stole the personal information from patient files of health care providers for whom she worked and admitted to using a phone that was fraudulently registered in the name of another victim of identity theft. Jones was photographed withdrawing cash from ATM machines on two of the fraudulent accounts and the court heard how Jones performed hundreds of account transactions on those cards, one of which was activated with a pre-paid phone.
At the hearing today, the court heard about the complex and sophisticated nature of the fraud scheme, which involved using the USAA Internet and telephone banking systems to conduct thousands of banking transactions, and the use of fraudulent home addresses, fake email addresses and fake phone numbers in addition to all the stolen personal identification information. In less than two years, the conspirators created 33 fraudulent accounts and transferred approximately $205,719 into those accounts from the real bank accounts of at least 35 individuals, affecting 16 different banks.
Several of the victims were elderly or sick, including one who was born in 1922 and one who was born in 1929. The amount of loss for each victim varied to sums up to $24,000. Debit cards issued by USAA in the victims’ real names were received by the conspirators at homes that had been listed for sale or vacant. The conspirators then used the cards to withdraw cash from ATM machines, including machines located in Hawaii and Texas, and to make purchases, including plane tickets to Los Angeles, California.
USAA Federal Savings Bank, a financial institution insured by the Federal Deposit Insurance Corporation, credited and returned the stolen money to the individual victims and their banks.
USAA suffered a total loss of $106,383.51 which the court ordered Beverly and Jones to repay as restitution.
A third conspirator, Leatrice Reynaud, 45, of Houston, is scheduled for sentencing on Oct. 2, 2015.
The investigation leading to the charges was conducted by the U.S. Secret Service. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Hinsdale Man Sentenced on Federal Marijuana and Money Laundering ChargesRead the Press Release
CONCORD, N.H. – Jeffrey Traverse, 39, of Hinsdale, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal charges of conspiring to distribute marijuana, and conspiring to engage in money laundering, announced Acting United States Attorney Donald Feith. The Court imposed a term of 15 months’ imprisonment, followed by 3 years of supervised release.
Beginning around February of 2012, and continuing through the end of 2013, an individual in California grew, and regularly shipped, quantities of marijuana by mail to several individuals in Vermont and New Hampshire, one of whom was Jeffrey Traverse. To disguise the illicit source of the funds accrued from marijuana sales, Traverse agreed to deposit the cash into a business bank account held personally by the individual in California, to create the impression that the deposited funds derived from a legitimate business enterprise.
This prosecution arose from an investigation by the Sonoma County Sheriff’s Department, in conjunction with the Department of Homeland Security, Homeland Security Investigations in Manchester, New Hampshire, and the Keene, New Hampshire Police Department.
Hammond Woman Charged with Making False Income Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SHIMEKA MILTON-FLAX, age 36, of Hammond, was charged today in a one-count Bill of Information with making false income tax returns.
According to the Bill of Information, MILTON-FLAX knowingly prepared a materially false tax return for two individuals. The return reported business losses and expenses that were completely fictitious in order to fraudulently inflate the tax refund received from the Internal Revenue Service.
If convicted, MILTON-FLAX faces a maximum term of imprisonment of three years incarceration, one year of supervised release after any term of imprisonment, a $100,000 fine, and payment of the costs of prosecution.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Gates Mills man charged for his role in penny-stock fraud that cost investors $27 millionRead the Press Release
A Gates Mills man was charged today for his role in a penny-stock fraud from which he illegally received more than $7 million, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Jason M. Cope, 42, was charged in a criminal information with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, one count of securities law violations and four counts of wire fraud.
“Although the charges allege a sophisticated ‘penny stock’ scheme, there was nothing small-scale about this,” Dettelbach said. “The defendants in this case, through trickery and manipulation, made millions and millions of dollars on the backs of innocent investors.”
Cope served as president of several companies, including Worldbridge Partners, Inc. and Structured Management, Inc. He was a former broker but was not a registered securities broker and since 2003 was barred from having any association with any members of the Financial Industry Regulatory Authority, according to the information.
Zirk de Maison controlled several companies. He used several people, including Cope, to identify and solicit investors to purchase shares in his various companies. de Maison, Cope and others used promoters in so-called “boiler rooms” to cold call and solicit potential investors. These calls usually happened in conjunction with favorable press releases or other information de Maison caused to be released, according to the information.
Cope, de Maison and others worked on several occasions between 2009 and 2014 to fraudulently manipulate to price of the companies de Maison controlled. Cope received more than $7.6 million in commissions from de Maison from participating in the conspiracy, according to the information.
Overall, investors lost more than $27 million through the fraudulent manipulation of the stock prices. de Maison, of California, and others have previously been charged for their roles in the conspiracy.
These cases are being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Gardner Woman Pleads Guilty to Fraudulently Receiving Disability Benefits and Food StampsRead the Press Release
BOSTON – A Gardner, Mass. woman pleaded guilty today in U.S. District Court in Worcester to fraudulently receiving over $100,000 in public benefits.
Heidi Narcisse, 45, pleaded guilty to two counts of theft of public money. Narcisse was charged in a felony Information in August 2015. Sentencing is scheduled for Dec. 9, 2015.
Narcisse began collecting Social Security Supplemental Security Income (SSI) disability benefits in 1999 and Supplemental Nutrition Assistance Program (SNAP) benefits in 2011. To be eligible for these benefits, a person must have very limited income and financial resources, and a person’s spouse’s income can make a person financially ineligible for benefits. In order to receive these benefits, Narcisse repeatedly and falsely stated that she was separated from her husband, lived alone with her children, and had no outside support. In reality, in July 2006, Narcisse and her husband bought a house together in Gardner, listed that house as their residential address on their respective driver’s licenses, and filed joint tax returns listing the same address. In addition, Narcisse’s husband, who had income from his job, regularly gave Narcisse money for household expenses. If Narcisse had truthfully reported her living situation and her husband’s financial support, she would not have been eligible to receive the SSI and SNAP benefits. From 2006 to 2014, Narcisse illegally received $100,512 in SSI benefits, and from 2011 to 2015 she received $17,012 in SNAP benefits.
The charge of theft of public money provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Former Swinomish Tribal Employee Charged with Wire Fraud and Theft of Tribal FundsRead the Press Release
A former Fish and Game Enforcement Officer for the Swinomish Tribe was charged last week in U.S. District Court with nine counts of wire fraud and two counts of theft of tribal funds for his scheme to steal Tribal funds, announced U.S. Attorney Annette L. Hayes. ROBERT SCOTT MILLER, 44, of La Conner, Washington, was a Swinomish Fish and Game Enforcement Officer for eighteen years. According to the criminal complaint, between 2012 and 2015 MILLER made multiple purchases with a Tribal credit card and kept the items he purchased for his own personal use. MILLER made his initial appearance in U.S. District Court in Seattle last week.
According to records filed in the case, MILLER purchased items for his boat using the Tribal credit card. The purchases included various boat parts including a fuel pump, fuel gauge, waterproof Bose speakers, hatches, cleats and fuel for the boat. MILLER also allegedly purchased a chain saw, rifle bags, lighting and a shop vac using Tribal funds. The items were for his personal use and were not approved purchases for the Swinomish Tribe. The purchases total more than $4200.
Wire fraud is punishable by up to 20 years in prison. Theft of Tribal funds is punishable by up to one year in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
MILLER is scheduled for a preliminary hearing on the charges on September 17, 2015.
The case was investigated by the Swinomish Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.
Former Letter Carrier Admits to Receiving over $62,000 in Bogus Travel Expenses for Medical CareRead the Press Release
Greenbelt, Maryland – Leroy T. King, Jr., age 54, of Bryans Road, Maryland pleaded guilty today to mail fraud in connection with a scheme to fraudulently receive reimbursement for travel expenses for medical care related to an injury sustained on the job.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to his plea agreement, King was a letter carrier for the U.S. Postal Service at the Capitol Heights, Maryland post office. On September 4, 2004 King sustained an injury at work and received worker’s compensation until he returned to work in August 2008. King was eligible to receive reimbursement for travel expenses to and from medical appointments related to his injury.
From November 2009 to March 2015, King submitted vouchers to the Office of Worker’s Compensation Programs (OWCP) for the reimbursement of travel expenses for approximately 2,145 trips for medical care. Approximately 95 of those trips were actually for medical care received by King. However, King admitted that for the remaining 2,050 trips he claimed, he did not receive medical care.
To obtain reimbursement from OWCP, King periodically prepared and mailed numerous forms falsely certifying that he had driven round trip from his home to various medical facilities for treatment. As a result, King was paid $62,424.75, for the reimbursement of travel expenses to which he was not entitled.
King faces a maximum sentence of 20 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 30, 2015 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG and U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.
Former Executives of Defunct Tampa Technology Company Indicted for Investment FraudRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Timothy Munro Roberts (45, Chesterfield, Missouri) and Terrance F. Taylor (49, Ft. Myers) with one count of conspiracy to commit wire fraud and five counts of wire fraud. Each count carries a maximum penalty of 20 years in federal prison. The indictment also notifies Roberts and Taylor that the United States intends to forfeit approximately $5.3 million, which is alleged to be traceable to the proceeds of the offenses.
According to court documents, in 2010, Roberts and Taylor founded Savtira Corporation Inc., located at 2101 E. Palm Avenue in Tampa. According to its business plan, Savtira purported to offer a centralized, cloud-based shopping cart platform for online and traditional retailers to sell goods, regardless of the device used by the online purchaser.
According to court documents, as CEO and Chairman of the Board, Roberts solicited investors for Savtira. He had control over the company’s funds and was responsible for overseeing the sale of Savtira’s products to potential customers. Taylor was the Executive Vice President of Finance and Treasurer of Savtira. He had control over the company’s funds and participated in the solicitation of investors. Taylor also oversaw the company’s bank accounts, books, and records.
The indictment alleges that Roberts and Taylor made false claims in their marketing of Savtira to potential investors. They maintained that the company was profitable; the company had entered into executed agreements with nationally recognized legitimate technology firms; the company owned patents; and/or that the company was valued between $450 million and $540 million. Roberts and Taylor then misused and misappropriated some of the victim-investors’ funds for personal expenses and cash withdrawals without the consent or knowledge of those investors.
Roberts and Taylor also failed to disclose key facts to investors, including that Roberts had entered into a settlement agreement with the U.S. Securities and Exchange Commission in 2008, which required Roberts to pay a fine and banned him from selling unregistered securities. In addition, he failed to disclose the fact that Savtira owned no patents.
The indictment also alleges that Roberts and Taylor entered into a few contracts on behalf of Savtira with victim-customers promising to provide cloud-based eCommerce solutions. They entered into these contracts knowing Savtira never had a working product, and they could never deliver on the contracts. To make it appear as if Savtira had multi-million dollar future revenues, they also entered into bogus contracts and generated fake invoices and accounts receivable for the purpose of falsely bolstering the company’s value and factoring the invoices for cash.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Florida Office of Financial Regulation, Bureau of Financial Investigations, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Mandy Riedel.
In a separate action, the U.S. Securities and Exchange Commission has filed a complaint against Roberts, Taylor, and one other individual alleging they defrauded investors by grossly exaggerating the potential financial success of Savtira.
Former CEO of Community Action of Minneapolis William Davis Indicted for Conspiracy, Fraud and Theft of Public FundsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of WILLIAM JAMES DAVIS, 64, and JORDAN JAMES DAVIS, 34, for conspiring to steal funds from Community Action of Minneapolis (CAM) for the use of WILLIAM and JORDAN DAVIS. At all times relevant, WILLIAM DAVIS was the CEO of CAM, a non-profit organization created to provide services to low-income residents of Minneapolis and focusing on the elimination of poverty. CAM provided services including weatherization of homes, energy assistance, nutrition assistance and services for children and families. JORDAN DAVIS is expected to make an initial appearance tomorrow in U.S. District Court in St. Paul, Minn.
“This indictment charges a former non-profit leader and a police officer with stealing funds intended to keep Minnesotans warm during the winter,” said U.S. Attorney Luger. “This office will prosecute aggressively those who abuse needed public resources for personal gain.”
“Allegations into the misuse of hard-earned taxpayer money for personal gain are taken very seriously by the FBI and our law enforcement partners,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “We will continue to pursue and address these cases with the highest investigative priority.”
According to the indictment and documents filed in court, CAM’s primary funding sources consisted of federal grants administered by the Minnesota Department of Commerce and Minnesota Department of Human Services. CAM also received funding from CenterPoint Energy (CenterPoint) and Xcel Energy (Xcel) in exchange for providing certain conservation and weatherization services to qualifying homeowners.
According to the indictment and documents filed in court, WILLIAM DAVIS was issued a credit card as CEO of CAM, for which CAM paid the balance due each month. W. DAVIS was required to use his corporate card “for agency authorized activities only.” As part of his scheme to defraud CAM, W. DAVIS concealed his diversion of CAM funds to his personal use by charging the majority of his CAM-paid personal expenses to a slush fund on CAM’s books. The slush fund was created using excess funds provided by CenterPoint and Xcel in exchange for CAM’s agreement to provide certain conservation and weatherization services to qualifying homeowners. If CAM could provide the services for less than the amounts provided by CenterPoint and Xcel, CAM was allowed to keep the difference for other CAM-related activities. CAM carried these funds on its books in a slush fund not subject to the same oversight as CAM’s state and federal grant proceeds. W. DAVIS could therefore instruct CAM’s fiscal staff to charge personal expenses to this slush fund with less risk of detection.
According to the indictment and documents filed in court, W. DAVIS used intimidation and retaliation to prevent CAM staff from informing anyone, including CAM’s Board of Directors, that he was using his position as CAM’s CEO to divert CAM funds to his personal use and that of his family and friends. For example, W. DAVIS issued written reprimands to employees, prohibited employees from communicating with state agencies and CAM’s financial auditors, threatened employees with suspension and termination, and ordered one CAM employee to look up the definitions of the words “insubordination” and “loyalty” after the employee contradicted W. DAVIS in front of other employees.
According to the indictment and documents filed in court, between March 2007 and October 2014, at least $250,000 in CAM funds intended to be used to provide services to low-income residents of Minneapolis were instead diverted to W. DAVIS’ personal use and the use of his family and friends, including JORDAN DAVIS. As part of the scheme, W. DAVIS caused CAM funds to be used for personal expenses, including airline tickets, hotel stays, rental cars and a Caribbean cruise. In total, between January 2009 and October 2014, W. DAVIS caused $77,000 of CAM funds to be used for personal travel expenses for himself and his friends and family members.
According to the indictment and documents filed in court, W. DAVIS used CAM funds to pay for his personal vehicle, a 2011 Chrysler 300. In May 2011, W. DAVIS traded in a 2005 Chrysler 300 owned by CAM. He then used the $10,079.53 in proceeds from the trade-in of the CAM vehicle toward the purchase of the 2011 Chrysler 300 for himself. W. DAVIS used CAM funds to pay the remaining $36,430 balance of the purchase price of the 2011 Chrysler 300. Nearly four months later, W. DAVIS emailed three members of the CAM Board of Directors to authorize a personal loan from CAM for the purchase of the vehicle. He did not disclose that he had already purchased the vehicle using CAM funds, nor did he disclose that he had applied the trade-in value of the CAM-owned 2005 Chrysler 300 toward the purchase of the new vehicle.
According to the indictment and documents filed in court, W. DAVIS also used CAM funds to pay JORDAN DAVIS for a no-show job at a Ben & Jerry’s ice cream shop operated by CAM. CAM operated a Ben & Jerry’s PartnerShop near the University of Minnesota campus in Minneapolis. Ben & Jerry’s waived its standard franchise fees so that CAM could use the store to offer job and entrepreneurial training to underprivileged youth facing barriers to employment.
According to the indictment and documents filed in court, between 2002 and October 2006, WILLIAM DAVIS’s son JORDAN DAVIS, worked as the manager of the Ben & Jerry’s PartnerShop. In October 2006, J. DAVIS obtained employment with the Minneapolis Police Department, and thereafter stopped working at the Ben & Jerry’s. CAM hired a new manager for the store a few months later.
According to the indictment and documents filed in court, W. DAVIS instructed CAM’s fiscal staff to continue issuing J. DAVIS the full paycheck he had been receiving for managing the ice cream shop. W. DAVIS concealed this from CAM’s Board of Directors. From at least March 2007 until January 2011, J. DAVIS continued to receive his full paycheck, $1,320 biweekly, for his work at the Ben & Jerry’s, even though he was doing no work for the ice cream shop. J. DAVIS endorsed and deposited the paychecks every two weeks. In total, J. DAVIS endorsed and deposited at least 105 paychecks for his no-show job.
According to the indictment and documents filed in court, during the nearly four years that J. DAVIS was being paid for his no-show job, CAM’s fiscal staff repeatedly advised W. DAVIS to stop the payments, but W. DAVIS refused. On December 20, 2010, W. DAVIS sent an email to CAM’s CFO in which W. DAVIS agreed that J. DAVIS’s “last day on payroll for Ben & Jerry’s is Dec. 31st.” W. DAVIS instructed CAM’s CFO to issue J. DAVIS his ordinary payroll check on December 31st, along with a “bonus check for $6,000.” As a result of W. DAVIS and J. DAVIS’s fraud scheme, CAM paid J. DAVIS more than $140,000 for a job he did not perform. In April 2011, CAM closed the Ben & Jerry’s PartnerShop because CAM could no longer afford the rent for the store, and CAM terminated its youth job skills training program.
According to the indictment and documents filed in court, in October 2013, the Minnesota Department of Human Services (DHS) began an audit intended to determine whether CAM was using the federal and state grant funds that it received through DHS in accordance with the applicable contracts. DHS personnel sought documents and information about the purposes of various CAM expenditures. Throughout the first several months of 2014, W. DAVIS resisted DHS’s requests for information.
According to the indictment and documents filed in court, in May 2014, DHS provided a draft audit report to W. DAVIS, as well as to CAM’s CFO and the Chair of CAM’s Board of Directors. The draft audit indicated unallowable travel expenses for W. DAVIS had been charged to the grants. W. DAVIS subsequently sent correspondence containing false material representations about his personal travel. On June 3, 2014, W. DAVIS attended a meeting with DHS personnel to discuss the report’s findings. Two days later, W. DAVIS flew to Phoenix, Ariz., to visit his girlfriend using an airline ticket he caused to be purchased with CAM funds. On October 13, 2014, W. DAVIS was suspended from his position as CEO without pay.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, United States Department of Health and Human Services Office of the Inspector General and the United States Department of Energy Office of the Inspector General.
This case is being prosecuted by Assistant United States Attorney Kimberly A. Svendsen.
Defendant Information:
WILLIAM JAMES DAVIS, 64
Brooklyn Park, Minn.
Charges:
- Conspiracy to commit theft concerning programs receiving federal funds, 1 count
- Mail fraud, 10 counts
- Wire fraud, 1 count
- Theft concerning programs receiving federal funds, 4 counts
JORDAN JAMES DAVIS, 34
Otsego, Minn.
Charges:
- Conspiracy to commit theft concerning programs receiving federal funds, 1 count
- Mail fraud, 5 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Associate Pastor Pleads Guilty in Scheme to Defraud InvestorsRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Thomas Edward James, age 34, of Phoenix, Arizona, formerly of Fort Smith, pleaded guilty today to one count of Mail Fraud and one count of Making a False Tax Return . The Honorable Chief Judge P.K. Holmes, III, accepted the plea in the United States District Court in Fort Smith.
According to court records, the defendant, Thomas Edward James, was a part-time associate pastor at St. James Missionary Baptist Church in Fort Smith, Arkansas. He was previously employed as a broker for Merrill Lynch, but was terminated for lack of production. His broker license went inactive on September 3, 2010. James was not registered with the Arkansas Securities Department as a broker, dealer, agent, or in any other capacity since he was terminated from Merrill Lynch. After his termination from Merrill Lynch, James continued to sell securities to investors and misappropriated the investors’ funds. As part of his scheme, James approached potential investors, a majority of whom were retired and members of St. James Missionary Baptist Church, with proposals to make investments through him. James then fraudulently induced investors to invest funds through false representations that their funds would be invested in a U.S. Treasury Bond, which were insured and guaranteed by the full faith and credit of the United States Government. James however did not invest the funds in a U.S. Treasury Bond, but instead converted the funds to his personal use. It was further part of the scheme that James sent statements to investors via U.S. Mail providing investors with false assurances that their funds had been invested in U.S. Treasury Bonds. As a result of the scheme to defraud, James defrauded investors of approximately $200,000. During a deposition, James admitted that the funds were never invested in a U.S. Treasury Bond, but were placed in his personal account. Additionally, James admitted that he filed false tax returns from 2008-2012, and that he owed the United States additional taxes in the amount of $205,566.46.
This case was investigated by The Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI) and Financial Crimes Task Force officers from the Fort Smith and Fayetteville Police Departments. Assistant United States Attorney Mark Webb prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Florida Man Arrested for Illegal Distribution of Information Relating to ExplosivesRead the Press Release
U.S. Attorney A. Lee Bentley III announces the arrest of Joshua Ryne Goldberg, 20, of Orange Park, Florida, for distributing information relating to explosives, destructive devices and weapons of mass destruction. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, Goldberg was in contact, through on-line communications, with an individual who law enforcement knew to be a Confidential Human Source (CHS). Between the months of July and September 2015, Goldberg distributed information to the CHS on how to manufacture a bomb. He instructed the CHS to make a pressure cooker bomb and fill it with nails, metal and other items dipped in rat poison. Goldberg instructed the CHS to place the bomb at an upcoming memorial in Kansas City, Missouri, that was commemorating the Sept. 11, 2001 attacks.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the FBI’s Jacksonville, Florida, Joint Terrorism Task Force and the Clay County, Florida, Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida, with assistance provided by Trial Attorney Mara Kohn of the National Security Division’s Counterterrorism Section.
Goldberg Criminal Complaint
Florida Man Arrested for Illegal Distribution of Information Relating to ExplosivesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Joshua Ryne Goldberg (20, Orange Park, Florida) for distributing information relating to explosives, destructive devices, and weapons of mass destruction. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, Goldberg was in contact, through on-line communications, with an individual who law enforcement knew to be a Confidential Human Source (CHS). Between the months of July and September 2015, Goldberg distributed information to the CHS on how to manufacture a bomb. He instructed the CHS to make a pressure cooker bomb and fill it with nails, metal, and other items dipped in rat poison. Goldberg instructed the CHS to place the bomb at an upcoming memorial in Kansas City, Missouri that was commemorating the September 11, 2001 attacks.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF) and the Clay County Sheriff’s Office. Members of the Jacksonville JTTF include the Federal Bureau of Investigation, the Naval Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, U.S. Customs and Border Protection, U.S. Border Patrol, the Florida Department of Law Enforcement, the Florida Highway Patrol, the St. Johns County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida, with assistance provided by Trial Attorney Mara Kohn of the National Security Division’s Counterterrorism Section.
No Photo Available
Detention and Preliminary Hearing set for Tuesday, September 15, 2015, at 2 pm before United States Magistrate Judge James R. Klindt (Courtroom 5D) at the Bryan Simpson U.S. Courthouse, 300 North Hogan Street, Jacksonville, Florida.
Update following 9/15/2015 hearing:
Joshua Ryne Goldberg has formally retained private counsel. The Federal Public Defender’s Office has been removed as the attorney of record and Shorstein, Lasnetski & Gihon, LLC attorneys at law have filed a notice of appearance on behalf of the defendant.
Today, U.S. Magistrate Judge James R. Klindt ordered a 30-day competency evaluation, at a federal medical center, for the defendant.
Goldberg will remain in federal custody.
No future court date was set.
No further information available at this time.
Five Arrested in Marijuana and Money Laundering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Damarcus Hennings, 24, Shaquata Hennings, 28, Arthur Clark, 27, Shahana Beaver, 23, and Janice Humphrey, 26, all of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to distribute marijuana and launder money, and possession of marijuana with intent to distribute. The marijuana charges carry a maximum penalty of 40 years in prison and a $5,000,000 fine. The money laundering charge carries a maximum penalty of 20 years in prison and a $500,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment, between April 2015 and August 2015, the defendants conspired to and received packages containing marijuana that were shipped from Denver, Colorado via a commercial delivery service. The defendants also conspired to send the cash proceeds from resulting marijuana sales to the supplier in Denver. In all, more than 100 such packages were shipped to Buffalo during the course of the conspiracy. Dashawn Abrams, the Denver-based supplier, remains at large.The five defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Damarcus and Shaquata Hennings are being held in custody pending detention hearings on September 14, 2015, at 10:00 a.m. and 10:15 a.m., respectively, before Magistrate Judge Schroeder. The other three defendants were released. Beaver and Humphrey return to court on September 14 at 10:15 a.m. for appearances of counsel, and Clark returns to court on September 16 at 10:00 for appearance of counsel.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division and the Niagara Frontier Transportation Authority Police, undert the direction of Chief George Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Two Men Indicted for Counterfeit Access Device Conspiracy
Chernoh A. Jalloh, age 28, and Abraham B. Freeman, age 27, were charged in a 1-count indictment with conspiracy to possess fifteen or more counterfeit access devices, a violation of Title 18, United States Code, Section 1029(b)(2). The maximum penalty Jalloh and Freeman could receive is five years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Illegal Alien Indicted for Possession and Distribution of Child Pornography
Joel Estrada-Secundino was charged in a 2-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B), and distribution of child pornography, a violation of Title 18, United States Code, Section 2252(a)(2). The maximum penalty Estrada-Secundino could receive is 20 years imprisonment and a maximum fine of $250,000 for the possession charge, and not less than 5 years and not more than 20 years imprisonment and a maximum fine of $250,000 for the distribution charge. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution. This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Four Greenville Residents Charged with Conspiracy
Traci L. Albertson, a/k/a Traci L. Martin, age 43, Geoffrey R. Albertson, age 32, Keelan R. Fowler, age 34, and Donald B. Hudson, age 32, all of Greenville, South Carolina, were charged in a 1-count indictment with conspiracy to steal mail and possess stolen mail; to make, utter and possess counterfeit securities; and to use unauthorized access devices; in violation of Title 18, United States Code, Section 371. The maximum penalty the defendants could receive is five years imprisonment and a maximum fine of $250,000. The case was investigated by United States Postal Inspection Service agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Social Security Fraud Indictment
Takenya Gallman Rookard, a/k/a “Takenya Natori Gallman,” age 33, of Greenville, was charged in a 2-count indictment. Takenya Gallman Rookard was charged with Theft of Government Property, a violation of Title 18, United States Code, Section 641 and Social Security Fraud, a violation of Title 42, United States Code, Section 408. The maximum penalty Rookard could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Office of Inspector General and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.Social Security Fraud Indictment
William Evans, age 61, of Greenville, was charged in a 2-count indictment. William Evans was charged with Theft of Government Property, a violation of Title 18, United States Code, Section 641 and Social Security Fraud, a violation of Title 42, United States Code, Section 408. The maximum penalty Evans could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Office of Inspector General and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.Social Security Fraud Indictment
Donna Marie Clark, age 49, of Greenville, was charged in a 2-count indictment. Donna Marie Clark was charged with Theft of Government Property, a violation of Title 18, United States Code, Section 641 and Identity Theft, a violation of Title 18, United States Code, Section 1028A. The maximum penalty Clark could receive is 12 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Office of Inspector General and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.Illegal Alien Charged with Possession of a Firearm and Counterfeit Immigration Documents
Jose Manuel Rangel-Flores, age 45, was charged in a 2-count indictment. Jose Manuel Rangel-Flores was charged with being an Illegal Alien in Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g), and Possessing Counterfeit Immigration Documents, a violation of Title 18, United States Code, Section 1546. The maximum penalty Rangel-Flores could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Homeland Security and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Essex County, New Jersey, Man Admits Defrauding Veterans AffairRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man today admitted he defrauded the Department of Veterans Affairs of over $150,000 in disability benefits over a 13-year period, U.S. Attorney Paul J. Fishman announced.
Paul Tillson, 49, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with embezzlement of funds from the United States.
According to documents filed in this case and statements made in court:
From July 1991 through January 1992, Tillson served as an administrative clerk in the U.S. Army in Saudi Arabia and Kuwait. From November 2000 through July 2013, Tillson received $150,164 in disability benefits based on his claims of combat related injuries. Through an investigation by the Department of Veterans Affairs, it was determined that Tillson did not serve in a combat function or engage in combat during his tour of duty overseas, which commenced after cease-fire terms had been accepted by Iraq. Tillson also acknowledged that he falsified information related to his alleged combat stressors.
The charge of embezzlement of funds from the United States carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 16, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, under the direction of Special Agent in Charge Jeffrey G. Hughes, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Patrick McMahon Esq., Newark
Entrepreneur Admits Paying Bribes to Allentown Public OfficialRead the Press Release
PHILADELPHIA - Ramzi Haddad, 45, of Bethlehem, PA, pleaded guilty today to an information charging him with one count of conspiracy to commit bribery offenses, announced United States Attorney Zane David Memeger. After accepting Haddad’s guilty plea, U.S. District Judge Juan R. Sanchez scheduling a sentencing hearing for December 18, 2015.
During the guilty plea hearing, Haddad admitted the following:
The defendant was an entrepreneur who had business interests in Allentown, including potential contracts with the City of Allentown and the actual and prospective ownership of properties which were regulated and overseen by governing authorities in Allentown, including Public Official #3, who represented the City through an elective office. Public Official #3 aspired to win election to a statewide elective office. To achieve this goal, Public Official #3 knowingly sought campaign contributions in exchange for official actions that he took, attempted to take, and caused and attempted to cause the City of Allentown to take.
After repeated dealings with Public Official #3, the defendant concluded that he was intentionally acting against the defendant’s economic interests while favoring the economic interests of Public Official #3’s major donors and political allies. Concerned that Public Official #3 would otherwise interfere with and block his projects in Allentown, the defendant further concluded that the only way to receive a “fair shake” from Public Official #3 and public officials subordinate to him was to give Public Official #3 items of value, including food, drinks, and campaign contributions. Consequently, the defendant agreed to make contributions to the various campaigns of Public Official #3 when Public Official #3 or his campaign staff solicited campaign contributions. By December 2014, the defendant had explicitly agreed to give campaign contributions to Public Official #3 in exchange for certain official actions that the defendant expected from the City of Allentown. Over the course of the next few months, the defendant made numerous donations in exchange for certain official actions that he expected from the City of Allentown.
On April 17, 2015, Public Official #3 formally announced his candidacy for another elective office, this time for a position in federal government, during a campaign finance reporting period which would end on June 30, 2015. Before making this announcement, Public Official #3 had told the defendant about his plan to run for the federal office, explained his strategy of maximizing contributions prior to the end of the June 30 reporting period, and asked the defendant to raise money for the federal campaign by bundling his own contribution with the contributions of others. The defendant ultimately agreed to raise $25,000 for Public Official #3’s federal campaign before the June 30 deadline.
On May 18, 2015, Public Official #3 traveled from Allentown to New York City in order to meet with the defendant and discuss the official “help” that Public Official #3 could provide in return for the contributions that the defendant would raise for Public Official #3’s federal campaign. In consideration for the defendant’s fundraising commitment, Public Official #3 agreed to intervene with municipal inspections of one of the defendant’s buildings in Allentown.
On June 29, 2015, the defendant delivered to Public Official #3 approximately $15,000 in checks, all made payable to the federal campaign. Public Official #3 reminded the defendant of his pledge to raise a total of $25,000, advised that he bundle additional checks and “back date” them to a date prior to June 30, 2015, and restated his own ability to take official action which could affect the defendant. The next day, the defendant delivered to Public Official #3’s campaign staff two checks, totaling $6,500, both made payable to Public Official #3’s federal campaign. These checks were intended to replace a previous check which the defendant had delivered to Public Official #3 the day before
As part of his agreement with Public Official #3, the defendant, at Public Official #3’s request, also paid for the food and beverage bills when the two met to discuss the defendant’s business interests. During the course of exchanging campaign contributions for official action by Public Official #3, the defendant and Public Official #3 made numerous interstate phone calls and traveled between states, typically between New York and Pennsylvania. Public Official #3 took numerous steps to destroy or avoid creating any records that would show a linkage between his official actions and campaign contributions from donors such as the defendant. For example, on June 29, 2015, Public Official #3 instructed the defendant to immediately delete from his mobile telephone all text messages constituting evidence of the defendant discussing potential municipal contracts with Public Official #3’s campaign staff.
Haddad faces a maximum possible sentence of five years in prison, a $250,000 fine, three years of supervised release and a $100 special assessment.
This case was investigated by the FBI’s Allentown Resident Agency, the Pennsylvania State Police, and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
Elmira Woman Pleads Guilty to Theft ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sonja Matos, 28, of Elmira, NY, pleaded guilty to theft by credit union employee, before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the defendant worked for the Corning Credit Union as a Risk Management/Card Services employee. Part of her responsibilities included periodically updating the software of Automated Teller Machines (ATM’s) and loading monies into the ATM’s of the Corning Credit Union. From January 2015 through April 2015, Matos took money for herself on a weekly basis from two ATM’s as she was loading the money into the machines. The defendant stole approximately $40,0000. The deposits of the Corning Credit Union are insured by the National Credit Union Administration.
The plea is the result of an investigation by the Federal Bureau of Investigation.
Sentencing is scheduled for December 19, 2015 at 3:30 p.m. before Judge Geraci.
Easton Resident Charged with Illegal ReentryRead the Press Release
Mirna Chacon-Ordonez, a/k/a “Nancy Estefany Chacon-Ordonez,” a/k/a “Mirna Chacon-Del Cid,” a/k/a “Mirna Chacon,” 33, of Easton, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The Indictment alleges that on or about June 28, 2015, Chacon-Ordonez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about May 21, 2000, January 26, 2009, and October 2, 2009.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dumas Police Officer and Five Associates Charged with Drug ConspiracyRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Arkansas State Police Colonel William J. Bryant announced today that Dumas Police Officer James Ivory Edgerson, age 37, of Dumas, has been charged by federal criminal complaint with drug conspiracy. Also charged were Kendrick Lamar Edgerson, age 43, of Little Rock; Gregory Lamont Charles, age 41, of Little Rock; Steven Sherrod Miles, age 42, of Dumas; Rodney Lariel Edgerson, age 36, of Little Rock; and Eli Haynes III, age 40, of Arlington, Texas.
James Edgerson was arrested Wednesday night. The other five defendants listed in the complaint were arrested Thursday morning. All defendants except Haynes appeared before United States Magistrate Judge J. Thomas Ray on Thursday. Haynes, who was arrested in Texas, will be seen in Texas by a United States Magistrate Judge on Friday. The five Arkansas defendants were detained pending bond hearings to determine whether the defendants remain in federal custody until an Indictment is returned. The charge in the complaint must be presented to the federal Grand Jury for Indictment within 30 days.
During the execution of three federal search warrants Thursday morning in connection with the arrests, agents seized approximately 28 ounces of powder cocaine, one ounce of crack cocaine, one pound of marijuana, five firearms including a suppressor, and $222,000 in cash.
According to the complaint, James Ivory Edgerson (Edgerson) has been a sworn patrol officer with the Dumas Police Department for approximately 14 years. Between May and September 2015, Edgerson made several drug deliveries of marijuana, cocaine, and methamphetamine to confidential sources. Law enforcement also obtained a court-authorized wiretap on Edgerson’s phone during the conspiracy period.
When Edgerson was arrested he was in a vehicle with approximately three ounces of powder cocaine and one ounce of crack cocaine. Agents executing a search warrant at his home also found approximately $16,000 cash, several firearms and an unregistered firearm suppressor.
"It is extremely disheartening any time a member of law enforcement commits a crime and breaks the trust that the people of his community have placed in him or her," Thyer said. "The citizens of the Eastern District of Arkansas deserve better, and deserve to know that their law enforcement members will honor their vow to protect and serve. When that vow—and that trust—is broken, my office will make sure those individuals are punished and answer for their crimes."
The complaint alleges that Kendrick Lamar Edgerson (Kendrick) was intercepted over Edgerson’s phone engaging in drug trafficking activity with Edgerson. After Kendrick participated in a delivery of nine ounces of cocaine on August 31, 2015, Kendrick fled from police during a traffic stop. As a result of that traffic stop, state authorities cited Kendrick for possession of cocaine with the purpose to distribute, possession of marijuana, and fleeing from a police officer.
Also according to the complaint, on multiple occasions, Edgerson met with Gregory Lamont Charles (Charles) directly before and after controlled deliveries of cocaine, and Charles is believed to be a cocaine supplier. Agents executed a search warrant at Charles’s house Thursday morning and located approximately 25 ounces of cocaine, $206,000 cash, and a firearm.
Edgerson provided Steven Sherrod Miles (Miles) with drugs to sell, and Miles split the profit from the sale of the drugs with Edgerson. Agents located one pound of marijuana at Miles’s home during the execution of a search warrant. In August 2015, Edgerson traveled to Arlington, Texas, to purchase nine ounces of methamphetamine from Eli Haynes III (Haynes). Upon returning to Arkansas, Edgerson sold this methamphetamine.
The complaint also alleges that Rodney Lariel Edgerson (Rodney), who was intercepted on Edgerson’s phone, met with Edgerson on August 15, 2015, and sold him five to six pounds of marijuana.
Rodney and Kendrick are brothers, and are also cousins of Edgerson.
"Edgerson, a police officer with the Dumas Police Department, was arrested today on drug conspiracy charges," Resch said. "Together with our partners, the United States Attorney’s Office, OCDETF, Arkansas State Police, Tri County Drug Task Force, ArkTrust Public Corruption Task Force, and Jefferson County Sheriff’s Office and with the cooperation of the Dumas Police Department, we will aggressively investigate these charges."
The maximum potential penalty for a violation of Title 21, United States Code, Section 846 (drug conspiracy) is up to life imprisonment, up to life supervised release, and a fine of up to $10,000,000.
The investigation was part of Organized Crime and Drug Enforcement Task Force (OCDETF) Operation Blue Dream. The case was investigated by the Federal Bureau of Investigation, Arkansas State Police, Jefferson County Sheriff’s Office, and Tri County Drug Task Force. It is being prosecuted by Assistant U.S. Attorneys Edward Walker and Julie Peters.
The charges stemmed from an investigation by the FBI’s ArkTrust Public Corruption Task Force. The ArkTrust Public Corruption Task Force is comprised of FBI Agents, and Task Force Officers from the Arkansas State Police Department, Pulaski County Sheriff’s Office, and the Little Rock Police Department. If you think you see public corruption contact the public corruption hotline at (501) 221-8200.
A complaint contains only allegations. The defendants are presumed innocent unless and until proven guilty.
Duke Energy Corporation to Reduce Emissions from Power Plants in North Carolina, Fund Environmental ProjectsRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with Duke Energy Corporation to resolve Clean Air Act violations at five coal-fired power plants across North Carolina. The settlement resolves long-standing claims that Duke violated the federal Clean Air Act by unlawfully modifying 13 coal-fired electricity generating units located at the Allen, Buck, Cliffside, Dan River and Riverbend plants, without obtaining air permits and installing and operating the required air pollution control technologies.
Duke recently shut down 11 of the 13 units and under today's settlement those shutdowns also become a permanent and enforceable obligation under the consent decree. At the remaining two units, Duke must continuously operate pollution controls and meet interim emission limits before permanently retiring them. In addition, the settlement requires that Duke retire another unit at the Allen plant, spend a total of $4.4 million on environmental mitigation projects and pay a civil penalty of $975,000. The United States is joined in the settlement by co-plaintiffs Environmental Defense, the North Carolina Sierra Club and Environment North Carolina.
EPA estimates that the settlement will reduce emissions by approximately 2,300 tons per year from the three Allen units, as compared to recent emission levels. With these additional retirements, total emissions from all 13 allegedly modified units – which were in excess of 51,000 tons in 2000 when the suit was filed – will be zero.
“The settlement announced today marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from coal-fired power plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement is a just and fair resolution to this long-running enforcement action in which we alleged that Duke modified these plants in ways that significantly increased their annual emissions. It is good news for the environment and public health in North Carolina.”
“This settlement brings five more power plants into compliance under EPA’s national initiative to cut pollution from the country’s largest sources,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “After many years, we’ve secured a strong resolution, one that will help reduce asthma attacks and other serious illnesses for the people of North Carolina.”
The United States initially sued Duke in 2000 and trial was set to begin in October 2015 following years of pre-trial litigation, including a landmark 2007 Supreme Court decision agreeing with EPA’s interpretation of Clean Air Act regulations covering modifications that increase the annual amount of pollution from a plant. Under the settlement, Duke must continuously operate existing equipment to control sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions at two electricity-generating units at the Allen facility in Belmont, North Carolina, and meet enforceable emission limits, prior to permanently retiring both units in 2024. In addition, to help mitigate the harm from the alleged violations, the settlement also requires Duke to retire an additional unit at the Allen plant by 2024.
The settlement also requires Duke to spend at least $4.4 million to fund several environmental mitigation projects. These projects include restoring native wildlife and plants on National Park Service and Forest Service lands in North Carolina, a program to help North Carolina residents replace higher polluting wood stoves and fireplaces with cleaner burning alternatives and a program to increase the use of clean energy and energy efficiency measures in economically distressed communities. Other projects may include efforts towards increasing truck stop electrification and electric vehicle charging stations in North Carolina.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed two million tons each year once all the required pollution controls have been installed and implemented.
The settlement was lodged with the U.S. District Court for the Middle District of North Carolina and is subject to a 30-day public comment period and final court approval.
For more information on the settlement and to read the proposed settlement, visit http://www.justice.gov/enrd/consent-decrees.
Duke Energy Corporation to Reduce Emissions from Power Plants in North Carolina, Fund Environmental ProjectsRead the Press Release
WASHINGTON – The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with Duke Energy Corporation to resolve Clean Air Act violations at five coal-fired power plants across North Carolina. The settlement resolves long-standing claims that Duke violated the federal Clean Air Act by unlawfully modifying 13 coal-fired electricity generating units located at the Allen, Buck, Cliffside, Dan River and Riverbend plants, without obtaining air permits and installing and operating the required air pollution control technologies.
Duke recently shut down 11 of the 13 units and under today's settlement those shutdowns also become a permanent and enforceable obligation under the consent decree. At the remaining two units, Duke must continuously operate pollution controls and meet interim emission limits before permanently retiring them. In addition, the settlement requires that Duke retire another unit at the Allen plant, spend a total of $4.4 million on environmental mitigation projects and pay a civil penalty of $975,000. The United States is joined in the settlement by co-plaintiffs Environmental Defense, the North Carolina Sierra Club and Environment North Carolina.
EPA estimates that the settlement will reduce emissions by approximately 2,300 tons per year from the three Allen units, as compared to recent emission levels. With these additional retirements, total emissions from all 13 allegedly modified units – which were in excess of 51,000 tons in 2000 when the suit was filed – will be zero.
“The settlement announced today marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from coal-fired power plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement is a just and fair resolution to this long-running enforcement action in which we alleged that Duke modified these plants in ways that significantly increased their annual emissions. It is good news for the environment and public health in North Carolina.”
“This settlement brings five more power plants into compliance under EPA’s national initiative to cut pollution from the country’s largest sources,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “After many years, we’ve secured a strong resolution, one that will help reduce asthma attacks and other serious illnesses for the people of North Carolina.”
The United States initially sued Duke in 2000 and trial was set to begin in October 2015 following years of pre-trial litigation, including a landmark 2007 Supreme Court decision agreeing with EPA’s interpretation of Clean Air Act regulations covering modifications that increase the annual amount of pollution from a plant. Under the settlement, Duke must continuously operate existing equipment to control sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions at two electricity-generating units at the Allen facility in Belmont, North Carolina, and meet enforceable emission limits, prior to permanently retiring both units in 2024. In addition, to help mitigate the harm from the alleged violations, the settlement also requires Duke to retire an additional unit at the Allen plant by 2024.
The settlement also requires Duke to spend at least $4.4 million to fund several environmental mitigation projects. These projects include restoring native wildlife and plants on National Park Service and Forest Service lands in North Carolina, a program to help North Carolina residents replace higher polluting wood stoves and fireplaces with cleaner burning alternatives and a program to increase the use of clean energy and energy efficiency measures in economically distressed communities. Other projects may include efforts towards increasing truck stop electrification and electric vehicle charging stations in North Carolina.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed two million tons each year once all the required pollution controls have been installed and implemented.
The settlement was lodged with the U.S. District Court for the Middle District of North Carolina and is subject to a 30-day public comment period and final court approval.
For more information on the settlement and to read the proposed settlement, visit http://www2.epa.gov/enforcement/duke-energy-corporation-clean-air-act-caa-settlement.
Deputy Director of Hudson County Correctional Facility Sentenced to 21 Months in Prison for Illegal WiretappingRead the Press Release
NEWARK, N.J. – The deputy director of the Hudson County Correctional Facility was sentenced today to 21 months in prison for illegally wiretapping his co-workers and another individual, U.S. Attorney Paul J. Fishman announced.
Kirk Eady, 47, of East Brunswick, New Jersey, was previously found guilty of one count of intentionally intercepting the wire, oral or electronic communications of others following a four-day trial before Judge Jose L. Linares, who imposed the sentence today in Newark federal court.
According to the documents filed in this case and the evidence at trial:
From March 8, 2012, to July 8, 2012, while working as the deputy director of the Hudson County Correctional Facility, Eady used the services of a website on more than 10 occasions to intercept the telephone calls of other Hudson County Correctional Facility employees and another individual who were critical of his work performance. Eady was able to conceal the telephone number from which the call originated. He then called two of the employees at the same time and made it appear that one or both of the other individuals initiated the call. Eady also recorded these telephone conversations and never told the other employees he was recording these private communications. These individuals did not consent to their private conversations being monitored and recorded by Eady.
In addition to the prison term, Judge Linares sentenced Eady to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office Special Prosecution Division.
Defense counsel: Peter Willis Esq., Jersey City, New Jersey
Columbus Man Convicted on Drug & Firearm ChargesRead the Press Release
Arsenio Brundidge, age 28, of Columbus, Georgia was convicted following a jury trial Sept. 10, 2015 on one count of cocaine possession and one count of possession of a firearm by a convicted felon. Chief U.S. District Court Judge Clay D. Land was the presiding judge.
The evidence showed that on November 3, 2014, Deputy Sheriff Clinton Powell of the Muscogee County Sheriff’s Office attempted to serve Brundidge with outstanding arrest warrants. Brundidge attempted to flee, but was captured by Powell and other deputies after a brief chase. During his flight, Brundidge discarded a weapon, which was recovered and found to be a fully loaded Jiminez Arms 9 mm handgun. The weapon had been reported as stolen approximately one month earlier. At the time of his arrest, Brundidge was also found to be in possession of a small amount of both marijuana and cocaine.
Brundidge has an extensive criminal record, including seven prior felony convictions. Sentencing has been set for December 15, 2015.
The case was investigated by the Muscogee County Sheriff’s Office, the Columbus Police Department, and Special Agents Will Panoke and Brian Queener of the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Columbia Man Sentenced for Bank Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been sentenced in federal court for his role in a bank fraud conspiracy that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
Michael Anthony Spears, 37, of Columbia, was sentenced on Wednesday, Sept. 9, 2015, by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole. The court also ordered Spears to pay restitution of $114,127, which represents the ill-gottenproceeds the co-conspirators bilked from 14 separate banks.
On Feb. 3, 2015, Spears pleaded guilty to participating in a conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Co-defendant Phillip Daren Shockey, 49, of Crawford, has also pleaded guilty to his role as the leader of the conspiracy. Shockey made false identification documents and produced counterfeit checks using account information from mail stolen by others in the conspiracy. Shockey used motel rooms to set up a work station consisting of computers, printers, scanners, a camera, a blue hanging sheet for ID photos, and other items to produce false identification cards and counterfeit checks.
Spears met Shockey in jail and Shockey later contacted him after they both were released from jail.
Spears was a major pawn in the bank fraud scheme. He established fake Missouri Limited Liability Companies (LLCs) in his name to facilitate the passage of fraudulent checks for himself and Shockey. He stole mail in order to provide Shockey with personal identifying information to produce fake identification documents for him and others. He opened bank accounts using fake identification documents and also used fake identification documents of banks customers and others in or order to pass and attempt to pass fraudulent checks drawn upon the banks. Spears passed and attempted to pass 24 checks that he received from Shockey for a loss of at least $159,842.
Other members of the conspiracy sold cattle and then used the financial information from the checks they received from the cattle sale in order to make additional counterfeit checks. Still other members of the conspiracy, including Spears, passed counterfeit checks.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.
Claymont Man Pleads Guilty to Trafficking in Child Pornography from In-Home DaycareRead the Press Release
WILMINGTON, Del. – Carl McBride, age 50, of Claymont, Delaware, pleaded guilty earlier today to Receipt of Child Pornography, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware.
McBride faces a mandatory minimum sentence of at least five years, and up to twenty years, in prison, a fine of up to $250,000, and a term of supervised release of at least five years to life following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he resides, works or attends school. United States District Judge Gregory M. Sleet has scheduled McBride’s sentencing hearing for December 29, 2015 at 10:00 a.m.
According to statements made and documents filed in court, a U.S. Department of Homeland Security special agent identified McBride while conducting an online undercover investigation into hidden, or “dark web,” child pornography trafficking networks. That investigation revealed that McBride had utilized a hidden peer-to-peer computer network to distribute child pornography to over 150 individuals from his Claymont home. After identifying McBride through computer network records, investigators discovered that another person residing at his Claymont residence was then providing daycare services out of the home under the name “Little Tykes Day Care.”
On November 5, 2013, federal law enforcement agents executed a search warrant at McBride’s Claymont home, and seized multiple computers and digital devices. McBride was arrested that day after a forensic examination of a laptop computer found near a diaper changing table revealed over 28,000 files depicting photographs and movies of child pornography. Most of these images depicted the violent sexual abuse of prepubescent girls.
During a post-arrest interview, McBride admitted to trafficking in child pornography, but claimed he was doing so in an effort to identify and help law enforcement agencies apprehend other child predators. McBride admitted, however, that he had not contacted any law enforcement agencies about his ‘efforts’ to catch online predators, adding that he was “almost done collecting the evidence” at the time of the search and his arrest. McBride has been held in federal custody since then. The Office of Child Care Licensing suspended the daycare operator’s license the same day.
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigation. It is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
Buffalo Man Pleads Guilty to Fentanyl DistributionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eddie Lee Watson, 64, of Buffalo, NY, pleaded guilty to distribution of fentanyl, before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on four dates in April, May, and June 2014, the defendant sold fentanyl patches, and on two of those occasions he also sold oxymorphone (e.g. Opana) pills, to an individual in Buffalo.
The plea is the result of an investigation conducted by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Sentencing is scheduled for December 23, 2015, at 11:00 a.m. before Judge Skretny.
Bucks County Lawyer Sentenced for Tax Evasion and Fraud SchemeRead the Press Release
PHILADELPHIA - Randolph Scott, 72, of Doylestown, PA, an attorney whose practice included estate and probate matters, was sentenced today to 48 months in prison for defrauding a client’s estate of more than $2.3 million. Scott maintained a law office – Randolph Scott Associates – in Warrington, PA. He pleaded guilty on March 25, 2015 to one count each of mail fraud, tax evasion and attempting to interfere with administration of internal revenue laws, and three counts of failure to file income tax returns.
Between December 2005 and October 2011, while representing the estate of John C. Bready, Scott diverted approximately $2,317,917.67 of estate funds to his law office accounts. Because the estate was valued at more than $6 million at the time of Bready’s death in 2005, federal law required that a federal estate tax return be filed which would have resulted in approximately $520,351 being paid to the Internal Revenue Service. Scott purposefully failed to file the required form in order to maintain sufficient money in the estate to pay its beneficiaries and to avoid detection of the theft.
After the estate’s executor died in 2009, Scott failed to disclose the executor’s death so that Scott could continue to receive money intended for the estate at his law firm. Scott would then forge the deceased executor’s signature and deposit funds intended for the estate into accounts under his control. Scott had the successor executor sign a document renouncing the position of successor executor so that Scott could continue to forge the signature of the deceased executor and divert money belonging to the estate.
In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered restitution to the estate in the amount of $2,317,917.67, three years of supervised release, and a $375 special assessment.
The case was investigated by the IRS Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Judy G. Smith.
Boston Sex Offender Sentenced for Failing to RegisterRead the Press Release
BOSTON – James Edward Mercer, 49, was sentenced yesterday by U.S. District Court Judge Denise J. Casper to 21 months in prison and five years of supervised release. In May 2015, Mercer pleaded guilty to failing to register as a convicted sex offender.
Mercer was previously convicted in Massachusetts in 1992 and again in 1996 of indecent assault and battery on a person above the age of 14. As a result of these convictions, Mercer was classified as a sex offender and is required to register as such in each state in which he resides through December 2018. Mercer first registered as a sex offender in 2005 in Massachusetts. Thereafter he moved to Florida where he failed to register and was convicted, serving a 12 month probation sentence. Following that, Mercer moved to California where he registered; however, in December 2014, Mercer returned to Massachusetts and failed to register as a sex offender here.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Seth B. Orkand of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Birmingham Store Owner Sentenced to Three Years in Prison for Food Stamp and Tax FraudRead the Press Release
BIRMINGHAM -- A federal judge today sentenced the owner of a Southside Birmingham grocery store to more than three years in prison for food stamp and tax fraud totaling more than $1.6 million, announced U.S. Attorney Joyce White Vance, U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox, and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge R. David Proctor sentenced SUFYAN HAZEM SALEH, 33, of Birmingham, to 36 months in prison for subscribing to false tax returns for 2009 and 2010, and to 37 months in prison for food stamp fraud. The sentences are to run concurrently. Saleh pleaded guilty to the charges in June.
As part of Saleh's sentence, and in accordance with his plea agreement with the government, the judge ordered Saleh to pay restitution of $498,470 to the IRS and $1,125,772 to the USDA, which administers the food stamp program under the name Supplemental Nutrition Assistance Program, or SNAP. Salah also must forfeit $375,220 to the government as proceeds of illegal activity. He must report to prison Dec. 9.
Saleh owns the now closed City Supermarket at 1531 13th Place South, a convenience grocery story that was authorized by USDA to accept food stamp benefits, according to his indictment and plea agreement
Individuals in the SNAP program receive benefits from the USDA on an electronic benefit transfer card, which functions like a debit card. Saleh pleaded guilty to redeeming EBT SNAP benefits for cash, which is prohibited, between January 2010 and December 2011. Of the approximate $1.9 million City Supermarket redeemed in EBT SNAP benefits during that period, the USDA estimated that $1,125,772 was food stamp fraud, according to Saleh's plea.
Saleh also pleaded guilty to tax fraud for under reporting to the IRS his 2009 and 2010 income received from redeeming SNAP benefits. Saleh did not report about $1.6 million in income from food stamp redemption for the two tax years, resulting in a tax loss of about $498,470, according to his plea.
The USDA-OIG and IRS-CI investigated the federal case, which Assistant U.S. Attorney Pat Meadows prosecuted.
Bergen County, New Jersey, Man Pleads Guilty to Multimillion-Dollar Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man admitted today that he conspired to defraud 15 victims of more than $3 million, U.S. Attorney Paul J. Fishman announced.
Paul Mancuso, 49, of Glen Rock, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
On Aug. 21, 2014, a federal grand jury in Newark indicted Mancuso on one count of conspiracy to commit wire fraud and five counts of wire fraud. It also charged Pasquale Stiso, 53, of West Harrison, New York, with one count of conspiracy to commit wire fraud and one count of wire fraud.
Since 2009, Mancuso posed as a real estate investor, broker and developer, as well as a “hard money” lender for other investments. Stiso, a disbarred New York attorney, held himself out as an individual working with Mancuso on various investment projects.
During the plea hearing, Mancuso admitted that he and Stiso fraudulently obtained financing for projects that did not exist or in which they had no actual involvement. Some of the purported projects touted by Mancuso, Stiso, and other conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shopping center, and the “flipping” of a piece of real estate in Matawan.
Victims lost all of their investments in Mancuso’s schemes. Instead of funding the purported projects, Mancuso and Stiso used the money for personal expenses and to finance their involvement in illegal gambling.
The charge of wire fraud conspiracy to which Mancuso pleaded guilty carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater. The indictment also includes a notice of forfeiture of $3,425,750, representing the fraudulent payments Mancuso and Stiso received from the scheme. Sentencing is scheduled for Jan. 12, 2016.
The charges against Stiso are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and criminal investigators from the U.S. Attorney’s Office for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Anthony Mahajan of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy Ann Biancamano Esq., Newark
Benjamin Wey, Founder and President of New York Global Group, Arrested and Charged in Manhattan Federal Court for Securities Fraud Arising Out of Fraudulent Reverse Merger Scheme Involving Chinese CompaniesRead the Press Release
UPDATE
The charges against the defendant in this case, Benjamin Wey, were dismissed on August 8, 2017. Click the link below for further detail.
Benjamin Wey dismissal motion
Charges Also Unsealed Against a Geneva-Based Banker, Who Remains at Large
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment against BENJAMIN WEY and his Geneva-based banker, SEREF DOGAN ERBEK, charging them with conspiracy, securities fraud, wire fraud, and other charges stemming from WEY’s scheme to obtain and conceal his beneficial ownership interest in publicly trading companies through so-called “reverse merger” transactions between Chinese companies and U.S. shell companies, and then to reap tens of millions of dollars of illegal profit by manipulating the companies’ stock prices. WEY was arrested this morning at his home in Manhattan and is expected to be presented today in federal court in Manhattan before United States Magistrate Judge Frank Maas. ERBEK remains at large.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against WEY and ERBEK, among others.
U.S. Attorney Preet Bharara said: “Ben Wey fashioned himself a master of industry, but as alleged, he was merely a master of manipulation. The indictment charges that Wey used reverse merger transactions between Chinese companies and U.S. shell companies to illegally conceal his ownership interest and then, with the help of his alleged co-conspirator, manipulated the market so that he could sell his interest at artificially inflated prices. As alleged, in making tens of millions in illicit profit, Wey refused to let the securities laws or the rules of a fair marketplace get in the way of his dishonest scheme.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The illegal manipulation of stock prices causes significant losses for innocent investors and creates sizeable profits for fraudsters. Wey and Erbek allegedly falsified the true sales volume, demand, and price of stocks in the over-the-counter marketplace through a series of reverse merger transactions involving shell companies. They are believed to have profited in the tens of millions, while victim shareholders were left holding the bill. The FBI and our partners will continue to investigate and prosecute those who cheat the system in this way.”
According to the eight-count Indictment unsealed today in Manhattan federal court[1]:
Among other fraudulent and illicit conduct, WEY engineered reverse mergers between Chinese operating companies and publicly traded U.S. shell companies designed to give WEY significant undisclosed ownership in the resulting publicly trading entities, in violation of U.S. securities laws. Specifically, WEY caused entities controlled by a sibling and other nominees to obtain large portions of the shares of certain U.S. shell companies trading over the counter. WEY then identified various Chinese operating companies that wanted to raise capital in the U.S. markets. WEY, through his company, New York Global Group (“NYGG”), facilitated the Chinese companies’ reverse mergers with the U.S. shell companies in which WEY, through his nominees, secretly held significant ownership interest. Not only did WEY defraud the investing public by failing to disclose, as required under the securities laws, his beneficial ownership of more than five percent of the stock of the new companies, but he then manipulated the market price and demand for the shares in these companies, resulting in tens of millions of dollars of undisclosed and illicit profit.
Reverse Merger Scheme That Illegally Hid Ownership Interest
WEY caused certain entities (the “Nominee Entities”) that were owned or otherwise associated with a sibling of WEY’s (“Wey’s Sibling”), certain other members of WEY’s extended family, and employees of an NYGG entity located in Beijing, China, NYGG-Asia (collectively, the “Nominee Owners” and, together with the Nominee Entities, the “Nominees”), to obtain a substantial portion of the shares of certain U.S. shell companies (the “Shell Companies”) that were trading on the National Association of Securities Dealers’ Over-the-Counter Bulletin Board, a regulated quotation service that displays real-time quotes, last-sale prices, and volume information for certain over-the-counter securities.
Although records associated with the Nominee Entities, all of which were incorporated offshore, identify certain of the Nominee Owners as the sole shareholders, directors, and/or signatories of the Nominee Entities, in fact, and unbeknownst to the investing public, WEY actually controlled the Nominee Entities. In executing the scheme to defraud, WEY routinely directed ERBEK, who knew of WEY’s control over the Nominees and knew of the securities laws’ requirements for disclosing beneficial ownership interest of over five percent, to conduct stock trading for accounts held in the names of the Nominees.
In addition, WEY, through NYGG-Asia, identified various Chinese operating companies (the “Operating Companies”) that wanted to raise capital in the U.S. markets, and offered NYGG’s services in facilitating reverse merger transactions for the purpose of gaining access to those capital markets. WEY intentionally caused the Operating Companies to merge with the particular Shell Companies in which WEY, through the Nominees, held significant, illegally undisclosed ownership stakes. The companies that resulted from these reverse merger transactions were SmartHeat, Inc.; Deer Consumer Products, Inc.; and CleanTech Innovations, Inc. (the “Issuers”).
As a further part of the conspiracy and scheme to defraud, WEY caused the Nominees to continue to retain undisclosed control of more than five percent of the shares of each of the Issuers – shares originally of the Shell Companies that, by virtue of the reverse merger transactions, became shares of the Issuers. Although WEY was required by federal securities laws to report his beneficial ownership in the Issuers, he deliberately did not. In fact, to further obscure from the investing public the extent to which he owned and exercised control over Issuers’ stock, and with ERBEK’s knowledge and assistance, WEY purposefully caused the Nominees’ holdings to be structured in such a way as to ensure that no single one of the Nominees held a greater than five percent beneficial ownership interest in any of the Issuers.
Manipulation of the Market for Shares of the Reverse Merger Companies
At the time that the Issuers emerged from reverse merger transactions, their common stock traded only in over-the-counter markets and in low volumes. The Issuers’ stock could not be sold in significant quantities in the open market until a liquid market developed and the shares traded on an exchange. To create liquidity so that WEY could profit from his scheme, WEY caused the Issuers’ management to apply for listings on the Nasdaq, which would increase market interest and liquidity in the Issuers’ securities. To satisfy Nasdaq’s requirement that an issuer have at least 300 “round-lot” shareholders – defined as shareholders owning at least 100 shares of common stock each – WEY deceptively caused shares of some of the Issuers to be transferred from certain of the Nominees to dozens of WEY’s friends, employees, and business associates, among others, as gifts or unsolicited bonuses in increments of 100 or more, thereby artificially inflating the number of shareholders in each of the Issuers.
Both before and after an Issuer became listed on Nasdaq, WEY and ERBEK caused the share price of its stock to be manipulated in various ways. For example, on multiple occasions, WEY caused two retail brokers located in Manhattan to solicit their customers to buy shares of common stock of the Issuers while those brokers simultaneously actively discouraged the sale of these stocks by their customers, so as to artificially maintain the stock price of each Issuer. Similarly, WEY explicitly instructed ERBEK to maintain the share prices of at least two Issuers’ stock held in certain of the Nominees’ accounts. For example, on or about February 7, 2011, WEY sent an email to ERBEK stating, “Cleantech just traded at $4.50 per share. Please make sure the trader buys the stock at $5 per share, stay at $5 per share bid price, not less. Please make sure this happens right away.” ERBEK agreed to do so, but cautioned WEY, “Obviously, we need to be careful to give such orders/make such comments. I may explain it over the phone; please call me if you have time.” WEY also orchestrated match trades in the securities of the Issuers, for the purpose of manipulating the prices of those stocks.
At the same time that WEY and ERBEK were causing the share prices of the Issuers’ stock to be manipulated, WEY caused shares held in the name of Wey’s Sibling and other Nominees at brokerage accounts in the United States and overseas to be sold, thereby generating millions of dollars in proceeds at artificially inflated prices. WEY caused those proceeds to be transferred from accounts in the United States to accounts overseas, only to then send millions of dollars back to the United States for his own benefit. For example, more than $20 million in cash was transferred from a Hong Kong account in the name of Wey’s Sibling to bank accounts in the United States that WEY and/or WEY’s wife controlled.
* * *
WEY, 43, is charged with one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; one count of wire fraud; two counts of failure to disclose ownership in excess of five percent; and two counts of money laundering. Count One carries a maximum sentence of five years in prison. Counts Two and Four through Eight each carry a maximum sentence of 20 years in prison. Count Three carries a maximum sentence of 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. ERBEK, 53, is charged with one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison; two counts of securities fraud, one of which carries a maximum sentence of 20 years in prison, the other of which carries a sentence of 25 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance. He added that the investigation is continuing.
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’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. 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 Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah Eddy McCallum, Andrew C. Adams, and Michael Ferrara are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.