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Wednesday 12 August 2015
Three Plead Guilty to Tax FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three co-defendants pleaded guilty in federal court this week to aiding and abetting a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield, Mo., pleaded guilty today before U.S. Magistrate Judge David P. Rush to two counts of making false claims.
Co-defendant Asia Michelle Couchman, 26, of Oak Grove, Mo., pleaded guilty to one count of making false claims on Tuesday, Aug. 11, 2015. Co-defendant Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, pleaded guilty to two counts of making false claims on Monday, Aug. 10, 2015.
Co-defendant Cherie Christine Dupuis, 43, of Springfield, pleaded guilty on July 21, 2015, to leading the fraudulent tax return preparation conspiracy. Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Dupuis and other conspirators recruited individuals, such as Dunn, Couchman and Allen, to assist in filing fraudulent returns, and obtained their identifying information (including their names and Social Security numbers). They used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information to enable them to falsely claim dependents on their returns.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Dunn admitted that she aided and abetted Dupuis, and was aided and abetted by Dupuis, in filing false federal income tax returns in 2011 and 2012. Both returns listed wages that Dunn had not received and claimed refunds to which Dunn knew she was not entitled. The total loss to the government was $11,184.
Couchman admitted that she aided and abetted Dupuis, and was aided and abetted by Dupuis, in filing a false tax return in 2011. That tax return listed wages that Couchman had not received and claimed a refund to which she was not entitled. After receiving a $9,717 refund, Couchman gave Dupuis approximately $3,000 from the proceeds.
Allen admitted that he aided and abetted Dupuis, and was aided and abetted by Dupuis, in filing false federal income tax returns in 2011 and 2012. Both returns listed wages that Allen had not received and claimed refunds to which Allen knew he was not entitled. In both years, Allen’s fraudulent refunds were applied to a non-IRS related debt of Allen’s, resulting in a total loss to the government of $14,623.
Under federal statutes, Dunn, Allen and Dupuis are each subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. Couchman is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Terrorist Sentenced to 22 Years for Providing Material Support to al-Qaeda in the Arabian PeninsulaRead the Press Release
Lawal Olaniyi Babafemi, 35, a Nigerian citizen, was sentenced today to 22 years in prison for conspiring to provide and providing material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (AQAP). The sentence was imposed by the U.S. District Judge John Gleeson of the Eastern District of New York.
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) made the announcement.
Babafemi pleaded guilty to providing and conspiring to provide material support to AQAP on April 29, 2014. According to previous court filings, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda that has been linked to a number of plots targeting the U.S. homeland over the past decade. AQAP leaders trained Babafemi in the use of weapons, including AK-47 assault rifles, and taught him the importance of AQAP’s English-language media operations to its mission of inspiring “lone-wolf” style attacks abroad in the name of AQAP. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the online Inspire Magazine, and worked closely with Samir Khan, the founder of Inspire and a U.S. citizen. Babafemi’s photograph, alongside Khan and other AQAP members, each holding an AK-47, was published in Issue 5 of Inspire; he also wrote rap lyrics on behalf of the group, hoping to extend its appeal to young Westerners. At the direction of the now-deceased senior AQAP leader Anwar al-Aulaqi, AQAP provided Babafemi with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join the terrorist organization. Babafemi attempted to recruit other Nigerians to join AQAP, but was arrested before he could complete that mission and conduct further activities on behalf of the organization.
“With this sentence, Lawal Olaniyi Babafemi is being held accountable for conspiring with members of al-Qaeda in the Arabian Peninsula and providing material support to the foreign terrorist organization,” said Assistant Attorney General Carlin. “Babafemi travelled to Yemen to receive weapons training and to learn how to contribute to AQAP’s English-language media operation, in addition to receiving money to recruit others to join AQAP’s ranks. Counterterrorism is the National Security Division’s highest priority and we will continue our efforts to detect, deter and hold accountable those who provide material support to designated foreign terrorist organizations.”
“The defendant traveled to Yemen twice to seek out and commit himself to the radical terrorist organization AQAP and its goal of causing mass devastation in the West,” said Acting U.S. Attorney Currie. “He undertook his journey soon after his fellow countryman’s notorious, albeit failed, attempt on behalf of AQAP to detonate a bomb concealed in his underwear in U.S. airspace. Babafemi received weapons training and worked with AQAP’s English-language media organization to recruit Westerners to its murderous mission. The investigation, prosecution, and conviction of Babafemi exemplifies the tireless efforts of the FBI’s Joint Terrorism Task Forces in New York and San Diego to identify and bring to justice those intent on joining and supporting violent terrorist organizations around the globe. This case is especially important as it relates to efforts to prosecute individuals who both engage in physical violence themselves and who create and disseminate violent terrorist propaganda worldwide in an effort to convince others to do so.”
The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad and Hilary Jager of the Eastern District of New York, with assistance from Trial Attorney Annamartine Salick of the Justice Department’s Counterterrorism Section.
Terrorist Sentenced to 22 Years for Providing Material Support to Al-Qaeda in the Arabian PeninsulaRead the Press Release
WASHINGTON –Lawal Olaniyi Babafemi, 35, a Nigerian citizen, was sentenced today to 22 years in prison following his guilty plea to conspiring to provide and providing material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (AQAP). The sentence was imposed by the U.S. District Judge John Gleeson of the Eastern District of New York.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
According to previous court filings, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda that has been linked to a number of plots targeting the U.S. homeland over the past decade. AQAP leaders trained Babafemi in the use of weapons, including AK-47 assault rifles, and taught him the importance of AQAP’s English-language media operations to its mission of inspiring “lone-wolf” style attacks abroad in the name of AQAP. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the online Inspire Magazine, and worked closely with Samir Khan, the founder of Inspire and a U.S. citizen. Babafemi’s photograph, alongside Khan and other AQAP members, each holding an AK-47, was published in Issue 5 of Inspire; he also wrote rap lyrics on behalf of the group, hoping to extend its appeal to young Westerners. At the direction of the now-deceased senior AQAP leader Anwar al-Aulaqi, AQAP provided Babafemi with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join the terrorist organization. Babafemi attempted to recruit other Nigerians to join AQAP, but was arrested before he could complete that mission and conduct further activities on behalf of the organization.
“With this sentence, Lawal Olaniyi Babafemi is being held accountable for conspiring with members of al-Qaeda in the Arabian Peninsula and providing material support to the foreign terrorist organization,” said Assistant Attorney General Carlin. “Babafemi travelled to Yemen to receive weapons training and to learn how to contribute to AQAP’s English-language media operation, in addition to receiving money to recruit others to join AQAP’s ranks. Counterterrorism is the National Security Division’s highest priority and we will continue our efforts to detect, deter, and hold accountable those who provide material support to designated foreign terrorist organizations.”
“The defendant traveled to Yemen twice to seek out and commit himself to the radical terrorist organization AQAP and its goal of causing mass devastation in the West,” stated Acting United States Attorney Currie. “He undertook his journey soon after his fellow countryman’s notorious, albeit failed, attempt on behalf of AQAP to detonate a bomb concealed in his underwear in U.S. airspace. Babafemi received weapons training and worked with AQAP’s English-language media organization to recruit Westerners to its murderous mission. The investigation, prosecution, and conviction of Babafemi exemplifies the tireless efforts of the FBI’s Joint Terrorism Task Forces in New York and San Diego to identify and bring to justice those intent on joining and supporting violent terrorist organizations around the globe. This case is especially important as it relates to efforts to prosecute individuals who both engage in physical violence themselves and who create and disseminate violent terrorist propaganda worldwide in an effort to convince others to do so.”
The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad and Hilary Jager of the Eastern District of New York, with assistance from Trial Attorney Annamartine Salick of the Justice Department’s Counterterrorism Section.
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Temple, TX Aryan Brotherhood Associate Sentenced to 20 Years in Federal Prison for Her Role in Methamphetamine Distribution OperationRead the Press Release
In Waco, a federal district judge sentenced 35–year-old Temple, TX, resident and Aryan Brotherhood (AB) associate Amanda Petrie to 20 years in federal prison for her role in a methamphetamine distribution conspiracy announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
This afternoon, United States District Judge Walter S. Smith sentenced Petrie to 15 years imprisonment for conspiracy to possess with intent to distribute methamphetamine and five years in federal prison for possession of a firearm during a drug trafficking crime. Judge Smith also ordered Petrie to pay a $1,000 fine.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
To date, 30 individuals have been sentenced in connection with this investigation to imprisonment ranging from 21 months to 35 years in federal prison. Sentencing for 41-year-old Sylvia O’Neal of Temple, is scheduled to be sentenced on August 5, 2015. Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 9, 2015.
During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation. Both remain in federal custody awaiting jury selection and trial scheduled for September 21, 2015, before Judge Smith. Cooper and Voerhis are charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine and face between five and 40 years imprisonment upon conviction.
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
St. Joseph Truck Driver, Sex Offender Sentenced to 20 Years in Prison for Transporting a Minor for ProstitutionRead the Press Release
KANSAS CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., commercial truck driver who is a registered sex offender was sentenced in federal court today for transporting a minor across state lines for prostitution.
Tony Eugene Wardlow, 56, of St. Joseph, was sentenced by U.S. District Judge Dean Whipple to 20 years and 10 months in federal prison without parole.
Wardlow was convicted at trial on Dec. 17, 2014, of transporting a minor across state lines for prostitution. Wardlow also pleaded guilty on Feb. 14, 2014, to interstate transportation for prostitution.
Wardlow was self-employed as a commercial truck driver, doing business as Prideco, LLC. Wardlow is a registered sex offender who was convicted in 1997 in Nodaway County, Mo., of sexual abuse, endangering the welfare of a child and sexual misconduct (involving two separate child victims). Wardlow also has prior felony convictions for being a felon in possession of firearms and possessing methamphetamine.
Evidence submitted during the trial indicated that Wardlow paid the minor victim for sex on multiple occasions while she was working as a prostitute on Independence Avenue in Kansas City, Mo. She was under 18 years of age at this time. Wardlow took her out of town in his truck on several occasions, including a trip to Texas in September 2011. During the trip, Wardlow engaged in prostitution activity with the minor victim multiple times, both in Wardlow’s truck and in hotels.
The minor victim testified at trial that Wardlow threatened her with violence. There was evidence presented at trial that Wardlow made threats towards this victim should she ever contact law enforcement.
This case was prosecuted by Assistant U.S. Attorneys Patrick Daly and David Luna. It was investigated by the FBI, the Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.
Six Defendants Charged in Extensive Tax Refund and Identity Theft Fraud Scheme Involving Thousands of Individuals’ Personal Identifying InformationRead the Press Release
Six defendants were indicted on charges stemming from their participation in an extensive tax refund and identity theft fraud scheme involving thousands of individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ray Black, Chief, City of Miramar Police Department, Steve Steinberg, Chief, Aventura Police Department, J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), and Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.
Harlan Decoste, a/k/a “Money King,” a/k/a “Moneyking_111,” 26, Frances Jeudy, a/k/a "Money Makin Rab," a/k/a "Brizzleon111," 26, Kerby Luma, a/k/a "Money Makin Kerb," 26, Frantz Decoste, a/k/a "Gripe_111," 20, all of Miramar, and Andy Cherrelus, a/k/a "Risktakers111," 24 of Miami, were charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jeudy and Decoste were each also charged with five counts of possession of stolen mail, in violation of Title 18, United States Code, Section 1708. Chad Davis, a/k/a "Chadillac," a/k/a "Chadillac 305," 29, of Miami, was charged with one count of conspiracy to possess unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to allegations contained in the indictment, the defendants obtained personal identifying information (“PII”), including the names, dates of birth, and Social Security numbers of thousands of individuals, and used this PII to file fraudulent federal income tax returns with the IRS. The defendants provided payment instructions on the tax returns directing the IRS to transfer the tax refunds to various accounts in other persons' names that the defendants and their co-conspirators controlled. The defendants then allegedly withdrew the unlawfully obtained tax proceeds for their personal use and to further the fraud scheme. Court documents further allege that Jeudy and Decoste also unlawfully possessed five United States Treasury checks that had been stolen out of the mail.
If convicted, the defendants each face a maximum of ten years imprisonment for each of the conspiracy to defraud the government and access device charges, a maximum of five years imprisonment for the conspiracy to possess access devices, a maximum of five years imprisonment for possession of stolen mail, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
U.S. Attorney Wifredo A. Ferrer stated, “Our efforts continue to identify and prosecute those who unlawfully access, possess, use and/or disseminate personal identifying information. We will not tolerate offenders who target hard earned monies of private citizens. The dedicated efforts of our federal, state and local law enforcement partners make these prosecutions possible.”
IRS-CI Special Agent in Charge Kelly R. Jackson stated, “Stealing identities and filing false tax returns is a serious crime that will not be tolerated. These investigations remain a top priority for IRS Criminal Investigation. We will continue to hold accountable those who steal and use other peoples’ identities to commit tax fraud and other offenses.”
"This investigation serves as a clear warning to individuals that steal the identities of innocent taxpayers and use the information for personal profit, that they will be aggressively pursued, investigated and prosecuted," said Alysa D. Erichs, Special Agent in Charge for HSI Miami.
"South Florida law enforcement partners continue to work together to stop these criminals from committing identity theft and tax fraud," said Ronald Verrochio, Inspector in Charge, USPIS, Miami Division. "We have proven that together we can make a huge impact in the fight against identity theft and tax fraud."
“Unfortunately, this is another example of the growing wave of stolen identity tax fraud,” said George L. Piro, Special Agent in Charge of FBI Miami Division. “The FBI and our partners continue to actively target these fraudsters who seek illicit gains by victimizing hard-working taxpayers.”
Mr. Ferrer commended the investigative efforts of the IRS-CI, ICE-HSI, USPIS, DOL-OIG, ATF, FBI Miami Cyber Task Force, NMBPD, as well as the Miramar, Aventura, and Fort Lauderdale Police Departments. Mr. Ferrer thanked the Miami-Dade Police Department and the Georgia State Patrol, and the United States Attorney’s Office for the Northern District of Georgia, for their assistance in this matter. The case was initially handled by Assistant United States Attorney Gera R. Peoples and is currently being prosecuted by Assistant United States Attorney Brooke C. Watson.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Selma Business and Businessmen Charged in Illegal Sweepstakes OperationRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announces that a federal grand jury in Greenville returned a 22 count Second superseding Indictment (hereinafter “superseding Indictment”) (attached) on Thursday, August 6, 2015.
The superseding Indictment charged David Ricky Godwin (Godwin Sr.), 68, David Ricky Godwin Jr. (Godwin Jr.), 44, and RGB, Inc., now known as Regional Amusements, Inc. with Conspiracy to Conduct an Illegal Gambling Business, 18 U.S.C. § 371 (Count 1), Conducting an Illegal Gambling Business, 18 U.S.C. § 1955 (Count 2), two counts of Engaging in Gambling Device Business without Registering, 15 U.S.C. § 1173(a), 1176 (Counts 3-4), four counts of Failing to Maintain a Record of Gambling Devices, 15 U.S.C. § 1173(c), (d), 1176 (Counts 5-8), and thirteen counts of Possession of Unmarked Gambling Devices, 15 U.S.C. § 1173(e), 1176 (Counts 9-21). The superseding Indictment also charged Godwin Sr. with Possession of a Firearm by a Convicted Felon, 18 U.S.C. § 922(g) (Count 22).
If convicted of counts 1 and 2 (Conspiracy and Conducting an Unlawful Gambling Business), Godwin Sr. and Godwin Jr. face a maximum imprisonment of 5 years for each count. If convicted of Counts 3 through 21 (violations of the Gambling Devices Act of 1962), they face a maximum of two years imprisonment for each count. For counts 1 through 21, they face a maximum fine of $250,000 for each count or twice gross gain, whichever is greater. For Count 22, Godwin Sr. faces a maximum term of imprisonment of 10 years and a maximum fine of $250,000. For Counts 1 through 21, RGB, Inc. faces a maximum fine of $500,000 for each count or twice gross gain. The superseding Indictment also seeks forfeiture of proceeds traceable to conducting an illegal gambling business and Conspiracy to do so in violation of Counts 1-2. It also seeks forfeiture of the gambling devices seized during the investigation and forfeiture of the Mossberg model 500A 12 gauge shotgun allegedly involved in the violation of 18 U.S.C. § 922(g).
The charges and allegations contained in the superseding Indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by North Carolina Alcohol Law Enforcement (ALE), the Internal Revenue Service - Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the United States Marshal’s Service (USMS).
Scituate Resident Pleads Guilty to Defrauding Social Security AdministrationRead the Press Release
PROVIDENCE, R.I. – Luke Clarke, 72, of Hope, R.I., pleaded guilty in federal court in Providence today to fraudulently collecting more than $250,000 in social security benefits in his deceased mother’s name, announced United States Attorney Peter F. Neronha and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of Inspector General/Office of Investigations.
Clarke admitted to the court that the Social Security Administration was never notified of his mother’s death in January 1998, and that he continued to collect his mother’s retirement benefits in the amount of $1,517 per month until October 2014. The monthly benefit was direct deposited into a bank account he shared with his mother. Clarke admitted to fraudulently collecting $257,959.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Clarke pleaded guilty to one count of theft of government funds. Clarke is scheduled to be sentenced on November 12, 2015.
The matter was investigated by the Social Security Administration, Office of Inspector General/Office of Investigations.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Schenectady Man Sentenced in Fraud SchemeRead the Press Release
ALBANY, NEW YORK – Frederick Hollingshed, a/k/a Franklin Hollingshed, 48, of Schenectady, was sentenced today to 57 months imprisonment for his role in a fraud scheme where he obtained at least $70,000 from people who believed they were purchasing used vehicles advertised over the internet, announced United States Attorney Richard S. Hartunian, United States Secret Service Resident Agent in Charge William Leege, Social Security Administration Office of the Inspector General New York Field Division Special Agent in Charge Edward J. Ryan, and United States Postal Inspection Service Boston Division Inspector in Charge Shelly Binkowski. The sentence followed Hollingshed’s January 5, 2015 guilty plea to eight counts of wire fraud, one count of possession with the intent to use five or more identification documents, and one count of misuse of a Social Security number. The sentence was imposed by Chief United States District Judge Gary L. Sharpe.
In connection with his guilty plea, Hollingshed admitted that he used bank accounts and corporate entities that he controlled to receive money from people who falsely believed they were sending money to purchase used motorcycles, all-terrain vehicles, utility vehicles, trucks, and automobiles. He also admitted that he knowingly possessed seven Social Security cards with the intent to use them unlawfully, and that he knowingly presented a false Social Security number for the purpose of opening a bank account used in the scheme. As part of his sentence, Hollingshed was ordered to pay $70,500.80 in restitution to victims who wired funds to the accounts he controlled.
The prosecution resulted from a joint investigation by the United States Secret Service, United States Social Security Administration, United States Postal Inspection Service, and the Schenectady Police Department. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.
San Angelo Man Pleads Guilty to Federal Child Pornography Offense Involving Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Justin Benedict Morales, 40, of San Angelo, Texas, appeared today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of transportation of child pornography, announced John R. Parker, U.S. Attorney for the Northern District of Texas.
Morales, who remains in custody, faces a statutory penalty of not less than five years nor more than 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to plea documents filed in the case, in November 2014, Morales used the Internet to send at least eight images of prepubescent child pornography via the online instant messaging client, Yahoo Messenger. Morales used several Yahoo IDs to transport and trade images and videos of child pornography. His laptop computer and hard disk drive were seized when special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at his residence in May 2015.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI, the Texas Attorney General’s Internet Crimes Against Children (ICAC) Task Force, and the San Angelo Police Department are investigating. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
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Rockford Man Arrested for Illegaly Possessing A FirearmRead the Press Release
ROCKFORD — A Rockford man was arrested today for illegally possessing a firearm. CLIFFORD HORTON, 27, of Rockford, Ill., was charged yesterday by a federal grand jury in Rockford for possessing a .380 caliber pistol as a convicted felon. Horton is scheduled to be arraigned today at 1:00 p.m. before U.S. Magistrate Judge Iain D. Johnston in federal court in Rockford.
The charge of being a felon in possession of a firearm carries a maximum penalty of up to 10 years in federal prison and a fine of up to $250,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The arrest was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and, Chet Epperson, Rockford Police Chief.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Indictment
Rochester Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jaime Fontanez, 46, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 63 months in prisonby U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that on February 3, 2014, U.S. Postal Inspectors searched a suspicious parcel shipped from Puerto Rico to 72 Jewel Street in Rochester. Inspectors found three kilograms of cocaine concealed in aluminum cans containing sliced papayas. The next day, a court-ordered transmitter was placed on the parcel and a U.S. Postal employee, assisted by Drug Enforcement Administration agents and Rochester Police Department officers, delivered the package to 72 Jewel Street.
The defendant arrived at 72 Jewel Street and sent his nephew, Daniel Acevedo, 33, inside to collect the package. Shortly after Acevedo entered the residence, officers raided the residence and arrested Acevedo and Fontanez.
Acevedo was convicted and sentenced to 37 months in prison.
The sentencing is the culmination of an investigation on the part of the Rochester Police Department, under the direction of Chief Michael Ciminelli, the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.Rochester Man Sentenced for Possession of Counterfit MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Terrance Williams, 25, of Rochester, NY, who was convicted of possession of counterfeit money, was 45 days and three years probation by U.S. District Court Judge David G. Larimer.Assistant U.S. Melissa M. Marangola, who handled the case, stated that on March 1, 2015, law enforcement officers responded to 453 Hollenbeck Street in Rochester to investigate a possible burglary in progress. As officers approached the defendant, they learned he had an outstanding warrant on an unrelated matter. Williams was arrested and taken to the Monroe County Jail. While there, officers removed $1,140.00 in counterfeit United States currency the defendant. The money was then examined by Secret Service agents who determined it was counterfeit.
The sentencing is the culmination of an investigation on the part of the Secret Service, under the direction of C. Todd Laster.
Plantation Resident Pled Guilty in Identity Theft Tax Fraud SchemeRead the Press Release
A Broward County resident pled guilty in an identity theft fraud scheme involving 734 unauthorized tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Keyiona Marvette Wright, 27, of Plantation, Florida, pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The defendant faces a maximum statutory sentence of twenty years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to court documents, from March 25, 2014 to May 6, 2015, forty-six federal tax returns were filed with the IRS claiming refunds of $135,196 from an IP address in Plantation. From September 16, 2014 to May 5, 2015, at least 688 rejected federal tax returns, claiming refunds of $733,276, were electronically transmitted to the IRS from this same IP address. Agents confirmed that the IP address was assigned to an apartment rented by Wright.
Based on this information, agents executed a search warrant at Wright’s residence and found four notebooks containing PII, two computers (one of which had numerous Social Security numbers and other personal identification information (PII) displayed on the screen), a bag and suitcase each containing thousands of PII in paper form, multiple pre-paid/value cards and gift cards, hundreds of documents containing PII (including Department of Labor applications), and papers containing PII scattered throughout the apartment. A forensic analysis revealed that the documents, computers, and debit/credit cards seized from Wright’s residence contained identifying or account information for over 14,000 individuals.
Court documents also indicate that agents found a laptop computer outside Wright’s apartment that contained a video depicting the defendant counting money.
Mr. Ferrer commended the investigative efforts of the IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia Wood.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Penn National Horse Trainer Indicted on Wire Fraud ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Harrisburg has indicted a local thoroughbred horse trainer on charges of wire fraud and conspiracy.
According to United States Attorney Peter Smith, Murray L. Rojas, age 49, of Grantville, Pennsylvania was charged in a five count indictment with wire fraud and conspiracy for conduct related to 11 races in which she had horses entered at Penn National Race Course in early 2013.
The indictment alleges that Rojas directed and conspired with unnamed and unindicted coconspirator veterinarian(s) to administer substances to horses on the day the horses were entered to race, in violation of the Pennsylvania law and racing rules and regulations prohibiting the administering of those substances.
The indictment further alleges that steps were taken to conceal this conduct by the backdating of invoices for the sale and administration of drugs to the horses on race day, as well as submitting fraudulent veterinarian treatment reports to the Pennsylvania Racing Commission. The purse money for the races is funded by the interstate electronic transfer of funds and the transmission of these funds that are used to pay successful owners/trainers is essential to the alleged scheme to defraud.
The indictment also alleges that Rojas obtained winnings totaling $52,360 from the 11 races in which it is alleged she directed the administration of prohibited substances to her horses.
The case was investigated by the by the Harrisburg Office of the Federal Bureau of Investigation and Pennsylvania Department of Agriculture’s Horse Racing Commission. Prosecution is assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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PSP Fingerprint Expert Identifies Child Porn Producer by Analyzing Ridges in PhotoRead the Press Release
PITTSBURGH – A Beaver County resident pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Tyler Seevers, 25, formerly of Aliquippa, Pennsylvania, pleaded guilty before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on July 20 and 21, 2014, Seevers produced sexually explicit photographs of a female child, three years of age, using an iPod Touch. The iPod Touch was turned over to law enforcement by the victim’s mother who had discovered the photographs of her daughter. Forensic analysis of the contents of the iPod Touch revealed images of both the 3-year-old and her older sister. One such sexually exploitive photograph depicted the ridges of the photographer’s fingertips. A fingerprint analyst with the Pennsylvania State Police was able to identify Seevers’ hand as that depicted in the photograph.
Judge Ambrose scheduled sentencing for Dec. 2, 2015, at 11 a.m. The law provides for a maximum total sentence of not less than 15 years, nor more than 30 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Seevers will remain in custody pending the sentencing proceeding.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, The Pennsylvania State Police, and the Hopewell Township Police Department conducted the investigation that led to the prosecution of Tyler Seevers.
Owner of nonprofit charged with bank fraudRead the Press Release
A federal grand jury returned a one-count indictment charging Andre J. Grier, 41, of Cleveland, for presenting stolen checks to a local bank and receiving money under false pretenses, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Grier presented seven stolen checks totaling more than $62,000 a local bank to be cashed, misrepresenting that his nonprofit organization, Hood 2 Hood, Inc., earned them through various false business ventures. This took place between December 2014 and January 2015, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the U.S. Postal Service’s Office of Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Owner of District Heights Shipping Company Sentenced to Prison for Attempting to Illegally Export Arms to Lebanon and SmugglingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Sam Rafic Ghanem, age 45, of Springfield, Virginia, today to 18 months in prison followed by three years of supervised release for attempting to illegally export firearms parts and accessories to Lebanon, and for smuggling goods from the United States. Judge Titus also ordered Ghanem to pay a fine of $70,734.24.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Ghanem, a naturalized U.S. citizen born in Lebanon, owned and operated Washington Movers International, also known as Washington Movers, Inc., a freight forwarding business located in District Heights, Maryland.
According to evidence presented at his five day trial, beginning October 3, 2013, Ghanem sought to export guns and accessories to Lebanon through his shipping company that were provided to him by an FBI source. Ghanem knew that the weapons and accessories were designated as defense articles and required an export license, which Ghanem never sought or obtained. In addition, those items were prohibited from export to Lebanon. Specifically, Ghanem attempted to export seven 9mm semi-automatic pistols; three .40 caliber semi-automatic pistols; 10 AR-15 .223 caliber semi-automatic rifles; and 18 advanced combat optic gun sights.
According to trial evidence, on November 21, 2013, Ghanem told the source to pay him $3,000 for the cost of purchasing salvaged vehicles which would be used to export the firearms and accessories. Ghanem texted the source his bank account number and at the direction of law enforcement, the source deposited $3,000 into Ghanem’s account. Ghanem purchased the salvaged vehicles and arranged for them to be cut up. Ghanem concealed the weapons and other items within the doors and cut-up parts of the salvaged vehicles, which were then loaded into a shipping container. Ghanem advised the source that the shipping container would be loaded with the remaining car parts and transported to the Port of Baltimore for shipment to Lebanon on December 23, 2013. Ghanem was subsequently arrested.
United States Attorney Rod J. Rosenstein commended the FBI and Homeland Security Investigations Washington, D.C., for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Christine Manuelian and Joseph R. Baldwin, who prosecuted the case.
Owner of Yountville Art Gallery Pleads Guilty to Conspiracy to Traffick Protected WildlifeRead the Press Release
SAN FRANCISCO- Michael Polenske pleaded guilty in federal court in San Francisco yesterday to wildlife trafficking and conspiracy, announced United States Attorney Melinda Haag and U.S. Department of Commerce, National Oceanic and Atmospheric Administration Special Agent in Charge William Giles.
Polenske, 53, of Napa, is the owner of Ma(i)sonry Napa Valley, a fine art and antique gallery as well as a wine tasting collective in Yountville, Calif. In pleading guilty today, Polenske admitted conspiring in 2007 through 2011 to sell wildlife that he knew or should have known was possessed, transported, and sold in violation of federal laws. Specifically, he pleaded guilty to trafficking a sea turtle shell protected by the Endangered Species Act in September 2011. He also admitted selling and purchasing for sale other sea turtle shells, whale bones, orca jaws, and a seal head. Polenske further admitted importing the wildlife items into the United States from European vendors using false labels, with the assistance of international shipping company Hedley’s Humpers, Ltd. Trafficking these items violated the Endangered Species Act, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and the Marine Mammal Protection Act. The United States charged Polenske by Information on August 10, 2015, with one count of conspiracy to traffic and smuggle wildlife, in violation of 18 U.S.C. § 371, and one count of wildlife trafficking, in violation of 16 U.S.C. §§ 3372(a)(1) and 3373(d)(2).
Hedley’s Humpers, Ltd. pleaded guilty on March 31, 2015, to wildlife smuggling based on false labeling in connection with Polenske’s imports. On July 7, 2015, the corporation was sentenced to three years’ probation and was ordered to pay $100,000 in fines and community service payments.
Sentencing for Polenske is scheduled for November 13, 2015, at 10:30 a.m., before the Honorable Joseph C. Spero, U.S. Magistrate Judge, in San Francisco. The plea agreement specifies that Polenske will pay $63,231.68 in fines but does not resolve the amount of time, if any, Polenske will serve in prison. The maximum statutory prison term for violations of 16 U.S.C. §§ 3372(a)(1) and 3373(d)(2) and 18 U.S.C. § 371 is one year imprisonment. Polenske’s sentence also will include a special assessment and, if imprisonment is ordered, a term of supervised release. However, any sentence will be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Hartley M.K. West is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration, and the U.S. Homeland Security Investigations Border Enforcement Security Task Force.
Oswego Hospital and Physician Combine to Pay over $1.5 Million to Resolve Billing Improprieties Self-Disclosed by the HospitalRead the Press Release
SYRACUSE, NEW YORK – Oswego Hospital (“Oswego”), a 164-bed acute care community hospital located in Oswego, New York will pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital selfdisclosed to the federal government, announced United States Attorney Richard S. Hartunian. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego, has paid $204,365.97 to resolve False Claims Act liability in connection with a related investigation. Under the settlements, the United States will receive $1,026,790.89, and the State of New York, which also participated in the investigation, will receive $429,666.44.
During the course of an internal review, Oswego identified a number of billing improprieties in its Behavioral Health Services Department. Specifically, Oswego identified claims that were paid by federal and state payors where the supporting medical record documentation: (1) was not created or could not be located; (2) contained incorrect service dates; (3) were simply verbatim treatment notes from prior appointments with patients; and/or (4) failed to include time-related information required for certain time-based billing codes. Oswego promptly took corrective steps to remedy the problems and brought its findings to the government’s attention. Due in large part to Oswego’s decision to self-disclose these issues and its cooperation throughout the government’s investigation, Oswego was required to pay far less than the treble damages and penalties that the United States is authorized to seek under the False Claims Act. Furthermore, the Department of Health and Human Services’ Office of Inspector General (HHS-OIG) decided that Oswego would not have to enter into a corporate integrity agreement or adopt other compliance measures.
United States Attorney Hartunian said: “Our office is committed to ensuring that federal health care programs and their beneficiaries receive the services for which the government pays. The settlements in this investigation demonstrate how voluntary self-disclosures benefit both the integrity of the health care programs and the providers who discover and report improper billing in their organizations. Oswego should be commended for the manner in which it handled the disclosure and investigation.”
“Medicaid serves many New Yorkers’ essential health care needs and I will continue to work with partners in government to protect this important program,” said Attorney General Eric Schneiderman. “This settlement illustrates the importance of hospitals being mindful of billing requirements for government-sponsored healthcare. Through its cooperation with the investigation and return of Medicaid funds, Oswego Hospital demonstrated its accountability and commitment to abide by government healthcare rules and regulations and uphold the highest standards of integrity.”
The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs. The investigation and settlements were the result of coordinated effort among the United States Attorney’s Office for the Northern District of New York, on behalf of HHS-OIG, the Defense Criminal Investigative Service, and the New York State Attorney General (Medicaid Fraud Control Unit). Locally, the United States was represented by Assistant United States Attorney Michael D. Gadarian.
Orono Man Pleads Guilty to Bank and Wire Fraud Conspiracy ChargesRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jason Robinson, 29, of Orono, Maine, pled guilty yesterday in U.S. District Court to bank and wire fraud conspiracy charges.
According to court records, from about February 2014 to May 2015, Robinson conspired with others to steal merchandise from Walmart, Hannaford, and other stores in Maine, and sell it on eBay; to return stolen merchandise to Lowe’s and Home Depot in return for store credit; and to defraud federally insured financial institutions by depositing worthless checks and withdrawing the money before those checks bounced.
Robinson faces up to 30 years in prison, a $1,000,000 fine, and five years of supervised release on the bank fraud conspiracy, and up to 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud conspiracies. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police, the Bangor Police Department, and the Penobscot Sheriff’s Office.
Olmsted Township woman charged with embezzling from labor unionRead the Press Release
A two-count criminal indictment was filed charging an Olmsted Township woman with embezzling approximately $13,906 from Pipe Fitter Local Union No. 120, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Heather Banhidy, 50, formerly worked for Local 120 as a clerical employee. In that capacity, she embezzled funds from approximately December 2011 through September 2013. Banhidy also caused the falsification, concealment, withholding and destruction of union dues receipts and records of payments received by Local 120 as part of her embezzlement scheme, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the agents of the Department of Labor, Office of Labor-Management Standards.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Newport News Man Sentenced to 10 Years in Child Pornography CaseRead the Press Release
NEWPORT NEWS, Va. – Eric Thomas Boettcher, 58, of Newport News, was sentenced today to 120 months in prison, followed by 20 years of supervised release for receipt of child pornography.
Boettcher pleaded guilty on April 16, 2015. According to court documents, federal agents were able to determine that someone using a particular internet protocol address was sharing child pornography files. That online activity was then linked to Boettcher’s residence. Agents executed a search warrant on Boettcher’s home in Newport News, Virginia on Oct. 17, 2014. Agents seized numerous electronic devices found in the home. A forensic exam of the devices revealed over 150,000 images of child pornography, including video depicting actual and simulated sadistic or masochistic abuse by an adult male with a minor male child and oral-genital sexual intercourse by an adult male with a minor male child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-8.
Newport Man Jailed for 16 Months on Weapons ConvictionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Derick Niles, age 37, was sentenced yesterday in United States District Court in Burlington to 16 months in prison, followed by three years of Supervised Release, on his conviction for being a drug user in possession of a firearm.
Niles’s federal conviction arose from his September 25, 2013, confrontation with various law enforcement agencies from the roof of his Newport, Vermont, garage, armed with a rifle. Niles also had ordered his teenage son into the woods with another loaded rifle to maintain a second firing position. The stand-off lasted about five hours. Niles pleaded guilty to the federal firearms charge, and admitted being a drug user, early this year.
At the August 11, 2015, sentencing hearing before U.S. District Court Chief Judge Christina Reiss, the Court rejected Mr. Niles’ argument that his actions could be partially excused by his drug use at the time of the confrontation, adding that the volatile situation could have led to someone being shot. Niles has multiple prior misdemeanor convictions for various crimes during 1995-2014.
Niles has been in the custody of the U.S. Marshal’s Service since June of 2015. The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, and the Newport Police Department. Niles was represented by Assistant Federal Defender Steven Barth. The United States was represented by Assistant U.S. Attorney William Darrow.
New York Man Charged with Disorderly Conduct in Federal CourthouseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that disorderly conduct charges have been filed in Scranton against a Binghamton, New York man resulting from his alleged actions occurring at the conclusion of a detention hearing. The criminal information charges that Karl E. Kelly, age 35, engaged in threatening and tumultuous behavior, and used obscene language within the William J. Nealon Federal Building and United States Courthouse in Scranton.
According to United States Attorney Peter Smith, Kelly attended the detention hearing of a friend who was charged with allegedly committing an armed bank robbery. At the conclusion of the hearing on June 25, 2015, Senior United States District Judge James M. Munley ordered the defendant in that case detained pending trial. As Kelly was leaving the courtroom, he allegedly used obscene language and made a threatening comment about a third person.
The investigation was conducted by the Federal Bureau of Investigation and prosecution is assigned to Assistant U.S. Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 90 days imprisonment and a $300 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Man Pleads Guilty to Interstate Transportation of Stolen VanRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANK MIKE, JR., age 46, of New Orleans, pled guilty as charged today to an Indictment charging interstate transportation of a stolen 2010 Dodge Caravan van from Louisiana to Georgia.
According to court records, on February 19, 2014, family members reported to the St. John the Baptist Parish Sheriff’s Department that Kenneth and Lakeitha Joseph of Reserve, were missing. A relative also indicated that she loaned her 2010 Dodge Grand Caravan to the Josephs but that the van had not been returned. On February 27, 2014, the missing 2010 Dodge Grand Caravan was recovered by the Fulton County Police Department in College Park, Georgia, at an apartment complex. Investigators discovered that van had been parked at the Travelodge Hotel located in College Park. On February 21, 2014, video surveillance at the Travelodge showed MIKE driving the van into the hotel parking lot.
In March 2014, the bodies of Kenneth and Lakeitha Joseph were found in the Intercostal Waterway in New Orleans East. The New Orleans Parish Coroner determined that their deaths resulted from drowning. Later forensic testing revealed that blood samples taken from the stolen van matched the DNA of both victims.
U.S. District Judge Sarah S. Vance scheduled sentencing for December 16, 2015. MIKE faces a maximum sentence of 10 years in prison.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the New Orleans Police Department, the St. John the Baptist Parish Sheriff’s Office, the Fulton County Police Department, the Orleans Parish District Attorney’s Office, and the St. John the Baptist Parish District Attorney’s Office in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargesRead the Press Release
ALBUQUERQUE—Farrell Bowman, 28, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., pleaded guilty this morning in Albuquerque, N.M., to involuntary manslaughter charges under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Bowman will be sentenced to 74 months in prison followed by a term of supervised release to be determined by the court.
Bowman was arrested in Jan. 2015, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Bowman killed two Native American men with his vehicle when he crashed into their vehicle head on while he was driving under the influence of alcohol. The crash occurred on July 3, 2014, in a location within the Navajo Indian Reservation in San Juan County, N.M. Bowman was subsequently indicted on the same charges on Jan. 21, 2015.
During today’s plea hearing, Bowman pled guilty to the indictment and admitted killing the victims by driving recklessly while under the influence of alcohol which rendered him incapable of exercising clear judgment and a steady hand in operating a vehicle. Bowman acknowledged that he operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
Bowman has been in custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Raquel Ruiz-Velez is prosecuting this case.
Muskogee Man Pleads Guilty to Wire Fraud, Tax Fraud and Failure to Pay $500,000 in TaxesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAVID ALLEN EDWARDS, age 69, of Muskogee, Oklahoma, pled guilty to an Information charging him with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343; TAX FRAUD, in violation of Title 26, United States Code, Section 7206(1) and FAILURE TO ACCOUNT FOR AND PAY EMPLOYMENT TAXES OWED, in violation of Title 26, United States Code, Section 7202.
The charges arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division.
The Information filed on July 6, 2015, alleged that on or about January 9, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant devised and intended to devise a scheme and artifice to defraud Children's Clinic, PLLC to obtain money and property in the amount of $403,307.09 by means of materially false and fraudulent pretenses, representations and promises.
Further investigation revealed that on or about June 2, 2011, the defendant willfully made and subscribed a false 2010 Form 1040, U.S. Individual Income Tax Return, which contained and was verified by a written declaration that it was made under the penalties of perjury, and which he did not believe to be true and correct as to every material matter, in that he knowingly reported a false Adjusted Gross Income by failing to report $116,610.00 in additional income that was fraudulently obtained from Children’s Clinic, PLLC.
Agents also discovered that Office Medic, Inc., which is owned and operated by the defendant, withheld payroll taxes from its employees' paychecks, including federal income taxes, Medicare and social security taxes but failed to send $534,342.09 in withholdings to the Internal Revenue Service.
The Honorable Frank H. Seay, Senior District Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant will remain on bond pending sentencing.
The statutory range of punishment is up to 20 years imprisonment, a fine of up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Monongalia County man convicted of possession of child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Frohnhofer, 44, of Morgantown, West Virginia, was convicted today of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Frohnhofer was previously convicted of “Criminal Sexual Penetration” in 1996 in New Mexico, “Felony Menacing – Real/Simulated Weapon” in 2008 in Colorado, “Failure to Comply with Sex Offender Registration Requirements” in 2008 in Texas, and “False Imprisonment” in 2009 in New Mexico.
Through an investigation by the West Virginia State Police Internet Crimes Against Children Unit, Frohnhofer was discovered in possession of various images of child pornography. He pled guilty today to one count of “Possession of Child Pornography.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Members of the Jamal Dean Getaway Team SentencedRead the Press Release
Members of the Jamal Dean Getaway Team (made up of Jamal Dean’s friends, family, and fellow gang members) were sentenced today in federal court for their roles in obstructing a joint state-federal investigation and search for Jamal Dean in April and May of 2013.
Lee Dean, age 55 (Jamal Dean’s father), Kimberly Smith, age 50 (Jamal Dean’s aunt), all of Sioux City, Iowa and Ingmar Hernandez, age 26 (an F-13 gang member), of South Sioux City, Nebraska, received the sentences after guilty pleas to conspiring to defraud the United States by interfering with the federal investigation of and search for Jamal Dean. Steffen Dean, age 53 (Jamal Dean’s cousin) received his sentence after his guilty plea to knowingly making a false statement to a federal law enforcement officer.
Evidence at the Jamal Dean sentencing, and from the change of plea and sentencing hearings of the Getaway Team, revealed the following:
On April 15, 2013, Jamal Dean, Levon Dean (Jamal Dean’s brother and fellow gang member) and Sarah Berg traveled from South Sioux City, Nebraska, to Sioux City, Iowa where they beat and robbed at gun point a small-time drug-dealer, inside a room at a Sioux City motel. They left with the drug-dealer’s car, methamphetamine, cash and other items.
On April 24, 2013, Jamal and Levon Dean again traveled from Nebraska to Iowa and beat and robbed at gun point a larger drug-dealer, inside his Sioux City, Iowa, home, and left with the drug-dealer’s two cars, methamphetamine, cash and other items. After this attack, the assailants retreated to Nebraska taking one of the stolen cars and a female victim against her will with them.
On April 29, 2013, Jamal Dean, in an attempt to escape being arrested for these crimes, fired eight rounds at Sioux City, Iowa, Police Officer Kevin McCormick, striking him once in the head with a bullet. Jamal Dean, with the help of a getaway team, avoided arrest until May 5, 2013, when he was arrested by officers of the Texas Department of Public Safety just 70 miles from Mexico in a car heading south.
Moments after he shot Officer McCormick, Jamal Dean called Ingmar Hernandez (an F-13 gang member) and Lee Dean (Jamal Dean’s father) and requested help.
Lee Dean answered Jamal Dean’s call first. Lee Dean picked up Jamal Dean from the backyard of a home on West Second Street in Sioux City, Iowa, which was approximately four blocks from the scene of the shooting. While Lee Dean and Jamal were in the same vehicle, Lee Dean’s cousin, Steffen Dean, called Lee Dean and told him that Jamal Dean had just committed a serious crime and that Lee Dean should bring Jamal to Steffen Dean’s home, which he shared with Kimberly Smith.
Once at the Dean-Smith residence, Lee Dean, Steffen Dean and Kimberly Smith became fully aware of the fact that Jamal had shot a Sioux City police officer and that Jamal Dean was being sought by Deputy United States Marshals.
Jamal Dean called Ingmar Hernandez and requested a ride to South Sioux City, Nebraska. Ingmar Hernandez asked Monica Rocha-Contreras (a Facebook friend of both Hernandez and Jamal Dean) to help him pick up a “friend” (that is, Jamal Dean) in Sioux City, Iowa. She agreed. At around 10:00 p.m. on April 29, 2013, Ingmar Hernandez and Monica Rocha-Contreras picked up Jamal Dean at Steffen Dean’s, and transported him through Sioux City, Iowa to South Sioux City, Nebraska. Monica Rocha-Contreras dropped Jamal Dean and Ingmar Hernandez off in the area of Ingmar Hernandez’s home. Hernandez and Dean then walked to Ingmar Hernandez’s home, which had already been searched by law enforcement, and Hernandez hid Jamal Dean in the basement overnight. Hernandez also provided methamphetamine to and smoked methamphetamine with Jamal Dean.
On April 30, 2013, Evette Morris-Hernandez (the highest ranking female member of F-13 at the time) and Ingmar Hernandez arranged for the transportation of Jamal Dean from Ingmar Hernandez’s home to Anna Baker’s home on the Winnebago Reservation in Winnebago, Nebraska. Evette Morris-Hernandez and Esteban Hernandez (her husband at the time) transported Jamal Dean to Anna Baker’s home and, together, they hid Jamal Dean at the residence for the next three or four days.
While Jamal Dean hid at Anna Baker’s residence, Anna Baker, Evette Morris-Hernandez, Esteban Hernandez, Ingmar Hernandez, and Jamal Dean discussed the shooting, the joint state and federal investigation, and what Jamal Dean’s next step should be. On or about May 2, 2013, the confederates arranged for the transportation of Jamal Dean from Anna Baker’s home to the Palmer House Motel on Gordon Drive in Sioux City, Iowa. The Palmer House was selected because the conspirators believed that the hotel did not have extensive video surveillance. Evette Morris Hernandez and Esteban Hernandez provided Jamal Dean with an iPod with texting capability for use in keeping touch with other members of the conspiracy.
From about May 3, 2013, to about May 5, 2013, Evette Morris-Hernandez and Esteban Hernandez transported Jamal Dean to Texas. On May 5, 2013, a Texas state trooper stopped a 1999 Dodge Durango sport utility vehicle within 70 miles of Mexico, with Evette Morris-Hernandez, Esteban Hernandez, Jamal Dean, and two children inside the vehicle.
The obstructive conduct continued after Jamal Dean’s capture. Anna Baker, Lee Dean, Steffen Dean, Kimberly Smith, Monica Rocha-Contreras and Evette Morris-Hernandez all made material false statements to federal authorities. Similarly, Anna Baker and Monica Rocha-Contreras deleted the contents of their mobile phones and Esteban Hernandez deleted the contents of an iPod he and Evette Morris-Hernandez had lent Jamal Dean during the conspiracy.
Lee Dean, Steffen Dean, Kimberly Smith, and Ingmar Hernandez, were sentenced today in Sioux City by United States District Court Judge Mark W. Bennett. Lee Dean was sentenced to three years of probation with the condition that he serve fifteen consecutive weekends in jail. A special assessment of $100 was imposed.
Steffen Dean was sentenced to 1 year probation. A special assessment of $100 was imposed.
Kimberly Smith was sentenced to eight months’ imprisonment. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Evette Morris Hernandez sentencing hearing was continued and will be set for a later date.
Ingmar Hernandez was sentenced to 33 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Esteban Hernandez is scheduled to be sentenced on for September 14, 2015 at 1:30 p.m. in Sioux City by United States District Court Judge Mark W. Bennett.
Anna Baker was sentenced on June 22, 2015 in Sioux City by United States Magistrate Judge Leonard Strand. Anna Baker was sentenced to 4 months’ imprisonment and fined $25. A special assessment of $100 was imposed. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Monica Rocha-Contreras was sentenced on a related state offense on March 17, 2015, in Iowa State Court. Monica Rocha-Contreras was sentenced to 15 days in the Woodbury County Jail, fined a suspended fine of $625.00. She must also serve a one-year term of supervised release (with conditions).
“Battling violent crime is a top priority of this office and the Department of Justice,” said Mr. Techau. “These convictions send a firm message to anyone that would help a violent fugitive avoid justice. We will continue to stand shoulder-to-shoulder with our law enforcement partners at the federal, state and local levels to help ensure the safety and security of our communities.”
Chief Doug Young from the Sioux City Police Department said, “This case would not have been successful without the inter-agency cooperation of the United States Marshal’s Service, the Bureau of Alcohol Tobacco and Firearms, the Iowa State Division of Criminal Investigations and Intel Office, and our local city and county law enforcement from Iowa and Nebraska. The Sioux City Police Department would like to especially commend and send our gratitude to the United States Attorney’s Office for undertaking the prosecution of these individuals who harbored and assisted Jamal Dean in his attempted flight from justice. The collaboration and cooperation of all participating agencies is a true testament to the underlying spirit that defines Siouxland.”
Deputy United States Marshal Chad McCormick said, “This case is a perfect example of how cooperation between local, state and federal authorities resulted in the arrest of a serious threat to the public. The prosecution of those who assisted Jamal Dean sends a strong message that if someone assists a fugitive, they are likely to be prosecuted”.
Ingmar Hernandez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted as a part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations; the United States Marshal’s Service; the Iowa Department of Public Safety; the Nebraska Department of Public Safety; the Texas Department of Public Safety, the Iowa Department of Transportation, the Tri-State Drug Task Force, the Woodbury County, Iowa Sheriff’s Office; the Dakota County, Nebraska Sheriff’s Office; the Sioux City, Iowa Police Department, the South Sioux City, Nebraska Police Department; and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-4088.
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Martinsburg couple convicted of fabricating death to desert from U.S. Coast GuardRead the Press Release
MARTINSBURG, WEST VIRGINIA – Larry C. Shelby, 34, and his wife Karen Shelby, 34, of Martinsburg, was convicted today of misleading the U.S. Coast Guard, United States Attorney William J. Ihlenfeld, II, announced.
Larry Shelby, a non-commissioned officer in the U.S. Coast Guard, conspired with his wife, Karen Shelby to fabricate his own death in an effort to desert from the Coast Guard. Larry Shelby abandoned his vehicle, wrote suicide notes, concealed his identity and isolated himself in a remote West Virginia cabin in an effort to falsify his own death.
Karen Shelby represented to authorities that Larry Shelby was missing and that she was unaware his location or whether he was alive. These misrepresentations caused the U.S. Coast Guard to expend in excess of $100,000.00 in a search for Larry Shelby. In February 2014, Larry Shelby returned from the remote cabin to reside in his Martinsburg residence in secret until June.
Larry Shelby pled guilty today to one count of “Hoax Causing U.S. Coast Guard to Render Unnecessary Aid” and “Conspiracy to Violate Laws.” He faces up to six years in prison and a fine of up to $250,000. Karen Shelby pled guilty today to one count of “Making a False Statement.” She faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government.
The matter was investigated by the Coast Guard Investigative Service. The Coast Guard’s search for Larry Shelby was supported by the Maryland State Police, the National Park Service, the Berkeley County, West Virginia Sheriff’s Office, the Harpers Ferry, West Virginia Police Department, the Martinsburg, West Virginia Police Department, Chesapeake Search & Rescue K-9, and Mid-Atlantic D.O.G.S, Inc.
U.S. Magistrate Judge Robert W. Trumble presided.
Mansfield man charged with bank robberyRead the Press Release
A federal grand jury returned a two-count indictment charging Scott D. Tesca, 39, of Mansfield, with armed bank robbery, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges in Count 1 that on December 15, 2014, Scott Tesca and others robbed the Richland Bank located at 460 West Cook Road, Mansfield, Ohio. Count 2 alleges that on January 15, 2015, Scott Tesca and others robbed the Chase Bank located at 1094 Lexington Avenue, Mansfield, Ohio.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation’s Mansfield Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Sentenced to 37 Months in Federal Prison for Sending a “White Powder” Letter to a Federal Office in Greenville, TexasRead the Press Release
DALLAS – A man who was convicted at trial earlier this year for sending a “white powder” letter to a federal office in Greenville, Texas, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Michael M. Murray, 36, of Columbus, Ohio, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 37 months in federal prison. After a one-day trial in April 2015, a federal jury convicted Murray on an indictment, returned in the Northern District of Texas in October 2011, charging one count of making threats and hoaxes. He has been in custody since his arrest in Los Angeles in December 2014.
During trial, the government presented evidence that Murray received a letter from the U.S. Department of Education (DOE) demanding that he pay his outstanding student loans. Murray responded by tearing off a portion of the letter that contained his name and address and writing threats and obscenities on it. He placed that response in the DOE’s self-addressed return envelope, wrote “Osama Bin Laden” as the sender, put white powder inside of it, and mailed the envelope from Columbus for delivery to DOE’s loan processing center in Greenville.
The government also presented evidence at trial that Murray’s DNA was found on the back of the stamp affixed to the “white powder” envelope, and that his fingerprints were found on the envelope and on the tape on the envelope flap. A test performed on the white powder at the Tarrant County Public Health Service Laboratory for the presence of biological agents or other toxins was negative.
The FBI’s Dallas Division investigated the case. Assistant U.S. Attorney Mark Penley and Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller prosecuted.
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Man Sentenced to over 14 Years in Prison for Six Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – A local man has been sentenced to 171 months in federal prison for committing six armed robberies of commercial establishments in Las Vegas during the summer of 2013, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Herbert Johnson, 23, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan on Tuesday, Aug. 11. Johnson pleaded guilty in April to six counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
According to the guilty plea memorandum, Johnson robbed three gas stations, a pizza store, and two bars/restaurants in Las Vegas between July 26 and Aug. 29, 2013. During five of the robberies, Johnson used a handgun to rob the store cashiers and a bartender. Johnson scouted the business beforehand and served as a lookout during the other robbery. Johnson’s accomplice for two of the robberies, Quincy Stephens, also pleaded guilty to robbery and firearms charges and was sentenced in October 2014 to 151 months in prison.
“This case was screened through the Southern Nevada Project Safe Neighborhoods Task Force,” said U.S. Attorney Bogden. “The members of this task force, which include federal and local law enforcement representatives and prosecutors, meet on a regular basis to discuss recent arrests involving guns and violent crime. Through this collaborative effort, the team members make a determination whether the case should be handled federally or by the state.”
Johnson has a lengthy criminal history, including a prior felony robbery conviction in Clark County, Nev. Johnson also has a pending murder charge in Clark County.
The case was investigated by the FBI Safe Streets Task Force and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.
Los Lunas Man Sentenced to 15 Years in Prison for Federal Child Exploitation ConvictionRead the Press Release
ALBUQUERQUE – Victor Castellon, 52, of Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 180 months in prison followed by ten years of supervised release for his child exploitation conviction. Castellon will also be required to register as a sex offender.
Castellon was arrested on Feb. 11, 2015, on an indictment charging him with using a cellular telephone in an attempt to entice a minor to engage in a sexual activity. According to the indictment, Castellon committed the offense on Sept. 17 and 18, 2014, in Bernalillo County, N.M.
On May 4, 2015, Castellon pled guilty to the indictment. In his plea agreement, Castellon admitted that on Sept. 17, 2014, he responded to a notice on a website that appeared to be posted by a minor, and he initiated a conversation with the minor regarding the possibility of meeting on Sept. 18, 2014, for the purpose of engaging in sexual activity. Unbeknownst to Castellon, he was communicating with an undercover law enforcement agent posing as a child. Castellon was taken into state custody when he arrived at the location where he had arranged to meet the “minor.”
This case was investigated by the Sexual Predator and Exploitation Enforcement Detail (SPEED) of Homeland Security Investigations (HSI) Albuquerque office and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
This case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Long Island Physicians Pay $1.1 Million to Resolve Civil Fraud Allegations That They Provided and Billed for Unnecessary Medical TestingRead the Press Release
Dr. Vikas Desai (Desai), the principal of Desai MD, P.C. d/b/a East Islip Family Care (EIFC), and Dr. Robert Maccone, a physician who was previously affiliated with EIFC, have entered into separate civil settlement agreements in which they have collectively agreed to pay the United States a total of $1,120,299 to resolve allegations that they submitted claims to Medicare for nerve conduction studies (NCVs) that were not medically necessary.
The settlement was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Scott Lampert, Special Agent-in-Charge of New York’s Office of the Inspector General for the Department of Health and Human Services (HHS-OIG); and Scott Rezendes, Special Agent-in-Charge of New York’s Office of Personnel Management, Office of the Inspector General, Field Operations (OPM).
The government alleged that Dr. Desai, Dr. Maccone, and the late Dr. Edmond Ross – all of whom were at various times affiliated with EIFC – ordered and rendered NCVs on patients for whom those studies were not medically necessary. NCVs involve the electrical stimulation of a patient’s nerves and muscles to measure the conduction speed of electric impulses and proper nerve and muscle function. Because NCVs involve the administration of low levels of electric current, or shocks, to a patient, the tests can be uncomfortable and even painful. Specifically, the government alleged that Drs. Desai, Ross, and Maccone ordered the subject NCV studies despite the lack of apparent indications in the medical charts, and that when NCV studies were indicated, they were not performed in conformance with those indications (e.g., patients with arm complaints were inexplicably given leg NCV studies). The government contended that there was no medically necessary reason for the subject studies, and that accordingly, defendants falsely submitted thousands of claims for those studies to Medicare and OPM.
Dr. Desai has agreed to settle the government’s allegations regarding medically unnecessary billings made by both Dr. Desai and the late Dr. Ross from January 1, 2009 (the year that Dr. Desai purchased the EIFC from Drs. Ross and Maccone) to December 31, 2012, for the sum of $302,208.00. Dr. Maccone has agreed to settle the government’s allegations regarding his medically unnecessary billings from November 1, 2007 to December 31, 2011, for the sum of $818,091.33.
The investigation that led to the settlements began after Rosemarie Hennessey, a receptionist at EIFC, filed a complaint on behalf of the United States in the Eastern District of New York. The government recently intervened in that matter and is resolving it consistent with the terms set forth herein. Under the federal False Claims Act, a private individual who has uncovered fraud against the federal government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery.
“We are committed to battling health care fraud, especially in situations where the allegations involve doctors making testing and treatment decisions that do not benefit patients, only themselves, and harm the Medicare program,” stated Acting United States Attorney Currie. Mr. Kelly extended his grateful appreciation to HHS-OIG and OPM for their assistance in this matter.
The government’s case was handled by Assistant U.S. Attorney Erin E. Argo, with assistance from Affirmative Civil Enforcement Auditor Emily Rosenthal.
E.D.N.Y. Docket No. 10-CV-3851
Local Man Gets Five Years for Possessing FirearmsRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old resident of Corpus Christi has been ordered to federal prison following his conviction for being a felon in possession of firearms, announced U.S. Attorney Kenneth Magidson along with Robert W. Elder, special agent in charge of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Michael Tovar pleaded guilty June 4, 2015.
Today, Senior U.S. District Judge Hayden Head sentenced Tovar to 60 months imprisonment to be followed by three years of supervised release.
Through the investigation, ATF agents discovered Tovar, who had a previous felony conviction, was attempting to sell and trade firearms over the Internet. When agents executed a federal search warrant at Tovar’s residence, they seized eight firearms, including several semi-automatic assault style rifles, semi-automatic pistols, hundreds of rounds of ammunition and a ballistic vest.
In federal custody since his arrest, Tovar will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The charge was the result of an investigation conducted by ATF. Assistant U.S. Attorney Lance Watt prosecuted the case.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 11, 2015, Matthew John Horn, 33, of Lincoln, was sentenced to seven years and four months (87 months) in prison for conspiracy to distribute methamphetamine between April of 2013 and May of 2014. Information provided to law enforcement indicated that Horn was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time-frame. Following the prison term, Horn will serve four years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lackawanna Man Indicted on Charges of Attempting to Provide Support to IsilRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a two-count indictment charging Arafat M. Nagi, 44, of Lackawanna, NY, with attempting to provide material support and resources, namely, personnel, to a foreign terrorist organization, ISIL. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.Assistant U.S. Attorneys Timothy C. Lynch and Joseph M. Tripi, who are handling the case, stated that according to the indictment, between November 2012 and August 2014, and again from early 2015 to July 29, 2015, the defendant attempted to provide material support and resources, and personnel, specifically himself, to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (“ISIL”).
According to a complaint filed earlier in the case, on August 28, 2014, a community member advised the Federal Bureau of Investigation that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs.
Further investigation determined that the defendant pledged allegiance to ISIL and the leader of the terrorist group, Abu Bakr al Bagdadi. Investigators learned that the defendant traveled to Turkey on two occasions, in October, 2012 and July 2014 with the intention to meet with members of the group. Evidence revealed that prior to this trip, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles.
During follow up interviews in December, 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIL leaders; expressed agreement with ISIL tactics, including the killing of innocent men, women and children; and planned to travel to Yemen and Turkey again soon.
Today’s indictment is the culmination of an investigation by the Federal Bureau of Investigation Joint Terrorism Task Force which includes the Amherst Police Department, the Buffalo Police Department, the U.S. Department of State, the Federal Protective Service, Immigration and Customs Enforcement, Homeland Security Investigations, the Internal Revenue Service, the New York State Police, the Niagara County Sheriff’s Office, the Niagara Falls Police Department, U.S. Border Patrol, U.S. Customs and Border Protection, and U.S. Customs and Border Protection/Air and Marine Branch. Additional assistance was provided by the New York State Attorney General’s Office.
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.
Kent County Tax Return Preparer, Yashica Toshian Tucker, Pleads Guilty to Filing A False Claim Against the U.S. GovernmentRead the Press Release
GRAND RAPIDS, MICHIGAN — Grand Rapids resident Yashica Toshian Tucker, 40, pled guilty to making a false claim against the U.S. Government, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Tucker was charged in April 2015 by a federal grand jury in a 10-count indictment that alleged she prepared and filed false federal tax refund claims between January 2011 and February 2013. The indictment alleged false claims totaling $71,606. Today, Tucker pled guilty to one of those counts before Chief U.S. District Judge Robert J. Jonker.
According to a written plea agreement filed with the Court, Tucker claimed to be a knowledgeable and experienced tax return preparer who filed federal income tax returns for others for a fee. In pleading guilty, Tucker admitted preparing and filing a false tax return in 2011 on behalf of an individual tax filer. The return falsely stated that the filer earned more than $16,000 of income in 2010 and sought a refund of $7,436. Tucker knew that the claim to the Department of the Treasury was false and fraudulent because she made up the income amount. Tucker successfully obtained the fraudulent refund from the government from that claim, of which she received $1,000 as payment for her services. Tucker further admitted that this was not the only time she knowingly filed a false and fraudulent federal tax return claiming a refund on behalf of another person.
Tucker will be sentenced by Chief Judge Jonker on November 3, 2015. The Court will determine the total amount of the loss to the government as a result of Tucker’s criminal activity. The maximum penalty for filing a false claim against the U.S. Government is imprisonment of not more than five years; a three-year period of supervised release; a fine of $250,000 or twice the gain or loss resulting from the offense, whichever is greater, and mandatory restitution to the government. The actual sentence will be determined by the Court after consideration of any applicable statutory factors and the advisory United States Sentencing Guidelines.
Tucker has agreed to be permanently barred from preparing or filing federal tax returns for anyone other than herself.
This case was investigated by Special Agents of Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher O’Connor is prosecuting the case.
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KC Man Sentenced to 10 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for distributing child pornography over the Internet in a case that originated in New Zealand.
Chad Michael Rein, 27, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On March 26, 2015, Rein pleaded guilty to distributing child pornography over the Internet.
The investigation began on May 17, 2012 when a detective from the police department for the country of New Zealand was working undercover in a peer-to-peer, file-sharing network. He downloaded multiple images and videos of child pornography from Rein’s computer. That information was forwarded to the local FBI Cyber Crimes Task Force and a search warrant was executed at Rein’s residence. Child pornography was found on a desktop computer and an external hard drive that were seized during the search.
According to court documents, Rein amassed a large collection of thousands of images and videos of child pornography, including adult/toddler rape scenes. The recurring theme in his collection was the violent and overwhelming application of sexual force by an adult on a restrained infant child.
At the time of his arrest, Rein lived with two sex offenders (one of whom was unregistered prior to this investigation) and worked at a restaurant located across the street from a preschool.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI Cyber Crimes Task Force, the Kansas City, Mo., Police Department and the New Zealand Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jonathan Eugene Loper Sentenced to 324 Months in Prison on Federal Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn.- Jonathan Eugene Loper, 29, of Dayton, Tenn., was sentenced in the by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 324 months in prison for distributing child pornography. Following his release from prison, Loper will be supervised by the U.S. Probation Office for a term of 25 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Loper pleaded guilty in February 2015 to a federal grand jury indictment based upon his trading child pornography with an individual residing in Canada in 2012 and his posting of child pornography on Internet websites for downloading in 2013. Loper’s sentence was enhanced due to a prior conviction in Rhea County, Tenn., for attempted aggravated sexual battery of a minor.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force and the U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represents the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Johnstown Woman Admits Possessing Equipment to Produce Counterfeit Credit Cards, Gift Cards and ChecksRead the Press Release
JOHNSTOWN, Pa. - A Cambria County resident pleaded guilty in federal court to a charge of possession of device-making equipment , United States Attorney David J. Hickton announced today.
Kristina Joanna Barney, 33, of Johnstown, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Oct. 22, 2010, Barney, along with a co-defendant, possessed counterfeit or unauthorized access devices, which included approximately 132 counterfeited identification cards, 73 counterfeited checks, 55 unauthorized gift cards, and 18 counterfeited credit cards. In addition to possessing these counterfeit or unauthorized access devises, Barney and a co-defendant also possessed device-making equipment, specifically Check Designer, Print Shop 2.0, check stock paper, and tools to modify checks and credit cards. Their possession of this equipment was designed primarily to produce counterfeit checks and credit cards.
Judge Gibson scheduled sentencing for Dec. 10, 2015, at 10 a.m. The law provides for a maximum total sentence of 15 years in prison, a fine of $250,000, or both, for Barney. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The United States Secret Service and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Barney.
Johnston County Trafficker Sentenced for Cocaine ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced FRANCISCO ARROLLO-SILVA, 27, of Clayton, North Carolina, to 142 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and laundering monetary instruments. ARROLLO-SILVA previously pled guilty to these charges on August 14, 2014.
The investigation of ARROLLO-SILVA began in April 2013 when the Drug Enforcement Administration learned that ARROLLO-SILVA planned to provide a money courier in excess of $200,000 in drug proceeds that were destined for a cocaine trafficking organization in Mexico. On April 16, 2013, ARROLLO-SILVA met with a DEA undercover agent posing as the money courier in Clayton, N.C., and gave the agent $214,801.
During the summer of 2013, agents learned that FABIO HIROCHI INOUE of Anaheim, California, was delivering multi-kilogram shipments of cocaine to ARROLLO-SILVA, JOSE LUIS MORALES-SILVA and SANTOS PENALOZA-MILLAN. On September 22, 2013 agents arrested INOUE at Raleigh Durham International Airport after seizing from his luggage 3,891 grams of cocaine that was destined for ARROLLO-SILVA, MORALES-SILVA and PENALOZA-MILLAN.
On November 4, 2013, agents used a confidential informant to buy 9 ounces of cocaine from ARROLLO-SILVA at a stash house located off of Sanders Road near Willow Springs, N.C. The informant saw an additional half kilogram of cocaine at the house. MORALES-SILVA and PENALOZA-MILLAN were also present during the cocaine sale.
On February 14, 2014, agents arrested ARROLLO-SILVA and PENALOZA-MILLAN at PENALOZA-MILLAN’S house located at 1199 S. Pleasant Coates Road in Benson, North Carolina. In the house, agents found 3.8 kilograms of cocaine, a cocaine press, a vacuum sealer, digital scales, firearms, ammunition and a shrine with statues and burning candles, commonly used by drug traffickers to protect them from being arrested.
MORALES-SILVA and PENALOZA-MILLAN have pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine; their sentencing hearings are pending. On June 10, 2015, Judge Flanagan sentenced INOUE to 51 months and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and conspiracy to launder monetary instruments.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office, the Lenoir County Sheriff’s Office, the Greenville Police Department, and the Internal Revenue Service-Criminal Investigations Division. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
James Glenn Collins, Jr., Sentenced to 84 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
KNOXVILLE, Tenn. – On August 11, 2015, James Glenn Collins, Jr., 48, of Knoxville, Tenn., was sentenced to serve 84 months in prison for conspiracy to defraud the government by filing false income tax returns. Collins pleaded guilty to a federal indictment in January 2015.
According to the plea agreement on file with the U.S. District Court, while incarcerated in a Tennessee correctional facility, Collins was able to obtain Personal Identification Information (PII), including social security numbers and dates of birth, on numerous individuals and used this information to create and file fraudulent tax returns. Collins employed the use of friends and family to receive the refund checks and cash them, which is described in detail in the plea agreement. The attempted tax refunds totaled $993,576, and the actual amount of loss to the Internal Revenue Service (IRS) was approximately $150,464.67.
Others involved in this conspiracy include: Tenna Allison, 59, of Knoxville, Tenn., who pleaded guilty to theft of public money and was sentenced to five years of probation; James Scott Huskey, 52, of Knoxville, Tenn., pleaded guilty to theft of public money and was sentenced to serve five years of probation; Natosha Nicole Cooper, 29, of Knoxville, Tenn., pleaded guilty to theft of public money and was sentenced to serve six months in prison and six month of house arrest, followed by three years of supervised release; and Mona Griffith, 56, of Nesbit, Miss., pleaded guilty to theft of public money and was sentenced to serve three years of probation.
In addition to his prison sentence, Collins was ordered to pay $150,464.67 in restitution to the IRS jointly and severally with Allison, Huskey, Cooper and Griffith.
This investigation was conducted by the IRS- Criminal Investigation and U.S. Secret Service. Assistant U.S. Attorney Jennifer Kolman represented the United States.
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International Smuggling by Drones Nets 28 Pounds of HeroinRead the Press Release
Contact: Assistant U.S. Attorney Sherri Walker Hobson (619) 546-6986
NEWS RELEASE SUMMARY – August 12, 2015
SAN DIEGO – El Centro residents Jonathan Elias and Brayan Valle pleaded guilty in federal court Tuesday to drug charges, admitting that they smuggled 28 pounds of heroin into the United States using drones.
This is believed to be the first international narcotics seizure by U.S. law enforcement involving the use of drones by Mexican drug traffickers, according to Homeland Security Investigations.
The defendants entered guilty pleas before U.S. Magistrate Judge Peter Lewis to possession of heroin with intent to distribute and aiding and abetting, in violation of Title 21, United States Code, Section 841 and Title 18, United States Code, Section 2. The offense involved approximately 28.55 pounds of heroin.
According to their guilty pleas, on or about April 28, 2015, Elias drove Valle to pick up packages of drugs that were smuggled by drones near an agricultural field in Calexico near the border. Using a drone controller, Valle picked up packages of narcotics and placed them inside a bag. They placed the bag in the trunk of their vehicle and were subsequently stopped by U.S. Border Patrol agents. As part of their plea, defendants admitted that they knew that there were narcotics inside the bag, but did not know the quantity or type of narcotics inside the bag.
“With border security tight, drug traffickers have thought of every conceivable method to move their drugs over, under and through the border,” said U.S. Attorney Laura Duffy. “We have found their tunnels, their Cessnas, their jet skis, their pangas, and now we have found their drones.”
“The use of drones to smuggle drugs across the U.S./Mexico border is an emerging threat, which fortunately, has not proven to be a lucrative criminal enterprise in the Imperial Valley,” said Ronnie Martinez, assistant special agent in charge for HSI El Centro. “HSI and our law enforcement partners on the Imperial Valley Border Enforcement Security Task Force are working together to identify and dismantle the criminal organizations behind drone smuggling activity and to wipe out their illicit experiments. As part of this effort, a dedicated group of investigators from multiple law enforcement agencies are assigned to investigate all aerial smuggling activity along the border, and to seize any illicit proceeds linked to their failed attempts.”
Sentencing is scheduled for October 20, 2015 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS Case Number 15-cr-01437
Jonathan Elias Age 18 El Centro, California
Brayan Valle Age 19 El Centro, California
SUMMARY OF CHARGE
Title 21, United States Code, Section 841 and Title 18, United States Code, Section 2
Maximum Penalty: Twenty years in custody; $250,000 fine; three years of supervised release
INVESTIGATING AGENCIES
Homeland Security Investigations – Special Agents (HSI)
U.S. Border Patrol, El Centro Sector
Hartford Man Sentenced to 11 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TYSHAWN McDADE, also known as “S Dot” and “S Diddy,” 30, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 132 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, including McDADE, distributed crack cocaine in the Westland Street area of Hartford.
On May 18, 2015, a jury found McDADE guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base.
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
HD Supply Waterworks to Pay Nearly $5 Million to Resolve Grant Fraud AllegationsRead the Press Release
ALBANY, NEW YORK: HD Supply Waterworks (Waterworks) – the Nation’s largest supplier of water, sewer, fire protection and storm drain products – has agreed to pay the United States $4,945,000 under the False Claims Act to resolve allegations that it participated in a scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in order to obtain subcontracts on federally-funded projects, announced United States Attorney Richard S. Hartunian.
The United States Department of Transportation (DOT) and the United States Environmental Protection Agency (EPA) have promulgated regulations intended to provide opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. Those agencies also administer DBE programs that require state and local governments receiving federal funding to establish goals for the participation of DBEs on federally-funded projects. A contractor may claim credit for a DBE’s participation on a project only if the DBE serves a commercially useful function. A DBE does not serve a commercially useful function if its role is limited to that of an extra participant to a transaction through which funds are passed to create the impression that one or more members of a historically disadvantaged group worked on a project.
In 2008, authorities began investigating prime contractors that claimed to have conducted business with the now-defunct American Indian Builders & Suppliers, Inc. (AIB), a Native American owned company certified as a DBE in New York and in other states. The investigation revealed that several prime contractors listed AIB as a subcontractor that had worked on or supplied materials for federally-funded projects when it did neither. Instead, a third party that would not itself qualify as a DBE performed the work or supplied the materials, and received much of the financial benefit. For its role, AIB would collect a small percentage of the subcontract amount as compensation for the fraudulent use of its name and DBE status.
The government alleges that Waterworks enabled several prime contractors to represent falsely that AIB had performed a commercially useful function on federally-funded contracts by negotiating price and other terms of sale when, in reality, the prime contractors had negotiated such terms with Waterworks and used AIB as a pass through. Waterworks acknowledged in the settlement agreement that AIB served as a pass-through by collecting invoices from Waterworks, transferring the information from those invoices to AIB’s own invoices, adding a markup, and passing the AIB marked-up invoices on to the prime contractors. The government alleges that the conduct described above enabled prime contractors to certify falsely that AIB supplied materials when the parties – i.e., Waterworks, AIB, and the prime contractors – knew that was not the case, resulting in the submission to government entities of false or fraudulent claims for payment from federal funds.
United States Attorney Hartunian said: "Waterworks enabled prime contractors to certify falsely that American Indian Builders & Suppliers served as a subcontractor on government-funded projects, thwarting the program’s objective of creating a level playing field for legitimate minority and women-owned businesses to compete fairly on such projects. As this case demonstrates, my office will vigorously pursue unscrupulous contractors who engage in schemes to divert grant funds away from those for whom the money was intended."
"Disadvantaged Business Enterprise fraud like that perpetrated by HD Supply Waterworks harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts," said Douglas Shoemaker, regional Special Agent-in-Charge of the DOT Office of Inspector General (DOT-OIG). "Our agents will continue to work with the Secretary of Transportation, the Administrator of Federal Highways, and our federal, state, and local law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs throughout New York and elsewhere."
"EPA OIG will continue to work to ensure that the Disadvantaged Business Enterprise programs are used for their intended purposes," said Thomas Muskett, Special Agent in Charge for the EPA Office of Inspector General’s Washington Field Office, which covers the mid-Atlantic and northeastern United States. "Our agents are pleased to have contributed to the successful resolution of this investigation."
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, DOT-OIG, EPA-OIG, and the Federal Bureau of Investigation, with the assistance of the United States Department of Justice’s Civil Division and the New York State Department of Transportation’s Investigations Bureau. The United States was represented by Assistant United States Attorney Adam J. Katz.
Glen Burnie Man Sentenced to 5 Years in Prison for CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, today to five years in prison followed by three years of supervised release for the armed carjacking of a woman who was in labor and on her way to the hospital.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on March 2, 2014, Kelley and co-defendant Cornell Robinson pointed guns at two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car. The victims were planning to go to the hospital because the woman was in labor. The male victim managed to flee and called the police. Robinson and Kelley forced the woman at gunpoint to a residential building nearby, demanding money. The woman repeatedly told them that she was in labor and did not have the key to the residence. When it became clear that she could not get into the residence, Robinson took her car key and left in the victim’s car.
Officers from the Annapolis Police Department arrived and pursued the stolen car into Eastport. Kelley threw out a loaded handgun at the corner of Tyler Avenue and Hilltop Lane, which was recovered by police. Robinson and Kelly got out of the car on Tyler Avenue and ran away, but were arrested nearby. Police also recovered a shotgun from a neighbor’s yard.
A federal jury convicted Cornell Louis Robinson, age 45, of Washington, D.C., on July 29, 2015. Robinson faces a maximum sentence of 15 years in prison for carjacking; life in prison for possession and brandishing a firearm in furtherance of a crime of violence; and 10 years in prison for possession of a firearm and ammunition by a felon. Judge Motz scheduled sentencing for Robinson on November 13, 2015, at 10:30 a.m. Robinson remains detained.
United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
French National Pleads Guilty to 38 Counts of Alien SmugglingRead the Press Release
St. Thomas, USVI- Alain Rene Leichtnam, 71, a French national, pleaded guilty today in District Court on St. Thomas to 38 counts of an Indictment charging him with encouraging and inducing aliens to enter the United States in violation of law, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement, U.S. Customs and Border Protection (CBP) Office of Air and Marine (OAM) and the United States Coast Guard (USCG) intercepted a sailing vessel Mazurka heading towards Coral Bay on the East End of St. John, Virgin Islands in the early morning hours of April 29, 2015. CBP agents observed Leichtnam operating the vessel and identified 38 Cuban nationals and one national of St. Lucia onboard. Leichtnam admitted that he transported the Cuban nationals to the United States for financial gain knowing that the conduct was unlawful.
Leichtnam was remanded to the custody of the United States Marshals Service pending sentencing, which is scheduled for December 4, 2015.
“Those responsible for encouraging and inducing immigrants to enter the United States illegally are placing personal profit ahead of public safety and the lives of the immigrants,” U.S. Attorney Sharpe said. “This conviction should warn those involved in this dangerous and illegal activity that it comes with a high price.”
Angel M. Melendez, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Puerto Rico and the U.S. Virgin Islands said: “ICE continues to be committed to putting an end to the practice of profiting from the illegal transportation of aliens across our borders and throughout our country. We will continue to vigorously enforce the federal laws which punish the many manifestations of the complex problem of smuggling, trafficking and harboring illegal aliens. Tragically, many have lost their lives while attempting this illegal and treacherous trip. Human smugglers have a callous disregard for the value of human life and are only concerned about making a profit. ICE will continue to aggressively work with our U.S. Department of Homeland Security (DHS) partners to identify and arrest those involved in this illicit and dangerous activity.”
The case was investigated by ICE with the assistance of CBP and the USCG. It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.