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17 September 2015
Indictment Charges Bridgeport Man with Illegal Possession of FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Colonel Brian F. Meraviglia of the Connecticut State Police and Easton Police Chief Timothy Shaw announced that a federal grand jury in Bridgeport returned an indictment today charging KYLE NAVIN, 27, of Bridgeport, with one count of possession of a firearm by an individual who is an unlawful user of and addicted to any controlled substance.
NAVIN was originally charged by criminal complaint. As alleged in the complaint, on August 7, 2015, federal, state and local law enforcement agencies began investigating the disappearance of NAVIN’s parents, Jeffrey and Jeanette Navin of Easton. On August 13, 2015, investigators conducted a court-authorized search of NAVIN’s Bridgeport residence and seized two firearms and numerous rounds of ammunition from NAVIN’s bedroom. On August 19, 2015, law enforcement conducted a second search of NAVIN’s residence and located and seized items indicative of substance abuse, including numerous heroin brand-stamped glassine baggies with heroin residue, hypodermic needles, empty prescription bottles for oxycodone and prescription bottles containing other controlled substances. Investigators also recovered from NAVIN’s residence a receipt from a firearms shooting range that was issued on August 5, 2015.
The complaint further alleges that investigators conducted a court-authorized search of NAVIN’s cellphone and reviewed numerous text messages that discuss NAVIN’s use of heroin, oxycodone and Xanax.
NAVIN has been detained since his arrest on September 8, 2015.
The charge of possession of a firearm by an individual who is an unlawful user of and addicted to any controlled substance carries a maximum term of imprisonment of 10 years.
NAVIN’s arraignment has not been scheduled. This case has been assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI Bridgeport Violent Crimes Task Force, Connecticut State Police Western District Major Crime Squad and Easton Police Department, with the assistance of the State’s Attorney’s Office for the Fairfield Judicial District and the Westport, Weston and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Houston Tax Preparer Convicted of Defrauding the IRSRead the Press Release
HOUSTON – The operator of a tax preparation in Houston has entered a plea of guilty to one count of knowingly preparing a materially false claim against the United States, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (IRS-CI). Adriana Lizette Luna pleaded guilty today, admitting she prepared a materially false 2011 U.S. Individual Income Tax return.
According to the written plea agreement filed in the record of the case, Luna operated an income tax preparation business known at times as Ruby’s Income Tax and Diaz Tax Service at other times. As part of the plea, Luna admitted preparing at least 23 false income tax returns for clients, including the 2011 return which the basis for her plea which claimed a false refund of approximately $11,724.
Luna admitted in the plea agreement that the intended tax loss on the 23 false tax returns she prepared was more than $235,000 and that she split roughly one-half of the false tax refunds with her clients. As part of the plea, she has agreed to pay restitution to the United States in the amount of $116,000.
U.S. District Judge Sim Lake, who accepted the plea, has set sentencing for Dec. 10, 2015. At that time, Luna faces up to five years and a possible $250,000 fine.
IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN VASQUEZ-ALVARADO, age 47, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the Indictment, VASQUEZ-ALVARADO reentered the United States on or about July 2, 2015, after having been previously removed on September 5, 2002.
VASQUEZ-ALVARADO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for October 29, 2015.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
- General Motors Company Deferred Prosecution Documents
Gaston County Man Charged with Conspiracy to Violate Firearms Laws , and Related Gun and Drug ChargesRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Walter Eugene Litteral, 50, of Gastonia, N.C. for conspiring to violate federal firearms laws and related gun and drug charges, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Litteral’s conspirators, Christopher Todd Campbell, 30, of Mt. Holly, N.C., and Christopher James Barker, 41, of Gastonia, were charged separately today and have agreed to plead guilty for their involvement in the conspiracy.
Special Agent in Charge John A. Strong of the FBI’s Charlotte Division joins Acting U.S. Attorney Rose in making today’s announcement.
According to allegations contained in filed court documents and statements made in court:
In June 2015, law enforcement became aware that Litteral was conspiring with other individuals, including Campbell and Barker, to acquire firearms and components necessary to manufacture improvised explosive devices. Litteral, Campbell and others believed that the United States government intended to use the armed forces to impose martial law, which the conspirators planned to resist with violent force. Litteral and Campbell purchased smokeless gun powder, dummy grenades, fuses and other material needed to manufacture the explosive devices, stating that they would use them against law enforcement personnel who attempted to disarm them. In addition to manufacturing his own explosive devices, Litteral also helped Campbell reconstruct a dummy grenade into a live grenade and advised Campbell on how to maximize the success and impact of an explosion.
Litteral had also recruited Barker, who had access to plumbing supplies through his work, to provide him with pipe and pipe fittings needed to manufacture pipe bombs. Litteral also agreed to act as a “straw” firearm buyer for Barker, and attempted to purchase an assault rifle in his name for Barker’s use. Litteral also advised Barker on the type of ammunition Barker should purchase for the assault rifle, knowing that Barker’s prior felony convictions prohibited him from possessing or receiving a firearm or firearm ammunition.
To help finance his activities, Litteral sold prescription drugs which had been prescribed to him for his own use. Litteral was receiving approximately 240 hydrocodone and 90 oxycodone pills per month, which are both controlled substances, and sold approximately 150 pills per month to Barker. Litteral also sold prescription drugs to Campbell.
The six-count indictment charges Litteral with conspiracy to violate laws governing firearms and explosive devices which carries a maximum penalty of five years in prison; making a false statement during the attempted purchase of a firearm, which carries a maximum penalty of 10 years in prison; aiding and abetting the possession of ammunition by a prohibited person; which carries a maximum penalty of 10 years in prison; aiding and abetting the making of a firearm in violation of the National Firearms Act (NFA, that being a grenade, which carries a maximum penalty of 10 years in prison; conspiracy to distribute and possess Schedule II controlled substances, which carries a maximum penalty of 20 years in prison; and illegal distribution and possession with intent to distribute Schedule II controlled substances, which carries a maximum penalty of 20 years in prison.
Criminal bills of information were also filed in federal court against Litteral’s conspirators, Campbell and Barker. The two men have agreed to plead guilty to federal charges for their involvement in the conspiracy, and will appear before a U.S. magistrate judge in the coming days to formally enter their guilty pleas.
Campbell has agreed to plead guilty to one count of possession of an unregistered firearm, and one count of making a firearm in violation of the NFA, that being a grenade. Each charge carries a maximum of penalty of 10 years in prison. Barker has agreed to plead guilty to conspiracy to violate laws governing firearms and explosive devices which carries a maximum penalty of five years in prison, and one count of possession of ammunition by a prohibited person, which carries a maximum penalty of 10 years in prison.
All three men have been in federal custody since they were arrested on August 1, 2015.
The charges contained in Litteral’s indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Joint Terrorism Task Force (JTTF) of which the North Carolina Highway Patrol, the Federal Air Marshal Service, the Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Customs and Border Protection, the Union County Sheriff’s Office and the Charlotte Mecklenburg Police Department are members. In making today’s announcement, Acting U.S. Attorney Rose thanked the Belmont Police Department, the Mount Holly Police Department, Gaston County Police Department, the Gastonia Police Department, and the Mecklenburg County Sheriff’s office for their assistance with the investigation.
The case is being prosecuted by Assistant U.S. Attorney and Senior Litigation Counsel Michael E. Savage of the Western District of North Carolina.
Four Arrested on St. Croix for Drug-Related OffensesRead the Press Release
St. Croix, USVI – Four defendants made their initial appearance today in District Court on St. Croix before U.S. Magistrate Judge George W. Cannon after their arrest for drug-related offenses, United States Attorney Ronald W. Sharpe announced. The defendants are:
- Bruce McIntosh, 52, aka “Bird” aka “Butch.” He is charged with five counts of Distribution of Cocaine, one count of Conspiracy to Commit Distribution of Cocaine, and one count of Using a Communications Facility in Causing or Facilitating the Commission of Felonies under the Controlled Substances Act.
- Misael Melendez, 49, aka “Salao.” Melendez is charged with three counts of Distribution of Cocaine and one count of Felon in Possession of a Firearm.
- Winston Decastro, 42, aka “Moo-Moo.” He is charged with one count of Distribution of Cocaine and one count of Possession of Cocaine.
- Carl Hansen, 55, aka “Cuz” & “Aquillo.” He is charged with one count of Conspiracy to Commit Distribution of Cocaine and one count of Using a Communications Facility in Causing or Facilitating the Commission of Felonies under the Controlled Substances Act.A federal grand jury indicted the four defendants Tuesday. Winston Decastro was arrested Tuesday evening and the other three were arrested early this morning by federal law enforcement officers and the Virgin Islands Police Department (VIPD). Judge
Cannon ordered McIntosh, Melendez and Decastro detained pending further proceedings. He also ordered Hansen released on an unsecured $50,000 bond, and scheduled the arraignment and detention hearing for September 21, 2015.The maximum penalties for conviction of the charged offenses are as follows: Distribution of Cocaine, 40 years in prison; Conspiracy to Commit Distribution of Cocaine, 40 years in prison; Felon in Possession of a Firearm, 10 years in prison; Using a Communications Facility in Causing or Facilitating the Commission of Felonies Under the Controlled Substances Act, four years in prison; Possession of Cocaine, one year in prison.
U.S. Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the VIPD, U.S. Drug Enforcement Administration, and the Bureau of Alcohol Tobacco and Firearms, with assistance from the Internal Revenue Service Criminal Investigations Division, U.S. Marshals Service, Federal Bureau of Investigations, and Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Christian H. Stringer.
Former New York State Assemblyman William F. Boyland, JR. Sentenced to 14 Years for Bribery, Fraud, Extortion, Conspiracy, and TheftRead the Press Release
Earlier today in federal court in Brooklyn, former New York State Assemblyman William F. Boyland, Jr. was sentenced to 14 years of incarceration in connection with his conviction at trial of 21 felony counts, including federal programs bribery, conspiracy to violate the Travel Act, extortion, honest services wire fraud, federal programs theft, and conspiracy to commit mail fraud. Boyland committed these offenses by corruptly exploiting his official position representing the 55th Assembly District in Brooklyn, comprising Ocean Hill, Brownsville, Bedford-Stuyvesant, Crown Heights, and Bushwick. As part of the sentence, the Court also ordered Boyland to forfeit $169,410.14 and pay restitution in the amount of $71,339.66 to the New York State Department of Taxation and Finance and $84,270.48 to the New York State Office of the Aging. Today’s proceeding was held before United States District Judge Sandra L. Townes.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“As he demonstrated time and again, Boyland, a lawmaker himself, lacked any respect for either the law or his constituents who elected him,” said Acting U.S. Attorney Currie. “Officials who would seek to sell the power and influence of their office to the highest bidder are on notice that they will be held to account for their crimes.” Mr. Currie praised the outstanding work of the FBI and expressed his grateful appreciation to the New York State Comptroller’s Office, the New York State Office of the Aging, the Internal Revenue Service-Criminal Investigations, the New York State Assembly Department of Finance, and the New York City Department of Investigation for their assistance.
“Boyland was elected to represent his district, not cash in on them. By repeatedly taking unscrupulous opportunity after opportunity–from bribes to fraudulent vouchers to misappropriation of state funds intended to help seniors–Boyland only showed he was only trying to help himself. Today’s sentencing should serve as a warning to those in public office who seek to profit from their positions rather than legislate from them–they are not above the law. The FBI remains committed to investigating and bringing to justice public officials who seek to misuse their power.”
The evidence admitted at trial established that, beginning in January 2007 and continuing through December 2011, Boyland engaged in four corrupt schemes.
Carnival Extortion Scheme. In August 2010, Boyland met with a carnival promoter and an undercover FBI agent on multiple occasions to discuss the promoter’s desire to hold carnivals in Boyland’s district, for which government approvals were required. Boyland requested payments in exchange for his assistance, and the promoter agreed. In furtherance of the scheme, Boyland described various ways in which the bribes could be concealed, directed his Assembly staff to assist the promoter obtain government approvals, arranged for a non-profit organization to sponsor the promoter’s carnivals, and directed his staff to give the promoter letters of support on Boyland’s Assembly letterhead. In exchange, the undercover FBI agent paid Boyland three separate bribes – $7,000 in cash, a $3,000 check with the payee line left blank, and $3,800 worth of money orders that were deposited into Boyland’s campaign bank account.
Real Estate Scheme. Boyland also accepted the $7,000 cash bribe described above in exchange for undertaking official action to benefit two FBI undercover agents in a purported real estate venture in Boyland’s district. In this scheme, the undercover agents would purchase the former St. Mary’s Hospital in Boyland’s district for $8 million, obtain state grant money to renovate the hospital, and resell it for $15 million to a non-profit organization that Boyland claimed to control. Boyland assured the agents he would use his influence as an Assemblyman to secure state grant money for the project and handle any zoning issues that arose. After accepting the $7,000 cash bribe, Boyland later demanded an additional $250,000 bribe payment from the agents as a condition of using his official position to carry out the scheme.
False Voucher Scheme. From January 2007 to December 2011, Boyland submitted over 200 fraudulent vouchers in which he falsely claimed to be in Albany on legislative business when he in fact was not in Albany, including days when he was in New York City meeting with the undercover FBI agents and demanding $250,000 in bribes, days when he was in North Carolina and Virginia visiting with family and friends, and for days when he was in Istanbul, Turkey. In reliance on the false vouchers, New York State paid Boyland over $70,000 in fraudulent mileage expense reimbursements and per diem payments.
Theft of State Funds for the Elderly. Between July 2007 and September 2010, Boyland conspired to defraud New York State and the New York State Office of the Aging. Boyland, a member of the Assembly’s Committee on the Aging, steered $200,000 of New York State member item funds to a Brooklyn-based non-profit organization whose purported mission was to provide a “social setting that enable[s] elderly individuals to maintain their independence and remain at home in the community.” Boyland certified that these state funds would not be used for partisan or political purpose, but then directed that the majority of the funds be used to benefit himself and his political campaigns by paying for community events that promoted Boyland.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Lan X. Nguyen and Marisa Megur Seifan are in charge of the prosecution. Assistant United States Attorney Tanya Hill is responsible for handling the forfeiture of assets.
The Defendant:
WILLIAM F. BOYLAND, JR.
Age: 45
Brooklyn, New YorkE.D.N.Y. Docket No. 11-CR-850 (SLT)
Former Grand Rapids Man, Marvin Deshawn Whetstone, Sentenced to Seven Years in Prison for Check-Writing and Tax Refund SchemesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Marvin Deshawn Whetstone, 34, formerly of Grand Rapids, was sentenced to seven years in prison for check-writing and income tax refund schemes. U.S. District Judge Robert Holmes Bell imposed the sentence.
From June 2012 through October 2014, Whetstone defrauded the U.S. Post Office and area retailers by recruiting accomplices to open bank accounts with a nominal amount of money and directing them to write thousands of dollars of bad checks to purchase rolls of postage stamps, retail gift cards, and other goods. They provided Whetstone with the fraudulently acquired stamps, gift cards, and goods, which he sold online.
At the same time, Whetstone used his accomplices to recruit individuals who had no legitimate employment and were not entitled to income tax refunds to provide him with their identifying information, such as their Social Security Numbers, dates of birth, and addresses. Whetstone then filed fraudulent income tax returns in their names to obtain tax refunds, which were directly deposited into "Green Dot" and "RushCard" general purpose reloadable prepaid debit cards. He then withdrew cash from the debit cards and, in some cases, split the proceeds with the individuals in whose name the refunds were filed, while in other cases he kept the proceeds himself.
All told, Whetstone defrauded the U.S. Postal Service and retailers of approximately $100,000, and the Internal Revenue Service of approximately $54,000.
In addition to ordering the prison sentence, Judge Bell ordered Whetstone to serve three years of supervised release after prison, pay restitution, and forfeit his Bentley Continental, which was purchased with proceeds of the crimes.
The case was investigated by the U.S. Postal Service Office of Inspector General, and prosecuted by Assistant U.S. Attorney Clay Stiffler.
Former County Chief Deputy Auditor Convicted of Embezzling Government Funds, Tax Fraud and Wire FraudRead the Press Release
A former chief deputy auditor for LaPorte County, Indiana, was convicted today by a federal jury in the Northern District of Indiana of embezzling over $150,000 from the LaPorte County government, tax fraud and defrauding her elderly father-in-law out of at least $400,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana made the announcement.
Mary Ray, 67, of La Porte, Indiana, was convicted of two counts each of theft of government monies and making false statements on a tax return, and with seven counts of wire fraud. Ray will be sentenced by Judge Jon E. Deguilio of the Northern District of Indiana on Dec. 22, 2015.
According to evidence presented at trial, from September 2011 through December 2012, while she served as deputy chief auditor for LaPorte County, Ray embezzled over $150,000 from county coffers, and underreported her income on her U.S. Individual Tax Returns for those years by failing to report the embezzled funds. Evidence at trial also showed that Ray defrauded her 86-year-old father-in-law, a disabled veteran, out of at least $400,000 that he entrusted her to oversee. The trial evidence also demonstrated that Ray used the funds that she embezzled from LaPorte County and stole from her father-in-law to gamble at casinos.
This case was investigated by the FBI and IRS-Criminal Investigation, with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts. The case is being prosecuted by Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana.
Former County Chief Deputy Auditor Convicted of Embezzling Government Funds, Tax Fraud and Wire FraudRead the Press Release
WASHINGTON – A former chief deputy auditor for LaPorte County, Indiana, was convicted today by a federal jury in the Northern District of Indiana of embezzling over $150,000 from the LaPorte County government, tax fraud and defrauding her elderly father-in-law out of at least $400,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana made the announcement.
Mary Ray, 67, of La Porte, Indiana, was convicted of two counts each of theft of government monies and making false statements on a tax return, and with seven counts of wire fraud. Ray will be sentenced by Judge Jon E. Deguilio of the Northern District of Indiana on Dec. 22, 2015.
According to evidence presented at trial, from September 2011 through December 2012, while she served as deputy chief auditor for LaPorte County, Ray embezzled over $150,000 from county coffers, and underreported her income on her U.S. Individual Tax Returns for those years by failing to report the embezzled funds. Evidence at trial also showed that Ray defrauded her 86-year-old father-in-law, a disabled veteran, out of at least $400,000 that he entrusted her to oversee. The trial evidence also demonstrated that Ray used the funds that she embezzled from LaPorte County and stole from her father-in-law to gamble at casinos.
This case was investigated by the FBI and IRS-Criminal Investigation, with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts. The case is being prosecuted by Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana.
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Former Chief Financial Officer of Restaurant Chain Indicted for Wire Fraud, Embezzlement from Bankruptcy Estate, and Money LaunderingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has indicted WILLIAM “WIL” ROS, age 45, of Cortez, Florida, with wire fraud, embezzlement from a bankruptcy estate, and money laundering in connection with his management and operation of Fundamental Provisions, LLC, a local company which operated 30 Popeyes’ Fried Chicken restaurants in Louisiana, Alabama and Florida. If convicted, the defendant faces incarceration, a fine, restitution, forfeiture of a 2005 Ford GT valued at $225,000, and supervised release following imprisonment.
According to the indictment, Fundamental Provisions, LLC was a business based in Gonzales, Louisiana. Fundamental owned and operated 30 Popeyes’ Fried Chicken and Biscuits franchise restaurants in Alabama, Florida, and Louisiana. Fundamental had gross annual revenues in excess of $20,000,000.
According to the indictment, ROS was the Chief Financial Officer of Fundamental. As CFO, ROS was responsible for the daily management and operations of multiple Popeyes restaurants located in Alabama and Florida, including supervision of, and frequent communication with various store managers. ROS was also responsible for assuring that funds generated by each restaurant were used for the benefit of Fundamental.
According to the indictment, in December 2009, in the United States Bankruptcy Court for the Middle District of Louisiana, Fundamental sought, and received, bankruptcy protection which authorized the company to reorganize its management and restructure its debt so that it could continue operating its business and thereafter pay debts it owed to numerous creditors.
According to the indictment, a Chief Restructuring Officer was employed in January 2010 and authorized by the Bankruptcy Court to control all business operations, including disbursements of company funds, employment of key personnel, and incurrence of debt. The CRO employed and paid ROS to act as Fundamental’s CFO.
According to the indictment, because the reorganized company was unable to make payments to its creditors as promised in December 2011, Fundamental was placed in involuntary bankruptcy in March 2012. A Trustee was appointed by a Bankruptcy Judge for the purpose of liquidating the company’s assets in order to pay substantial debts owed by Fundamental to its creditors. With approval of the Bankruptcy Judge, the Trustee appointed a Chief Operating Officer to assist with the liquidation process. The COO continued ROS’s employment as Fundamental CFO until in or about May 2012.
The Indictment alleges that, from August 2009 through May 2012, ROS engaged in a scheme to defraud Fundamental and obtain company money by means of materially false and fraudulent pretenses, promises, and representations. According to the indictment, the purpose of the scheme was to enrich himself using funds he diverted from Fundamental, and to conceal his diversions of company funds from officials administering Fundamental’s Bankruptcy Court proceedings.
According to the indictment, ROS executed his scheme by using his position as Fundamental’s CFO to cause restaurant managers to divert restaurant revenues to his personal benefit. He also allegedly caused store managers to mischaracterize and cause the recording of fictitious purchases to disguise the fact that he had caused managers to remove funds from the restaurants’ cash registers for his personal benefit.
According to the indictment, beginning in August 2009, ROS allegedly directed an Alabama store manager to remove monies from restaurant cash registers and either deliver it to him (ROS) or mail FedEx packages of cash to persons identified by ROS.
According to the indictment, beginning in March 2010, ROS allegedly directed a second Alabama store manager to remove monies from restaurant cash registers and deposit the monies into bank accounts controlled by ROS, including ROS’s girlfriend, his golf club supplier, and family friend.
According to the indictment, ROS also allegedly used the store managers to divert restaurant funds and directed them to send packages of cash to various persons, including his girlfriend, his golf club supplier, and the seller of a Ford GT race car.
In total, ROS allegedly embezzled approximately $966,257 from the Alabama restaurants during the course of the pending bankruptcy proceedings. According to the indictment, ROS allegedly enjoyed the stolen funds by purchasing a $225,000 race car and upgrading, renovating, and furnishing his Florida home.
U.S. Attorney Green stated: “Corporate executives who engage in wrongdoing will find no safe haven in federal court. My office, together with our partners, will continue to aggressively pursue corporate fraud matters and work to ensure that all criminals are held accountable regardless of their status.”
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Federal Bureau of Investigation, along with assistance from the Region 5 Office of the United States Trustee. It is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Former Cambridge Resident Sentenced to Prison for Swindling Money through Prep School Admissions BusinessRead the Press Release
BOSTON – The owner and operator of a prep school admissions business was sentenced yesterday in U.S. District Court in Boston in connection with his role in embezzling funds.
Mark J. Zimny, 43, was sentenced by U.S. District Court Judge Rya W. Zobel to 63 months in prison, three years of supervised release, forfeiture of $852,564, and restitution of $839,470. On April 8, 2015, Zimny was convicted by a federal jury of five counts of wire fraud, five counts of unlawful money laundering, two counts of filing false federal tax returns, and one count of bank fraud. The jury acquitted Zimny on an additional count of bank fraud.
Zimny owned and operated a business called IvyAdmit Consulting Associates that claimed to assist students in obtaining admission to elite American prep schools, colleges, and universities. In 2008, Zimny defrauded a wealthy couple from Hong Kong of more than $650,000 by promising that if they provided him large funds to give to prep schools in New England for “development contributions,” he could influence admissions decisions to the schools on behalf of the couple’s two children. Rather than delivering the funds to the schools as he promised, however, Zimny embezzled the funds for his own purposes.
Furthermore, Zimny defrauded Mt. Washington Bank (now part of East Boston Savings Bank) by providing the bank with false information, including fictitious tax returns that over reported his receipts from IvyAdmit, to support his application for a mortgage loan.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Giselle J. Joffre of Ortiz’s Civil Division.
Former Bull Valley Man Pleads Guilty to Concealment of Assets from A Bankruptcy TrusteeRead the Press Release
ROCKFORD — A former Bull Valley, Ill. man pleaded guilty today before U.S. District Judge Frederick J. Kapala to the concealment of assets from a Bankruptcy Trustee. JOSEPH MICHAEL PHELAN, 51, now of Augusta, Ga, the former President of Phezer Enterprises, Incorporated, located in Crystal Lake, Ill., caused to be filed a Chapter 7 Bankruptcy Petition for Phezer Enterprises on August 18, 2008. According to the written plea agreement, after Phelan closed Phezer Enterprises on August 13, 2008, Phelan had three Phezer employees start cutting up and scrapping unused and used Phezer assets, including stainless steel sheets and various metals. On August 18, 2008, the day Phezer filed for bankruptcy, Phelan sold 21,182 pounds of stainless steel to Company C. Phelan personally received $15,251.04 for the steel.
Between August 18, 2008 and August 29, 2008, two Phezer employees sold $13,399.24 worth of Phezer metals to Company B. The two employees received cash for the sales and provided the cash to Phelan.
On September 17, 2008, Phelan received a check for $47,552.59 issued to him from Company A for Phezer metals sold to Company A. On October 15, 2008, Phelan received a check for $4,415.91 issued to him from Company A for Phezer metals sold to Company A. Phelan deposited both checks in his personal bank account. Phelan did not advise the trustee or secured creditor of the sale of the assets to Companies A, B, or C, or account and deliver to the trustee or the secured creditor the proceeds from the sale of Phezer assets to Companies A, B, and C.
Phelan faces a maximum penalty of 5 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Phelan is set for January 5, 2016, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and John A. Brown, Acting Special Agent-In-Charge of the Chicago Office of Federal Bureau of Investigation
The government is being represented by Assistant U.S. Attorney Scott R. Paccagnini.
Plea Agreement
Florida Man Pleads Guilty to Failing to Pay Child SupportRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey Kingman, 51, of Fort Lauderdale, Florida, pled guilty yesterday in U.S. District Court to failing to pay child support. Federal law makes it a crime to maintain a residence in state different than the residence of your children if you owe more than $10,000 in child support.
According to evidence introduced at the plea hearing, Kingman was ordered to pay $216 per week in child support as part of his January 2007 Maine divorce judgment. Between August 2007 and March 2011, he made 57 reduced and variable child support payments totaling $12,150. As of October 2012, he owed $60,112 in child support. He did not make any child support payments since then. As of March 4, 2015, he owned over $90,000 in child support.
Kingman faces up to 2 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Maine Department of Health and Human Services, Division of Support Enforcement and Recovery.
Federal Jury Convicts Mesquite, Texas, Man on Methamphetamine Trafficking Conspiracy and Firearm ChargesRead the Press Release
DALLAS — Following a four-day trial before U.S. District Judge Jane J. Boyle, late this afternoon a federal jury convicted Aryan Brotherhood of Texas member Casey Rose, 36, of Mesquite, Texas, on conspiracy, drug trafficking and firearm charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Rose on one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession of methamphetamine with the intent to distribute and one count of being a felon in possession of a firearm. The conspiracy count carries a maximum statutory penalty of life in federal prison; the substantive possession count carries a maximum statutory penalty of 20 years in federal prison; and the felon in possession count carries a maximum statutory penalty of 10 years in federal prison. Sentencing has not yet been set.
Rose has been in custody since his arrest in mid-November 2014 following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID). During that operation, 37 individuals were arrested and charged with similar federal offenses, stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014. Of those arrested, each defendant has pled guilty except Rose, who elected to go to trial. One defendant remains a fugitive.
Rose was a member of the Aryan Brotherhood of Texas (ABT). Many of the defendants were members of, or associated with white supremacist organizations, such as the ABT, the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures.
The government presented evidence at trial that Rose purchased and distributed methamphetamine throughout the Dallas metroplex and used violence in obtaining large quantities of methamphetamine. The trial also included expert testimony regarding the formation, history, and mission of the ABT.
The DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit led the investigation. Officers and agents from the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigrations and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation.
Assistant U.S. Attorney P. J. Meitl is prosecuting.
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Federal Grand Jury Indicts Ecuadorian Couple Arrested in Florida in Connection with an Alleged Alien Smuggling ConspiracyRead the Press Release
In El Paso, a federal grand jury has charged an Ecuadorian couple for their alleged roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
The federal indictment, returned on September 9, 2015, and unsealed yesterday afternoon, charges 40–year-old Paul Esteban Estrella Villota of Cuenca, Ecuador, and his 42-year-old wife Magaly Alemania, with one count of conspiracy to commit alien smuggling for financial gain resulting in bodily injury; one count of aiding and abetting bringing aliens into the United States without authorization for financial gain causing bodily injury; one count of aiding and abetting bringing aliens without authorization for financial gain; one count of conspiracy to commit alien smuggling for financial gain; and, one count of bringing aliens into the United States at a place other than a Port of Entry without authorization for financial gain.
The investigation into this smuggling organization began on November 4, 2013, after HSI El Paso special agents encountered two juveniles in a suspected stash house. According to court documents, agents learned that Estrella and Malagon were the ring leaders of an alien smuggling organization that smuggled the juveniles into the United States. Two days later, the mother of one of the young boys was arrested at Paso Del Norte Port of Entry after she tried to enter the United States as a document imposter. The entry document she presented at the border was valid, but was in the name of another person.
Court records show that the woman told HSI special agents that the man who arranged for her and her child to be smuggled into the United States was a man she met in Ecuador. The man, whom she knew as “Paul,” charged her $15,000 each to smuggle her and her child. She paid him $6,000 up front. The woman positively identified Estrella as the man to whom she paid the smuggling fee.
On November 16, 2013, United States Customs and Border Protection’s (CBP) Office of Border Patrol (OBP) agents encountered another national of Ecuador. This time the encounter was near Mount Cristo Rey in Sunland Park, NM. During an interview with HSI special agents, the Ecuadorian citizen identified Estrella and Malagon as the smugglers with whom he entered into an agreement to be smuggled into the United States. Court records show he agreed to pay them $14,000.
On March 16, 2014, Border Patrol agents arrested another national of Ecuador near Clint, TX, after she illegally entered into the United States. Court records allege she told HSI special agents that a woman by the name of “Magi” arranged her smuggling travels from Ecuador to the United States, even though an Ecuadorian smuggler named “Paul” originally was to bring her to the United States. Furthermore, the young girl’s father told HSI special agents on February 25, 2015, that he made arrangements to pay $14,500 to a smuggler he knew only as “Magi” to smuggle his daughter from Ecuador through Mexico into the United States.
Estrella and Alemania were arrested in Orlando, FL, on August 12, 2015. They remain in federal custody pending a detention hearing scheduled for 2:00pm on September 21, 2015, before United States Magistrate Judge Norbert Garney in El Paso.
Upon conviction, the defendants face not more than twenty years imprisonment on each of the alien smuggling charges involving bodily injury; between three and ten years imprisonment for aiding and abetting bringing aliens without authorization for financial gain; and, not more than ten years imprisonment on each of the remaining alien smuggling for financial gain charges.
Waldemar Rodriguez, special agent in charge of HSI El Paso, credited the team effort of other Department of Homeland Security (DHS) agencies locally and abroad that participated in the investigation. “HSI will not relent against human smugglers who treat people like a mere commodity,” said Rodriguez. “This case should resonate loud and clear: HSI special agents and our law enforcement partners will work tirelessly to identify, arrest and prosecute those responsible for the illegal movement of people into and through our country.”
Assistant United States Attorney Ian Hanna is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Director/ Treasurer of Non-Profits Admits to Stealing over $2 MillionRead the Press Release
Greenbelt, Maryland – Michael Parry, age 58, of Windermere, Florida pleaded guilty today to wire fraud and money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
According to his plea agreement, in 1998 Parry was hired by the American Registry of Pathology (ARP) as its director of operations, and was promoted to executive director in 2014, a role he had been acting in since October 2011. The ARP is a non-profit organization that supports pathology services in the armed forces, and also engaged in non-governmental work, including the funding of fellowships and research studies in pathology. ARP has administrative offices in Rockville, Maryland and Camden, Delaware.
The International Registry of Pathology (IRP) is a non-profit organization that promotes the study of pathology on an international scale, by supporting pathologists and pathology students in less-developed countries. Parry served as treasurer of IRP. By October 2011, Parry was in control of IRP bank accounts.
From February 17, 2010 to April 21, 2014, Parry directed the payment of money from an ARP account to an IRP account by wire transfers. Parry falsely described the wire transfers as related to medical studies, research grants or other activities normally funded by ARP. Parry fabricated documents including: falsified invoices from a legitimate ARP vendor related to medical research studies; emails from himself to others purporting to memorialize conversations in which Parry sought and was granted approval for funding fictional research fellowships; and wire transfer documents purportedly showing that payments were made directly from ARP’s accounts to legitimate ARP vendors or educational institutions.
Parry then transferred funds from the IRP account to a personal account he controlled. The total loss to ARP as a result of the fraud scheme was $2,199,504.09. Parry has agreed to the entry of an order to pay restitution in this amount.
Parry faces a maximum sentence of 20 years in prison for wire fraud and 10 years in prison for money laundering. U.S. District Judge Peter J. Messitte has scheduled sentencing for December 18, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and Army CID for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and David L. Salem, who are prosecuting the case.
Crownpoint Man Sentenced to Prison for Failing to Update His Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Ferlin Platero, 50, of Crownpoint, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 24 months in prison followed by five years of supervised release for failing to comply with the Sex Offender Registration and Notification Act (SORNA). The sentence was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Platero was arrested on Dec. 17, 2014, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Jan. 8, 2015, Platero was indicted for failing to update his registration between July 1, 2014 and Dec. 9, 2014, in McKinley County, N.M.
According to court filings, Platero was convicted of aggravated sexual abuse in Nov. 1993. On Feb. 24, 2004, he registered as a sex offender in the State of Arizona and agreed to notify the sheriff of the county to which he moved if he were ever to move out of the county. Platero last registered as a sex offender on Oct. 26, 2012, in Ariz., and subsequently failed to notify the New Mexico Department of Public Safety or the Navajo Nation Division of Public Safety that he was required to register as a sex offender when he moved to New Mexico
On April 28, 2015, Platero pled guilty to a felony information charging him with failing to update his registration in McKinley County, N.M. He entered the guilty plea without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Sarah Mease.
Crownpoint Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Shiloh Y. McLemore, 36, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to assault charges.
McLemore was arrested on April 15, 2015, on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm in Indian Country. The complaint alleged that on April 8, 2015, law enforcement officers were called to the campus of the Navajo Technical University (NTU), where McLemore had allegedly assaulted and battered a woman and had then barricaded himself inside an apartment on the NTU campus. The complaint further alleged that when approached by a second victim, a Navajo man, McLemore took out a hand gun, loaded a full magazine of bullets into the handgun and chambered a bullet while threatening the victim to get away from him.
McLemore was subsequently indicted on May 12, 2015, and charged with assault of a male victim with a dangerous weapon with intent to do bodily harm, assault of a female victim with a dangerous weapon with intent to do bodily harm, and using and brandishing a firearm during a crime of violence. The crimes charged took place on April 8, 2015, in McKinley County, N.M.
During today’s proceedings, McLemore pled guilty to two counts of assault with a dangerous weapon. In entering the guilty plea, McLemore admitted that on April 8, 2015, in Indian Country in McKinley County, he assaulted a male victim with a firearm with intent to do bodily harm. He also admitted assaulting a female victim with a shod foot with intent to do bodily harm.
This case was investigated by the Crownpoint office of the Navajo Nation Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Novaline Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Colorado Tax Evader Convicted of Tax Crimes for Failing to Disclose More than $2 Million in Income to the IRSRead the Press Release
A federal jury sitting in Denver convicted a Grand Junction, Colorado, man yesterday of two counts of tax evasion, three counts of willful failure to file an individual federal income tax return and three counts of willful failure to file a corporate income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the evidence presented at trial, Timothy John Stubbs was the owner and president of National Rebate Fund Inc., based in Grand Junction, during 2005 through 2007. National Rebate Fund contracted with merchants of energy-efficient and other products to provide third-party rebates to retail customers throughout the United States. The company made more than $7 million in gross receipts between 2005 and 2007.
Stubbs earned more than $2 million in taxable income from National Rebate Fund during those same years. In an attempt to evade his taxes, Stubbs disguised personal income that he received from the National Rebate Fund by using business accounts to pay more than $700,000 in personal expenses during 2005, 2006 and 2007. During those years, Stubbs purchased real estate valued at more than $2.9 million in Grand Junction, Crested Butte, Colorado, and Kailua-Kona, Hawaii. He also acquired more than $370,000 in gold and silver in 2007. Between April 2004 and October 2007, Stubbs’ net worth increased by more than $3 million.
The evidence at trial established that Stubbs did not file his own tax returns or corporate tax returns on behalf of National Rebate Fund for 2005, 2006 and 2007, and has not filed an individual income tax return since 1992 or paid income taxes since 1993.
At sentencing, Stubbs faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000 for each count of tax evasion and a statutory maximum sentence of one year in prison and a maximum fine of $100,000 for each count of failure to file an income tax return. U.S. District Judge Christine M. Arguello of the District of Colorado set Stubbs’ sentencing for Dec. 17.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lori A. Hendrickson and Leslie Goemaat of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the District of Colorado for their substantial assistance.
Cochiti Pueblo Man Charged with Robbing Bank in Rio Rancho in July 2015Read the Press Release
ALBUQUERQUE – Marcelino Chalan, 27, of Cochiti Pueblo, N.M., appeared in federal court in Albuquerque, N.M., this morning on a criminal complaint charging him with bank robbery. During the hearing, the court found probable cause to support the charge in the criminal complaint.
Chalan was arrested yesterday on a criminal complaint charging him with robbing the Wells Fargo Bank branch inside the Albertson’s supermarket located at 3301 Southern Blvd. in Rio Rancho, N.M., on July 20, 2015. The complaint alleges that Chalan robbed the bank by handing a handwritten note with a robbery demand to a bank teller. The teller complied with Chalan’s written and verbal robbery demands and handed money over to Chalan. Chalan left the scene in a vehicle that appeared to be driven by a female. The investigation into Chalan began after the FBI received a tip identifying Chalan as the bank robber.
If convicted of the crime charged in the criminal complaint, Chalan faces a maximum penalty of 20 years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Rio Rancho Police Department, the Albuquerque, Police Department and the Cochiti Pueblo Tribal Police Department. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
Clarksburg woman convicted of heroin traffickingRead the Press Release
CLARKSBIRG, WEST VIRGINIA – Jeny Fury, 31, of Clarksburg, was convicted of heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Fury sold heroin in Harrison County, West Virginia in February 2015. She pled guilty to one count of “Distribution of Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge John S. Kaull presided.
Clarksburg man convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry A. Cross, 33, of Clarksburg, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Cross sold heroin in Harrison County, West Virginia in October 2014. He pled guilty today to one count of “Distribution of Heroin – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge John S. Kaull presided.
Canadian Man Found Guilty of $3.5 Million Conspiracy to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today that Kevin Cyster, 52, of Burlington, Ontario, Canada, was convicted after a six day jury trial of conspiracy, making a false claim against the United States, and illegally transferring stolen money in foreign commerce. The charges carry a maximum penalty of 30 years in prison and a $7,000,000 fine.Assistant U.S. Attorney John J. Field and Trial Attorneys Jeffrey A. McLellan and Thomas F. Koelbl, from U.S. Department of Justice Tax Division, who handled the prosecution of the case, stated that Cyster was a ringleader of a group of Canadian citizens who forged Internal Revenue Service (IRS) forms to falsely claim that almost $10,000,000 of income had been withheld on their behalf by various Canadian financial institutions. They arranged for the false forms to be filed electronically with the IRS by Ronald Brekke.
Subsequently, Cyster and his co-conspirators used the false filings to file false federal income tax returns seeking refunds based on the fictitious withholding amounts. Although the IRS identified some of the fraudulent returns, refunds totaling more than $3,500,000 were sent to Cyster and his co-conspirators before the scope of the fraud was detected.
Cyster was charged along with Renee Jarvis, Jonathan Neufeld, Christina Starkbaum, Daveanan Sookdeo, Jose Compuesto, and Timothy Johnson. Jarvis has been convicted. Neufeld and Starkbaum are deceased. Charges are pending against Sookdeo, Compuesto and Johnson. 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.
Ronald Brekke was convicted on federal fraud charges in Washington State.
The trial verdict is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for January 4, 2016 at 11:00 am before Chief U.S. District Judge Frank P. Geraci who presided over the trial of the case.
Canadian Man Convicted for Involvement in $3.5 Million Conspiracy to Defraud the United StatesRead the Press Release
An Ontario, Canada, man was convicted yesterday in the U.S. District Court for the Western District of New York on charges of conspiracy, making a false claim against the United States and illegally transferring stolen money in foreign commerce, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney William J. Hochul Jr. of the Western District of New York.
Kevin Cyster, 52, of Burlington, Ontario, was convicted by a federal jury after a six-day trial. According to court documents, Cyster was a ringleader of a group of Canadian citizens who forged Internal Revenue Service (IRS) forms to falsely claim that almost $10 million in income had been withheld on their behalf by various Canadian financial institutions. They arranged for Ronald Brekke to file the false forms electronically with the IRS.
Subsequently, Cyster and his co-conspirators used the false filings to file false federal income tax returns seeking refunds based on the fictitious withholding amounts. Although the IRS identified some of the fraudulent returns, refunds totaling more than $3.5 million were sent to Cyster and his co-conspirators before the scope of the fraud was detected.
Cyster was charged along with Renee Jarvis, Jonathan Neufeld, Christina Starkbaum, Daveanan Sookdeo, Jose Compuesto and Timothy Johnson. Jarvis has been convicted, Neufeld and Starkbaum are deceased, and charges are pending against Sookdeo, Compuesto and Johnson. Brekke was convicted on federal fraud charges in the state of Washington.
Sentencing is scheduled for Jan. 4, 2016, before Chief U.S. District Judge Frank P. Geraci Jr. of the Western District of New York, who also presided over the trial of the case. The charges carry a statutory maximum penalty of 30 years in prison and a $7 million fine.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Hochul thanked the special agents of IRS-Criminal Investigation, under the direction of Special Agent In Charge Shantelle P. Kitchen, who investigated the case, and Assistant U.S. Attorney John J. Field of the Western District of New York and Trial Attorneys Jeffrey A. McLellan and Thomas F. Koelbl of the Tax Division, who are prosecuting the case.
Buffalo Woman Charged with FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a four count indictment charging Tamara Ward, 39, of Buffalo, NY, with bank fraud and making a false statement on a loan application. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the indictment, Ward applied for two separate automobile loans and in each instance provided false information. The defendant falsely represented on each of the applications that she was employed by the Internal Revenue Service, earning an annual salary of $50,000. Ward has never been employed by the IRS.
The indictment is the culmination of an investigation by Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, under the supervision of Special Agent in Charge, Robert E. O’Malley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Berkeley County man charged with oxycodone traffickingRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury has returned an indictment charging Earl Ferguson, 46, of Inwood, West Virginia, with prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Ferguson sold oxycodone in Berkeley County, West Virginia throughout 2015. He is charged with one count of “Conspiracy to Distribute Oxycodone,” and three counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000 on each of the four counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Krasinski is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, are leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Belding Man, Timothy Masters, Sentenced to 27 Years for Producing Child PornographyRead the Press Release
The eighth federal conviction in west Michigan for WEBCHEX, a West Michigan Based Child Exploitation Task Force
GRAND RAPIDS, MICHIGAN – Timothy Masters, 32, of Belding, Michigan, was sentenced to 27 years in federal prison for producing child pornography, announced U.S. Attorney Patrick A. Miles, Jr. He is the second Masters brother convicted and sentenced this year in federal court, and his case marks the eighth federal conviction and sentence in west Michigan for the task force that investigated the case.
The brothers were active collectors of child pornography and regularly emailed back and forth about their sexual interest in children. They escalated their criminal conduct to sexual assaults and produced their own child pornography that they shared with each other. Timothy Masters bragged to his brother that he groped several girls he knew, ages 10-14, during trips to an amusement park and in the girls’ homes. He took pornographic pictures of one of the girls while she slept. He was a friend of the family and was invited into the home. That child wrote a statement that her mother read tearfully at the sentencing hearing. The victim described how she has panic attacks in places that remind her of Timothy Masters and continues to experience significant emotional pain and fear.Timothy’s brother, Eric Masters, 28, pled guilty in federal court last year to producing child pornography of three other young girls, including the graphic sexual abuse of a toddler that is now the subject of Kent County criminal sexual conduct charges. He was sentenced in federal court in March 2015 to 50 years in prison. If he is convicted on the pending state criminal sexual conduct charges, the Kent County judge will determine whether the state and federal sentences will be served concurrently or consecutively.
In announcing the sentence, U.S. Judge Paul L. Maloney stated, “To say this is despicable is an understatement.” He noted that the sentences in child exploitation cases are “high for a reason because these victims have to live with this forever,” and “many never fully recover.” Judge Maloney recognized that Timothy Masters had no other criminal history, which “is not atypical in these cases.” “The defendant has got some deep, deep recesses,” the judge continued, and during the long sentence, Timothy Masters can try to help mental health professionals “in understanding how he got to this point.”
Timothy Masters was the eighth federal offender convicted and sentenced in west Michigan based on investigations led by a local task force called WEBCHEX, which stands for West Michigan Based Child Exploitation Task Force. WEBCHEX, launched in late 2013 under the leadership of the FBI in Grand Rapids, is staffed by officers and detectives from each of the following:- - Michigan State Police;
- - Allegan County Sheriff’s Office;
- - Ionia County Sheriff’s Office;
- - Kent County Sheriff’s Department;
- - Ottawa County Sheriff’s Office; and
- - Grand Rapids Police Department.
Other law enforcement entities have also worked closely with WEBCHEX, including the Michigan State Police Internet Crimes Against Children (ICAC) Task Force, the Kentwood Police Department, Holland Police Department, Muskegon County Sheriff’s Office, Muskegon Police Department, Walker Police Department, Wyoming Police Department, and. And WEBCHEX has facilitated collaboration with out-of-state law enforcement agencies from Colorado to Georgia. By working hand-in-hand with other law enforcement agencies and entities outside the Task Force, WEBCHEX enhances the collective law enforcement effort for everything from interviewing victims and executing residential search warrants to conducting computer forensic exams.
The Task Force is just one of the law enforcement entities that the U.S. Attorney’s Office for the Western District of Michigan works with to investigate and prosecute crimes against children. Other partner agencies for the U.S. Attorney’s Office include Homeland Security Investigations; the Michigan State Police ICAC Task Force; and other federal, state, and local law enforcement offices around the country.
In the eight WEBCHEX cases sentenced federally so far in the Western District of Michigan, the sentences range from 15 to 50 years, with an average of 26 years. A total of 11 child sexual abuse victims have been rescued in these cases alone. The cases include convictions for production and possession of child pornography, online coercion and enticement of a minor, and child sex trafficking. In addition to the Masters brothers, other defendants brought to justice through WEBCHEX investigations include: Joseph Arpin, who traveled from California to Allegan County to have sex with a 12-year-old he met online; Gary Hampton, who molested and photographed a teenage boy in his home in Grand Rapids; and Eddie Jackson, who sex trafficked three Muskegon teens in Grand Rapids.WEBCHEX investigations also led to charges in 17 additional cases in multiple state courts and other federal districts. For example, in the case against Clint Williamson from 2014 to 2015, the Task Force discovered that Williamson sent live video feed of a child’s sexual abuse to a couple in Georgia. Through the Task Force’s collaboration with state and federal authorities in Atlanta, the state of Georgia convicted the woman of child molestation, and a federal court in the Northern District of Georgia convicted the man for downloading thousands of images of child pornography. The woman received a sentence of life plus 10 years, and the man received a sentence of just over eight years.
U.S. Attorney Patrick Miles applauded the Task Force, calling it “a force multiplier for rescuing child victims and protecting other children all over west Michigan from being victimized. The hard work of the Task Force and the generosity of the participating agencies make our community that much safer.”Acting Special Agent in Charge of the FBI Detroit Division, John R. Shoup, said, “The whole purpose of the WEBCHEX Task Force is to protect children from sexual exploitation, abduction and trafficking, so to see this collaborative effort producing results in such a short amount of time is really gratifying, and lets us know that we are on the right track.”
“Victimized children are voiceless and often find themselves in hopeless situations,” stated Sergeant Chad McKersie and Sergeant Terry Dixon of the Grand Rapids Police Department. “We need to continue to break the silence to protect our children and rid our society of these awful predators. WEBCHEX’s work is the thundering roar of action on their behalf holding perpetrators accountable and providing hope to the silenced victims.”
For Detective First Lieutenant Mike Anderson, Michigan State Police 6th District Special Investigation Commander, “There is no higher calling for law enforcement than protecting our children. The Michigan State Police is excited to be part of the Task Force that has brought justice for eleven children thus far.”
The U.S. Attorney’s Office for the Western District of Michigan works closely with the WEBCHEX Task Force, among other agencies, as part of the Department of Justice’s Project Safe Childhood program. Federal, state, and local collaboration on these crimes is a priority for the U.S. Attorney’s Office to ensure the broadest reach and the highest level of effectiveness in protecting children. For more information about Project Safe Childhood in West Michigan, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Anti-Trafficking Symposium Brings Public Service Agencies TogetherRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today, September 17, 2015, the Office hosted a symposium for law enforcement, prosecutors, schools, department of child services and others to educate officials about the signs of human trafficking and how to combat it.
“The Northern District of Indiana is fully engaged with our federal, state and local law enforcement partners along with governmental and non-governmental organizations in preventing, fighting and aggressively prosecuting all forms of human trafficking”, said U.S. Attorney Capp.
Human trafficking is the recruitment, harboring, transportation or procurement of a person for labor or services that are involuntary servitude, slavery or forced commercial sex acts. The Department of Justice and our Office have made a commitment to combat these horrific crimes by aggressively bringing traffickers to justice and providing assistance to victims.
The training today was a result of a combined effort between the Federal Bureau of Investigation, the Department of Homeland Security and the U.S. Attorney’s Office in Northern Indiana. The training provided the 100 plus registered attendees with the tools needed to identify, investigate and prosecute all forms of human trafficking.
If you have any information on possible human trafficking, please contact either the Polaris Project National Human Trafficking Hotline at 888-373-7888 or the Department of Homeland Security Tip line at1-866-DHS-2-ICE.
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Altamont Man Sentenced for Drug OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ricky T. Garner, 47, of Altamont, Illinois, was sentenced to 41 months in federal prison on Wednesday, September 16, 2015, for Possession With Intent to Distribute Alpha-PVP.
"Alpha-PVP" is a prohibited controlled substance very similar to methamphetamine. It is chemically similar to methamphetamine and produces similar effects when ingested.
Garner pled guilty to the federal charge on June 2, 2015. At his change of plea hearing, the Government presented evidence that Garner was arrested near Beecher City, IL, on October 1, 2014. At the time of his arrest, Illinois State Police troopers found 70 grams (2 ½ ounces) of Alpha-PVP next to Garner in the truck which he was driving.
Garner has been continuously confined since his arrest last October.
Upon release from prison, Garner will also have to serve a term of 3 years on supervised release.
The investigation which resulted in Garner’s arrest and conviction was conducted by an Illinois State Police Swat Team based in Effingham, IL.
Garner’s case was assigned to Assistant United States Attorney Robert L. Garrison.
Albuquerque Man Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pete Pasqual Chavez, 36, of Albuquerque, N.M., entered a not guilty plea today in federal court to a felon in possession of a firearm charge. Chavez was ordered detained pending trial based on judicial findings that he poses a risk of flight and a danger to the community.
Chavez was arrested yesterday on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Sept. 14, 2015, in Bernalillo County, N.M. The complaint alleges that on Sept. 14, 2015, officers of the Albuquerque Police Department (APD) responded to the La Quinta Inn on San Antonio Blvd. in Albuquerque after Chavez allegedly told hotel personnel that he had just shot a person who was breaking into his vehicle. Upon arrival the APD officers found a firearm under Chavez’s vehicle. Thereafter the officers executed search warrants for Chavez’s hotel room and vehicle. In the vehicle, the officers found a single projectile that was removed from the inside of the passenger door and a box of Perfecta .45 caliber ammunition. In Chavez’s hotel room the officers found four rounds of Perfecta .45 caliber ammunition. In the bushes outside Chavez’s room, the officers found a firearm loaded with ten rounds of Perfect .45 caliber ammunition.
Chavez was prohibited from possessing firearms or ammunition on Sept. 14, 2015, because he previously had been convicted of shooting at or from a motor vehicle, and attempted trafficking of a controlled substance with intent to distribute, and possession of a controlled substance in the Second Judicial District Court for the State of New Mexico. Chavez also had previously been convicted for using a telephone to facilitate a drug trafficking crime in the U.S. District Court for the District of New Mexico.
If convicted of the crime charged in the criminal complaint, Chavez faces a maximum penalty of ten years in federal prison. If the court determines that Chavez is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
*******media Advisory*******Read the Press Release
ALBUQUERQUE – Officials from the Department of Justice and Department of the Interior (Interior) will hold a press conference on THURSDAY, SEPTEMBER 17, 2015, to announce a landmark settlement with a nationwide class of tribes and tribal entities.
WHO: Principal Deputy Assistant Attorney General Benjamin C. Mizer -Head of the Justice Department’s Civil Division
U.S. Attorney Damon P. Martinez of the District of New Mexico
DOI Assistant Secretary – Indian Affairs Kevin K. Washburn
President David Jose of Ramah Navajo Chapter
President John Yellowbird Steele of Oglala Sioux Tribe
Governor Val R. Panteah Sr. of Pueblo of Zuni
Michael P. Gross, M.P. Gross Law Firm P.C.
C. Bryant Rogers, partner in VanAmberg, Rogers, Yepa, Abeita, Gomez and Works LLP
Lloyd B. Miller, partner in Sonosky Chambers Sachse Miller & Munson
WHEN: THURSDAY, SEPTEMBER 17, 2015 11:00 a.m. MDT / 1:00 p.m. EDT
WHERE: U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 10:00 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
16 September 2015
Yonkers Business Owner Sentenced in White Plains Federal Court to Six Months for Engaging in Multimillion-Dollar Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Special Agent-in-Charge of the New York Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that PATRICK WHITE was sentenced today by the United States District Judge Cathy Seibel to six months in prison on payroll tax fraud charges.
WHITE previously pled guilty to one count of failing to pay payroll taxes accumulated by his commercial construction business.
According to the Information previously filed in White Plains federal court: WHITE operates R & L Construction Inc., a Yonkers based contracting company. From 2005 through 2011, R&L Construction operated a scheme whereby some employee’s wages were properly reported, while others’ were not. In so doing, R & L Construction accumulated approximately $3,758,000 in unpaid payroll tax liabilities.
In addition to the prison term, WHITE was sentenced to one year of home confinement, and was ordered to liquidate certain real property to satisfy the $3,758,000 owed to the IRS.
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Mr. Bharara praised the outstanding efforts of IRS-CI. He also thanked U.S. Department of Justice’s Tax Division for its significant assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins, Jr., is in charge of the prosecution.
Woodland Man Pleads Guilty to Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Preston Brown, Sr., 51, of Woodland, Maine, pleaded guilty today in U.S. District Court to conspiracy to possess with intent to distribute and to distribute bath salts.
According to court records, between about June 2012 and June 2014, Brown conspired with others in Aroostook County to obtain and distribute bath salts. On multiple occasions, Brown ordered bath salts over the internet from China for personal use and to sell to other conspirators.
The defendant faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Office and the U.S. Postal Inspection Service.
Wickliffe, Kentucky, Resident Charged with Distribution of MethamphetamineRead the Press Release
LOUISVILLE, Ky. – A Wickliffe, Kentucky, resident was charged by grand jury indictment today, with five counts of distribution of methamphetamine, a controlled substance, announced United States Attorney John E. Kuhn, Jr.
Christopher Ford, 48, was arrested on August 26, 2015, and initially charged in a criminal complaint with distribution of methamphetamine between March 2015 and July 2015.
Today’s grand jury indictment alleges Ford conspired with others to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance, between Match 1, 2015, and August 26, 2015. Further, the indictment alleges that Ford distributed a detectable amount of methamphetamine on four occasions including April 17th, May 15th, May 28th, and July 7th According to the indictment, all of the sales took place in Ballard County, Kentucky.
Ford remains in the custody of the U.S. Marshals service and his first appearance before a Magistrate Judge has not been scheduled.
If convicted at trial, Ford could be sentenced to any term from ten years in prison to up to and including a life sentence. Also, Ford could be ordered to forfeit property and pay a fine of no less than $14,000,000 and ordered to serve up to and including a life period of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth Hancock, and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Paducah Police Department, the Ballard County Sheriff’s Department and the Kentucky State Police.
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The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Violent Drug Trafficker Sentenced to 27 YearsRead the Press Release
PHILADELPHIA- Joseph Adens, 32, of Philadelphia, PA, was sentenced today to 27 years in prison for his involvement in two drug conspiracies, a money laundering conspiracy, and his possession and discharge of a firearm in furtherance of a drug trafficking crime. Adens pleaded guilty on May 8, 2015, after eight days of trial. In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, a fine of $4,000, and a $600 special assessment.
Adens shot co-conspirator Tasfa Payne, seven times at close range with a .45 caliber handgun, on June 13, 2011, after eleven kilograms of cocaine failed to arrive in Philadelphia from California. The shooting occurred in front of the Universal Bluford Elementary School, on the 1400 block of Alden Street, and forced the school to lockdown its students. Following the shooting, Adens continued to be involved with drug trafficking. Specifically, in March 2012, Adens moved to Woodland Hills, California, where he continued to facilitate the transportation of multiple kilograms of cocaine and hundreds of pounds of marijuana from California to Philadelphia for distribution. Adens also used multiple individuals’ bank accounts at financial institutions with branches in both Pennsylvania and California. Adens arranged for his drug proceeds to be deposited in Philadelphia and then withdrawn in California to be used to purchase additional drugs.
The case was investigated jointly by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance provided by the Los Angeles International Airport Narcotics Task Force and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Karen S. Marston.
Vermont Gas Stations and Convenience Stores Take Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that in celebration of the 25th anniversary of the Americans with Disabilities Act (ADA) and in recognition of the work yet to be done to fully realize the goals of the ADA, Vermont state agencies, the U.S. Attorney’s Office for the District of Vermont, non-profits and the business community are collaborating to educate gas station and convenience store owners about their responsibilities under the ADA and Vermont’s Public Accommodations Act. Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity.
In an effort spearheaded by the Vermont Human Rights Commission (VHRC), the U.S. Attorney’s Office for the District of Vermont, the Department of Motor Vehicles, the Agency of Agriculture, the Agency of Natural Resources and Department of Aging and Independent Living joined forces with Disability Rights Vermont, Champlain Oil, the Vermont Retail & Grocers Association, the Vermont Petroleum Association and the American Petroleum Institute to distribute information through a variety of means to all of Vermont’s gas stations and convenience stores.
The goal of the campaign is to raise awareness about the specific requirements that gas stations have towards individuals with mobility impairments. Over 30,000 Vermonters have been issued a registration plate or parking card indicating some degree of mobility impairment.
In order to comply with the ADA and Vermont law, entities that sell gasoline must, among other things:
• pump gas for the individual with a plate or parking card, provided more than one staff person is on duty at the time; • charge that individual the same self-service price available to patrons who pump their own gas; • prominently display the international symbol of accessibility and provide a means for individuals with disabilities to communicate the need for assistance either through a call button on the fuel dispenser, signage with a telephone number to call and/or signage indicating that individuals with disabilities may honk their horn for assistance. Signage must comply with ADA font size requirements;
While some gas stations do have proper signage and a means to request assistance with pumping fuel, many do not. For David Sagi, the Title II ADA Program & Service Coordinator for the State of Vermont, and a wheelchair user, the lack of compliance has real consequences. “I travel a lot with my job,” he said. “I’ve had to memorize where the remaining full service stations are because I can’t count on being able to get gasoline at a self-serve station.”
The Vermont Retail & Grocers Association (VRGA) and the Vermont Petroleum Association, which represent the industry, were on board from the beginning of the project. “This is really about equal rights and ensuring that all Vermonters have access to an essential service,” said Jim Harrison, executive director of the VRGA. “This is not a matter of hostility or indifference. Gas stations simply need information about their responsibilities.” In order to assist gas stations in complying, the VRGA/VPA have printed up decals that can be placed on gas station pumps and paid for a mailing to all gas stations with a Frequently Asked Questions flyer and information about how to obtain the decals.
“Our goal is to gain compliance through education,” said VHRC Executive Director Karen Richards. “Enforcement actions are time-consuming and less effective. If, however, after this push to educate providers, we find gas stations that are not in compliance, we may have to resort to enforcement. I’m hopeful that won’t be necessary and that gas stations will see this as an opportunity to be welcoming to a broader range of customers and visitors to the state.”
“This is an important civil rights issue in a rural state like Vermont – making sure that individuals with disabilities are able to access the services provided by gas stations and convenience stores. This collaborative effort seeks to educate businesses, encourage compliance, and improve accessibility all at the same time,” said Assistant United States Attorney Nikolas P. Kerest, who with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States.
The Vermont Human Rights Commission can be contacted at 800-416-2010 or at [email protected]. For further information on the ADA and its requirements see www.ada.gov.
U.S. Attorney's Office Reaches Agreement with Detroit Public Schools to Ensure Effective Communication for Parents Who Are Deaf and Hard of HearingRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached an agreement with the Detroit Public School District under the Americans with Disabilities Act (“ADA”), requiring the district to provide sign language interpreters and other aids and services to parents and guardians who are deaf or hard of hearing, U.S. Attorney Barbara L. McQuade announced today.
The settlement resolves a complaint that the school district failed to provide a sign language interpreter to the deaf parent of a student enrolled in the district’s family- centered Early Childhood Intervention program. The complainant alleged that the district denied her effective communication by refusing to provide her with a sign language interpreter at the program’s home and center-based teaching sessions so that she could actively participate in the education of her child.
The ADA requires that public entities, such as public schools, provide effective communication to all individuals with disabilities who seek to participate in or benefit from a school district’s services, programs or activities—not just students. This can include parent participation in parent-teacher conferences, student registration, meetings, ceremonies, open houses, and field trips.
Under the settlement, the Detroit Public School District agreed to modify its policies and train its staff to ensure that parents and guardians who are deaf are able to effectively communicate with school personnel, provide appropriate auxiliary aids and services at no cost, and designate an ADA coordinator for the district. The district also agreed to pay compensatory damages to the complainant.
“All parents want to make sure that their children are getting the best education possible, and parents with disabilities are no different,” McQuade said. “Effective communication between parents and schools is critical to a student’s success, and the law provides parents with disabilities the opportunity to fully participate in their children’s education at our public schools.” McQuade said. “We hope that this case will improve awareness of the responsibility all school districts have to effectively communicate with parents with disabilities.”
Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
Twin Cities Landlords to Pay $130,000 to Resolve Alleged Section 8 Housing Assistance ViolationsRead the Press Release
United States Attorney Andrew M. Luger today announced a $130,000 settlement with RICHARD EDLICH, Cities Home Rentals, Inc., MDC 2000 Investments, Inc., and Rifive Investments, LLC (collectively the “Defendants”) to resolve allegations that the Defendants violated the False Claims Act by charging Section 8 tenants illegal side payments.
To qualify for federal subsidies, the Defendant landlords certified in their contracts with local housing authorities that they would not charge side payments to Section 8 tenants above the rental amount, which was determined by local housing authorities based in part on the tenants’ income. However, between August 2007 and July 2014, Defendants allegedly collected at least $60,000 in illegal side payments from sixteen Section 8 tenants.
The Department of Housing and Urban Development (HUD) provides federal funding for Section 8 (officially called the Housing Choice Voucher Program). Housing choice vouchers are administered by local housing authorities. The housing subsidy is paid to the landlord directly by the local housing authority on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. HUD prohibits Section 8 landlords from charging the tenant any additional payments to ensure that rent is affordable for tenants, and to prevent landlords from taking advantage of low-income tenants seeking affordable housing.
“The False Claims Act is an important tool to protect the integrity of the Housing Choice Voucher program, and to ensure that landlords receiving federal subsidies abide by their commitments to the federal government and to their tenants,” said Assistant U.S. Attorney Pamela Marentette, who represented the United States in this matter.
The settlement resolves allegations originally brought forward by one of the tenants, Meria Murray. Ms. Murray filed her suit under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery. According to Ms. Murray’s complaint, Defendants insisted that she pay over $5,000 in side payments between 2009 and 2011 for a property she rented in Minneapolis.
The settlement agreement requires the Defendants to pay $130,000 to the United States. Ms. Murray will receive $18,000 as her share of the recovery in this case.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota, and investigated and supported by the U.S. Department of Housing and Urban Development-Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Meria T. Murray v. Richard Edlich, et. al. Case No.
13-sc-845 (JRT/JSM). The claims settled by this agreement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Defendants Indicted in Counterfeit Credit Card SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment against three defendants on charges arising from a counterfeit credit card scheme:
Joseph R. Dominici, age 28, of Annapolis, Maryland, Carlos M. Ledbetter, age 29, of District Heights, Maryland, and
Christina O. Price, age 22, of Bowie, Maryland.The superseding indictment was returned on September 15, 2015 adding Price as a defendant, and unsealed today upon her arrest.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
Dominici owned and operated JJ&M Enterprises, LLC, a business based in Annapolis. Ledbetter worked at JJ&M. Price was a server at a restaurant in Gambrills, Maryland.
According to the seven count superseding indictment, from at least July 2014 to February 9, 2015, Dominici obtained stolen or otherwise compromised credit card numbers from several sources, including black market “carding” websites where stolen credit card information can be purchased. Price used electronic devices known as skimmers to fraudulently obtain the credit card information of restaurant customers who paid by credit card. Price then provided this stolen customer information to Dominici for use in producing fraudulently re-encoded credit cards. Dominici and Ledbetter obtained stored value cards, used special equipment to encode the stolen account information onto stored value cards and then used the fraudulently re-encoded credit and stored value cards to buy merchandise.
The superseding indictment alleges that on February 9, 2015 Dominici possessed over 250 stolen or compromised credit card account numbers that he purchased from a black market “carding” website.
All of the defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence for aggravated identity theft. Dominici also faces a maximum sentence of 10 years in prison for access device fraud. Ledbetter and Price also face a maximum sentence of 30 years in prison for bank fraud. Price had her initial appearance and arraignment today and was released under the supervision of U.S. Pretrial Service. An initial appearance has not yet been scheduled for Dominici and Leadbetter on the superseding indictment. Ledbetter remains in federal custody, and Dominici was released under the supervision of U.S. Pretrial Services, following the return of the original indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who are prosecuting the case.
Store Employee Sentenced for Defraudng Government Food Assistance ProgramRead the Press Release
HILADELPHIA – Mohammed Abuawada, 27, of Philadelphia, was sentenced yesterday afternoon to 18 months in prison for defrauding the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. The defendant pleaded guilty to conspiring to traffic in SNAP benefits and commit wire fraud; wire fraud; and aiding and abetting trafficking in SNAP benefits.
The defendant operated S&S Farmer’s Market, a retail grocery store, now defunct, that was located at 2722 Germantown Avenue in Philadelphia. At his guilty plea hearing, the defendant admitted that he knowingly assisted the store’s owners in trafficking in SNAP benefits, by withdrawing large sums of cash from the store’s bank accounts to fund the fraud. The defendant admitted that within a three-month period, he withdrew approximately $209,000 in cash in order to assist the fraud against USDA, which was carried out by purchasing SNAP benefits from store customers for cash, which is illegal.
In addition to the prison term, Senior U.S. District Court Judge John R. Padova ordered restitution of $209,000 to USDA, three years of supervised release to follow imprisonment, and directed that the defendant not own or operate any company that accepts SNAP benefits while on supervised release. He must surrender to begin serving his prison term on October 19, 2015.
The case was investigated by the United States Department of Agriculture Office of Inspector General and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Springfield Man Who Led Police on Chase Charged with Possession of Cocaine with Intent to DistributeRead the Press Release
Springfield, Ill. – A Springfield, Ill., man who led police on a chase through fields in southeastern Springfield on Sept. 1, 2015, has been charged by criminal complaint with possession of cocaine with intent to distribute and illegal possession of firearms. Terell Adetunji, (a-de-TUHN-jee) 33, of the 1600 block of E. Georgia St., made his initial appearance in federal court today before U.S. District Judge Sue E. Myerscough. Adetunji was ordered to remain detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the complaint, Adetunji possessed nearly two kilograms of cocaine, and at the time of his arrest, was under surveillance by law enforcement officers. When officers attempted to make contact with Adetunji in the Taco Bell parking lot on Toronto Rd., he allegedly drove away, hitting and damaging two unmarked police cars.
The affidavit alleges that Adetunji, who proceeded eastbound on Toronto Rd., at a high rate of speed, was swerving violently as he appeared to throw items from the car. Adetunji then drove through a soybean field and a cornfield before crossing the street into another cornfield. At that point, the vehicle appeared to be severely damaged and was no longer running. According to the affidavit, Adetunji exited the vehicle and ran eastbound through the cornfield on foot until officers apprehended him on the University of Illinois-Springfield campus. The Springfield Fire Department was called after the car caught fire and ignited the cornfield.
Following the arrest, officers obtained and executed search warrants for various properties associated with Adetunji. According to the affidavit, among the items recovered were approximately 1,700 grams of cocaine, four firearms and various types of ammunition.
The case is being investigated by the Drug Enforcement Administration, the Springfield Police Department, the Central Illinois Enforcement Group, and the Illinois State Police. Assistant U.S. Attorneys Matthew Weir and Crystal C. Correa are prosecuting the case.
If convicted, the statutory penalty for possession of more than 500 grams of cocaine with intent to distribute is a mandatory minimum of five years in prison up to 40 years; for possession of a firearm by an unlawful user of any controlled substance, the penalty is up to 10 years in prison.
Members of the public are reminded that a criminal complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Somerset County High School Teacher Charged with Online Enticement of A MinorRead the Press Release
NEWARK, N.J. – A Somerset County, N.J., man who works as a high school teacher was charged today with soliciting a minor victim online to produce images of sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David N. Adams, 29, of Branchburg, New Jersey, was charged by complaint with one count of online enticement of a minor to engage in criminal sexual activity. He appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. He was detained without bail; a bail hearing is scheduled for Sept. 16, 2015.
According to documents filed in this case and statements made in court:
From June 2014 through September 2014, Adams was a resident of Morris County and taught at Eisenhower Middle School in Roxbury, Morris County. During this time, he allegedly communicated with a 13-year-old victim who lived outside of New Jersey. Adams met the victim through an online gaming community and they communicated through text and video chats.
Adams allegedly offered to send payment to a child, identified in the complaint as “Minor Victim 1,” in exchange for sexually explicit images of the child, as well as live video chat sessions during which the victim engaged in sexually explicit conduct while defendant Adams watched and directed the victim’s actions. The victim did, in fact, send sexually explicit images to Adams and engage in sexually explicit conduct in live video chat sessions.
Adams is currently a teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.
The charge of online enticement carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly in Newark; the Branchburg Police Department; and the Somerset County Prosecutor’s Office with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg and Special Assistant U.S. Attorney Erica D. Liu of the U.S. Attorney’s Office General Crimes Unit in Newark.
Seneca Nation of Indians to Receive More Than $500,000Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
WASHINGTON, DC. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.The Seneca Nation of Indians has received a $256,500 Justice Systems and Alcohol and Substance Abuse award and a $275,440 Violence Against Women Tribal Governments Program award.
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
“I am pleased that the Department of Justice has awarded this extremely significant amount of money to the Seneca Nation targeted specifically for use on important criminal justice and health issues,” said U.S. Attorney Hochul. “Our Office looks forward to continuing to work with the Seneca Nation in the months and days ahead.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/.Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Sarasota Felon Sentenced to More Than Six Years for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Kevin Eugene McKnight (31, Sarasota) to six years and five months in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on July 8, 2015.
According to court documents, in October 2014, McKnight sold a handgun and oxycodone pills to an undercover detective from the Sarasota Police Department. Prior to this incident, McKnight had multiple prior felony convictions. As a result, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney Bentley, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Santa Fe Man Sentenced to 130 Months in Federal Prison for Crack Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Matthew J. Holmes, 31, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 130 months in prison for his cocaine base trafficking conviction. Holmes will be on supervised release for four years after completing his term of imprisonment. The court also entered an order requiring Holmes to forfeit $4,146.00 found in Holmes’ possession when he was arrested.
Holmes was arrested on Feb. 24, 2015, and charged in a criminal complaint with possession of cocaine base, more commonly known as “crack” or “crack cocaine,” with intent to distribute. According to the complaint, on Feb. 24, 2014, the Santa Fe Police Department (SFPD) received information that Holmes had an outstanding state arrest warrant. Based on that information, SFPD officers initiated a traffic stop on Holmes’ vehicle. After a brief foot pursuit, the officers were able to apprehend Holmes. At the time of his arrest, Holmes possessed a distribution quantity of crack cocaine and drug paraphernalia. Holmes subsequently was indicted and charged with possession of crack cocaine with intent to distribute.
On Feb. 17, 2015, Holmes pled guilty to the indictment and admitted that on Feb. 24, 2014, he possessed 74.3 grams of crack cocaine in three plastic bags and $4,146.00 in cash. Holmes also admitted that he possessed the drugs with the intention of distributing it to others.
This case was investigated by the Santa Fe office of the FBI and the HIDTA Region III Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns.
The HIDTA Region III Narcotics Task Force is comprised of officers from the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Sacaton Man Sentenced to Federal Prison for Aggravated Sexual AssaultRead the Press Release
PHOENIX – On Sept. 15, 2015, Basil Edwin Williams, 20, of Sacaton, Ariz, a member of the Gila River Indian Tribe, was sentenced by U.S. District Judge Diane J. Humetewa to 102 months in prison, followed by a term of 15 years of supervised release. Williams pleaded guilty on July 15, 2015 to aggravated sexual assault.
On Sept. 4, 2014, within the Gila River Indian Community, Williams sexually assaulted the victim, also a member of the Gila River Indian Tribe, by choking and beating her to engage in a sexual act.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1416-DJH
RELEASE NUMBER: 2015-077_Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Russian National Pleads Guilty to Largest Known Data Breach Conspiracy Ever ChargedRead the Press Release
CAMDEN, N.J. – A Russian national today admitted his role in a worldwide hacking and data breach scheme that targeted major corporate networks, compromised more than 160 million credit card numbers and resulted in hundreds of millions of dollars in losses – the largest such scheme ever prosecuted in the United States.
The guilty plea was announced by New Jersey U.S. Attorney Paul J. Fishman, U.S. Secret Service Director Joseph P. Clancy and Assistant Attorney General Leslie Caldwell.
Dmitriy Smilianets, 32, of Moscow, pleaded guilty pleaded guilty before U.S. District Judge Jerome B. Simandle to Count Two of the second superseding indictment, charging him with conspiracy to commit wire fraud in a manner affecting a financial institution. Smilianets was arrested in the Netherlands on June 28, 2012 and was extradited to the District of New Jersey on Sept. 7, 2012.
According to documents filed in this case and statements made in court:
The five defendants each played specific roles in the scheme. Vladimir Drinkman, 34, of Syktyvkar, Russia, and Moscow and Alexandr Kalinin, 28, of St. Petersburg, Russia, specialized in penetrating network security and gaining access to the corporate victims’ systems. Drinkman and Roman Kotov, 34, of Moscow, also a hacker, specialized in mining the networks to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 28, of Odessa, Ukraine. Smilianets, 32, of Moscow, sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Drinkman and Kalinin were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 34, of Miami, Florida, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. Kalinin is also charged in two federal indictments in the Southern District of New York: the first charges Kalinin in connection with hacking certain computer servers used by NASDAQ and the second charges him and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information from U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme.
Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Drinkman pleaded guilty Sept. 15, 2015, to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud to Kalinin, Kotov and Rytikov remain at large.
The Attacks
The five defendants penetrated the computer networks of several of the corporate victims and stole user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. The conspirators allegedly acquired more than 160 million card numbers through hacking.
The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants placed malicious code, or malware, in the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were able to regain access through persistent attacks.
Instant message chats obtained by law enforcement revealed the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.
The defendants used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, selling the data only to trusted identity theft wholesalers. He charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.
To protect against detection by the victim companies, the defendants altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.
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As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges. The charges and allegations contained in indictments against the remaining defendants are merely accusations and they are presumed innocent unless and until proven guilty.
The count of conspiracy to commit wire fraud in a manner affecting a financial institution carries a maximum penalty of 30 years in prison and a fine of the greater of $1 million or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 13, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Division, under the direction of Special Agent in Charge Carl Agnelli, for the ongoing investigation leading to today’s guilty plea.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, Trial Attorneys Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, and Judith Friedman of the Office of International Affairs.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, Trial Attorney Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, and Judith Friedman of the Office of International Affairs.
U.S. Attorney Fishman also thanked public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police.
Roswell Man Sentenced to 84 Months in Prison for Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Gabriel Gonzales, 26, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison followed by three years of supervised release for violating the federal drug trafficking and firearms laws.
Gonzales was arrested on Dec. 1, 2014, in Springer, N.M., on an indictment charging him with possession of methamphetamine with intent to distribute, using and carrying a firearm in relation to a drug trafficking crime, and unlawful possession of a firearm by a person who had been convicted of a misdemeanor crime of domestic violence. The charges alleged in the indictment took place on Dec. 2, 2013, in Chaves County, N.M. At the time of his arrest, Gonzales was prohibited from possessing firearms or ammunition because he previously had been convicted of the misdemeanor crime of domestic violence, that being battery against a household member.
On March 12, 2015, Gonzales pled guilty to Counts 1 and 3 of the indictment charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a person convicted of a misdemeanor crime of domestic violence. In entering the guilty plea, Gonzales admitted that on Dec. 2, 2013, he was pulled over by law enforcement officers for a traffic violation, and during a consensual search of his vehicle, officers found approximately 34.6 grams of methamphetamine and a handgun inside the vehicle.
This case was investigated by the Las Cruces office of the DEA and the Roswell Police Department. Assistant U.S. Attorney Randy M. Castellano prosecuted the case.
Rochester Man Charged with Robbery and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Johnny Blackshell, Jr., 21, Rochester, NY, was arrested and charged by criminal complaint with Hobbs Act robbery, carrying and brandishing a firearm during a crime of violence, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorneys Brett A. Harvey and Douglas E. Gregory, who are handling the case, stated that according to the complaint, on August 4, 2015, the Rochester Police Department was called to the 7-Eleven on Lake Avenue for a report of an armed robbery. Officers interviewed the employee on duty who locked herself inside the store office until they arrived. They also reviewed store security videos and determined that two black males entered the store at approximately 12:50 a.m. One of the suspects pointed a handgun at the employee’s head and told her to open the drawer or he would “blow her head off.” The suspects left the store with approximately $150 in cash and some cigars.RPD evidence technicians subsequently processed the scene and recovered two fingerprints, one being a positive match to the defendant. In addition, the store employee picked Blackshell out of a photo lineup.
On August 24, 2015, RPD officers conducted a traffic stop of a gray/green Saturn on Route 490. The driver was identified as the defendant. Inside the car, officers recovered several clothing items that were determined to have been stolen from the Eastview Mall. A further search of the car revealed a handgun in the glove compartment. On August 25, 2015, the 7-Eleven employee who was robbed at gunpoint was shown photographs of the handgun found in the Saturn and stated to officers “I am sure that is the one that was pointed at me.”
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Federal Bureau of Investigation, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.