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Tuesday 28 July 2015
Abilene Men Face up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — In unrelated cases, two Abilene, Texas, residents, David Scott Fikani, 61, and Michael Cleo Ivy, 36, each appeared today before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to federal child pornography offenses involving prepubescent minors, announced John Parker, U.S. Attorney for the Northern District of Texas.
Fikani, who remains on bond, pleaded guilty to a one-count indictment charging possession of prepubescent child pornography. According to plea documents filed in the case, Fikani used the computer at his residence to search the Internet for images and videos depicting minors engaging in sexually explicit conduct. In the course of these searches, Fikani located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
Ivy, who is also on bond, pleaded guilty to the same offense. He was indicted in April 2015 on one count of receipt of child pornography and one count of possession of prepubescent child pornography. He, too, used the computer at his residence to search for images and videos of child pornography, and in the course of those searches, he also located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
Each defendant faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Sentencing dates will be set at a later date.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated both cases. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecutions.
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Monday 27 July 2015
Wetzel County man sentenced for oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Trevor Vossen, 23, of New Martinsville, WV, was sentenced to 24 months in prison in federal court today for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014 and early 2015, Vossen conspired with other individuals to possess and distribute oxycodone in Wetzel and Marshall Counties in West Virginia. He pled guilty in May 2015 to one count of “Drug Conspiracy - Oxycodone.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Wellington Man Sentenced to 8+Years on Child Pornography ChargesRead the Press Release
WICHITA, KAN. – A Wellington man was sentenced Monday to 100 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said. In addition, he will serve 10 years on supervised release after his sentence is completed.
Steven J. Meisel, 48, Wellington, Kan., was convicted in a jury trial on one count of distributing child pornography and one count of possessing child pornography. During trial, prosecutors presented evidence that on May 9, 2014, a Wichita police detective downloaded child pornography from Meisel’s computer over the ARES P2P computer network. The files included images of prepubescent children engaged in sex acts. Investigators followed an electronic trail to Meisel’s computer at his residence in Wellington.
Grissom commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force, the Wellington Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Two convicted of heroin traffickingRead the Press Release
ELKINS, WEST VIRGINIA – John Daniel Barnett, 39, and Kaylei Oressa Wilson, 26, both of Petersburg, West Virginia, were convicted today of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Barnett and Wilson, along with other individuals, conspired to possess and sell heroin in Grant County, West Virginia throughout 2014 and 2015.
The defendants each pled guilty today to one count of “Distribution of Heroin.” Barnett and Wilson each face up to 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. The West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge John S. Kaull presided.
Three Defendants Pled Guilty in Extensive Identity Theft Tax Refund Fraud SchemeRead the Press Release
Three defendants pled guilty for their participation in an extensive stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Brandi Mary Janice Stroman, 30, of Oakland Park, and Dezman Dunbar Zama, 34, of Fort Lauderdale, each pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of aggravated identity theft, in violation of Title l8, United States Code, Sections 1343, 1344, 1349 and 1028A. Stroman also pled guilty to one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1341 and 1349. Jerrod Dashon Bosket, 26, of Orlando, pled guilty to one count of unauthorized use of an access device and one count of aggravated identity theft, in violation of Title 18, Sections 1029(a)(2) and 1028A.
According to court documents, from March 2012 through August 2012, Stroman obtained the bank account information of Zama, Jerrod Bosket, and co-defendant Cornelius Craig Bosket, 32, of Fort Lauderdale. Stroman then provided the bank account information to another individual who filed false tax returns using the personally identifiable information (PII) of patients of a medical services provider. The fraudulent refunds from these tax returns were deposited into one of the bank accounts controlled by Zama, Jerrod Bosket, Cornelius Bosket, or others. After the money was deposited into the account, Stroman contacted the co-defendants and directed them to withdraw the funds. During the course of the conspiracy, at least 27 false returns were filed requesting $105,313 in fraudulent refunds. Each one of the 27 false returns listed one of the defendant’s bank account numbers.
Court documents also state that a member of the conspiracy obtained the names, social security numbers, and bank account numbers of three other individuals. A member of the conspiracy transferred or attempted to transfer $62,000, $92,716, and $135,482.46, respectively, from these three individuals’ bank accounts into a bank account controlled by Stroman or Zama. Stroman and Zama then withdrew or attempted to withdraw the transferred funds. Four fraudulent tax refunds in the name of incarcerated individuals were also deposited into Stroman’s bank account.
Defendants Zama and Jerrod Bosket are scheduled to be sentenced on September 23, 2015, and defendant Stroman is scheduled to be sentenced on October 7, 2015, all before United States District Judge William J. Zloch. All of the defendants face a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge. Stroman and Zama also face a maximum of twenty years in prison for the conspiracy to commit wire fraud charge and a maximum of thirty years in prison for the conspiracy to commit bank fraud charge. Stroman also faces a maximum of twenty years in prison for the conspiracy to commit mail fraud charge. Jerrod Bosket faces a maximum of ten years in prison for the access device charge.
Trial is scheduled to begin on July 28, 2015 for co-defendant Cornelius Craig Bosket.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Telemarketer Sent to Federal Prison in Timeshare Resale FraudRead the Press Release
HOUSTON – The lead defendant in connection with a telemarketing fraud and money laundering scheme spanning nearly five years has been ordered to federal prison following his convictions of conspiracies to commit wire/mail/telemarketing fraud, announced U.S. Attorney Kenneth Magidson. James Assi Jariv, 64, of Las Vegas, Nevada, pleaded guilty May 18, 2015.
Today, U.S. District Judge Lynn H. Hughes ordered Jariv to serve a total of 120 months in federal prison to be immediately followed by three years of supervised release.
Jariv’s son Alexander, 28, his wife Jiwon, 36, his ex-wife Varda, 74, all of Las Vegas, and four others - Ronald Frank Muise, 53, his son Michael Derek Muise, 30, and Thresa Lloyd, 45, all also of Las Vegas, and Leon Avedikian, 46, of Los Angeles, California – have also been convicted for their roles in the scheme. With the exception of Varda Jariv, who was ordered to serve a five-year-term of probation and ordered to pay $439,911 in restitution, all are pending sentencing at later dates.
As a result of all the guilty pleas, the U.S. has recovered more than $2,250,000 in restitution for the nearly 1000 victims, many of whom are more than 55 years of age. Money judgments in both the civil forfeiture action and the criminal cases have been obtained to assist the government in recovering the balance of the nearly $5 million in restitution owed to the victims.
Between December 2007 and Feb. 24, 2012, the defendants victimized approximately 1000 people living in Canada and throughout the United States, including the Southern District of Texas.
The Jarivs and the others used a number of different named companies to conduct their telemarketing timeshare resale scheme in Houston, Las Vegas, Chicago and Los Angeles, which targeted timeshare owners throughout the United States and Canada. The timeshare owners were solicited to pay advance fees in exchange for the promise that The Jariv Companies had willing buyers for the timeshare properties or points. However, The Jariv Companies did not have buyers for the timeshare owners’ interests and did not market or sell the property.
The Jariv companies were registered in various states, including Texas, Nevada, California, Illinois and Washington and conducted business at multiple addresses in Houston, Las Vegas, Los Angeles, Chicago and Seattle.
The defendants used mailing addresses or “virtual office suites” in Las Vegas, Houston, Chicago and Seattle for receiving monies from timeshare owners via U.S. Mail or commercial interstate carriers like Fed Ex, all the while maintaining call center offices in Las Vegas, Houston, Chicago and the greater Los Angeles-area from which the defendants, using telephones and email, contacted and communicated with timeshare owners in a scheme to defraud the timeshare owners of money.
The defendants and their employees falsely represented that they had buyers for the timeshare owners interests (either timeshare weeks or points) and solicited fees, ranging from hundreds of dollars to several thousand dollars from each timeshare owner. The defendants falsely represented that the fees were fully refundable at closing and were used to secure the owners’ place in an acquisition involving corporate buyers, as well as to pay for legal expenses such as title searches, estoppel letters and closing costs.
However, closings were not scheduled, purported sales did not occur and no payments were made to timeshare owners for the sale of their property, nor have there been payments by corporations (or other buyers) to The Jariv companies for the purchase of timeshare properties.
The defendants and employees of the Jariv companies did not devote their resources to marketing the timeshare owners’ properties and simply pocketed the advanced fees paid by the timeshare owners with a sizeable percentage of the money used to pay telemarketers. Jariv and his family members kept the balance of advance fees to be deposited into bank accounts controlled by them and frequently transferred it to personal bank accounts or other unrelated corporate bank accounts.
Between Feb. 1, 2011, and Jan. 31, 2012, the defendants deposited into eight bank accounts approximately $6,925,137.04 in fraudulently-obtained timeshare owner funds. Some victims reversed the charges or withdrawals, leaving approximately $5,945,433.04 in victim funds in possession of, and subsequently transferred into, other accounts controlled by the defendants. The funds in the eight victim deposit accounts were all traceable to payments received from victims. In the earlier years of the conspiracy, agents identified another nearly $6 million in victim funds that were deposited in accounts controlled by the Jariv family.
Originally on bond, James Jariv was previously taken into custody following an arrest in January 2014 for an unrelated fraud scheme in Nevada. He will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The convictions are the result of an investigation conducted by the Houston Division of U.S. Secret Service (USSS) and Internal Revenue Service – Criminal Investigation with assistance by Las Vegas USSS, FBI and San Francisco Environmental Protection Agency. Assistant U.S. Attorneys Martha Minnis and Katherine Haden are prosecuting the case.
Tahlequah Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DEREK ALLEN CLELL HORNEY, age 30, of Tahlequah, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii), punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine or both.
The Indictment alleged that on or about November 14, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of Methamphetamine (actual), a Schedule II controlled substance.
The charges arose from an investigation by the Tahlequah Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Stockton Man Sentenced to One and a Half Years in Prison for Trafficking in Counterfeit GoodsRead the Press Release
SACRAMENTO, Calif. — United States District Judge William B. Shubb sentenced Joe L. Regalado, 41, of Stockton, to one and one half years in prison for trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, over a nearly two-year period, Regalado trafficked in goods bearing counterfeit trademarked insignia. When he was arrested in December 2011, Regalado was selling counterfeit college sports jerseys, Major League Baseball jerseys and hats, National Basketball Association jerseys, National Football League jerseys and caps, National Hockey League jerseys, and counterfeit clothing bearing trademarks from Chanel, Prada, Juicy Couture, Louis Vuitton, Christian Audigier, Polo, True Religion, Coach, Burberry, Gucci, and Nike. As part of his sentence, Regalado was ordered to pay over $111,000 in restitution to sports teams whose logos were on the goods that he was caught selling, and to forfeit ownership of two cars and a garage full of counterfeit goods that were recovered by the FBI when they searched his house.
This case was the product of an investigation by the Sacramento High Tech Crimes Task Force, which includes representatives from state and federal law enforcement agencies including the Sacramento County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Matthew Morris prosecuted the case.
Second Man Linked to Medicare Fraud Scheme Pleads Guilty to Federal Money Laundering and Tax OffensesRead the Press Release
LOS ANGELES – A Glendale man pleaded guilty today to federal money laundering and tax charges related to a scheme in which he helped launder $1.1 million generated by a health care fraud scheme.
Khachatour Hakobyan, 47, pleaded guilty today to conspiracy to commit money laundering and filing a false tax return.
A second defendant in this case – Aram Aramyan, 59, also of Glendale – pleaded guilty on July 13 to the same two felony offenses.
In plea agreements filed in United States District Court, Hakobyan and Aramyan admitted that they deposited over $1.1 million in proceeds derived from a health care fraud scheme into bank accounts in the names of bogus corporations they established “primarily to launder money.” Once the proceeds were deposited, Hakobyan and Aramyan wrote checks from these corporations to themselves and their associates. Hakobyan and Aramyan further admitted that they cashed some of the checks – and directed their associates to cash others – and returned the cash to the medical entities, typically after deducting a 10 percent commission. In some cases, they deposited the checks into their personal accounts and used the money to pay personal expenses, such as mortgage payments, rent and home remodeling costs.
As part of their guilty pleas, Hakobyan and Aramyan each admitted that they failed to report all of their income from the corporations in their 2009 tax returns and have agreed to pay, respectively, $606,681 and $353,669 in back taxes for tax years 2007 through 2011.
Hakobyan and Aramyan pleaded guilty before United States District Judge Margaret M. Morrow.
As a result of their guilty pleas, Hakobyan and Aramyan each face a statutory maximum sentence of 23 years in federal prison. Judge Morrow is scheduled to sentence Hakobyan on November 16, and Aramyan on November 2.
There are three remaining defendants in this case: Edgar Hakobyan, Karen Sarkissian and L’Tanya Smith (see: http://www.justice.gov/usao-cdca/pr/three-arrested-after-being-named-new-indictment-alleges-money-laundering-health-care). They are currently scheduled to go on trial before Judge Morrow on February 2, 2016.
The investigation in this case was conducted by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS - Criminal Investigation.
Richland County Woman Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
A Richland County woman was sentenced to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
On July 23, 2015, Jacque Lee Brown, 44, of Olney, Illinois, was sentenced to 87 months in federal prison, to be followed by two years of supervised release following her prison term, and fined $300. Brown had previously pleaded guilty, admitting that from April 8, 2009, to September 7, 2012, in Richland County, Brown knowingly and intentionally possessed Pseudoephedrine pills, knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Registered Sex Offender Guilty of Producing Child Pornography in Jefferson CountyRead the Press Release
BEAUMONT, Texas – A 45-year-old Galveston, Texas man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Stephen Gracia pleaded guilty to production of child pornography today before U.S. District Judge Marcia Crone.
According to information presented in court, on Apr. 2, 2015, federal agents executed a search warrant at Gracia’s residence in Galveston based on information that child pornography was being distributed from that location. During the search, investigators located a digital memory card in a locked safe that contained videos of Gracia and his victims. In these videos, Gracia, a registered sex offender, was engaged in sexual activity with the children. Further investigation revealed the videos were originally produced in Jefferson County, Texas. Gracia was indicted by a federal grand jury on May 7, 2015.
Gracia faces a mandatory term of life in federal prison. A sentencing date has not been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI), Jefferson County District Attorney’s Office, Jefferson County Sheriff’s Office and Galveston Police Department and prosecuted by Assistant U.S. Attorney Lesley Bartow.
Reentry Task Force for Southwest Alabama to Be AnnouncedRead the Press Release
Senator Vivian Davis Figures and United States Attorney Kenyen Brown will hold a media event to announce the creation of the Project HOPE (Helping Offenders Pursue Excellence) Reentry Task Force for Southwest Alabama. Thirty-seven area leaders and stakeholders who have agreed to serve are being asked to develop a strategic plan that will address reentry issues and needs of ex-offenders who are transitioning back to area communities.
U.S. Attorney Kenyen Brown stated, "I’m excited that so many notable leaders from our regional community have answered the clarion call for change in Southern Alabama and the entire State of Alabama. I applaud their decision to lend us their experience and talents in order to come up with what we hope will be lasting solutions to the State’s criminal justice problems."
Senator Vivian Figures, the Chair of the Project HOPE Reentry Task Force, expressed, "There are growing concerns about the struggles inmates may encounter when released and the fears we all have about the endless cycles of arrest and re-incarceration that many experience." "It is in our best interest as their families, friends and neighbors that we forge new and hopeful pathways for those ready to chart new lives," said Senator Figures.
The formation of the Task Force is a collaborative effort encouraged by the Alabama Board of Pardons and Paroles and spearheaded locally by U. S. Attorney, Kenyen R. Brown, the Project HOPE Reentry Council and the Mobile Area Interfaith Conference. The planning process will create a network of partners committed to goals and implementation that will transform the reentry process.
The citizens of Southwest Alabama are increasingly aware of pressing issues that need to be addressed. The Alabama justice system is struggling with overcrowding and a high rate of recidivism. The Mobile County Metro Jail is the largest incarceration facility in Southwest Alabama and is straining to perform its duties as an arm of the local justice system. There is growing consensus in law enforcement, justice and elected officials that recidivism rates could be reduced by implementing basic strategies and services that help ex-offenders avoid being re-arrested and returned to jail. Building on existing community resources and with coordinated support, many ex-offenders would be able to make choices
that could lead to renewed hope and increased opportunities as law-abiding and self-sufficient citizens, thereby reducing recidivism for those deserving of another chance.
This event is intended for all media outlets that provide news and information for public awareness and for rallying public support for reentry initiatives. Elected officials are encouraged to attend and support the development of a reentry strategic plan.
"We are beginning to better understand the difficulties faced by anyone released from a correctional facility. By responding effectively, we can create a reentry process that also provides a safer community for all citizens," concluded Figures.
Pontiac Man, Robert Thomas Carlson, Sentenced for Possession of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN — Robert Thomas Carlson, 40, of Pontiac, Michigan was sentenced to 41 months in federal prison for possession of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R. Allan Edgar ordered Carlson to serve ten years of supervised release following the completion of his prison term and to register as a sexual offender.
On February 12, 2015, Carlson pleaded guilty to a federal indictment charging him with possession of child pornography. The investigation into Carlson’s activities began when agents from Immigration and Customs Enforcement, Homeland Security Investigations determined Carlson had paid for a subscription to a child pornography website. Agents eventually located Carlson, who had moved from lower Michigan to the Upper Peninsula to begin studies at Northern Michigan University. Agents retrieved a laptop Carlson had used while he was a student and discovered images and a video containing child pornography. Agents interviewed Carlson, and he surrendered another laptop computer, forensic examination of which revealed that Carlson was continuing to view and collect child pornography.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
Immigration and Customs Enforcement, Homeland Security Investigations, the Federal Bureau of Investigation, the Michigan State Police, and Northern Michigan University Public Safety investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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Page County, Iowa, Resident Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On July 24, 2015, James Paul Davis, a 31 year-old resident of Shenandoah, Iowa, was sentenced by United States District Court Judge James E. Gritzner to 192 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas Klinefeldt. Davis was also ordered to serve five years of supervised release following the period of imprisonment.
Davis entered a guilty plea on March 11, 2015, to the charge of conspiracy to distribute methamphetamine. The plea of guilty resulted from a year-long investigation that showed large quantities of methamphetamine were transported to Southwestern Iowa from the border region in Texas for distribution across Southwestern Iowa and into Eastern Nebraska from September of 2013 to June of 2014.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Page County Sheriff’s Office, Shenandoah, Iowa, Police Department, Mills County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Omaha, Nebraska, Police Department, Metro Area Fugitive Task Force, and the United States Marshal’s Service for the Southern District of Iowa.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Olney Man Indicted for Social Security FraudRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that David Mitchell Carter, 49, of Olney, Illinois, was indicted on July 22, 2015, by a federal grand jury in the United States District Court in East Saint Louis, Illinois, on one count of Theft of Government Funds. If convicted, Carter faces maximum penalties of ten years in prison, a $250,000 fine, and three years of supervised release.
The indictment alleges that from around January 2008, continuing to around January 2014, Carter did knowingly steal and convert money belonging to the Social Security Administration, having a value in excess of $1,000.00, by concealing his employment status in order to receive benefits from the Social Security Administration’s Title II Disability Insurance Benefits program, to which he knew he was not entitled by failing to disclose income he earned through employment.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by the U.S. Social Security Administration, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
New York Man Sentenced, 2nd Defendant Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
PROVIDENCE, R.I. - Joshua Cutchin, 27, of Brooklyn, N.Y., has been sentenced to 18 months in federal prison for conspiracy to possess and for possessing more than 135 fraudulent credit cards, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
At sentencing on July 23, U.S. District Court Chief Judge William E. Smith also ordered Cutchin to serve two years supervised release upon completion of his prison term and to pay restitution in the amount of $3,910.59. Cutchin pleaded guilty on April 17, 2015, to one count of conspiracy to possess counterfeit credit cards and one count of possession of counterfeit credit cards.
Jibri Eady, 22, of Brooklyn, N.Y., a co-conspirator in this matter, is scheduled to be sentenced on October 9, 2015. Eady pleaded guilty on July 23 to one count of conspiracy to possess counterfeit credit cards and one count of possession of counterfeit credit cards.
According to court documents and information presented to the court, on December 30, 2014, Jibri Eady and Joshua Cutchin were traveling north on Route 95 when their vehicle was stopped by Rhode Island State Police troopers for speeding. The operator of the vehicle, Jibri Eady, was found to have a suspended New York driver’s license and was taken into custody. Cutchin was also detained.
During searches of the vehicle by Rhode Island State Police and the United States Secret Service, 139 counterfeit credits cards and a sheet of counterfeit hologram stickers of MasterCard world symbols resembling the MasterCard world symbols on the back of counterfeit MasterCards were seized.
The investigation by the Rhode Island State Police Financial Crimes Unit and the United States Secret Service determined that several purchases were made using fraudulent cards similar to those seized drawn from at least six different financial institutions.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
New York Man Sentenced to 11 Years in Prison for Armed Robbery of Paramus Electronics StoreRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man was sentenced today to 132 months in prison for participating in the armed robbery of an electronics store in Paramus, New Jersey, U.S. Attorney Paul J. Fishman announced.
Unique Randolph, 28, previously entered a plea of guilty before U.S. District Judge Joel A. Pisano on May 5, 2014, and his guilty plea was accepted today by U.S. District Judge Anne E. Thompson. Randolph pleaded guilty to Count Six and Count Seven of a superseding indictment charging him with committing a Hobbs Act robbery and using a firearm in furtherance of that robbery. Judge Thompson imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 16, 2013, Randolph and another man entered a T-Mobile store in Paramus brandishing a firearm, while Carl Williams, 31, also of Brooklyn, waited outside as a lookout and get-away driver. While the other man brandished a firearm, Randolph escorted three store employees and a customer into the backroom. Randolph forced them to lie on the floor, while he used zip-ties to bind their arms and legs. While the two men were looting cell phones, a UPS employee walked into the backroom and then tried to leave to store. The robbers stopped him at gunpoint and brought him into the backroom. While the other conspirator aimed his firearm at the UPS employee, Randolph forced him to lie on the floor and bound his arms and legs. The two men then fled with the stolen cell phones.
In addition to the prison term, Judge Thompson sentenced Randolph to serve three years of supervised release. Williams pleaded guilty to his role in the robbery and is currently scheduled for sentencing on Oct. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Linden, Paramus, and Woodbridge police departments, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Damien Conforti Esq., Newark, New Jersey
Missouri Man Indicted for Attempting to Pass Forged PrescriptionsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Luke Xavier Lore, 47, formerly of Saint Louis, Missouri, was indicted on July 22, 2015, by a federal grand jury in the United States District Court in East Saint Louis, Illinois. Lore was charged with two counts of Attempting to Acquire or Obtain a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception or Subterfuge. The charges carry maximum penalties of four years in prison, a $250,000 fine, and one year of supervised release. Lore is detained, that is, held without bond, pending trial.
The indictment alleges that on or about February 2, 2015, in Madison County, and on or about April 6, 2015, in Saint Clair County, Lore forged prescriptions and attempted to have them passed at pharmacies. In February, as alleged, he attempted to illegally obtain Hydrocodone, a Schedule II controlled substance, and Alprazolam (trade name: Xanax), a Schedule IV controlled substance. In April, as alleged, he attempted to illegally obtain Hydrocodone (trade name: Norco).
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by Drug Enforcement Administration with the assistance of the Alton Police Department. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Kermit Clark, age 44, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
“This investigation highlights how DEA Baltimore successfully conducts long-term complex investigations,” stated Acting ASAC Shawn Ellerman. “The case stretched from Staten Island, New York to Houston, TX and I want to commend the agents for their careful and methodical work which resulted in the dismantling of a large scale drug trafficking organization that imported hundreds of kilograms of cocaine into the Baltimore area.”
According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Clark and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. Clark became a member of the conspiracy to distribute more than five kilograms of cocaine.
The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas. The Jenifer DTO would transport money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore in the Jenifer DTO’s courier vehicles. In July 2013, a courier vehicle for the Jenifer DTO was intercepted in Arkansas that contained approximately 23 kilograms of cocaine hidden in a secret compartment. Between August 2013 and October 2014, approximately 30 shipments of cocaine, concealed in secret compartments in the Jenifer DTO’s courier vehicles, were made to the Jenifer DTO. On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles. .
Clark agreed that he was a member and co-conspirator of the Jenifer DTO, which was responsible for trafficking no less than 750 kilograms of cocaine from Houston to Baltimore from August 2013 to October 2014.
William Hegie, age 54, of Baltimore, previously pleaded guilty to his participation in the conspiracy and was sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in this Organized Crime Drug Enforcement Task Force case.
Manhattan U.S. Attorney and EPA Announce Lawsuit Against Accolade Construction Group Inc., for Violating Lead Paint Safety RulesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Accolade Construction Group Inc. (“Accolade”), alleging that Accolade repeatedly violated provisions of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”). The provisions violated by Accolade are designed to protect public health by minimizing the risk of lead exposure during renovations of residential buildings.
Manhattan U.S. Attorney Preet Bharara said: “As alleged in the complaint, Accolade has repeatedly violated rules designed to protect children and others from lead poisoning during renovation of residential buildings. The complaint demonstrates a blatant disregard by Accolade of its responsibilities, and the public health. Through this lawsuit, we aim to protect the public from future violations and ensure that Accolade does not keep the money it took for work that allegedly skirted the law and put people at risk.”
EPA Regional Administrator Judith Enck stated: “Exposure to lead-based paint and paint dust is the leading cause of lead poisoning in the country. Lead is extremely toxic and even low levels of lead in children’s blood affect their IQ and ability to learn. Time after time, this company has violated EPA regulations designed to protect people from lead exposure and, in doing so, has shown little regard for the health of people in buildings they were renovating or for their own workers.”
The lawsuit alleges that in the course of renovating six different Manhattan apartment buildings in 2013 and 2014, Accolade violated the TSCA and the RRP Rule by failing to hire renovators trained and certified in lead-safe renovation work practices, failing to seal off renovation work areas to prevent lead from contaminating other apartments or common areas, and failing to warn building owners and occupants of the risks of lead exposure from its renovations. Accolade also violated the TSCA and the RRP Rule by failing to provide EPA with the records required by the regulations to enable EPA to monitor Accolade’s compliance.
Accolade had previously entered into an administrative Consent Agreement and Final Order with EPA to settle other TSCA and RRP Rule violations. As part of that settlement, Accolade agreed to obey the law in the future. Despite that agreement, Accolade went on to commit additional violations of the same laws designed to prevent lead poisoning.
* * *
The Complaint filed by the United States seeks an order enjoining Accolade from conducting further renovation work until it demonstrates compliance with the TSCA and the RRP Rule and a permanent injunction compelling Accolade to comply with the TSCA and the RRP Rule in the future. The United States also seeks the proceeds received by Accolade for renovation work on jobs in which it failed to comply with TSCA and the RRP Rule.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Mónica P. Folch is in charge of the case.
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Kern County Man Sentenced to 5 Years in Prison for Cocaine SmugglingRead the Press Release
FRESNO, Calif. —Jimmy Gil, aka Joselin Jimelet Gil Sanchez, aka Joselin Gil, aka Gilberto Sanchez, 35, of Shafter, was sentenced today to five years in prison for conspiring with Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced. In a separate civil proceeding, U.S. District Judge Lawrence J. O’Neill ordered the forfeiture of $3,104,661 in cash that agents seized during the investigation of the criminal case.
Gil’s sentence follows his guilty plea in May 2015. In pleading guilty, Gil admitted that he had conspired with Eslava, the driver of a tractor trailer containing cocaine smuggled into the United States from Mexico at the Otay Mesa Port of Entry, to a location in Bakersfield. After Gil took possession of the tractor trailer, he and Montoya began unloading 18 one-kilogram packages of cocaine from a hidden compartment in the underside of the trailer and placing the cocaine in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload 20 more kilograms of cocaine concealed in the trailer. Follow-up investigation resulted in the seizure of $3,104,661 in cash hidden in an asphalt roller at the residence of an associate of Gil. The seized cocaine has a street value of over $3 million.
“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a serious public safety threat, as evidenced by the amount of cocaine seized,” said Michael Toms, resident agent in charge for Homeland Security Investigations (HSI) Bakersfield. “As this sentence demonstrates, HSI is working closely with its law enforcement partners to prevent these dangerous and addictive drugs from reaching our streets and ensure the perpetrators of such attempts are brought to justice.”
“This investigation began with a tremendous amount of inter-agency coordination and finished with good old fashioned police work. The forfeiture of $3.1 million has dealt a substantial blow to this criminal organization and these illicit proceeds will be put back into communities through local law enforcement efforts,” stated DEA Acting Special Agent in Charge Bruce C. Balzano.
Eslava and Montoya previously pleaded guilty. On July 20, 2015, Eslava was sentenced to two years and eight months in prison. Montoya is scheduled to be sentenced on September 21, 2015.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the criminal case against Gil. Assistant United States Attorney Kevin Khasigian handled the civil forfeiture proceeding.
Kern County Man Sentenced to 15 Years in Prison for Child Pornography OffensesRead the Press Release
FRESNO, Calif. — Thomas Bettis, 54, of Tehachapi, was sentenced today by United States District Judge Anthony W. Ishii to 15 years in prison for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January and March 2013, Bettis received and distributed more than 600 images and video files depicting minors engaged in sexually explicit conduct as attachments to email messages. The illicit files also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Bettis was charged with receiving and distributing child pornography on September 4, 2014, and pleaded guilty to this charge on January 12, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian W. Enos is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Kankakee Man to Serve Five Years in Prison for Marijuana Growing Operation, Filing False Tax Returns and Making False Statement to BankRead the Press Release
Springfield, Ill. – A Kankakee, Ill., man, has been ordered to serve five years in federal prison. U.S. District Judge Sue E. Myerscough sentenced David Aaron Neblock 38, on Friday, July 24, 2015. Following his release from prison, Neblock was ordered to remain on federal supervised release for four years.
Neblock has been in the custody of the U.S. Marshals Service since he pled guilty on Jan. 29, 2015, to possession with intent to distribute more than 100 marijuana plants, three counts of filing false income tax returns for the 2010, 2011, and 2012 tax years, and making false statements to a financial institution.
According to court documents, in July 2012, members of the Kankakee Area Metropolitan Enforcement Group (KAMEG) seized more than 750 hydroponic marijuana plants from a warehouse in Bradley, Ill., used by Neblock to grow marijuana. The plants, at various stages of growth, were grown under multiple artificial light ballasts, with electric timers that regulated fans, lights and irrigation systems that supplied water and growth enhancement nutrients to the plant.
Neblock was also ordered to pay $52,128 of additional tax due and owing to the Internal Revenue Service that resulted from his omission of other income earned, including income from the sale of narcotics, for tax years 2010, 2011, and 2012,
Further, Neblock agreed to forfeit property, his former residence on River Road in Kankakee, that was used to facilitate or was paid for by proceeds of illegal activity. Neblock admitted that in March 2009, he submitted a false loan application to the bank to purchase the home. In the application, Neblock falsely claimed that he was employed at various businesses and had received an inheritance.
The case was prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by the Kankakee Area Metropolitan Enforcement Group, “KAMEG;” Illinois State Police; Internal Revenue Service Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General, with assistance from the Kankakee State’s Attorney’s Office.
July Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Rhonda Anderson, age 36, of Casper, Wyoming, is charged with bank theft and embezzlement between on or about June 7, 2012 to on or about October 28, 2013. The defendant allegedly took approximately $20,964.51from accounts of bank customers and from intended deposits into accounts of the bank and converted these proceeds to her own use and benefit. The maximum possible penalty if convicted is 30 years, a $1,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Selvin Ayala-Quintanilla, age 33, of Crete, Nebraska, is charged with illegal reentry into the United States on or about April 3, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Christopher Baskin, age 44, of Omaha, is charged with tampering with a witness beginning on or about April 2, 2015, and continuing to on or about June 28, 2015. The maximum possible penalty if convicted is 20 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Mark James Decora, age 31, of Winnebago, is charged with assault resulting in serious bodily injury on or about March 21, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaime Erives-Hernandez, age 47, is charged with illegal reentry into the United States on or about June 16, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jason Freemont, age 48, of Walthill, is charged in a four-count Indictment. Counts I and III of the Indictment charge the defendant with assault with a dangerous weapon on or about June 12, 2015. Counts II and IV of the Indictment charge Freemont with assault resulting in serious bodily injury on or about June 12, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Arturo Hernandez-Rodriguez, age 38, of Lincoln, is charged with illegal reentry into the United States on or about July 7, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Bryan Jensen, age 42, of Omaha, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with felon in possession of a firearm on or about May 15, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II and IV of the Indictment charges Jensen with possession with intent to distribute a mixture containing methamphetamine on or about March 5, 2015 and on or about May 5, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about May 15, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Jamie Dean Lewis, age 28, is charged in a six-count Indictment. Counts I and IV of the Indictment charge the defendant with possession with intent to distribute a mixture containing methamphetamine on or about April 5, 2015 and on or about May 28, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Counts II and V of the Indictment charge Lewis with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about April 5, 2015 and on or about May 28, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment for each count. Counts III and VI of the Indictment charge the defendant with felon in possession of a firearm on or about April 5, 2015 and on or about May 28, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Shyla Martinez, age 31, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine from an unknown date but at least as early as July 15, 2014, up to and including October 25, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Counts II and IV of the Indictment charge Martinez with distribution of more than 5 grams of actual methamphetamine on or about February 20, 2015 and on or about March 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with distribution of less than 5 grams of actual methamphetamine on or about March 1, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marco Tulio Montalvan-Estrada, age 43, of Austin, Texas, is charged with illegal reentry into the United States on or about June 25, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Aloysius Montgomery, age 29, of Omaha, is charged with felon in possession of a firearm on or about June 18, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Thomas Peterson, age 56, of Kearney, is charged in a five-count Indictment. Counts I thru IV of the Indictment charge Thomas Peterson, a deputy probation officer employed by the State of Nebraska District 9 Probation Office in Kearney, Nebraska, with deprivation of civil rights on various dates. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a 1 year term of supervised release, and a $25 special assessment for each count. Count V of the Indictment charges the defendant with making false statements to a government agent on or about May 14, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Elmer Quinteros-Escobar, age 38, of Kearney, is charged with illegal reentry into the United States on or about June 16, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Josue Quiroga, a/k/a Josue Valencia, age 24 and Hamolequet Adi Quiroga, age 31, both of Kearney, are charged in a two-count Indictment. Count I of the Indictment charges both defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine and marijuana beginning on or about August 2014 , and continuing to on or about February, 2015. Count II of the Indictment charges Josue Quiroga with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense on or about August, 2014 and continuing to on or about February, 2015. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Jose Luciano Ramirez Garcia, age 28, of Omaha, is charged with illegal reentry into the United States on or about June 25, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* J. Guadalupe Ramos Leon, age 39, of Kearney, is charged with illegal reentry into the United States on or about July 8, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ala Marouf Salameh, age 38, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges Salameh with fraud and misuse of visas, permits, and other documents on or about June 17, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment, charges the defendant with making false statements in a document in a matter within the jurisdiction of a government agency on or about October 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Erwin Sample, age 31, of Alliance, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute a mixture containing methamphetamine beginning on or about March, 2014, and continuing to on or about July, 2015. Count II of the Indictment charges Sample with possession of a stolen firearm. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Asael De Jesus Sanchez Escamilla, is charged with illegal reentry into the United States on or about June 12, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Rigoberto Vasquez-Martinez, aka Francisco Gonzalez, age 57 and Maria Elena Macias-Rios, age 50 are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams of a mixture containing methamphetamine on or about April 13, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
Count II of the Indictment charges Vasquez-Martinez with illegal reentry into the United States on or about June 12, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Reta White, a/k/a Reta Smith, a/k/a Vanessa Smith, a/k/a Rita Jackson, age 59, of Omaha, is charged with harboring a fugitive on or about June 23, 2015. The maximum possible penalty if convicted is 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Jacqueline Stanfill Indicted for Fraud and Money Laundering ChargesRead the Press Release
KNOXVILLE, Tenn. -- Jacqueline J. Stanfill, 58, of Knoxville, Tenn., was arrested today in Knoxville by agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). Trial was set for September 30, 2015, before the Honorable Leon Jordan, Senior U.S. District Court Judge.
In July 2015, a federal grand jury returned a six-count indictment against Stanfill alleging wire fraud, mail fraud and money laundering. According to the indictment, which is on file with the U.S. District Court Clerk, she allegedly defrauded individuals by inducing them to provide her with funds for investment with Charles Schwab and Co. Instead of investing the funds with Schwab, she converted the money to her own personal use. Stanfill was the owner and operator of Stanfill Wealth Management in Knoxville.
The investigation, which led to the indictment of Stanfill, was conducted by the FBI and IRS. Assistant U.S. Attorney Frank Dale represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Hutchinson Woman Sentenced on False Tax Claim, Firearms ChargesRead the Press Release
WICHITA, KAN. - A Hutchinson woman was sentenced to three years on supervised release and ordered to pay more than $19,000 in restitution for filing false tax returns and violating a federal law prohibiting her from having a gun, U.S. Attorney Barry Grissom said.
Rhonda J. Simmons, 41, Hutchinson, Kan., pleaded guilty to one count of presenting a false tax claim and one count of unlawful possession of a firearm after a felony conviction. In her plea, she admitted that on April 15, 2012, she prepared a false income tax return seeking a refund of $3,014.
On Aug. 14, 2012, the Hutchinson Police Department executed a search warrant on the residence where she was living in Hutchinson. They seized a 20 gauge shotgun belonging to Simmons. She was prohibited from possessing a firearm because she had been convicted of a felony in 2007 in Georgia.
Grissom commended the Internal Revenue Service, the Hutchinson Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Husband and Wife Admit to Procurement Fraud Scheme and to Embezzling Employee BenefitsRead the Press Release
Baltimore, Maryland – Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 49, and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, both of Keymar, Maryland, pleaded guilty today to charges in connection with defrauding the United States of over $30 million in connection with obtaining government contracts, stealing over $1.6 million in employee benefits and evading taxes.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“The Tuckers’ fraudulent actions deprived the federal contract employees of Quantell and Intaset of rightfully earned benefits under the Service Contract Act,” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations. “My office remains committed to investigating these types of crimes, and we will continue to proactively work with our law enforcement partners to bring corrupt individuals and companies to justice.”
According to their pleas, the Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010. Quantell and Intaset provided labor services to federal government agencies. In 2010, the Tuckers sold Intaset, but continued to have influence on the operation of Intaset.
Federal Procurement Fraud
From 2007 to 2013, the Tuckers and their co-conspirators, including Jonathan Mickle, made false representations to the government regarding the eligibility of Quantell and Intaset for small business, Service Disable Veteran Owned Small Business and other set-aside contracts, including the 2007 Camp Lejeune contract, 2007 Battle Creek, Michigan contract, 2008 Andrews Air Force Base contract, 2008 Beale Air Force Base contract, 2011 Langley Air Force Base contract and 2011 Camp Lejuene contract. The Tuckers and co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies. When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses. The Tuckers’ actions cause other companies, which the government actually meant to support with set-aside contracts, to lose out on valuable opportunities to provide contracting services to the federal government.
The Tuckers used the money from the government contracts for their own personal benefit, including building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to the real property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to the real property in Keymar; 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.
The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell. They created a fake corporate entity name Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It, and falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It. Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract. The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.
The Tuckers admit that as a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on false representations was at least $30 million.
Employee Benefit Fraud
Moreover, the service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to the service contract employees of Quantell and Intaset hired to do the work for the federal government. From 2008 to at least 2012, however, the Tuckers stopped contributing the SCA funds to any bona-fide health and welfare plan. Instead, the Tuckers lied to employees of Quantell and Intaset, and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators, including Jonathan Mickle, could divert at least $1.6 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, make improvements on the Tuckers’ residences.
The Tuckers admit that as a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds were fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.
Tax Fraud
Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.
The Tuckers and the government have agreed that if the Court accepts the plea agreements, Shaun Tucker will be sentenced to eight years in prison and Joanna Tucker will be sentenced to between six and 18 months in prison. Shaun Tucker further agrees to pay forfeiture of at least $30 million and Joanne further agrees to pay forfeiture of at least $20 million, and that their residence in Keymar is subject to forfeiture. Both Tuckers also agree to pay restitution of at least $1.6 million in connection with the employee benefit fraud, and pay restitution to the IRS of $492,961 for tax evasion. U.S. District Judge J. Frederick Motz has scheduled sentencing for both Tuckers for November 20, 2015, at 12:00 p.m.
In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes. Judge Motz has scheduled sentencing for November 3, 2015, at 2:15 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This and other cases brought by members of the Task Force demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, DCIS, SBA Office of Inspector General, and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Heroin Trafficker Sentenced to More Than 7 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Efrain Arroyo Melendez, aka Frank Feliz Baez, 49, of the Allston section of Boston, Mass., has been sentenced to 87 months in federal prison for trafficking heroin into Providence, R.I., announced United States Attorney Peter F. Neronha and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
At sentencing on July 22, 2015, U.S. District Court Judge Mary M. Lisi also ordered Melendez to serve 5 years supervised release upon completion of his prison sentence. Melendez pleaded guilty on March 2, 2015, to one count of conspiracy to distribute and to possess with the intent to distribute heroin, and one count of possession and attempt to possess with the intent to distribute heroin.
According to court records and information presented to the court, on January 27, 2014, as a result of a DEA investigation into the alleged trafficking of heroin into Providence, DEA agents, with the assistance of Rhode Island State Police, intercepted a piece of luggage at the Amtrak Station inside of which they discovered approximately 2.3 kilograms of heroin.
After taking the woman who was carrying the luggage, Amalia Martin, 39, of Providence, into custody, agents learned that the package of heroin was to be delivered to Melendez. The next day DEA agents arranged to deliver a package purporting to contain the heroin to Melendez. Melendez was arrested after taking custody of the package from a DEA undercover agent.
Martin, who pleaded guilty on December 18, 2014, to one count of conspiracy to distribute and to possess with the intent to distribute heroin, and one count of possession and attempt to possess with the intent to distribute heroin is scheduled to be sentenced on September 15, 2015.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
Officers assigned to the Rhode Island DEA Drug Task Force assisted in the investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Haworth Man Pleads Guilty to Use of Telephone to Make Bomb ThreatRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that STANLEY RAY MIXON, age 39, of Haworth, Oklahoma, pled guilty to USE OF TELEPHONE TO MAKE BOMB THREAT, in violation of Title 18, United States Code, Section 844(e), punishable by up to 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that on or about April 2, 2015, in the Eastern District of Oklahoma, the Defendant, STANLEY RAY MIXON, through use of a telephone willfully made a threat to unlawfully damage and destroy a building, to-wit: the United States Post Office in Idabel, Oklahoma, by means of an explosive, in and affecting interstate commerce.
The charges arose from an investigation by the McCurtain County Sheriff’s Department, the Oklahoma Bureau of Narcotics and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Fresno Man Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Stephen Stinson, 45, of Fresno, today to 10 years in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 22, 2014, police officers stopped Stinson for driving while using a cellphone. The officers noticed a large blade protruding from under the driver’s seat and saw a knife on the passenger’s seat. Officers discovered that Stinson had no driver’s license, was on probation and had a warrant for his arrest. During a search of the car, officers found a sawed-off shot gun and ammunition. Stinson had two prior felony convictions and was prohibited from possessing a firearm.
“Every time we seize a single firearm from a convicted felon, we prevent impending violent acts from occurring in our neighborhoods,” stated ATF Acting Special Agent in Charge Eric D. Harden. “ATF and our partners will not surrender to those who are a threat to our communities and cannot lawfully possess a firearm.”
This case is a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. The case is part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorneys Kimberly Sanchez and Patrick R. Delahunty prosecuted the case.
Fresno Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. —Tryvell Powell, 34, of Fresno, pleaded guilty today to sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, Powell communicated with a 16-year-old girl on Facebook and persuaded her to leave Modesto where she was living and travel to Fresno. She then engaged in sex acts with strangers at Powell’s request for his monetary benefit.
According to court documents, a relative of the girl reported seeing pictures of the teen in an online advertisement for prostitution. Fresno detectives used the advertisements to contact the girl and to arrest Powell.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Powell is scheduled to be sentenced on October 19, 2015, in federal court in Fresno by United States District Court Judge Lawrence J. O’Neill. Powell faces a minimum of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Four Muskogee Defendants Plead Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced the guilty pleas of four (4) defendants in federal court.
KEVIN BERNARD GREEN, age 35, of Muskogee, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than Life imprisonment, a fine of up to $10,000,000.00 or both.
ELIJAH ALFRED MAYES, JR., age 35, JAZZ ELLINGTON PIERCE, age 28, and ANDREANA LYNN HILL, age 38, all of Muskogee, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years or more than 40 years imprisonment, a fine of up to $5,000,000.00 or both.
The Indictment alleged that the defendants coordinated and orchestrated the transportation of cocaine from source locations to the Eastern District of Oklahoma and used telephones, cellular and otherwise, to conduct and carry out the organization’s objectives.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department and the United States Marshal Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of presentence reports. Sentencings will be scheduled following their completions. The defendants will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Former Security Company Operator Sentenced to Prison for Employment Tax FraudRead the Press Release
A former Washington, D.C., businessman was sentenced today to serve three and one-half years in prison for employment tax fraud, announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.
Jeffrey Norman Jackson, who currently resides in Maryland, previously pleaded guilty to failing to file federal employment tax returns and failing to pay over approximately $600,000 in employment taxes. In addition to 42 months in prison, Jackson was sentenced to three years of supervised released, ordered to perform 360 hours of community service and ordered to pay $595,687.39 in restitution to the Internal Revenue Service (IRS).
“Business owners have a responsibility to their employees and the IRS to honestly collect, account for and pay over employment taxes to the IRS,” said Acting Deputy Assistant Attorney General Wszalek. “As evidenced by today’s sentencing, employers like Jeffrey Jackson, who willfully evade their employment tax obligations, will be prosecuted to the fullest extent and face lengthy terms of imprisonment and substantial financial penalties.”
According to court documents, Jackson operated Innovative Security Services LLC (Innovative) in the District of Columbia. From 2006 through 2010, Jackson controlled the company’s finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns (IRS Forms 941). He was also responsible for paying over to the IRS the federal income, social security and Medicare taxes, known as Federal Insurance Contributions Act (FICA) taxes, that were withheld from the wages of Innovative’s employees.
Instead of paying the taxes that were due and owing to the IRS over the four-year period, Jackson diverted money from the company for his personal use. He used company funds to pay rent and buy furniture for his personal residence, spent more than $21,000 at the men’s clothing store Everett Hall and made other personal expenditures at Nordstrom and Tiffany & Co. Jackson also paid more than $10,000 for his gym membership and personal training sessions and paid $10,000 to his childcare provider.
Jackson has a previous federal conviction related to the theft of employment taxes. In 2006, he pleaded guilty to bankruptcy fraud after he stole $373,429.57 from a bank account that was set up to pay the payroll taxes for Jackson’s former company, Unlimited Security Inc., while that company was proceeding through Chapter 11 bankruptcy. In that case, Jackson used the stolen funds to support a boxing promotion business that he controlled and to pay professional boxers.
Acting Deputy Assistant Attorney General Wszalek commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division, who prosecuted the case. He also thanked the U.S. Attorney’s Office of the District of Columbia for their substantial assistance.
Former Postal Carrier Pleads Guilty to Theft of MailRead the Press Release
NORFOLK, Va. – Raynard R. Heckstall, 26, of Norfolk, pleaded guilty today to theft of mail matter by a postal employee.
In a statement of facts filed with the plea agreement, Heckstall was employed by the U.S. Postal Service as a rural carrier assistant at the Princess Anne Station in Virginia Beach, Virginia. He began his employment on April 5, 2014. Between December 2014 and April 2015, the defendant stole mail intended to be delivered by him to customers on his assigned route. Items stolen included gift and greeting cards, cash and other items of personal property. As a result of complaints of missing and opened mail by customers on his route, the Postal Service initiated an investigation. Video surveillance set up by the Postal Service showed the defendant rifling through and opening mail in his postal vehicle while on his route. In addition, video surveillance footage taken at a department store showed the defendant and a friend redeeming a number of the gift cards he had stolen. In a voluntary interview on April 14, 2015, Heckstall admitted to law enforcement agents that he had stolen mail intended for delivery. He estimated that since January 2015 he had stolen as many as 10 greeting cards, three times per week. He also admitted to stealing $400 to $500 in cash. After the interview, Heckstall voluntarily turned over to agents a plastic bag containing 25 additional gift cards that he had stolen from the mail. These cards had a total value of over $1,000.
Heckstall was indicted by a federal grand jury on May 20, 2015. He faces a maximum penalty of five years in prison when he is sentenced on October 29, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Paul L. Bowman, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard.
This case was investigated by the Office of Inspector General of the U.S. Postal Service. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-65.
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Former Partner of Freehold, New Jersey, Office Equipment Leasing Company Sentenced to 30 Months in Prison for Stealing More Than $600,000 from His ClientsRead the Press Release
TRENTON, N.J. – A Yardley, Pennsylvania, man was sentenced today to 30 months in prison for using his position at a Freehold, New Jersey, office equipment leasing company to defraud clients out of more than $600,000, U.S. Attorney Paul J. Fishman announced.
Jason Lee Lum, 36, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Lee Lum was a partner at Company 1, which provided office equipment leasing services. Due to the high cost of leasing office equipment, Company 1 would obtain loans for its clients through a financing company. After a client agreed to lease office equipment, a Company 1 employee would submit the lease agreement paperwork to the financing company in order to obtain a loan for the client. If the financing company approved the loan, it would send the loan proceeds directly to Company 1’s bank account. The client would then receive the leased office equipment and would directly repay the loan to the financing company.
As a partner at Company 1, Lee Lum was responsible for Company 1’s finances and for submitting client loan documentation. From October 2011 through May 2012, Lee Lum forged signatures of existing company clients on loan documents and then submitted the documents to the financing company. The clients had neither approved nor consented to the loan documents being submitted, nor did they obtain office equipment in connection with the fraudulent loan applications. When the financing company approved the fraudulent loan applications, Lee Lum directed the proceeds to be sent to Company 1’s bank account, which he controlled. Lee Lum used the fraudulently obtained loan proceeds to pay personal expenses, company payroll (including his own salary) and to increase the company’s revenue for accounting purposes. Lee Lum sought to conceal his fraud by making payments on the fraudulently obtained loans. When Lee Lum began to fall behind on those payments, the financing company that issued the loans sought payment directly from the Company 1’s clients, whose names were on the fraudulent loans.
In addition to the prison term, Judge Thompson ordered Lee Lum to serve three years of supervised release and pay restitution of $692,797.15.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Frederick W. Klepp Esq., Cherry Hill, New Jersey
Former NIH Employee Indicted for Using Her Government Credit Card to Make Unauthorized PurchasesRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Francesca Daniele, age 48, of LaPlata, Maryland, today on wire fraud charges in connection with the misuse of her government credit card.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch
According to the three-count indictment and other court documents, Daniele was an employed as a program support assistant at the National Institutes of Health (NIH) from June 2013 to September 2014, when she was terminated. As part of her employment, Daniele was authorized to purchase equipment from vendors and to administer contracts on behalf of NIH. To perform her job, Daniele was issued a government credit card in her name, which was only to be used for official government purchases.
The indictment alleges that from July 12 through July 28, 2014, Daniele used her government credit card to make over $21,000 of personal purchases at retail stores and used her cell phone to contact the credit card’s customer service center to facilitate approval of those purchases. According to court documents, Daniele purchased gift cards, electronics, and other personal items such as food and clothing. The indictment further alleges that to conceal the scheme Daniele falsely reported that her credit card had been lost.
Daniele faces a maximum sentence of 20 years in prison for each of three counts of wire fraud. No court appearance has been scheduled. Daniele was arrested on June 30, 2015, in Las Vegas, Nevada on a related criminal complaint. She was transferred to Maryland and had an initial appearance on July 23, 2015 in U.S. District Court in Greenbelt. Daniele remains detained.
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 praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P Windom and Trial Attorney Justin D. Weitz of the Justice Department’s Public Integrity Section, who are prosecuting the case.
Former Letter Carrier Convicted of Drug Trafficking and BriberyRead the Press Release
Greenbelt, Maryland – A federal jury convicted former letter carrier Takisha Cole, age 33, of Washington, D.C. late on Friday, July 24, 2015 of possession with intent to distribute marijuana, use of a communications device to facilitate drug trafficking and bribery.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
From at least March 2011 through September 2014, Cole was employed by the U.S. Postal Service as a letter carrier, assigned to a route serving the Silver Spring, Maryland area. Cole was responsible for delivering packages sent through the U.S. Postal Service to the appropriate addresses on her route.
According to court documents and evidence presented at Cole’s five-day trial, from at least May 2013 through August 13, 2014, Michael Prandy paid Cole to use her position as a letter carrier to obtain and deliver packages containing marijuana to Prandy. The packages were sent from California and elsewhere and mailed via USPS to Prandy’s residence in Silver Spring. In August 2013, Prandy’s address was removed from Cole’s postal route. Even though Prandy’s address was no longer on her postal route, Cole continued to pick up his packages at the Silver Spring Postal Annex and deliver them to Prandy’s residence on McAlpine Road. According to trial testimony, in return for delivering the packages, Prandy paid Cole $50 to $100 per package, which he placed in an envelope and left in the mailbox at his residence for Cole to pick up.
The jury was unable to reach a verdict on the charge of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana.
Cole faces a maximum sentence of five years in prison for possession with intent to distribute marijuana; four years in prison for use of a communications device to facilitate drug trafficking; and 15 years in prison for bribery. U.S. District Judge Theodore D. Chuang has scheduled sentencing for October 19, 2015 at 2:00 p.m.
Michael Louis Prandy, age 39, of Silver Spring, Maryland previously pleaded guilty to his role in the conspiracy. Judge Chuang scheduled Prandy’s sentencing for August 4, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG, the U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Ray D. McKenzie, who are prosecuting the case.
Former Chief of Mount Pleasant Police Department Pleads Guilty in White Plains Federal Court to Possession of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BRIAN FANELLI, the former Chief of the Mount Pleasant, New York, Police Department, pled guilty today to one count of possession of child pornography. FANELLI, who was arrested in January 2014, entered his plea before United States District Judge Kenneth M. Karas.
Manhattan U.S. Attorney Preet Bharara stated: “By his guilty plea to downloading and possessing child pornography, Brian Fanelli, a former police chief who swore to protect and serve, admitted to a crime that victimizes and exploits some of the most vulnerable in our community.”
According to the Complaint and Indictment:
From at least as early as October 2013, through January 2014, FANELLI used a Peer-to-Peer File Sharing Program (“the “P2P Network”) to download more than 120 files containing images and videos believed to be child pornography; certain of those files were made available to other P2P Network users through FANELLI’s computer’s shared folder on the P2P Network program. On three occasions, agents with the Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), acting in an undercover capacity, used the P2P Network to download from FANELLI’s computer files containing images and videos believed to contain child pornography.
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FANELLI, 56, of Mahopac, New York, pled guilty to one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. The count also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The prosecution is being overseen by the Office’s White Plains Division and the Public Corruption Unit. Assistant United States Attorneys Anden F. Chow and Andrew D. Goldstein are in charge of the prosecution.
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Five Southern Illinois Residents Charged with Methamphetamine and Heroin OffensesRead the Press Release
Five southern Illinois residents were indicted on July 7, 2015, in a two-count superseding indictment, charging conspiracy to manufacture and distribute methamphetamine and conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Franklin S. Denault, a/k/a "Frankie D," 38, Steeleville, Michael F. Halliday, a/k/a "Micky," 33, of Elkville, and Nicholas C. Draege, 24, of DuQuoin, are charged with conspiracy to manufacture and distribute methamphetamine. The superseding indictment alleges that the methamphetamine offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Denault, along with Leah A. Bean, 33, and Jami L. Hoelscher, 36, both of Steeleville, are charged with conspiracy to distribute heroin. The superseding indictment alleges that the heroin offense occurred between 2013 and June 2015 in Perry and Randolph Counties.
Draege made his initial appearance in federal court on July 14, 2015. Denault, Halliday, Bean, and Hoelscher made their initial appearances in federal court on July 20, 2015. The co-defendants were ordered held without bond pending a September 14, 2015, jury trial. Seven co-defendants, who were charged in the original indictment, have previously made court appearances on these charges.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the methamphetamine and heroin offenses carry penalties of a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Final Defendants Head to Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
HOUSTON – A 35-year-old Spring resident and a Brooklyn, New York, man have been sentenced for their roles in a scheme to use stolen identities and file fraudulent federal tax returns, announced U.S. Attorney Kenneth Magidson. Jason Maclaskey, of Spring, and Omar Butt, 31, a resident of Brooklyn, New York, previously pleaded guilty to the respective charges.
Today, U.S. District Court Judge Kenneth M. Hoyt today sentenced Maclaskey to five years for conspiracy to defraud the United States. He had also been convicted of possession of a stolen firearm for which he received another five years. The 10-year-sentence will be immediately followed by three years of supervised release. Butt was ordered to serve 40 months in prison. A third defendant - Heather Dale, 25, a resident of Grant, Alabama – was previously sentenced to 24 months. The court also ordered them to pay restitution in the amount of $314,868.
The defendants – led by Maclaskey – unlawfully obtained the names, dates of birth and Social Security numbers from 371 taxpayers and used this information to file false tax returns in their names in 2009. The defendants used this information to also set up fraudulent bank accounts at Inter National Bank and through NetSpend debit cards in these taxpayers’ names where the tax refunds would be directed. The defendants then withdrew this money using the NetSpend debit card at ATMs and by making purchases at various retail stores. Through this conspiracy, the defendants claimed a total of more than $1.4 million in false tax refunds, succeeded in withdrawing approximately more than $300,000 before the scheme was uncovered.
In addition, Maclaskey admitted he possessed 10 firearms and 2,000 rounds of ammunition on Nov. 1, 2011, when law enforcement agents executed a search warrant on his home in Spring. As part of his guilty plea, Maclaskey also admitted he knew one of these weapons was stolen.
Butt was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Maclaskey will remain in custody.
The investigation leading to the charges was conducted by Internal Revenue Service – Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sharad S. Khandelwal is prosecuting the case.
Essex County, New Jersey, Man Sentenced to Two Years in Prison for His Role in $5 Million Mortgage Fraud SchemeRead the Press Release
NEWARK N.J. – A Nutley, New Jersey, man was sentenced today to 24 months in prison for his role in a massive mortgage fraud scheme involving multiple properties in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced.
Kenneth Sweetman, 34, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to commit wire fraud affecting a financial institution. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2011 through July 2012, Sweetman, Carmine Fusco, 47, of East Hanover, New Jersey, and others conspired to obtain mortgage loans through fraudulent means. For their roles in the scheme, Sweetman and Fusco formed shell limited liability companies with names similar to licensed title companies. They then opened bank accounts in the shell companies’ names to conceal their identity and control the receipt and distribution of fraudulently obtained mortgage loan proceeds. Sweetman and Fusco also conducted real estate closings even though they were neither licensed attorneys nor title agents. In addition, Sweetman, Fusco and other conspirators submitted false and fraudulent loan applications, supporting documents and closing documents to mortgage lenders. Among other things, these documents included and reflected fraudulent gift loans, false appraisals and documents that misrepresented the owner of properties and the intended disposition of loan proceeds.
Using these methods, Sweetman, Fusco, and others conducted 16 fraudulent real estate transactions, including 11 Elizabeth properties, and obtained more than $5 million in illegitimate proceeds.
In addition to the prison terms, Judge Wigenton ordered Sweetman to serve three years of supervised release and pay $2,233,131.55 in restitution.
Fusco previously pleaded guilty before Judge Wigenton to a separate information charging him with conspiring to commit wire fraud affecting a financial institution. He was sentenced on July 13, 2015 to 27 months in prison and ordered to pay $2,233,131.55 in restitution.
U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel:
Sweetman: Thomas R. Ashley Esq., Newark, New Jersey
Fusco: Vincent C. Scoca Esq., Union City, New Jersey
Eight Additional Individuals Charged in NFL-Related Securities Fraud Scheme Targeting the ElderlyRead the Press Release
Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, and Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office made the announcement.
David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Florida, Alan D. Messina, 54, of Sunrise, Florida, Michael T. Angeletti, 33, of Sunrise, Florida, Michael J. Calash 34, of Boca Raton, Florida, Stephen R. Reynolds, 38, of Pompano Beach, Florida, Gary X. Schultz, 55, of Miramar, Florida, Chazon Stein, 36, North Miami Beach, Florida, were charged with conspiracy to commit mail and wire fraud.
“Securities fraud schemes that target members of our community jeopardize our personal investments and security,” said U.S. Attorney Ferrer. “Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents. By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves.”
According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming. TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges that the IPO was not forthcoming as promised and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues and competitive online gaming. The Virgin Gaming scheme took one of two forms. In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock. The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO. However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed. On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not. The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO. Over the course of the scheme, the defendants caused approximately 35 individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales. Nearly all of the monies were misappropriated as undisclosed commissions and fees.
This indictment relates to a case filed a year ago, United States v. Kirschner. All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.
U.S. Attorney Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eight Additional Individuals Charged in NFL-Related Securities Fraud Scheme Targeting the ElderlyRead the Press Release
Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Alan D. Messina, 54, of Sunrise, Michael T. Angeletti, 33, of Sunrise, Michael J. Calash 34, of Boca Raton, Stephen R. Reynolds, 38, of Pompano Beach, Gary X. Schultz, 55, of Miramar, Chazon Stein, 36, North Miami Beach, were charged with conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343.
“Securities fraud schemes that target members of our community jeopardize our personal investments and security. Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents. By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves,” stated U.S. Attorney Wifredo A. Ferrer.
According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming. TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges, that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media, Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues, and competitive online gaming. The Virgin Gaming scheme took one of two forms. In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock. The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO. However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed. On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not. The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO. Over the course of the scheme, the defendants caused approximately thirty-five individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales. Nearly all of the monies were misappropriated as undisclosed commissions and fees.
This indictment relates to a case filed a year ago, United States v. Kirschner, et. al, 14-20514-CR-Gayles. All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Roger Cruz and Department of Justice, Antitrust Division, Trial Attorney, Kevin B. Hart.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dominican Man Sentenced for Illegally Reentering the United States After Previous Deportation and Misrepresentation of Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that Jose Rodriguez, of the Dominican Republic, was sentenced to forty two months in federal prison after pleading guilty to illegally reentered the United States after having been previously deported and to misrepresentation of a social security number.
Rodriguez was located at the New Hampshire State Prison in December 2012 under the name Pedro Luis Martinez-Ortiz. He was interviewed by Immigration and Customs Enforcement agents at the prison and he insisted that his name was Pedro Luis Martinez-Ortiz and that he was born in Puerto Rico. The defendant provided a social security number under the Martinez-Ortiz name. When examining the defendant’s hands, the agents notice that an attempt had been made to mutilate the finger tips. Nevertheless, the agents took fingerprint impressions from Rodriguez and submitted scanned images of the prints to the Department of Homeland Security’s fingerprint database and to the database used by the Federal Bureau of Investigation. The databases indicated that the defendant’s prints matched those of Jose Rodriguez, an individual from the Dominican Republic who had been deported from New York in 2002 and Miami in 2006. Interviews of the Martinez-Ortiz family in Puerto Rico revealed that Mr. Martinez-Ortiz had died in Puerto Rico in 2011.
Rodriguez pled guilty to the charges on April 9, 2015.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
District Man Sentenced to over 10 Years in Prison Following Drug Trafficking InvestigationRead the Press Release
WASHINGTON – Mustafah Muhammad, 29, formerly of Washington, D.C., has been sentenced to 10 years and 10 months in prison for his role in a drug trafficking ring that operated out of Washington, D.C., and extended into Maryland, Virginia, and Delaware, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
Muhammad pled guilty in April 2014, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to distribute and possess with intent to distribute crack cocaine, heroin, and marijuana. He was sentenced on July 22, 2015, by the Honorable Emmet G. Sullivan. Following his prison term, Muhammad will be placed on five years of supervised release. As part of his guilty plea, Muhammad agreed to the forfeiture of $57,000 as proceeds constituting or derived from his illegal drug trafficking activities.
Muhammad was among 16 people who were arrested and charged in November and December of 2012 with conspiracy and other related offenses; the others also pled guilty. The indictments followed an investigation by the FBI’s Washington Field Office, the Metropolitan Police Department (MPD), and the Prince George’s County, Md., Police Department into heroin, crack cocaine, and marijuana trafficking. The drug ring’s activities primarily occurred in and around the 1400 block of Euclid Street NW and the 700 block of Kenyon Street NW in Washington D.C., as well as in Arlington, Va., and Bethany Beach, Del.
In his guilty plea, Muhammad admitted that between February 2012 and November 2012 he engaged in the drug conspiracy. He also admitted that during the conspiracy he and other conspirators used a residence located in the 1600 block of Fuller Street NW to store or hide illegal drugs, including 31-gram and 62-gram quantities of crack cocaine, for redistribution to others. He further admitted that during the conspiracy he travelled from the District of Columbia to Delaware to take heroin and crack cocaine to customers living there.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the FBI’s Washington Field Office, MPD, and the Prince George’s County, Md., Police Department. He also expressed appreciation for the support of the Department of Justice’s Organized Crime Drug Enforcement Task Force. In addition, he cited the efforts of those who prosecuted and worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Kenneth Whitted and Philip A. Selden, of the Violent Crime and Narcotics Trafficking Section, and Assistant U.S. Attorneys Arvind Lal and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section. He also commended Paralegal Specialists Teesha Tobias, Catherine O’Neal, and Kim Hall, and Legal Assistant Diane Brashears and Candice Sisco for their assistance.
District Man Pleads Guilty to Burglary Charge for Theft at Georgetown University Student's ApartmentRead the Press Release
WASHINGTON - Antoine Gibson, 36, of Washington, D.C., pled guilty today to burglarizing an apartment on the Georgetown University campus while a student was asleep inside, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Gibson pled guilty in the Superior Court of the District of Columbia to first-degree burglary as well as a violation of the Bail Reform Act. He is to be sentenced on Sept. 23, 2015 by the Honorable Patricia A. Broderick. Gibson faces a minimum of five years in prison.
According to the government’s evidence, on Jan. 6, 2015, at about 8 p.m., Gibson entered the Henle Village apartment complex on the Georgetown University campus. He went to the fourth floor and entered the victims’ apartment, which was occupied at the time by a sleeping student. Gibson stole a laptop from the living room before heading to the upstairs bedrooms.
The sleeping student awoke to find Gibson, a stranger, standing in the hallway and confronted him. Gibson denied doing anything illegal and left. The student called the campus police, who found Gibson a short time later within blocks of the main campus gate with the laptop in his backpack. Gibson later failed to appear for the first status hearing in the case in Superior Court. He was later arrested on a bench warrant executed by the U.S. Marshals Service.
In announcing the guilty plea, Acting U.S. Attorney Cohen commended the work of the officers of the Georgetown University Department of Public Safety, as well as the crime scene officers and detectives and officers of the Metropolitan Police Department’s Second District. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including David Foster, La June Thames, and Katina Adams-Washington of the Victim/Witness Assistance Unit; Paralegal Specialist Tiffany Fogle, and Litigation Technology Assistant Aneela Bhatia. Finally, he praised the efforts of Assistant U.S. Attorney Katherine Earnest, who investigated and prosecuted the case.
District Man Found Guilty of First-Degree Murder While Armed for Killing Man in Northwest WashingtonRead the Press Release
WASHINGTON – Erik Postell, 26, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed and other charges for killing a man in 2013 in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
In addition to the murder charge, Postell was found guilty of three firearms offenses stemming from the slaying of Paul Danzo Tanoh. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 25, 2015. Postell faces a mandatory minimum term of 30 years in prison, and a maximum of more than 60 years of incarceration.
According to the government’s evidence, on March 21, 2013, at about 2:45 a.m., Postell fatally shot Mr. Tanoh, 24, as Mr. Tanoh sat in the driver's seat of his car, which was stopped in the 1000 block of 17th Street NW. The shooting followed a brief physical altercation between Postell and Mr. Tanoh that took place inside a nearby nightclub 15 minutes earlier.
Following the confrontation at the nightclub, Postell retrieved a .45 caliber handgun from a parked car and tracked down Mr. Tanoh. He then stood alongside Mr. Tanoh's driver's side window and fired at him nine times. Postell fled in a vehicle driven by another man, Michael Smith. Smith, 35, of Camp Springs, Md., previously pled guilty to multiple felonies for his role in the murder of Mr. Tanoh and is awaiting sentencing. Postell was taken into custody on Oct. 11, 2013, and had been held without bond ever since.
In announcing the verdict, Acting U.S. Attorney Cohen commended the work of the detectives, officers and others who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the U.S. Secret Service; the District of Columbia Department of Forensic Sciences; Bode Technologies; Assistant U.S. Attorney Kellen Dwyer of the U.S. Attorney’s Office for the Eastern District of Virginia; Trial Attorney Jessica N. Moran of the Department of Justice’s Tax Division, and Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office for the District of Columbia. In addition, he acknowledged the work of those who handled the murder case for the U.S. Attorney’s Office, including Paralegal Specialists Lynda Randolph, Donville Drummond, Sandra Lane, Alesha Matthews, and Kalisha Johnson-Clark; Litigation Technology Specialists Leif Hickling, Kimberly Smith, Thomas “Ron” Royal, Paul Howell, Aneela Bhatia, Anisha Bhatia, Claudia Gutierrez, Joshua Ellen, and Karen McColman; Intelligence Specialists Sharon Johnson, Zachary McMenamin, and William Hamann; Victim/Witness Advocate Marcia Rinker, and La June Thames, Katina Adams-Washington, and David Foster, all of the Victim/Witness Assistance Unit.
Finally, he commended the work of Assistant U.S. Attorneys Michael C. Liebman and Philip A. Selden, who investigated and prosecuted the case.
District Man Found Guilty by Federal Jury of Assaulting Deputy U.S. MarshalRead the Press Release
WASHINGTON - Jared Thompson, 45, of Washington, D.C., has been found guilty by a federal jury of forcibly assaulting a Deputy United States Marshal during an incident at a courthouse earlier this year, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Thompson was found guilty on July 23, 2015, following a trial in the U.S. District Court for the District of Columbia, of assaulting, resisting or impeding a federal law enforcement officer. The Honorable Senior Judge Gladys Kessler scheduled sentencing for Sept. 22, 2015. Thompson faces up to eight years in prison as well as potential financial penalties. The Court ordered that Thompson be held without bond pending his sentencing.
According to the government's evidence, on Jan. 8, 2015, Thompson was ordered by a Superior Court judge to be detained in a previous and unrelated criminal case; he was not in custody at this time. Thompson then was taken into custody by a Deputy U.S. Marshal. The deputy marshal escorted Thompson to the cellblock hall area at Superior Court and attempted to search and pat down the defendant’s clothing for possible contraband.
During this initial search, the deputy marshal found a pipe and a small container containing a green weed substance which was consistent with marijuana. While the search continued, Thompson asked the deputy marshal, “Did you find my weed yet?” The deputy marshal searched inside Thompson’s pants area, and then instructed Thompson to pull up his pants. Thompson refused, cursed, and stated, “You pulled them down, you pull them up.” He then began turning toward the deputy marshal in a threatening manner.
Thompson then balled his hand into a fist, tensed his arm, and began to turn to stand face-to-face with the deputy marshal. The deputy marshal attempted to re-apply the handcuffs on Thompson to gain control of the defendant and for the safety of the court, staff, and all others in the cellblock. Thompson cursed, kicked his feet towards the deputies, and bit the deputy marshal’s forearm. The bite broke the deputy marshal’s skin, caused his forearm to bleed, and caused great pain. Because of his injury and the possibility of infection, the deputy marshal was taken to a hospital for treatment of his injury.
In announcing the guilty verdict, Acting U.S. Attorney Cohen and Marshal Hughes commended the actions of the U.S. Marshals Service. They also commended those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Candace Battle. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole who investigated and prosecuted the case.
Director of Operations of Retail Clothing Business Heads to Federal Prison for Failing to Pay Federal Tax WithholdingsRead the Press Release
HOUSTON - William John Shoemaker has been ordered to prison following his conviction on one count of willfully failing to truthfully account for and to pay federal tax withholdings to the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (CI). Shoemaker pleaded guilty March 2, 2015.
Today, U.S. District Court Judge Kenneth Hoyt ordered Shoemaker to serve #41months in prison and pay $1,830,324.78 in restitution to the IRS.
According to the plea agreement filed in the public record of the case, Shoemaker failed to truthfully account for and to pay over the trust fund portion of the employment taxes owed by AA Concepts Inc., for the fourth quarter of 2012.
The plea agreement also states that at all times relevant to the case, Shoemaker conducted a retail clothing business through AA Concepts Inc., which operated its retail clothing business under various trade names. Shoemaker held the title of director of operations of AA Concepts and had the duty to truthfully account for and to pay over the federal income taxes and FICA withheld from the wages of the employees of the corporation, according to court records.
According the plea agreement, Shoemaker also willfully failed to pay approximately $2.198 million in federal income tax withholdings and FICA withholdings for 22 quarters, from the third quarter of 2007 through the fourth quarter of 2012. The plea agreement also indicates that Shoemaker agreed that the relevant conduct, the intended tax loss, for purposes of sentencing is between $2.5 million and $7 million.
Shoemaker was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Detroit-Area Home Health Care Agency Owners Convicted in $33 Million Medicare Fraud SchemeRead the Press Release
Two home health care agency owners were convicted today of various offenses based on their roles in a $33 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Zafar Mehmood, 49, of Ypsilanti, Michigan, was convicted of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of conspiracy to commit money laundering and two counts of money laundering. Mehmood also was convicted of two counts of obstruction of justice related to his theft of evidence from an HHS-OIG facility. Badar Ahmadani, 48, also of Ypsilanti, was convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks.
According to evidence presented at trial, from 2006 through 2011, Mehmood and Ahmadani participated in a scheme in which they obtained patients by paying cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with Mehmood’s companies: Access Care Home Care Inc., Patient Care Home Care Inc., Hands On Healing Home Care Inc. and All State Home Care Inc. The evidence also showed that the defendants paid kickbacks to physicians to refer patients to the defendants’ companies for unnecessary home health care services.
The evidence introduced at trial further established that the defendants and their co-conspirators falsified records to make it appear as if the patients qualified for and received the services for which Medicare was billed over $33 million during the course of the conspiracy. The evidence also showed that Mehmood used a co-conspirator to launder the proceeds of the fraud through shell companies under his control.
Trial evidence also demonstrated that, while visiting an HHS-OIG facility during pretrial release, Mehmood stole documents and materials that law enforcement authorities seized during the execution of search warrants at his companies. Law enforcement subsequently recovered the missing documents and materials during the execution of a search of Mehmood’s jail cell.
The investigation was conducted by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office of the Eastern District of Michigan and the Criminal Division’s Fraud Section. This case was prosecuted by Trial Attorneys Niall M. O’Donnell and A. Brendan Stewart, and Senior Trial Attorney Nathan Dimock, Assistant Chief Jennifer L. Saulino, Assistant Chief Catherine K. Dick and Deputy Chief Gejaa T. Gobena of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.