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Monday 27 July 2015
Davie Resident Pled Guilty for her Role in Identity Theft Tax Fraud SchemeRead the Press Release
Ashley Monique Leroy, 26, of Davie, pled guilty to one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).
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 Raymond Black, Chief, Miramar Police Department, made the announcement.
According to court documents, on September 17, 2012, police officers from the Miramar Police Department arrested Leroy for possession of marijuana and other traffic infractions. After her arrest, officers conducted an inventory search of her vehicle and recovered a blue notebook that contained hundreds of personal identifying information, such as names, Social Security numbers, and dates of birth. The notebook also contained information explaining how to file income tax returns.
As part of her plea agreement, Leroy agreed to pay restitution to the IRS of $191,678. This amount represents the monetary loss for the filing of fraudulent income taxes in the names of the individuals listed in the blue notebook found in Leroy’s possession.
Leroy is scheduled to be sentenced on September 21, 2015 at 9:00 a.m., before the Honorable Beth Bloom, United States District Judge. At sentencing, the defendant faces a mandatory term of two years’ imprisonment, consecutive to any other prison term.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
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.
Court Approves Updates to Seattle Police Department’s Use of Force PolicyRead the Press Release
U.S. District Judge James L. Robart today approved updates to the Seattle Police Department’s policies that address when officers may and may not use force and the reporting, investigation and review of uses of force. De-escalation provisions were already a critical part of the overall use of force policy, and the revisions now call those provisions out as a separate section to clarify that officers can be held accountable when they do not attempt to de-escalate tense situations, as their training instructs. The surgical revisions, submitted to the Court by Monitor Merrick Bobb with the support of SPD and the Department of Justice (DOJ), are the product of constructive feedback from officers and community members, including the Community Police Commission (CPC), as part of the annual review of new policies implemented after the DOJ civil rights investigation. As the Monitor indicated in submitting the revised policies to the Court last month, “the relatively limited changes to the policies are all evidence-based – informed by real-world experience, actual SPD trends, and objective data, not hypotheticals or unsubstantiated claims.”
“From the beginning, we have emphasized that reform wasn’t just about checking boxes and moving on. To take root, our collective reform efforts require constant feedback, critical review, and thoughtful revision,” said U.S. Attorney Annette L. Hayes. “Valuable insights from officers of all ranks and members of the community have made already excellent policies even stronger. By incorporating ongoing guidance about what’s working on the ground and in the review of force incidents, we enhance officer safety and protect constitutional rights. These revisions – and the built-in, self-correcting process to evaluate the core policies guiding reform at SPD – continue to build trust between the police department and the community.”
“Today’s announcement is an important step forward in our Seattle Police Department’s ongoing efforts to improve the quality of policing and restore public trust,” said Seattle Mayor Ed Murray. “As our nation grapples with the challenge of improving police accountability and transparency, the department’s reforms, such as our revised Use of Force policy, are helping us become a national model for urban policing.”
“Working collaboratively with the Monitoring Team and the Department of Justice, the Seattle Police Department is moving full speed ahead with reform,” said Seattle Police Chief Kathleen O’Toole. “Collectively, we have developed and refined policies, procedures and training, that are at the leading edge of policing.”
Among the changes are:
- Creating a stand-alone de-escalation policy (Section 8.100) to clarify that officers may be held accountable for failing to attempt to de-escalate where appropriate during an incident in the sequence of events leading to force being used.
- Tightening the core use of force policy (Section 8.200) to create an even clearer and shorter policy governing the application of force.
- Clarifying when the use of less-lethal tools may be prohibited (Section 8.300), including consideration of the physical condition of the subject and environmental or other situational circumstances.
- Revising the force review and investigation policies and process (Section 8.400) to reflect process-related lessons learned to ensure timely, objective investigation of force incidents.
- Clarifying that the Force Review Board has a duty to make determinations related to policy, tactics, or training issues as they arise and to refer matters to the Office of Professional Accountability as needed.
The Court initially approved SPD’s new use of force policy in December 2013, and it became effective on January 1, 2014. All officers began receiving training shortly thereafter, including electronic learning, an eight-hour in-class training, and a comprehensive, scenario-based, 24-hour training through 2014. Officers have been and will continue to receive additional force training throughout 2015. The training plan for 2015 may be found here: http://www.seattlemonitor.com/s/Third-Year-Monitoring-Plan.pdf.
Under the terms of the settlement agreement between the DOJ and the City of Seattle, the parties are required to engage in an annual review of all required policies, procedures and training curricula “180 days after it is implemented, and annually thereafter.” The changes accepted by the Court today are the result of the first comprehensive appraisal of the force-related policies. As the Monitor wrote when filing the updated policies, the revisions originate from:
- the analysis of hard data on use of force and its review;
- officer listening sessions and focus groups conducted by SPD Patrol;
- officer comments provided to SPD’s Audit, Policy & Research division;
- lessons learned by the Force Review Board and Force Investigations Team;
- separate officer and community input sessions by the CPC; and
- the ongoing observations of the Parties.
Background information about the originally-approved use of force policy is available here: http://www.justice.gov/usao-wdwa/pr/doj-hails-milestone-seattle-police-department-reform-efforts-court-s-approval-new-use .
Conspirator Sentenced to 30 Months in Prison for Conspiracies to Pass Counterfeit Money and Launder MoneyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jasonn A. Williams, age 36, of Jamaica, New York, today to 30 months in prison followed by three years of supervised release for conspiring to pass counterfeit $100 bills and conspiring to commit money laundering. Judge Messitte also entered an order that Williams pay restitution of $18,600 and forfeit $22,462.88.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office.
According to his plea agreement and court documents, from December 1, 2012 to April 29, 2013, Williams, Larry Barringer, Donte Barringer, Jamarr Little and others used counterfeit $100 bills to purchase inexpensive merchandise and receive change in genuine currency; to purchase money orders and prepaid money cards, including Greendot cards; and to purchase expensive merchandise, such as computers. The conspirators exchanged the merchandise purchased with the counterfeit $100 bills for genuine U.S. currency and used the money orders and money cards purchased with the counterfeit bills to conduct other financial transactions.
Judge Messitte found that in the conspiracy to pass counterfeit money and in the money laundering conspiracy, the loss attributable to Williams exceeded $30,000.
Larry L. Barringer, age 54, of Baltimore, previously pleaded guilty to the counterfeiting and money laundering conspiracy and was sentenced to five years in prison. Donte Barringer, age 37, and Jamarr Little, age 21, both of Washington, D.C., have also pleaded guilty to the counterfeiting conspiracy. Little was sentenced to a year and a day in prison and ordered to pay restitution of $10,900. Donte Barringer was sentenced to one year of probation and ordered to pay $18,600 in restitution.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office for its work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Columbus Man Sentenced to Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jose Valladolid, 45, of Columbus, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 51 months in prison followed by three years of supervised release for being a felon in possession of firearms.
Valladolid was arrested on Aug. 6, 2014, at the Columbus International Port of Entry (POE) in Luna County, N.M., for being a felon in possession of firearms, and attempting to export those firearms out of the United States. U.S. Customs and Border Protection Officers at the Columbus Port of Entry together with U.S. Border Patrol Agents assisting them with vehicle inspections arrested Valladolid after they found two semi-automatic rifles and ammunition in his vehicle. At the time, Valladolid was prohibited from possessing firearms because he previously had been convicted of a marijuana trafficking crime.
Valladolid was indicted in Nov. 2014, on a two-count indictment charging him with being a felon in possession of a firearm, and fraudulently attempting to smuggle two rifles out of the United States.
On Dec. 11, 2014, Valladolid pled guilty to Count 1 of the indictment and admitted possessing the two semi-automatic rifles and ammunition discovered in his vehicle on Aug. 6, 2014, which he was attempting to smuggle into Mexico in order to deliver to another person. He also admitted that he was prohibited from possessing the firearms because he was a convicted felon.
This case was investigated by the Deming office of HSI, U.S. Border Patrol, U.S. Customs and Border Protection, the Las Cruces office of the Bureau of Alcohol, Tobacco and Firearms and Explosives, and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock Taylor of the Las Cruces Branch Office of the U.S. Attorney’s Office prosecuted the case.
Cleveland Heights man sentenced to more than 11 years in prison for $1.1 million unemployment fraudRead the Press Release
A Cleveland Heights man was sentenced to more than 11 years in prison for conspiring to defraud states out of more than $1.1 million in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Juan Sanders, 35, was sentenced to 139 months in federal prison. He previously pleaded guilty to one count each of conspiracy to commit mail and wire fraud, wire fraud,aggravated identity theft and money laundering.
Co-conspirators Trina Grant, of Cleveland, Ashley Robinson, of Warrensville Heights, and Robert Barrett, of Cleveland, have also been found guilty of crimes and sentenced.
“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” Dettelbach said.
“This sentence illustrates the Office of Inspector General’s commitment to combating unemployment insurance fraud. Ensuring the accountability and integrity of the unemployment insurance program remains a high priority for the Office of Inspector General,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“Stealing innocent peoples’ identities to defraud safety net programs is detestable,” said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This defendant let greed be his guide and today’s sentence should send a strong warning that such acts will not be tolerated and when discovered, prosecuted to the fullest extent possible.”
The defendants conspired to defraud state unemployment offices in Ohio, California, North Carolina, Massachusetts and Illinois from about September 2011 to January 2014. Under this scheme, Sanders fraudulently obtained personal identifying information from unsuspecting individuals to submit fraudulent claims for unemployment insurance benefits, according to court documents.
Sanders also created state unemployment insurance accounts for multiple fictitious employers in Ohio, California, North Carolina, Massachusetts and Illinois. Sanders then filed claims from “employees” who had been purportedly laid off by the fictitious companies. Sanders caused benefit debit cards for the “employees” of these fictitious companies to be mailed to various addresses in Ohio, according to court documents.
Once the benefits were loaded or reloaded onto the debit cards, Sanders, Grant, Robinson and Barrett used the debit cards at various ATMs in Ohio and withdrew the fraudulently obtained money, according to court documents.
As a result of this scheme, approximately $1,174,767 in fraudulent unemployment benefits were paid from state agencies in North Carolina ($572,170), Ohio ($261,509), Illinois ($144,240), California ($129,600) and Massachusetts ($67,248).
Sanders used $16,900 in fraudulently obtained cash to pay off a car loan on his 2007 Jaguar XJ automobile as well as several months’ rent on a Cleveland Heights apartment, according to court documents.
The case was prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division.
Clay County Man Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
A Clay County man 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, Richard H. Barber, 49, of Louisville, Illinois, was sentenced to 151 months in federal prison, three years’ supervised release following his imprisonment, and fined $400. Barber had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from June 2014, until on or about October 28, 2014, in Clay County, and elsewhere within the Southern District of Illinois, Barber conspired with others known and unknown to the Grand Jury, to manufacture a mixture and substance containing methamphetamine. Count 2 charged that on October 28, 2014, in Clay County, Barber possessed equipment, chemicals, products, or materials which can be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force. The Clay County State’s Attorney’s Office also assisted in the investigation.
The case is being handled by Assistant United States Attorney George Norwood.
Civil Penalty Settlement Reached with CVS Pharmacy in CarverRead the Press Release
BOSTON – The United States has reached a civil settlement with CVS Health in connection with allegations that the CVS pharmacy in Carver violated federal regulations related to the sale of prescription drugs.
Twice in the spring of 2014 armed robbers stole large quantities of Schedule II prescription drugs from the CVS pharmacy in Carver. Federal law required CVS to report the thefts immediately to the Drug Enforcement Administration (DEA). CVS reported one of the thefts immediately but waited three weeks to report the other one.
After the robberies, DEA investigators visited the pharmacy to audit its controlled substances, using inventory, purchase, and sale records unaffected by the robberies. The investigators found recordkeeping discrepancies affecting hundreds of Schedule II pills. The government contended that CVS had failed to keep complete and accurate records of its controlled substances, in violation of the Controlled Substances Act.
“Prescription drugs handled by pharmacies are subject to strict requirements because of the potential for harm and abuse,” said U.S. Attorney Carmen M. Ortiz. “This office will continue to ensure that pharmacies meet federal recordkeeping requirements, which are the primary way that the government regulates controlled substances.”
U.S. Attorney Ortiz and Michael J. Ferguson, Special Agent in Charge of the DEA, New England Field Division, made the announcement today. The investigation was conducted by Diversion Investigators with the DEA’s New England Division. The case was handled by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division.
California Army National Guard Member Pleads Guilty to Charges of Recruiting FraudRead the Press Release
FRESNO, Calif. — Leonardo Pesta, 47, of Mountain View, pleaded guilty today to one count of wire fraud stemming from a fraud scheme involving recruiting bonuses, United States Attorney Benjamin B. Wagner announced.
According to court documents, the United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
Pesta served in the California National Guard as a recruiter. In that position, he had access to names of recruits who had not been referred by any Recruiting Assistant. Pesta pleaded guilty to taking part in a scheme to cause DOCUPAK to issue unearned recruiting compensation by falsely claiming that various enlistees had been referred to recruiting offices by the Recruiting Assistants that participated in the scheme with Pesta, when in fact they had not.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Pesta is scheduled to be sentenced by United States District Court Judge Lawrence J. O’Neill on October 19, 2015. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. 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.
Six other National Guard members were also indicted in May 2014 in Fresno and Sacramento. Brian Kaps, 40, of Chico, pleaded guilty on November 21, 2014 to one count of wire fraud. Sarah Nattress, 27, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. The charges against the rest of the defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Calera Man Pleads Guilty to Theft by Officer or Employee of Gaming Establishment on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that STEVEN KYLE DUDLEY, age 21, of Calera, Oklahoma, pled guilty to THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both.
The Indictment alleged that on or about July 8, 2013 until July 21, 2013, in the Eastern District of Oklahoma, STEVEN KYLE DUDLEY, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charges arose from an investigation by the Choctaw Nation Tribal Police 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 on bond pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Brooklyn Man Admits to Four Armed Commercial RobberiesRead the Press Release
Baltimore, Maryland – Phillip Thomas McGowans, age 27, of Brooklyn, Maryland, pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Marilyn Mosby; Interim Commissioner Kevin Davis of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on July 25, 2014, McGowans pointed a handgun at an employee at the Village Liquors store in Brooklyn, Maryland and demanded money. McGowans fled with $800 from the business. On August 11, 2014, McGowan again robbed the same liquor store, pointing a handgun at employees. McGowan fled with $1,149, a bottle of vodka and cigarettes.
McGowan also robbed the New York Fried Chicken store on East Patapsco in Baltimore on August 19 and 30, 2014. On both occasions, he pointed a weapon at an employee. He fled with $200 on the first occasion and an undetermined amount on the second robbery.
McGowans and the government have agreed that if the Court accepts the plea agreement, McGowans will be sentenced to between 10 and 13 years in prison. U.S. District Judge Richard D. Bennett scheduled sentencing for October 28, 2015, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore and Anne Arundel County Police Departments and Baltimore and Anne Arundel County City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Michael Hanlon, who are prosecuting the case.
Beggs Man Pleads Guilty to Firearms PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that BYRON WAYNE LADNER, age 51, of Beggs, Oklahoma, pled guilty to FELON IN POSSESSION OF A FIREARM, in violation of Title 18, United States Code, Section 922(g)(1).
The charge is a result of an investigation by the Okmulgee County Sheriff’s Department and the Federal Bureau of Investigation. The defendant was indicted in December, 2013.
The Indictment alleged that between in or about December, 2012, and November 19, 2013 within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
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 a presentence report to be completed. 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.
Austin Doctor Heads to Prison for Health Care FraudRead the Press Release
HOUSTON – Dr. Dennis B. Barson Jr., 42, has been ordered to federal prison following his convictions related to a conspiracy to defraud Medicare of $2.1 million in less than two months, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Barson and his medical clinic administrator, Dario Juarez, 55, on Nov. 5, 2014, of all 20 counts charged. Co-defendant Edgar Shakbazyan entered a guilty plea to the 21-count indictment on Oct. 27, 2014.
Today, U.S. District Judge Melinda Harmon, who presided over the trial, handed Barson, of Austin, a total sentence of 120 months in prison to be immediately followed by three years of supervised release. He was further ordered to pay restitution of approximately $1.2 million.
Shakbazyan, of Glendale, California, was sentenced to 97 months in prison, while Juarez, of Beeville, received 130 months. Both will also serve three years of supervised release.
At trial, prosecutors proved the fraudulent billing was for rectal sensation tests and electromyogram (EMG) studies of the anal or urethral sphincter which were never performed. Barson, Juarez and Shakbazyan were convicted of health care fraud for filing false claims with Medicare for medical procedures which were never performed. Shakbazyan was additionally charged, and convicted, of conspiracy to pay kickbacks for payments made to recruiters and beneficiaries.
According to the testimony at trial, Barson was the only doctor affiliated with the medical clinic located at 8470 Gulf Freeway in Houston. It was Juarez, however, who represented himself to be a doctor and was the one who actually saw patients, according to the trial testimony. Barson, Juarez and Shakbazyan caused Medicare to be billed for procedures on 429 patients in just two months. The three men also billed Medicare for seeing more than 100 patients on 13 different days, including a high of 156 patients on July 13, 2009.
Barson’s defense attempted to convince the jury that he was a victim of identity theft and was not the perpetrator of the crimes. They did not believe his story and found him guilty as charged.
Barson and Shakbazyan were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Juarez remains in the custody of the U.S. Marshal on unrelated criminal charges.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, Department of Health and Human Services-Office of Inspector General and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. Assistant U.S. Attorneys Al Balboni and Adrienne Frazior prosecuted the case.
Alabama Man Convicted of Three Counts for His Role in Unlawful Guided Deer Hunts in IowaRead the Press Release
DES MOINES, IA - On July 23, 2015, a jury in the Southern District of Iowa convicted Kinsman Bruce Wolfe, age 63, of Montgomery, Alabama, of two counts of unlawful sale of wildlife, and one count of conspiracy to commit the unlawful sale of wildlife. Sentencing has been scheduled for October 21, 2015 before the Honorable John A. Jarvey.
From around October 2013 to December 2013, Wolfe assisted Robert Wilkins, age 53, of Semmes, Alabama, in guiding hunts for trophy white-tail buck deer in rural Lucas County, Iowa. Non-resident hunters were allowed to hunt on the property during the paid hunts, despite not having paid for Iowa hunting licenses, fees and transportation tags. The capes and antlers of illegally taken deer were then transported from Iowa to Alabama.
This investigation was conducted by the United State Fish and Wildlife Service, the Iowa Department of Natural Resources, and the Alabama Division of Game and Natural Resources, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Friday 24 July 2015
Winnebago Man Sentenced to 37 Months for Abusive Sexual ContactRead the Press Release
Lawrence Merrick, Jr., 23, of Winnebago, Nebraska, was sentenced on July 24, 2015, in federal court in Omaha, Nebraska, for Abusive Sexual Contact with a Child. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Merrick to 37 months imprisonment. After his release from prison, Merrick will begin a five-year term of supervised release. As a result of his conviction, Merrick will be required to register as a sex offender.
Merrick is a member of the Omaha Tribe of Nebraska. He was staying at a residence within the Winnebago Reservation. On April 25, 2014, Merrick entered a bedroom where a nine-year-old girl was sleeping. He rubbed the buttocks of the child waking her up. She went to tell her mother and Merrick fled the home.
This case was investigated by the Federal Bureau of Investigation.
Wilson Man Pleads Guilty to Environmental ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kirk Canfield, 54, of Wilson, NY, pleaded guilty to violation of the Bald and Gold Eagle Protection Act before U.S. Magistrate Judge Hugh B. Scott. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant operated a produce farm in Wilson, NY. In August 2014, Canfield placed a meat pile that had been mixed with Golden Malrin fly bait at the edge of a cornfield on his farm in an attempt to kill coyotes. The fly bait contained Methomyl, which is an insecticide that is not to be used in a manner in which animals can eat it.
Three juvenile bald eagles died after eating the contaminated meat pile, and on August 22, 2014, the three dead bald eagles were found and photographed in the immediate vicinity of the contaminated meat pile by an individual riding an ATV. Subsequently, Canfield removed the three dead bald eagles from the field and removed the contaminated meat pile. By placing the contaminated meat pile on his field, the defendant acted with wanton disregard for the consequences of his act.
The plea is the result of an investigation by Special Agents of the U.S. Fish & Wildlife Service, under the direction of Special Agent in Charge Honora Gordon and Environmental Conservation Officers with the New York State Department of Environmental Conservation.Sentencing is scheduled for October 2, 2015 at 10:00 a.m. before Magistrate Judge Scott.
Waterbury Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on July 15, 2015, a federal grand jury in Hartford returned a six-count indictment charging MARCUS FOX, 41, of Waterbury, with filing false tax returns.
On July 23, 2015, FOX appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven, entered a plea of not guilty and was released on a $100,000 bond.
The indictment alleges that FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended. From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients. A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services.
The indictment further alleges that beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge. FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund. The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment. FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme.
The indictment charges FOX with six counts of filing a false tax return, an offense that carries a maximum term of imprisonment of three years and a fine of up to $250,000, on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is assigned to Senior U.S. District Judge Alfred V. Covello in Hartford.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
U.S. Service Member Charged with Illegal Retention of Photos Taken Inside Nuclear Sub, Obstructing JusticeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging KRISTIAN SAUCIER, 28, of Arlington, Vermont, with unlawfully retaining photos taken inside restricted areas of a nuclear attack submarine, and obstructing the investigation of this matter.
As alleged in court documents, from September 2007 to March 2012, SAUCIER served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Connecticut. On at least three separate dates in 2009, SAUCIER used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria. In March 2012, SAUCIER’s cellphone was found at a waste transfer station in Hampton, Connecticut. After SAUCIER was interviewed by the Federal Bureau of Investigation and Naval Criminal Investigative Service in July 2012, SAUCIER destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of SAUCIER’s family.
SAUCIER is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, New York.
SAUCIER was arrested on a criminal complaint on May 28, 2015, and is released on a $100,000 bond.
The indictment charges SAUCIER with one count of unauthorized retention of defense information, an offense that carries a maximum term of imprisonment of 10 years and a fine of up to $250,000, and one count of obstruction of justice, an offense that carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss, with the assistance of Justice Department’s National Security Division and the U.S. Attorney’s Office for the Northern District of New York.
Turner County Man Sentenced to Prison for Tax Fraud and Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Tomeka D. Wilburn, aged 32, of Ashburn, Georgia, was sentenced on July 23, 2015, before the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia as follows:
Mr. Wilburn was sentenced to 87 months in the Bureau of Prisons for one count of wire fraud and one count of aggravated identity theft. Mr. Wilburn was also ordered to make restitution in the total amount of $58,648 to the Internal Revenue Service.
On December 12, 2014, Mr. Wilburn entered a written plea agreement in which he pled guilty to two counts of the indictment. As set forth in the plea agreement, Wilburn admitted that he electronically filed approximately 74 fraudulent federal income tax returns in the names of third parties.
The investigation into Mr. Wilburn began on April 12, 2012, when the Ashburn Police Department executed a search warrant on Wilburn’s residence while investigating an unrelated burglary. The search revealed 15 pre-paid debit cards in the names of third parties and other documents indicating a resident of the house was engaged in fraudulent tax filing and identity theft. Mr. Wilburn admitted to an Ashburn Police Officer that he had been “doing Turbo Taxes.”
As the plea agreement further states, “while the investigation into Mr. Wilburn’s fraudulent tax filing was going on, he returned to criminal activity. On March 21, 2014, Ashburn Police Department executed a second search warrant at Wilburn’s residence which showed he had continued to be involved in fraud and identity theft.
The plea agreement stipulated that the intended or attempted loss to the government was greater than $120,000, but less than $200,000. Wilburn actually succeeded in obtaining $58,648 in fraudulent refunds from the I.R.S.
“Thanks to the great investigative work of the Ashburn Police Department what started as a burglary investigation resulted in thwarting an identity theft and tax fraud scheme,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “As the defendant in this case has learned, stealing from the American people will not be tolerated and you will be held accountable.”
“This is a great example of the benefits to be gained by local, state and federal agencies working together as a team. I am proud that my office was part of this team and helped bring Mr. Wilburn’s various criminal activities to an end,” said Michael J. Moore, United States Attorney for the Middle District of Georgia.
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Ashburn Police Department. Jim Crane prosecuted the case on behalf of the government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Tonawanda Man Indicted for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury returned a six-count indictment charging David Barraclough, 31, of the City of Tonawanda, with five counts of producing and attempting to produce child pornography, and one count of possessing child pornography. The charges carry a mandatory minimum sentence of 25 years in prison and a maximum of 50 years.Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment and a previously filed complaint, in November 2014, the defendant was arrested and detained on a local charge of endangering the welfare of a child. In February 2015, two individuals began cleaning out Barraclough’s apartment so that it could be rented to another tenant. One of the individuals discovered a thumb drive and electronic tablet and turned the items over to police. Subsequently, the Tonawanda Police Department obtained a search warrant for the digital media and the apartment.
A forensic analysis of the thumb drive and tablet revealed 238 images and five videos of child pornography. Also included on the tablet were numerous sexually explicit text conversations. One of the conversations was between Barraclough and a 14 year old girl in Virginia.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold III, and the of City Tonawanda Police Department, under the direction of Chief William Strassburg.
Three convicted of heroin, painkiller traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Three individuals were convicted today of heroin and prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Sandra Elizabeth Gibbins, 58, of Moorefield, West Virginia, Richard Dean Gibson, 31, of Petersburg, West Virginia, and Autumn Lyn Forbeck, 24, of Cumberland, Maryland, conspired to possess and sell heroin and prescription painkillers in Grant County, West Virginia throughout 2014 and 2015.
Gibbins and Gibson each pled guilty today to one count of “Aiding and Abetting Distribution of Heroin” and Forbeck pled guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Controlled Substances.” They each face up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the 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 Men Face Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Ill. - A federal grand jury returned indictments this week charging three men in separate, unrelated cases with possession of a firearm by a felon in the Rock Island Division of the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances.
A three-count indictment against Kylea Dapri Cartwright, Jr., 18, of the 700 block of Sylvan Court, Davenport, Iowa, alleges that on June 4, 2015, Cartwright possessed a quantity of marijuana with the intent to distribute; possessed two handguns in furtherance of a drug trafficking crime; and that Cartwright possessed those handguns after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is life in prison and a fine of up to $750,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Rock Island Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bobby James McCaw, 34, of the 800 block of NW 2nd St, Aledo, Ill., is charged with unlawful possession of a handgun on June 13, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney Meredith DeCarlo, and the charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hasan Rahmon Stoner, 23, of the 16000 block of Glen Oak Dr., Country Club Hills, Ill., is charged with possession of a handgun on May 13, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 23, 2015, the three defendants made their respective initial appearances in federal court in Rock Island before U.S. Magistrate Judge Stephen B. Jackson, Jr., and each was ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Syracuse Man Sentenced for Possession of Child PronographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Craig Dattmore, 61, of Syracuse, NY, who was convicted of possession of child pornography, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that in October 2011, the defendant was pulled over for a secondary inspection at the Lewiston Queenston Port of Entry. Dattmore indicated he was refused entry into Canada because of items on his laptop computer. A search of the vehicle the defendant was riding in recovered 17 electronic media storage devices such as hard drives, thumb drives and memory cards. A forensic analysis determined that these devices included a total of 3,942 images of child pornography and 88 videos.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Superseding Indictment Returned Against Former St. Bernard Deputy Sheriff and Second Individual for Drug Distribution and Obstruction ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRANDON LICCIARDI, age 29 of Meraux, Louisiana, and ERIK NUNEZ, age 28, formerly of New Orleans, were charged today in a seven-count second superseding indictment. LICCIARDI, a former St. Bernard Deputy, was charged with Conspiracy to Distribute MDMA (Ecstasy) Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape. LICCIARDI was also charged with two counts of Witness Tampering and one count of Impeding an Investigation. NUNEZ was charged with Conspiracy to Impede an Official Investigation. The maximum punishments for these offenses are as follows:
COUNT CHARGE DEFENDANT MAXIMUM PENALTIES1
18 U.S.C. 1512(b)(1); Tampering with a Witness
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
2
18 U.S.C. 1512(b)(1); Tampering with a Witness
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
3
18 U.S.C. 1512(c)(2); Impeding an Investigation
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
4
18 U.S.C. 1512(k), Conspiracy to Impede an Investigation
Erik Nunez
20 Years, $250,000 Fine, 3 Years Supervised Release.
5
21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance;
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
6
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
7
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
U.S. Attorney Polite indicated that DARREN SHARPER was not named in the current superseding indictment as a result of his prior pleas of guilty to federal drug charges. U.S. Attorney Polite reiterated that, at this time, the charges in the Second Superseding Indictment are merely allegations, and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.
Stockton Oncologist Pays $736,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — A Stockton oncologist has paid the United States $736,000 to settle allegations that he improperly billed Medicare, Medicaid, and Tricare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, United States Attorney Benjamin B. Wagner announced today.
The United States alleged that, over a two-year period ending in May 2011, Dr. Neelesh Bangalore billed and received reimbursement from Medicare, Medicaid, and Tricare for such drugs in violation of the federal False Claims Act. Bangalore purchased chemotherapy drugs from Warwick Healthcare Solutions Inc., also known as Richards Pharma (Warwick), a former United Kingdom-based drug distributer that did not have a license to distribute drugs in the United States. Bangalore administered certain of these medications to his patients, billing several federal healthcare programs, including Medicare. One medication he purchased from Warwick was Altuzan, a drug not approved by the FDA. In addition, the FDA tested a batch of Altuzan that Bangalore had purchased from Warwick and determined that it was counterfeit and lacked the active ingredient bevacizumab.
“Investigating healthcare related fraud allegations is one of our office’s top priorities,” said U.S. Attorney Wagner. “Particularly in cases where Medicare and Medicaid beneficiaries receive compromised care or ineffective medication, these investigations serve a dual purpose of protecting the public and recovering federal funds.”
“Patients—especially those battling cancer and other life-threatening illnesses—should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drug is safe and effective for patients to use,” said Lisa L. Malinowski, Special Agent in Charge of the FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the FDA’s Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Defense Health Agency. Assistant United States Attorneys Vincente A. Tennerelli and Kurt A. Didier represented the United States in this matter. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Springfield Woman Pleads Guilty to Leading Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to leading a fraudulent tax return preparation conspiracy that claimed nearly $340,000 in fraudulent income tax refunds.
Cherie Christine Dupuis, 43, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a March 31, 2015, federal indictment.
By pleading guilty today, Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012.
In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Conspirators recruited individuals to assist in filing fraudulent returns, and obtained their identifying information, including their names and Social Security numbers. They used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information to enable them to falsely claim dependents on their returns.
Dupuis utilized tax preparation software called Taxact.com to prepare these false federal income tax returns on her own laptop computer, public library computers and on a co-conspirator’s laptop computer. She used a co-conspirator’s mailing address on some false federal income tax returns.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators.
The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Under federal statutes, Dupuis is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Rome Credit Union Robber SentencedRead the Press Release
SYRACUSE, NEW YORK – Robert "Bobby" Hendricks, 56, of Utica, was sentenced yesterday to 360 months imprisonment followed by five years of supervised release and was ordered to pay a special assessment of $200 and restitution of $24,400 to Access Federal Credit Union, announced United States Attorney Richard S. Hartunian and FBI Special Agent in Charge Andrew Vale. Robert Hendricks was found guilty of Credit Union Robbery and using a firearm during the robbery of the Access Federal Credit Union in Rome, NY.
The evidence at trial showed that on August 19, 2013 Shakeal Hendricks entered the credit union using a cell phone to communicate with Robert "Bobby" Hendricks and Taiquan Howard. Shortly thereafter, Robert Hendricks and Taiquan Howard entered the credit union brandishing handguns and threatening bank tellers at gunpoint. Approximately $24,400 was taken during the robbery. The defendants were convicted following an investigation that included images from the credit union surveillance system being released through the news media to assist in their identification.
Shakeal Hendricks pled guilty to robbery and aiding and abetting the use of firearms and was sentenced to 99 months imprisonment, five years of supervised release and ordered to make restitution of $24,400. Taiquan Howard pled guilty to similar charges and was sentenced to 125 months imprisonment, five years supervised release and restitution of $24,400.
The case was investigated by the Federal Bureau of Investigation and the City of Rome Police Department. The case was prosecuted by Assistant United States Attorney Edward R. Broton.
Rochester Woman Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Iris Diaz, 27, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiring with others to possess with intent to distribute and to distribute 100 grams or more of heroin. The charge carries a maximum sentence of 40 years In prison, a fine of $5,000,000, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated in January of 2012, members of the Drug Enforcement Administration commenced an investigation into the narcotics trafficking activities of Diaz, Alberto Alfaro, Edwin Rosado, and others. On January 27, 2012, as part of this investigation, law enforcement purchased a gram of heroin from Alfaro during a pre-arranged deal involving a confidential informant. On February 13, 2012 and, again on April 26, 2012, members of law enforcement purchased additional heroin from the organization utilizing undercover police officers. On May 8, 2012, and on May 14, 2012, members of the Drug Enforcement Administration negotiated an additional purchase of heroin from Alfaro. During the negotiation, Alfaro and Diaz agreed that Diaz would be the contact person for the organization during subsequent negotiations for purchases of heroin. A subsequent contact between law enforcement and Diaz occurred on May 14, 2012, at which time Diaz agreed that Alfaro would sell additional heroin to the undercover law enforcement officers on May 15, 2012.
On May 15, 2012, members of the Drug Enforcement Administration met Alfaro in the parking lot of the Walmart retail store located at 1490 Hudson Avenue in the City of Rochester. While there, an undercover law enforcement officer met with Alfaro and told him that he had the agreed upon amount of money. Alfaro then placed a telephone call to another member of the organization. Shortly after, co-defendant Andrea Y. Marrero-Garcia approached Alfaro and the undercover law enforcement officer and provided a blue plastic bag containing two small cardboard boxes, in which officers found heroin. Alfaro and Marrero-Garcia were immediately taken into custody at the scene.
At nearly the same time, members of law enforcement executed court authorized search warrants at multiple locations in the City of Rochester which the investigation revealed were related to the organization. At one of the locations, 852 North Street, law enforcement located drug paraphernalia, including digital scales and packaging materials associated with heroin distribution. At that location, members of law enforcement located and arrested Diaz.
Defendants Rosado and Marrerro-Garcia have been convicted and are awaiting sentencing. Charges are pending against Alfaro. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for October 29, 2015 at 2:00 p.m. before Judge Wolford.
Palm Beach County Resident Charged for Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
A Palm Beach County resident was charged for her participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
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 Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.
Starling Willis, 32, of West Palm Beach, was charged by information with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A and 2. If convicted, Willis faces a maximum of twenty years in prison for the conspiracy charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Willis is alleged to have participated in fraudulent activity with two defendants charged in a separate superseding indictment, Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County (Case No. 14-CR-80158).
According to the information and other publicly filed court documents, Verdell recruited and led her co-conspirators, including Willis and McIntosh, in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). This PII was used to file fraudulent income tax returns online, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
As part of the overall schemes to defraud the IRS, Willis allegedly allowed Verdell to use her personal bank accounts to receive payments of tax refunds from fraudulent income tax returns. Willis allegedly opened additional bank accounts, at various banks, expressly for the purpose of receiving some of the fraudulent tax refund payments. Willis would then withdraw the monies and share them with Verdell.
Court documents further allege that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Trial is scheduled for Verdell and McIntosh on October 5, 2015. The Court has not yet scheduled a trial date for Willis.
Mr. Ferrer commended the investigative efforts of the IRS-CI, and USDA-OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance in the lengthy investigation and ultimate arrests. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
An information or indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Detroit Home Health Care Companies Sentenced to 80 Months in Prison for Role in $12.6 Million Fraud SchemeRead the Press Release
A Michigan resident was sentenced to 80 months in prison late yesterday for his leading role in a $12.6 million Medicare fraud and tax fraud scheme. Eleven other individuals have been convicted in this case.
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, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service-Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Mohammed Sadiq, 67, of Oakland County, Michigan, pleaded guilty on March 13, 2015, to one count of health care fraud and one count of filing a false tax return. In addition to imposing the prison term, U.S. District Judge Denise Page Hood of the Eastern District of Michigan ordered Sadiq to pay $14.1 million in restitution and entered a forfeiture judgment for the same amount, which represents the proceeds traceable to his criminal conduct.
Sadiq owned and directed operations at two home health care companies in Detroit. In connection with his guilty plea, Sadiq admitted that, working with co-conspirators, he billed Medicare for home health services that were not provided. Sadiq also admitted to paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill Medicare for services that were not medically necessary or were not provided at all. Sadiq further admitted that he created fake patient files to fool a Medicare auditor by making it appear as if home health services were provided and medically necessary. Medicare paid $12.6 million for these services.
In connection with his guilty plea, Sadiq also admitted that he received proceeds of the fraud through bank accounts that he controlled, that he withdrew substantial sums for his personal use and that he failed to report these amounts on his individual federal income tax return in 2008. In total, Sadiq admitted that he owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.
This case was investigated by the FBI, HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. The case is being prosecuted by Trial Attorneys William Kanellis, Christopher Cestaro, Brooke Harper and Elizabeth Young of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Oregon Man Sentenced for Child PornographyRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on July 23, 2015, Steven Cude, 52, Portland, Oregon, was sentenced before U. S. District Judge Ralph R. Erickson to serve 17 ½ years for transportation and possession of child pornography. Judge Erickson also sentenced Cude to a lifetime of supervised release and a $300 special assessment, payable to the Crime Victims Fund. As a result of the conviction, Cude will be required to register as a sex offender following his release from incarceration.
This case came to the attention of law enforcement after a cyber agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force, discovered a computer geographically located in North Dakota that was sharing child pornography in a peer-to-peer (P2P) network.
Homeland Security Investigators eventually traced the computer to Cude’s residence in Dickinson, ND, where task force officers later seized various electronic media. A subsequent forensic examination of the electronic media devices revealed more than 336 images and 169 videos, totaling nearly 15 hours of child pornography. Also recovered from Cude’s devices were various materials reflecting a prurient sexual interest in children, including a tutorial on how to sexually offend children.
"The exploitation of children for sexual gratification is among the most heinous crimes anyone working in law enforcement can encounter," said HSI St. Paul’s Acting Special Agent in Charge, William M. Lowder. "HSI will continue working with our federal, state and local partners to aggressively pursue those criminals who trade in child pornography, and bring them to justice."
This case was investigated by Homeland Security Investigators ICE, Bureau of Criminal Investigations, and the Dickinson Police Department.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Opelousas tax preparer pleads guilty to tax evasion chargeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that the owner of an Opelousas tax preparation business pleaded guilty Wednesday to tax evasion and failing to pay more than $125,000 in taxes.
Lachala Guidry Joseph, 37, of Opelousas, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of tax evasion. According to the guilty plea, Joseph owned and operated Guidry’s Tax Service, also known as Dee’s Tax Service, in Opelousas from 2007 to 2014. Joseph deposited business income into accounts held by her sister, mother and aunt in order to disguise the amount she earned. She filed her 2010 federal tax return stating that she only received $13,858 in wages and claiming a $7,695 refund. She also did not file income tax returns for years 2011 to 2013. In total, she did not report more than $510,000 in income, which resulted in a tax loss to the IRS of $125,014.22. Joseph’s business also added false cash income information to its tax returns in amounts high enough to qualify them for the maximum earned income tax credit, which resulted in her clients receiving tax refunds they were not entitled to.
Joseph faces up to five years in prison, three years of supervised release, a $100,000 fine and restitution. A sentencing date was not set.
The IRS investigated the case. Assistant U.S. Attorneys David C. Joseph and Myers P. Namie are prosecuting the case.
One Distributor Admits Role in Conspiracy to Sell Heroin in New Jersey, Another Sentenced to 32 Months in PrisonRead the Press Release
TRENTON, N.J. – One individual pleaded guilty and another was sentenced today in connection with their roles in a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties, U.S. Attorney Paul J. Fishman announced.
Jason O’Neal, a/k/a “Born,” 42, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute heroin. Dawn Rosser, 35, of Lakewood, New Jersey, also appeared before Judge Sheridan today and was sentenced to 32 months in prison. Rosser pleaded guilty on April 21, 2015 to an information charging her with one count of conspiring to distribute heroin.
In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders, Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Of those 21 individuals, 17 have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, O’Neal conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. O’Neal admitted that he served as a supervisor and distributed between 100 and 400 grams of heroin in furtherance of the conspiracy. Rosser admitted that between February 2013 and March 2014, she also participated in the conspiracy and distributed between 100 and 400 grams of heroin.
The distribution conspiracy charge to which O’Neal pleaded guilty carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for Oct. 20, 2015.
In addition to the prison term, Judge Sheridan sentenced Rosser to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
O’Neal: Aidan P. O’Connor Esq., Hackensack, New Jersey
Rosser: Joseph Accardi Esq., Elizabeth, New Jersey
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 State Senator John Sampson Convicted of Obstruction of Justice and False StatementsRead the Press Release
Earlier today, following four weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against New York State Senator John Sampson, for one count of obstruction of justice and two counts of making false statements to federal agents. Since 1997, Sampson has served in the New York State Senate representing the 19th Senate District in southeastern Brooklyn. From June 2009 to December 2012, Sampson was the leader of the Democratic Conference of the Senate, and from January 2011 to December 2012, he was also the Senate Minority Leader. Sampson has also served as the chairman of the Senate Ethics Committee and the Senate Judiciary Committee. When sentenced by United States District Judge Dora L. Irizarry, Sampson faces a sentence of up to 20 years in prison.
The verdict was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Today’s verdict stands as a vindication of the efforts of this office and the FBI to aggressively root out corruption undertaken by a public official in New York,” stated Acting United States Attorney Currie. “Sampson, a lawyer, New York State Senator, Senate leader, and one time chair of the Senate Ethics Committee, abused his power and violated his oath undermining the very system of laws he was sworn to uphold. He will now be held accountable for his crimes.” Mr. Currie expressed his grateful appreciation to the Federal Deposit Insurance Corporation, Office of the Inspector General; the Public Integrity Section of the Department of Justice; and the Office of the Inspector General of the Department of Justice for their assistance in this case.
FBI Assistant Director-in-Charge Rodriguez stated, “Sampson’s decision to engage in corrupt and illegal behavior was further aggravated by his efforts to conceal the scheme from FBI agents charged with investigating his misconduct. As this case proves, we, along with our partners, will continue to root out obstruction of justice in all forms and at all levels of government.”
The evidence at trial and publicly filed documents in the case established that, among other things, Sampson, as an attorney practicing in Brooklyn, embezzled funds he held in escrow from the sale of real estate properties. Concerned that his theft might be discovered by law enforcement, in 2006 Sampson asked an associate for $188,500 to replenish the stolen funds. In exchange, Sampson used his position as a Senator to assist the associate’s real estate business interests.
In the summer of 2011, the associate was arrested and charged by this office with bank and wire fraud. Sampson feared that the associate might cooperate with the government and disclose Sampson’s embezzlement, so Sampson contacted a close personal friend, who was also a supervisory paralegal in this office, and asked him to find out if Sampson was under investigation and to obtain confidential information about the associate’s case, including the identities of cooperating witnesses. The paralegal agreed and reported his findings to Sampson.
Sampson told his associate about his source and added that if they could determine the identities of cooperating witnesses in the associate’s case, they could “take them out.” Sampson also suggested that they hire a private investigator to do the “dirty work.”
Sampson then directed his associate to withhold from the government evidence regarding the $188,500 payment. At a February 2012 meeting, the associate told Sampson that the government had subpoenaed the associate’s business records, including a check register page documenting the payment. The Associate showed the page to Sampson, who examined it and stated, “That’s a problem . . . I mean for me.” Sampson kept the page and instructed his associate not to disclose it to the government.
On July 27, 2012, FBI Special Agents interviewed Sampson, and he denied being familiar with the check register page. Sampson also falsely denied directing his Senate staffers to take certain actions relating to regulatory issues for a liquor store in which Sampson held an ownership interest. At the conclusion of the interview, the agents advised Sampson that he had lied to federal agents, which constituted a federal crime. When asked whether he wished to revise his statement, Sampson stated, “Not everything I told you was false.”
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Paul Tuchmann, Alexander Solomon, and Marisa Seifan are in charge of the prosecution.
The Defendant:
JOHN L. SAMPSON
Age: 50
E.D.N.Y. Docket No. 13-CR-269 (DLI)Miami-Dade County Resident Sentenced to 41 Months in Prison for Identity Theft Tax Fraud Scheme Involving $418,679.66 in Fraudulent RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 41 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme involving $418,679.66 in fraudulent refunds.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Junior St. Fleurose, 29, of Miami, previously pled guilty to five counts of theft of government funds.
According to court documents, from January 2010 through July 2011, St. Fleurose received forty-three (43) Treasury tax refund checks and wire deposits into his personal and business bank accounts that were in other people's names. Some of the tax refund checks and wires were from fraudulently filed tax returns without the knowledge of the taxpayer. Others were Treasury checks stolen from individuals who filed a legitimate tax return. The defendant converted $325,432.02 in tax refunds for his and someone else's use at various vendors in the South Florida area. St. Fleurose also received twenty-six (26) tax Refund Anticipation Loan checks into his bank accounts totaling $89,440.64.
The total amount of loss is $418,679.66.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorney Ilham A. Hosseini.
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
Mexican national sentenced to 64 months in prison for possessing heroin with intent to distributeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Mexican national was sentenced to 64 months in prison for possessing heroin with intent to distribute.
Uriel Coria-Coria, 22, of Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute heroin. According to evidence presented at the March 25, 2015 guilty plea, Coria was riding with co-defendants Jose Segovia-Ayala, 40, of El Salvador, and Israel Gabriel-Miranda, 45, of Guatemala, July 1, 2014 on I-20 in Bossier Parish. A Louisiana State Trooper conducted a traffic stop, and they were questioned. Upon further investigation, the vehicle was searched and three bags of heroin were discovered in the rear quarter panels accessed inside of the vehicle.
Segovia-Ayala was sentenced on June 25, 2015 to 64 months in prison on one count of possession with intent to distribute heroin. Gabriel-Miranda was sentenced on March 11, 2015 to six months in prison on one count of being an alien having reentered the United States after being removed.
Homeland Security Investigations, DEA and Louisiana State Police investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Massachusetts Man Indicted for Illegal Possession of Firearm in New HampshireRead the Press Release
Concord, New Hampshire - Donald Feith, Acting United States Attorney for the District of New Hampshire, today announced that a federal grand jury in Concord returned a one-count indictment charging JEREMY ROBINSON, 26, of Hyannis, Massachusetts, with illegal possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). The indictment was returned on July 1, 2015, and ROBINSON was arraigned yesterday in front of U.S. Magistrate Judge Andrea Johnstone, where he entered a plea of not guilty.
According to the indictment and other statements made in court, ROBINSON travelled to New Hampshire in November 2014 and possessed an H&K 9mm pistol and ammunition manufactured by Fiocchi. At the time, ROBINSON was prohibited from possessing a firearm as a result of a prior felony conviction.
Trial has been scheduled to take place between September 1-15, 2015, in front of Chief U.S. District Judge Joseph Laplante. If convicted, ROBINSON faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Acting U.S. Attorney Feith stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Barnstable Police Department, and the Barnstable Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Lafayette store owner pleads guilty to selling counterfeit merchandiseRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette business owner pleaded guilty Thursday to selling counterfeit clothes, phone cases and other items.
Tawfic Ahmed Saleh, 32, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of trafficking in counterfeit goods. According to the guilty plea, law enforcement agents searched AA Discount Plus LLC doing business as “Urban Buzz,” a clothing and variety store in Lafayette on November 18, 2014. During the search, agents found and seized numerous suspected counterfeit items including: 258 articles of clothing and 20 watches labeled “Ralph Lauren Polo”; 42 phone cases labeled “Otterbox”; 25 women’s purses, four watches and 25 wallets labeled “Michael Kors”; 45 watches labeled “Casio”; 15 belts labeled “Guicci”; and eight belts labeled “Louis Vuitton.” Saleh was later questioned and admitted to selling counterfeit items. Saleh operated the business from 2005 to 2007 and reopened it in 2009.
Saleh faces up to 10 years in prison, three years supervised release and a $2 million fine. A sentencing date was not set.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney David C. Joseph and John Luke Walker are prosecuting the case.
Lafayette man pleads guilty to stalking, harassing ex-wifeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man pleaded guilty Thursday to using telephone masking technology to harass his ex-wife.
Arthur Craig Wagley, 55, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of telecommunication harassment. According to the guilty plea, Wagley made hundreds of harassing phone calls to his ex-wife from July 4, 2011 to October 7, 2013. Wagley used a telephone spoofing service to call his ex-wife anonymously. He could also set up calls to appear to be family or friends’ numbers and could even disguise his voice using the service. Wagley used these tactics on October 12, 2011, to make 12 phone calls throughout the day, appeared to be someone else and used offensive language. Wagley has been divorced from his ex-wife since 2008. Wagley pleaded no contest and was convicted on September 16, 2010 in the 27th Judicial District Court of Louisiana in St. Landry Parish to felony stalking of his ex-wife. A protective order was issued in 2010 and expired on March 12, 2012.
Wagley faces up to two years in prison, one year supervised release and a $250,000 fine. A sentencing date was not set.
The FBI and the St. Landry Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Jacksonville Sex Offender Pleads Guilty to Possession of Firearms by A Convicted FelonRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Daniel Todd Manning (43, Jacksonville) has pleaded guilty to possessing several firearms after having been convicted of felony child sex offenses in the State of Kansas. He faces up to 10 years in federal prison. Manning has been in custody since his arrest on April 30, 2014, in Jacksonville. A sentencing hearing has not yet been set.
According to court documents, on July 26, 2013, Manning was adjudicated guilty, in Kansas, on multiple counts of indecent liberties with a child. Prior to his sentencing, he fled the state and traveled to Jacksonville, where he established a residence. Because Manning was a convicted felony sex offender and had fled from supervision, Kansas authorities issued a warrant for his arrest. Law enforcement in Jacksonville, including the United States Marshals Service, discovered the location of Manning’s Jacksonville residence and, on April 30, 2014, entered the location to search for him. During the search, they observed several rifles in a glass-front gun case in Manning’s bedroom, as well as a pistol located inside the nightstand next to Manning’s bed. Manning had concealed himself in the attic of the residence. The Jacksonville Sheriff’s Office SWAT team seized the firearms, including five rifles, two shotguns, and a pistol. Hours later, Manning surrendered. He later stated that he had brought all of the guns with him when he fled from Kansas to avoid sentencing.
This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
It was also 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. Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Iranian Company Pleads Guilty to U.S. Export ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania and the Office of Export Enforcement of the United States Department of Commerce announced that today in U.S. District Court in Harrisburg, an officer of FIMCO, an Iranian corporation, entered a plea of guilty on behalf of the corporation to conspiracy to evade export licensing requirements.
The conspiracy was in connection with an attempt to smuggle to Iran a machine with possible military as well as civilian applications. The guilty plea was entered before United States District Court Magistrate Judge Susan E. Schwab.
In December 2012, a federal grand jury in Harrisburg charged FIMCO in a sealed indictment made public today. In April 2014, an American company, Hetran, Inc., an engineering and manufacturing corporation in Orwigsburg, Schuylkill County, Pennsylvania, and its President, Helmut Oertmann, were charged with participating in the conspiracy.
Hetran manufactured a large horizontal lathe, also described as a bar peeling machine (“peeler”), valued at more than $800,000 and weighing in excess of 50,000 pounds. The machine is used in the production of high grade steel for the manufacture of automobile and aircraft parts.
Under U.S. law and regulations, American companies are forbidden to ship “dual use” items (items with civilian as well as military or proliferation applications), such as the peeler, to Iran without first obtaining a license from the U.S. Government. Aware that it was unlikely that such a license would be granted, FIMCO, which does business in Dubai, United Arab Emirates, and other alleged co-conspirators agreed to falsely state on the shipping documents that the end-user of the peeler was Crescent International Trade and Services FZE (Crescent), an affiliated company, knowing that the machine would subsequently be shipped to Iran after being off-loaded in Dubai.
In June 2012, Hetran caused the peeling machine to be shipped from Pennsylvania to Dubai in the United Arab Emirates, fraudulently listing Crescent as the end-user, knowing that the shipment was ultimately being sent by FIMCO to Iran in violation of federal law. The Office of Export Enforcement, Bureau of Industry and Security (BIS), U.S. Department of Commerce detected the shipment and ordered that it be re-delivered to the United States.
As part of its plea agreement with the United States, FIMCO agreed that the government would recommend a $250,000 criminal fine. The plea agreement is subject to the approval of the Court. The company also has agreed under a settlement with BIS to pay a $837,500 civil penalty to the U.S. Department of Commerce, of which it must pay $587,500 out-of-pocket, with the remaining $250,000 suspended for two years. The suspended portion of the civil penalty will be waived thereafter so long as FIMCO complies with the terms of the plea agreement and any criminal sentence and satisfies certain additional conditions. FIMCO will also be made subject to a two-year suspended denial of its export privileges.
"Today's guilty plea is the result of our commitment to disrupt illicit networks aimed at evading our export controls and jeopardizing our national security," said Under Secretary of Commerce Eric L. Hirschhorn. "Commerce Department, Office Export Enforcement Special Agents thwarted this illegal scheme by utilizing their unique authorities as the enforcers and regulators of our nation’s ‘export control laws to pursue violators," he said.
U.S. Attorney Peter Smith praised the Special Agents of the Department of Commerce, Office of Export Enforcement for their tenacity and global team effort in investigating the case, coordinating with foreign governments, executing search warrants, and most importantly, seizing the horizontal lathe upon its arrival in Dubai. The seizure of key shipping documents, emails and correspondence from Hetran to Iran revealed the scheme, and was critical to the success of the case, and to shutting down the contemplated shipment.
During the investigation by the Department of Commerce’s Bureau of Industry and Security (BIS), FIMCO and Crescent were placed on BIS’s Entity list in August 2014. The Entity List identifies foreign parties that are prohibited from receiving listed items unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism, or other activities contrary to U.S. national security or foreign policy interests. By publicly listing such persons, the Entity List serves as an important tool to prevent unauthorized trade in such items.
In December 2014, Helmut Oertmann and Hetran were sentenced by Judge Kane to 12 months’ probation; Oertmann and Hetran were ordered as part of a settlement with BIS to pay a penalty of $837,500 with $337,500 of that amount paid out-of-pocket and the remainder conditionally suspended, which penalty Judge Kane adopted as to Oertmann and Hetran. The other indicted company, Crescent International Trade and Services FZE, and the three Iranian individuals who served as officers of FIMCO, Khosrow Kasraei, Reza Ghoreishi, and Mujahid Ali, are presently fugitives.
The case was investigated by the New York Field Office of the Office of Export Enforcement, Bureau of Industry and Security, Department of Commerce. The Department of Commerce’s Office of the Chief Counsel for Industry and Security handled the civil proceedings. The prosecution was coordinated by Assistant U.S. Attorneys Christy H. Fawcett and Gordon A. Zubrod of the U.S. Attorney’s Office and was overseen by the National Security Division of the U.S. Department of Justice.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the corporation is a term of supervised release, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant and protect the public. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Investment Fund President Indicted for Fraud and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK –A Cazenovia, NY man was arrested yesterday on charges of fraud and money laundering, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew Vale.
As alleged in the Indictment, James P. Griffin, 70, of Cazenovia is the Chief Executive Officer of several investment companies in Cazenovia, which marketed a financial product called the 54 Freedom Charitable Gift Annuity. This financial product purportedly allowed investors to make a gift to charity and still receive income. The 54 Freedom Charitable Gift Annuity was represented to be backed by a highly rated major insurance carrier and would provide guaranteed life-time income for the investor. The Indictment alleges that over $1.6 million invested by clients were not used to purchase annuities from A rated insurance companies, but instead were used by Griffin for his own use and to pay the expenses of various companies he headed. The investors initially received monthly payments as promised, but these regular payments are alleged to have stopped in approximately January 2013.
Griffin was arrested yesterday and appeared for arraignment in federal court in Syracuse. He pled not guilty to the charges, which include five counts of mail fraud, eight counts of wire fraud, and five counts of money laundering. He faces a maximum term of imprisonment of twenty years on each of the mail and wire fraud counts and ten years on the money laundering counts. Each count carries a maximum fine of $250,000.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Edward R. Broton.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on July 23, 2015, and entering pleas of Not Guilty were:
- JESSE WADE NEWSOM, a 28-year-old resident of Cascade, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, NEWSOM faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-41
- JIMMIE RICHARD JAMES, a 72-year-old resident of Ballantine, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, JAMES faces life in prison, $10,000,000 in fines and 5years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-82
Appearing before U.S. Magistrate Ostby in Billings on July 22, 2015, and entering pleas of Not Guilty were:
- JASON HOMER JENKINS, a 38-year-old resident of Belgrade, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, JENKINS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-31
- JEFFREY MICHAEL LEO, a 43-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession of methamphetamine with intent to distribute and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, LEO faces life in prison, $10,000,000 in fines and 5years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-66
Appearing before U.S. Magistrate Lynch in Missoula on July 21, 2015, and entering pleas of Not Guilty were:
- JOSEPH ALLEN EHLI, a 36-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, EHLI faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-13
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Unsealed Charging Former Executive Director of Canadian County Charity for Children with EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury indictment was unsealed today charging TRACI LORRE OWENS, 46, of Edmond, Oklahoma, with embezzlement from a Canadian County charity for child crime victims, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment, Owens was the Interim Executive Director and then the Executive Director of Canadian County Court Appointed Special Advocates ("CASA") from about November 2010 until July 2013. Canadian County CASA is an organization that received at least $10,000 in federal monetary assistance annually from the United States Department of Justice to support child victims of crime. Owens is alleged to have embezzled money from Canadian County CASA by making and depositing checks payable to herself and to cash for reimbursement of unauthorized expenses and duplicate payroll checks.
If convicted, Owens faces a maximum penalty of ten years in prison, a fine of up to $250,000, and mandatory restitution. The United States also seeks approximately $70,000 in forfeiture from Owens.
This case is the result of an investigation by the Department of Justice Office of Inspector General, with assistance from the Canadian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Scott E. Williams.
The public is reminded that an indictment is merely an accusation and that the defendant is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Indictment Charges 5 West Haven Residents after Investigation into July 4th Blast and HomicideRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in Bridgeport returned an indictment yesterday charging five West Haven residents with federal offenses stemming from an investigation of an explosion and homicide that occurred in Hamden on July 4, 2015.
According to allegations contained in court documents, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven. After West Haven Police informed investigators that Brooks had been residing with CHRISTOPHER MILLER at 59 Front Avenue in West Haven, and that MILLER and other residents of 59 Front Avenue were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of cocaine base (“crack cocaine), approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
The indictment charges CHRISTOPHER MILLER, 40, DEBORAH MILLER, 59, NATALI MARTINEZ, 29, JAMES BRYANT, 64, and MAURICE WEARING, 26, with conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”). The indictment also charges CHRISTOPHER MILLER with possession of an explosive by a convicted felon.
The charge of conspiracy to distribute cocaine base carries a maximum term of imprisonment of 20 years and the charge of possession of an explosive by a convicted felon carries a maximum term of imprisonment of 10 years.
The five defendants are currently detained and face related state charges.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Stephen Reynolds, Jacabed Rodriguez-Coss and Vanessa Richards. This investigation and prosecution is being coordinated with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Hull Resident Arrested and Charged with Theft of Government FundsRead the Press Release
BOSTON – A Hull resident accused of stealing from the Department of Veterans Affairs (VA) was charged with Theft of Government Funds in U.S. District Court in Boston this morning.
Bradley Swartz, 60, is accused of stealing approximately $40,000 from the VA over the course of an estimated three year period. Swartz was arrested this morning after being indicted by a federal grand jury yesterday.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Hull Resident Arrested and Charged with Theft of Government FundsRead the Press Release
BOSTON – A Hull resident accused of stealing from the Department of Veterans Affairs (VA) was charged with Theft of Government Funds in U.S. District Court in Boston this morning.
Bradley Swartz, 60, is accused of stealing approximately $40,000 from the VA over the course of an estimated three year period. Swartz was arrested this morning after being indicted by a federal grand jury yesterday.
The charging statute provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Guilty Plea in Drug ConspiracyRead the Press Release
Gulfport, Miss – On Thursday, July 23, 2015, Herman McGee, Jr. entered a guilty plea before District Judge Sul Ozerden, in a case involving conspiracy to possess with intent to distribute over 500 grams of cocaine and conspiracy to possess a firearm in furtherance of drug trafficking, U. S. Attorney Gregory K. Davis announced today.
McGee, 27 of Jacksonville, Florida, faces a minimum of 5 years and a maximum of 40 years in prison, a fine of $5,000,000 and at least 4 years of supervised release on the drug conspiracy and a maximum of 20 years on the firearms charge. Sentencing is set for September 30, 2015.
Previously in the same case, Jalyn Nicole Holland and Keriyae Judekqa Simmons both of Jacksonville entered guilty pleas to interstate travel in aid of an unlawful activity. Each faces a maximum of 5 years in prison, a $250,000 fine and 1 year of supervised release. Michael Lamar Ricks also of Jacksonville entered a guilty plea to conspiracy to possess with intent over 500 grams of cocaine. All are pending sentencing.
The case was investigated by the Harrison County Sheriff’s Department and the Drug Enforcement Administration. The case is prosecuted by Assistant United States Attorney Annette Williams.
Four Defendants Arrested in Multi-County Meth DistributionRead the Press Release
BOISE - Miguel Angel Dorantes, 18, Alberto Lopez, 18, Elizabeth Baeza, 18, Sobeida Galaviz, 24, all of Hailey, Idaho, and Leonel Angel, 20, of Compton, California, were indicted on July 14, 2015, by a federal grand jury in Boise for one count of conspiracy to possess controlled substances with intent to distribute, eleven counts of possession with intent to distribute methamphetamines, and eight counts of distributing a controlled substance near a school, U.S. Attorney Wendy J. Olson announced. An initial appearance was held on July 21, 2015, for four of the defendants. Defendant Dorantes has not yet been found or arrested.
The Indictment alleges that between March 23 and May 28, 2015, the defendants were involved in possessing methamphetamine with intent to distribute it in Blaine County, Lincoln County, and Jerome County. Four of the drug transactions are alleged to have occurred within 1,000 feet of Hailey Elementary School in Hailey, Idaho, and four of the transactions are alleged to have occurred within 1,000 feet of Heritage Academy in Jerome, Idaho.
The penalties for the charges vary—depending on the facts for each charge—from not more than five years in prison, to not less than ten years mandatory minimum up to life. Distributing controlled substances within 1,000 of a school doubles the penalty for the amount of controlled substance distributed. The maximum fine for each of the charged offenses varies from $1,000,000 to $5,000,000. The number of years of supervised release following any incarceration for the charged offenses varies from three years to five years.
A trial is set for September 28, 2015, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the Bureau of Alcohol, Tobacco, and Firearms, Idaho State Police, Blaine County Sheriff’s Office, Lincoln County Sheriff’s Office, Jerome County Sheriff’s Office, Twin Falls Police Department, and Hailey Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Senior Project Manager and Subcontractor Convicted for Conspiring to Defraud Matrix Service CompanyRead the Press Release
OAKLAND – Yesterday, Kevin Laney, a former Senior Project Manager at Matrix Service Company, and Brian Federico, a former subcontractor of Matrix, were convicted of mail fraud conspiracy and mail fraud, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The guilty verdicts followed a three-week bench trial in front of The Honorable Yvonne Gonzalez Rogers, United States District Judge.
Evidence at trial showed that in 2010, Matrix, a company that constructs tanks and provides tank maintenance and repair services to petrochemical companies, discovered suspicious billing in its Suisun City, Calif. office. The suspicious billing involved concrete subcontractor Imperial Shotcrete, for whom Federico worked. Through additional investigation, Matrix and the FBI uncovered a complex fraudulent invoicing scheme involving bogus companies and downstream kickbacks through Imperial involving three Matrix project managers, including Laney. At the conclusion of its investigation, Matrix immediately reimbursed its customers over $1.3 million.
Prior to trial, the two remaining Matrix project managers and one owner of Imperial pleaded guilty for their roles in the scheme.
For Laney’s part, the trial evidence showed he established a bogus company called “Rogue Consultants” to submit false and fraudulent invoices to Imperial in order to collect and conceal later downstream kickback payments. Laney invoiced and was paid just over $1 million related to Matrix projects. From this money, Laney paid Federico just under $600,000, keeping the rest of the money for his own benefit. For his part, Federico created and submitted false and fraudulent invoices using inauthentic invoices from a real company and invoices from his company, CEMS. Federico also directed two Matrix project managers to submit false and fraudulent invoices and pocketed a total of $875,000 as a result of the scheme. In the scheme, the Matrix project managers receiving the downstream kickback payments were often the project managers responsible for authorizing Matrix to pay the Imperial invoices. Matrix’s project managers and its subcontractors were expressly forbidden by Matrix from engaging in this type of self-dealing.
In addressing the defendants’ “elaborate scheme,” the court rejected their contention that the law sanctions “under-the-table side deals, vigilante justice, and corporate facades created for the sole purpose of facilitating self-gain at the expense of one’s employer.” The court, however, acquitted Federico of two substantive counts of mail fraud.
Laney, of Three Forks, Mont., and Federico, of Tracy, Calif., were charged by Indictment on December 6, 2012. Laney and Federico have remained on bond pending trial, but were both ordered to surrender their passports.
Laney’s and Federico’s sentencing hearings are scheduled for November 13, 2015, before Judge Gonzalez Rogers in Oakland. The maximum statutory penalties for a violation of 18 U.S.C. §§ 1341 and 1349 are a maximum prison term of 20 years, a fine of $250,000, 3 years of supervised release, and restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Brian C. Lewis and Wade M. Rhyne prosecuted this case with the assistance of Legal Assistant Janice Pagsanjan and Paralegal Noble Hughes. This prosecution is the result of an investigation by the Federal Bureau of Investigation.