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Tuesday 7 July 2015
Wichita Attorney Convicted on Federal Tax Evasion ChargeRead the Press Release
WICHITA, KAN. – A Wichita attorney was convicted today of evading federal taxes, U.S. Attorney Barry Grissom said.
U.S. District Judge Eric Melgren found Eldon L. Boisseau, 67, Wichita, Kan., guilty on one count of tax evasion.
In a written decision, the court found that during 1998 through 2000, 2002 through 2005 and 2007 through 2008 Boisseau attempted to evade paying federal income taxes, as well as a trust fund recovery penalty from 1999. He interfered with the government’s efforts to collect the taxes he owned by putting his law firm in the name of a nominee, terminating his own pay agreement with the law firm and then having the firm pay for his personal expenses.
Sentencing is set for Sept. 28. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Alan Metzger and Sean Green, Trial Attorney with Justice Department’s Tax Division, for their work on the case.
West Monroe man, New Jersey man sentenced for roles in anabolic steroid distribution ringRead the Press Release
MONROE La. – United States Attorney Stephanie A. Finley announced that a West Monroe man and a New Jersey man were sentenced Monday for their roles in importing and selling anabolic steroids.
David Ray Dean, 47, of West Monroe, La., and Justin R. Kull, 28, of Turnersville, N.J., were sentenced by U.S. District Judge Robert G. James to 15 months in prison and 12 months in prison respectively for one count of conspiracy to distribute Schedule III controlled substances. Dean was ordered to pay a $4,000 fine, and Kull was ordered to pay a $5,000 fine and surrender his nursing license. They were also sentenced to four years of supervised release. According to evidence presented at the guilty pleas, Dean and Kull in addition to Gary Lynn Ward, 47, of Monroe, conspired to possess with intent to distribute anabolic steroids starting sometime in 2013 until August 27, 2013. Kull was a nurse from New Jersey who supplied quantities of steroids to Ward and Dean. Ward and Dean would also import the drugs from overseas and other domestic sources. They would then process the drugs in a makeshift lab in the Monroe area and distribute them.
Ward was sentenced to 46 months in prison and four years of supervised release on June 29, 2015 for the conspiracy count. This is Dean and Ward’s second prosecution for steroid distribution. They previously pleaded guilty on June 21, 2007 to conspiracy to distribute steroids and were sentenced on October 15, 2007 to one year in prison and three years of supervised release.
United States Customs and Border Patrol-Homeland Security Investigations, the U.S. Postal Inspection Service and Louisiana State Police participated in the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
United States Sues Estate and Trusts of Deceased Man for False Claim to U.S. Treasury to Obtain $17.3 Million Investment in Arkansas BankRead the Press Release
The United States has sued the estate and trusts of the late Layton P. Stuart, former owner and president of One Financial Corporation, and its wholly-owned subsidiary, One Bank & Trust N.A., both based in Little Rock, Arkansas, alleging that Stuart made misrepresentations to induce the U.S. Department of the Treasury to invest $17.3 million of Troubled Asset Relief Program (TARP) funds in One Financial as part of Treasury’s Capital Purchase Program (CPP), the Justice Department announced today.
“TARP was enacted in 2008 to restore liquidity and stability to the financial system of the United States by injecting needed capital into financial institutions,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Obtaining TARP funds based on false representations to the government frustrates those goals and harms the American taxpayer.”
According to the United States’ complaint, Stuart, on behalf of One Financial, applied in late 2008 for a TARP investment totaling $17.3 million. The complaint alleges that Stuart knowingly made false statements about the financial condition of One Bank and its intentions for the use of the TARP funds. In particular, the statements and TARP application allegedly concealed serial frauds that Stuart and other One Financial directors and bank executives had been committing and intended to continue committing on One Bank. As set forth in the complaint, the schemes involved Stuart’s diversion of funds from One Bank for personal use including, within 30 days of receiving the $17.3 million in TARP funds, the diversion of more than $2 million into personal accounts for his own use. Stuart was terminated from One Bank in September 2012.
The investigation was conducted by the U.S. Treasury, Internal Revenue Service-Criminal Investigation Division, the Office of the Special Inspector General for TARP, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Arkansas. The case is captioned United States v. Estate of Layton P. Stuart, et al., No. 1:15-cv-01044-RDM (D.D.C.). The claims asserted by the government are allegations only and there has been no determination of liability.
United States Sues Estate and Trusts of Deceased Man for False Claim to U.S. Treasury to Obtain $17.3 Million Investment in Arkansas BankRead the Press Release
WASHINGTON – The United States has sued the estate and trusts of the late Layton P. Stuart, former owner and president of One Financial Corporation, and its wholly-owned subsidiary, One Bank & Trust N.A., both based in Little Rock, Arkansas, alleging that Stuart made misrepresentations to induce the U.S. Department of the Treasury to invest $17.3 million of Troubled Asset Relief Program (TARP) funds in One Financial as part of Treasury’s Capital Purchase Program (CPP), the Justice Department announced Tuesday.
“TARP was enacted in 2008 to restore liquidity and stability to the financial system of the United States by injecting needed capital into financial institutions,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Obtaining TARP funds based on false representations to the government frustrates those goals and harms the American taxpayer.”
According to the United States’ complaint, Stuart, on behalf of One Financial, applied in late 2008 for a TARP investment totaling $17.3 million. The complaint alleges that Stuart knowingly made false statements about the financial condition of One Bank and its intentions for the use of the TARP funds. In particular, the statements and TARP application allegedly concealed serial frauds that Stuart and other One Financial directors and bank executives had been committing and intended to continue committing on One Bank. As set forth in the complaint, the schemes involved Stuart’s diversion of funds from One Bank for personal use including, within 30 days of receiving the $17.3 million in TARP funds, the diversion of more than $2 million into personal accounts for his own use. Stuart was terminated from One Bank in September 2012.
The investigation was conducted by the U.S. Treasury, Internal Revenue Service-Criminal Investigation Division, the Office of the Special Inspector General for TARP, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Arkansas. The case is captioned United States v. Estate of Layton P. Stuart, et al., No. 1:15-cv-01044-RDM (D.D.C.). The claims asserted by the government are allegations only and there has been no determination of liability.
U.S. Attorney announces more results in Bluefield Pill InitiativeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin today announced a two-year prison sentence and two guilty pleas in federal court in Bluefield.
Leonard Carey Rucker, 44, of Princeton, West Virginia, was sentenced to two years in federal prison for distributing heroin. He pleaded guilty in February, admitting that on November 4, 2014, he distributed heroin to a confidential informant in Princeton.
Craig Arnold Young, 42, of Lashmeet, West Virginia, pleaded guilty to using a communication facility to facilitate a felony, admitting that on December 16, 2014, he used a telephone in or near Lashmeet to help carry out a drug transaction with an informant. Shortly after the telephone conversation, Young distributed hydromorphone to the informant. Young faces up to four years in prison and a $250,000 fine when he is sentenced on November 3, 2015.
Aree Lumpkins, 19, of Bluefield, also pleaded guilty to use of a communications facility to facilitate a felony. He admitted that on October 30, 2014, he used a telephone in Bluefield to help set up a drug transaction with an informant. After the telephone conversation, he distributed cocaine base and hydromorphone to the informant. Lumpkins faces up to four years in prison and a $250,000 fine. His sentencing is scheduled for November 3, 2015.
The hearings in all the cases were conducted by Senior United States District Judge David A. Faber.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force in Bluefield under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates--including illegal painkillers and heroin--in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Two Lords Amongst Warriors Motorcycle Club Members Plead Guilty in Federal CourtRead the Press Release
PITTSBURGH – Two Allegheny County residents pleaded guilty to a variety of offenses in federal court before Chief U.S. District Judge Joy Flowers Conti in Pittsburgh yesterday, U.S. Attorney David J. Hickton announced today.
Defendants Scott Kulikowski, 40, of Pittsburgh, PA, and Christopher Levy, 31, of Pittsburgh, PA, pled guilty to offenses resulting from a multi-agency investigation of them, Raymond Kober, and their associates in a motorcycle club called The Lords Amongst Warriors, or The LAW.
Kulikowski and Levy pleaded guilty to conspiracy to commit a Hobbs Act Robbery and possession of a firearm in furtherance of a crime of violence. According to the information presented to the court, in an around September 2014, Raymond Kober, Kulikowski and Levy conspired to commit an armed robbery of a business located in the Strip District section of Pittsburgh. Wiretapped telephone calls revealed the conspiracy and local police and federal agents were able to respond moments before the robbery occurred. According to the information presented to the court, Levy was stopped by police as he was approximately two blocks away from the robbery location and was found to have a loaded firearm in his possession for use in the robbery.
Separately, Scott Kulikowski also pled guilty to conspiracy to distribute and possess with intent to distribute cocaine from in and around January, 2014, and continuing thereafter to on or about Jan. 12, 2015, in the Western District of Pennsylvania and elsewhere. The information presented to the court indicated that during the course of the conspiracy, Kulikowski conspired to obtain and sell cocaine with Raymond Kober, Jason Godek and other individuals.
Also separately, Christopher Levy pled guilty to possession of firearms by a person who was prohibited from possessing firearms pursuant to a court order. According to the information presented to the court, Levy was prevented from possessing firearms due to an active protection from abuse order however, agents found him in possession of a firearm during the above-noted robbery as well as during a search of Levy’s residence on Jan. 12, 2015.
Judge Conti scheduled sentencing for Kulikowski and Levy for Oct. 16, 2015. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Internal Revenue Service–Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Allegheny County District Attorney’s Narcotics Enforcement Team and the Pittsburgh Bureau of Police conducted the investigation leading to the indictments in this case. This investigation was made possible through the Organized Crime Drug Enforcement Task Force program, a federal program designed to direct federal funds, and federal and local resources, at large scale, multi-jurisdictional drug investigations.
Two Clarksburg residents sentenced for heroin trafficking near local playgroundsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Whitney M. Golden, 25, and Al-Teric Garrett, 33, both of Clarksburg, West Virginia, were sentenced in federal court today for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.Garret was discovered in possession of heroin in December 2014 near the Clarksburg City Park – Broadway Avenue Playground in Harrison County, West Virginia. He pled guilty in March 2015 to one count of “Possession with Intent to Distribute Heroin Within 1,000 Feet of a Protected Location.” He was sentenced today to 51 months in prison with credit for time served since December 2014.
Golden was discovered in possession of heroin in December 2014 near the Clarksburg City Park – Monticello Avenue Playground in Harrison County, West Virginia. She pled guilty in March 2015 to one count of “Aiding and Abetting the Possession with Intent to Distribute Heroin Within 1,000 Feet of a Protected Location.” She was sentenced today to 16 months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated both defendants.
U.S. District Judge Irene M. Keeley presided.
Tucumcari Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Alexander Page, 27, of Tucumcari, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Page will be sentenced to federal prison not to exceed 30 months followed by a term of supervised release to be determined by the court.
Page and his co-defendants, Michael Montoya, 36, Brian Acuna, 23, and Dianna Hernandez-Trujillo, 24, all of Clovis, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. Count 1 charged Page and his co-defendants with conspiracy to distribute methamphetamine in Curry County between Oct. 2007 and Nov. 2013. Count 2 charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County. Count 3 charged Montoya, Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County. Count 4 charged Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Count 5 charged Montoya with attempting to purchase a residence with money derived from a drug trafficking activity on Sept. 22, 2010, in New Mexico. Count 6 charged Acuna with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
During today’s proceedings, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a Socorro County Sheriff’s Deputy on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the Deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs.
Page remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Acuna pled guilty on June 26, 2014, to Counts 1 and 3 of the indictment, charging him with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. He also pled guilty to Count 6 of the indictment, charging him with using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection.
At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Montoya and Hernandez-Trujillo have entered not guilty pleas to the indictment. Montoya is pending trial and Hernandez-Trujillo is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Socorro County Sheriff’s Office. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Three Sentenced to Federal Prison for Filing Fraudulent Income Tax ReturnsRead the Press Release
ATLANTA – Three members of a local fraud ring—Rodney Henry, Tony Lamar Watkins, and Phyllis Grant—have been sentenced to federal prison for conspiring to defraud the United States by filing bogus income tax returns using stolen identities. The trio stole more than $800,000, all in the form of fraudulent tax refunds.
“Phony refund schemes that use stolen identities hurt the people whose names and personal information were illegally used, and honest taxpayers throughout the country who foot the bill for the fraud,” said Acting U.S. Attorney John Horn. “Identity theft remains a top priority of this office and will continue to be a priority until we end the victimization of our citizens through their stolen personal identities.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “These sentences should serve as a strong message that there are consequences for stealing and using other individual’s personal identifying information.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Rodney Henry, Tony Watkins, and Phyllis Grant worked together to use stolen identities to file federal income tax returns. Henry filed the tax-returns, which sought more than $1.9 million in refunds. Watkins assisted in the scheme by retrieving refund checks from mailboxes, forging signatures on the checks, withdrawing refunds from debit cards, and bringing checks to locations where they would be cashed. Grant opened two mailboxes for their scheme in Mableton, Georgia, and one in East Point, Georgia. She also provided Henry with some of the identities he used on the returns.
All defendants were sentenced by U.S. District Judge William S. Duffey, Jr., as follows:
- Rodney Henry, 43, of Atlanta, Georgia, has been sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $895,699.28. Henry was convicted on this charge, as well as a charge of aggravated identity theft, on May 22, 2014, after he pleaded guilty.
- Tony Lamar Watkins, 49, of College Park, Georgia, has been sentenced to four years, seven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $824,121.28. Watkins was convicted on this charge on May 23, 2014, after he pleaded guilty.
- Phyllis Grant, 52, of Decatur, Georgia, has been sentenced to one year, two months in prison to be followed by three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $770,231.00. Grant was convicted on this charge after a jury found her guilty on March 12, 2015.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Christopher C. Bly prosecuted the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Ten Individuals Sentenced in Operation "Battle of Honey Springs"Read the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced the sentencings of 11 defendants in federal court.
The following were sentenced to Drug Conspiracy, in violation of Title 21, United States Code, Section 846:
MICHAEL A. METZKER, a/k/a "LURCH", age 37, of Checotah, Oklahoma, was sentenced on May 27, 2015, to 281 months imprisonment, followed by 5 years of supervised release.
MICHAEL W. METZKER, a/k/a "CHIC", age 59, of Checotah, Oklahoma, was sentenced on June 30, 2015, to 120 months imprisonment, followed by 5 years of supervised release.
MARGARET CASEY, age 46, of Checotah, Oklahoma, was sentenced on June 30, 2015, to 78 months imprisonment, followed by 5 years of supervised release.
JACKIE DALE BRUMLEY, age 45, of Noble, Oklahoma, was sentenced on July 1, 2015 to 168 months imprisonment, followed by 5 years of supervised release.
CORNELL TYLEIZ HARVEY, age 30, of Oklahoma City, Oklahoma, was sentenced to 120 months imprisonment, followed by 5 years of supervised release.
SUNNY ANN MARTINEK, age 39, of Norman, Oklahoma, was sentenced on July 1, 2015 to 70 months imprisonment, followed by 5 years of supervised release.
Those sentenced for Conspiracy, in violation of Title 18, United States Code, Section 371 are as follows:
DEREK PARK, age 32, of Checotah, Oklahoma, was sentenced on June 30, 2015, to 60 months imprisonment, followed by 3 years of supervised release.
SHAWNA VANZANT, age 33, of Henryetta, Oklahoma, was sentenced on June 30, 2015, to 46 months imprisonment, followed by 3 years of supervised release.
SCOTT WESLEY DUNCAN, age 39, of Oklahoma City, Oklahoma, was sentenced on July 1, 2015, to 46 months imprisonment, followed by 3 years of supervised release.
LACEY RENEE PARK, age 31, of Checotah, Oklahoma, was sentenced on July 1, 2015, to 121 months imprisonment, followed by 4 years of supervised release, for Possession with Intent to Distribute 50 grams or more of a Methamphetamine mixture, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(a)(1)(B) and Title 18, United States Code, Section 2.
The Indictment filed on June 11, 2014, alleged that beginning in or about April 2013, up to and including April, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute Methamphetamine.
Michael A. Metzker, a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma. Upon release from incarceration up to and including April 14, 2014, Michael A. Metzker and his coconspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. All defendants were remanded into the custody of the United States Marshal Service pending transportation to the designated federal facility in which they will serve their nonparolable sentences.
Assistant United States Attorney Shannon Henson represented the United States.
South Carolina Man Sentenced to Eight Years in Prison for Shooting a DEA Special AgentRead the Press Release
Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house. Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.
“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”
“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.
On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.
Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.
Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina. He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days. On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.
Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
South Carolina Man Sentenced to Eight Years in Prison for Shooting a DEA Special AgentRead the Press Release
Contact Person: Bob Page (404) 581-6016
Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house. Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.
“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”
“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.
On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.
Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.
Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina. He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days. On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.
Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
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Second Defendant Pleads Guilty; Admits His Role in Complex Scam to Steal Southern California HomesRead the Press Release
SAN DIEGO – Norwegian businessman Mohamed Daoud has pleaded guilty to laundering the proceeds of a complex scheme to steal real property.
According to his plea agreement, between July 2012 and February 2013, Daoud helped to launder some of the millions of dollars in proceeds generated by a group of confederates who posed as the real owners of Southern California homes in order to “sell” the properties to unsuspecting buyers – who later learned that they had actually purchased nothing. Immediately after each sale, Daoud admitted, the confederates would disburse the money, ensuring that the funds vanished and the buyers could not recover their stolen money.
During his guilty plea, Daoud admitted that he worked with a co-conspirator who used Daoud’s company, “Norway LLC,” as well as other business names, to pretend to acquire title to properties. The co-conspirator created fake deeds that made it appear the true owners had transferred the property to these companies, when in fact, the deeds were just forgeries, and the true owners had never really deeded the properties to anyone. He then arranged to have the forged deeds and other official documents recorded at the county recorder’s offices, so that the title records would make it appear that he was the property owner.
The confederates used a complex web of aliases and fake identities in order to shield themselves and protect the proceeds of the scheme. They diverted the proceeds of each transaction to bank accounts held in the name of fake businesses, then distributed the money further to conceal and disguise the location of the proceeds. Daoud admitted that during his participation in the money laundering conspiracy, his confederates induced at least six different buyers to purchase properties they did not own, leaving them with worthless claims to title and generating at least $1.4 million in proceeds from the fraud. Daoud received approximately $270,000 of the proceeds.
Another co-schemer, Daniel Deaibes, pleaded guilty in March 2015 to participating in the fraud. Deaibes admitted that he and others continued to operate the scheme until November 2014 (when Daoud, Deaibes, and another co-defendant were each indicted and arrested). In total, Daoud and Deaibes have admitted that they and their confederates fraudulently sold or attempted to sell at least 13 homes for more than $3 million.
As Deaibes admitted during his guilty plea, the schemers even took steps to thwart efforts by the true owners to regain clean title to the properties. In one instance, true owner Fannie Mae discovered that a fraudulent grant deed had been recorded on a property it owned in Rowland Heights, California. Shortly after discovering the fraudulent deed, Fannie Mae filed a lawsuit to recover control over the property and notify prospective buyers of the fraudulent deed. Undeterred, the schemers created a fake “Withdrawal of Lis Pendens” in an effort to proceed with the fraudulent sale. When Fannie Mae won a judgment in its favor and obtained a court finding that the deed was fraudulent, they created a fake “Satisfaction of Judgment” and recorded that fraudulent document as well.
Deaibes also admitted that he used the alias “John Moran” to pose as the seller’s representative in several of the fraudulent sales. He introduced himself as “Moran” and presented a fake driver’s license to two different notaries in 2014. Deaibes admitted that he signed fraudulent documents using this alias in an effort to sell or encumber properties that belonged to unsuspecting owners.
Most of these properties were actually owned by Fannie Mae and Freddie Mac -- government sponsored enterprises with a mission to provide liquidity, stability, and affordability to the United States housing and mortgage markets. As part of their mission, Fannie Mae and Freddie Mac purchase residential mortgages in the secondary market, enabling lenders to replenish their funds to finance additional single family loans. Fannie Mae and Freddie Mac can become the property owners if they own the mortgage loan at the time a home is foreclosed.
U.S. Attorney Laura E. Duffy commented, “The Department of Justice and our law enforcement partners are committed to protecting the recovering housing market from those who misuse the process to commit fraud. We will act aggressively to root out these invidious schemes and to protect the public’s confidence in the security of their most important investment, their homes.”
Leslie P. DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General, said: “Mohamed Daoud will be held responsible for his role in a scheme that has caused loss to innocent victims and also worked to undermine the recovery of the housing market. FHFA-OIG will continue to work aggressively with our law enforcement partners to root out fraudsters and protect the taxpayers and unwitting victims in the housing market.”
Eric S. Birnbaum, FBI Special Agent in Charge in San Diego, commented, “The FBI is committed to working with our law enforcement partners in identifying, disrupting and dismantling complex fraudulent schemes that undermine our economy. Today's conviction is an example of the collective efforts of the FBI and our partners to hold accountable those individuals that seek to steal money from taxpayer funded programs.”
Erick Martinez, Special Agent in Charge, IRS – Criminal Investigation, said, “These types of real estate fraud schemes perpetuated on an unsuspecting public are very damaging to our economy. IRS-CI and our law enforcement partners are committed to protecting the integrity of our recovering housing market and the financial system. IRS-CI has the financial investigators and expertise to uncover these complex fraudulent transactions and follow the money trail to expose money laundering activities by these criminals.”
Daoud’s sentencing is set for September 28 at 9:00 am before U.S. District Judge Cynthia Bashant.
Daoud was arrested at Los Angeles International Airport as he prepared to depart for his home country of Norway. Deaibes and another co-defendant, Mazen Alzoubi, were arrested in November 2014 in a related case and charged with mail fraud. Deaibes is scheduled to be sentenced on August 31, 2015. No trial date has yet been set in Alzoubi’s case.
The investigation into this fraud scheme is continuing. Anyone with information relating to these charges or similar scams is encouraged to contact the San Diego FBI Field Office, (858) 320-1800 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
DEFENDANT Case Number: 14CR3326-BAS Mohamed Daoud Age: 50 Norway CHARGESConspiracy to launder money, in violation of 18 U.S.C. § 1956(h)
DEFENDANTS PREVIOUSLY CHARGED Mazen Alzoubi, 14CR3325-BAS Age: 31 Rancho Cucamonga, California Daniel Deaibes, 14CR3325-BAS Age: 36 Rancho Cucamonga, California CHARGE
Maximum Penalties: 20 years’ imprisonment, $500,000 fine or twice the value of the property involved in the transaction, $100 special assessment, restitution.Mail fraud, 18 U.S.C. § 1341
INVESTIGATING AGENCIESFederal Housing Finance Agency – Office of Inspector General
Federal Bureau of Investigation
Internal Revenue Service – Criminal InvestigationsAs to defendant Mazen Alzoubi, the public is reminded that the charges are not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Santa Fe Woman Sentenced to Probation for Violating the Federal Marijuana LawsRead the Press Release
ALBUQUERQUE – MaryAnn DeStefano, 54, of Santa Fe, N.M., was sentenced today in federal court to five years of probation for participating in a marijuana trafficking conspiracy.
DeStefano’s co-defendants, Ashraf Nassar, 31, Phillip Anaya, 38, Daniel Trujillo, 32, Krystal Holmes, 29, and Sarah Romero, 36, are five Santa Fe residents charged with participating in an Oxycodone trafficking ring in a 16-count indictment that was filed in Sept. 2013. The indictment subsequently was superseded in Oct. 2013, to add Santa Fe resident Clarence Lee Cline, II, and DeStefano, and five new charges including conspiracy to distribute marijuana, manufacturing marijuana, and maintaining a place for the purpose of manufacturing marijuana.
Nassar, Anaya, Trujillo, Holmes and Romero were arrested in Sept. 2013 as part of a multi-agency law enforcement operation that included the execution of search warrants at three residences and a business in Santa Fe. The investigation, “Operation High Desert Bash,” was initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, N.M., the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults.
Operation Desert Bash investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming. Officers seized approximately 7300 mg of Oxycodone during the investigation.
Count 1 of the 21-count superseding indictment charged the Nassar, Anaya, Trujillo, Holmes and Romero with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 charged Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, Nassar, Anaya, Trujillo, Holmes and Romero were charged with using telephones to facilitate drug trafficking crimes in Counts 5 through 17. Count 18 charged Nassar, Cline and DeStefano with conspiracy to distribute marijuana. Counts 19 through 21 charged Cline and DeStefano with conspiracy to distribute marijuana, conspiracy to maintain a place for the purpose of manufacturing marijuana, and maintaining a place for the purpose of manufacturing marijuana.
On March 27, 2015, DeStefano pled guilty to Counts 18 through 21 of the superseding indictment and admitted that between Jan. 2, 2013 and Sept. 26, 2013, she was involved in a conspiracy to manufacture and distribute marijuana in Santa Fe. DeStefano admitted that she and Cline grew marijuana in the home owned by Cline in Santa Fe.
All but one of DeStefano’s co-defendants has entered guilty pleas:
- Anaya pled guilty on Nov. 19, 2014, and was sentenced on April 9, 2015, to 46 months in prison followed by three years of supervised release.
- Trujillo pled guilty on Jan. 30, 2015, and was sentenced on April 2, 2015, to 18 months in prison followed by three years of supervised release.
- Romero pled guilty on Oct. 28, 2014, and was sentenced on March 26, 2015, to 18 months in prison followed by three years of supervised release.
- Holmes pled guilty on May 26, 2015 and Nassar pled guilty on June 2, 2015. Their sentencing hearings have yet to be scheduled.
Cline has entered a plea of not guilty and is awaiting trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Sand Springs Residents Settle Trespass and Destruction of Keystone Lake Public Property ClaimsRead the Press Release
TULSA, Okla.—Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma, announced today that Robin Beaty and David Hester have paid $20,000 in civil penalties to settle allegations of trespass and destruction of public property. The Hesters own residential property on Keystone Lake adjacent to property owned by the United States and maintained by the United States Army Corps of Engineers.
According to the allegations, from July 10, 2013 to April 9, 2015, despite repeated cessation requests from the U.S. Army Corps of Engineers, the Hesters placed dirt and debris from the construction of their home on government property, stored heavy construction equipment owned by Mr. Hester’s company, HLH Realty Co., on government property and removed government boundary markers. Additionally, the United States alleged that the Hesters operated heavy equipment on government property which destroyed ground cover and left gouges on the land caused by the tracks of the equipment.
For wrongful injuries to timber upon the land of another, or removal thereof, Oklahoma law provides for not less than three times, nor more than ten times actual damages, plus costs and attorney’s fees. Oklahoma law also provides that the detriment caused by the wrongful occupation of real property is deemed to be the value of the use of the property for the time of such occupation and the costs of recovering the possession.
The case was handled by Assistant United States Attorney Marianne Hardcastle and Assistant District Counsel for the Army Corps of Engineers, Alexandria Tramel and Jason Chester.
Roswell Man Sentenced to 60 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Dominic A. Sedillo, 24, of Roswell, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. He will be on supervised release for four years after completing his prison sentence.
Sedillo was arrested on Jan. 24, 2014, in Roswell on a two-count indictment charging him with distributing methamphetamine in Eddy County, N.M., on April 25, 2013 and June 5, 2013.
On Feb. 27, 2015, Sedillo pled guilty to both counts of the indictment without the benefit of a plea agreement. In entering his guilty plea, Sedillo admitted selling 24 grams of methamphetamine in exchange for $1,200.00 in April 2013, and selling 58.8 grams of methamphetamine in change for $3,000.00 in June 2013. Both transactions occurred in Artesia, N.M.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Man Pleads Guilty to Enticing A MinorRead 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 Roger Eric Powell, 48, of Rochester, NY, pleaded guilty to enticement of a minor using a means and facility of interstate commerce before U.S. District Judge Elizabeth Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between January 2014 and January 2015, Powell used the Internet and a cellular telephone to communicate with a female who was under the age of 14 to entice the minor to engage in sexual activity with him. Specifically, the defendant used Facebook messenger to engage in sexually explicit chats with the minor. The communications led to Powell meeting with the minor to engage in sexual activity.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing is scheduled for October 6, 2015 at 1:30 p.m. before Judge Wolford.
Ringleader of $5 Million ATM Skimming Scheme Sentenced to More Than 10 Years in PrisonRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden and extradited to the United States was sentenced today to 121 months in prison for directing a large-scale scheme that stole bank account information through a process commonly referred to as “ATM skimming,” in which conspirators secretly installed card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 32, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of a superseding indictment, conspiracy to commit bank fraud, and Count Two, aggravated identity theft. Judge Martini imposed the sentence today in Newark federal court.
In July 2013, as federal agents in New Jersey arrested various members of his large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden and subsequently extradited to the United States. Vintila has been held without bail since his arrival in the United States in February 2014.
According to documents filed in this and other cases and statements made in court:
Vintila was the ringleader of an extensive ATM skimming scheme that targeted thousands of bank customers and defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million.
Vintila and his conspirators constructed sophisticated card-reader devices capable of reading and storing customers’ bank account information as the customers performed routine bank transactions at ATMs. Vintila and his conspirators also concealed pinhole cameras in panels designed to match existing ATM components. Vintila then taught and directed several conspirators to install the devices on ATMs. Once installed, the card-reader devices secretly read identity and account information contained on the magnetic strip of customer ATM cards. The pinhole cameras recorded customer keystrokes as they entered their personal identification numbers.
After the account information was stolen, Vintila and his conspirators used the stolen data to create thousands of fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles and rent multiple self-storage units where he stored skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila also provided other conspirators with fake passports and aliases to use in furtherance of the scheme.
In addition to the prison term, Judge Martini ordered Vintila to serve two years of supervised release and pay restitution of $7,447,270.50. Of the 16 people charged in this scheme, 13 have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
Defense Counsel: Brian Neary Esq., Hackensack, New Jersey
Prior Felon from Carlsbad Sentenced to 57 Months for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Eduardo Lerma, Jr., 32, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 57 months in prison for being a felon in possession of a firearm and for violating the terms of his supervised release on a prior federal conviction. Lerma will be on supervised release for three years following his term of incarceration.
Lerma was arrested in Aug. 2014, by the Bureau of Alcohol, Tobacco, Firearms and Explosives on a criminal complaint alleging that he unlawfully possessed a firearm on Aug. 14, 2014, in Eddy County, N.M. Lerma subsequently was indicted on that same charge on Nov. 12, 2014. According to court filings, Lerma was prohibited from possessing firearms because he previously had been convicted of two drug trafficking crimes and receiving a stolen firearm.
On Feb. 13, 2015, Lerma entered a plea of guilty to the indictment charging him with being a felon in possession of a firearm. He also admitted violating the conditions of his supervised release on a prior federal conviction. In entering his guilty plea, Lerma admitted being in possession of two rifles on Aug. 14, 2014. Lerma also acknowledged that he was prohibited from possessing firearms because he was a convicted felon and by the conditions of his supervised release.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the HITDA Region VI Pecos Valley Drug Task Force, the Carlsbad Police Department, and the Eddy County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Previously Convicted Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – Shaun Valente, age 30, of Montgomery Village, Maryland, pleaded guilty today to distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS).
According to Valente’s plea agreement, from at least March 2013 through September 2014, Valente used his computer to distribute and to receive child pornography. On February 26, 2014, Dropbox, an online storage platform, reported to the National Center for Missing and Exploited Children (NCMEC) that images documenting the sexual abuse of minors had been uploaded to Valente’s Dropbox account. Valente admitted that he also received and distributed images depicting minors engaged in sexually explicit conduct through email.
On September 12, 2014, HSI Special Agents executed a search warrant at Valente’s residence and seized a notebook computer, cellular phone and flash drives that contained more than 4,000 images and 175 videos depicting children engaged in sexually explicit conduct. The child pornography included images of prepubescent children, and material that portrayed sadistic or masochistic conduct, or other depictions of violence.
According to his plea agreement, on March 22, 2005, Valente was convicted in Montgomery County Circuit Court for sexual abuse of a minor and a child pornography offense, for which he was sentenced to four years in prison, with all but 18 months suspended.
As part of his plea agreement, Valente must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Valente and the government have agreed that if the Court accepts the plea agreement Valente will be sentenced to 198 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 19, 2015 at 9:00 a.m. Valente remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Joseph R. Baldwin, who are prosecuting the case.
Pleasant Hill Resident Sentenced to Twenty Years on Federal Child Pornography ChargesRead the Press Release
DES MOINES, IA – On July 1, 2015, Corey Lee Steffen, 37, of Pleasant Hill, Iowa, was
sentenced by U.S. District Court Judge James Gritzner to a 240 month term of imprisonment on
federal child pornography charges, announced U.S. Attorney Nicholas A. Klinefeldt. Judge
Gritzner also sentenced Steffen to 10 years of supervised release after completion of the term of
imprisonment, and Judge Gritzner ordered Steffen to forfeit the computer equipment he used to
commit the crime.
Steffen was caught in 2012 at the Pleasant Hill Public Library using its internet
connection to collect and distribute child pornography on his laptop computer. A forensic
analysis of his computer by law enforcement revealed he had illegally engaged in numerous sex
acts with a 14 year old Minnesota girl in 2010, and video recorded it. He also distributed some
of the videos to a friend in Nevada.
“Our Internet Crimes Against Children Task Force is a partnership of local, state, and
federal authorities who work together to take child abusers like Mr. Steffen out of commission,”
explained U.S. Attorney Nick Klinefeldt. “Protection of children is of critical importance to
national and Iowa law enforcement authorities, and our partnership with law enforcement
agencies like the Pleasant Hill Police Department is invaluable.”
The case was investigated by the Pleasant Hill, Iowa, Police Department, the Iowa
Crimes Against Children Task Force, the Iowa Division of Criminal Investigation, and the
Faribault, Minnesota, Police Department.
The case was prosecuted by the United States Attorney’s Office for the Southern District
of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which
was started in 2006 as a nation-wide effort to combine law enforcement investigations and
prosecutions, community action, and public awareness in order to reduce the incidence of sexual
exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call
the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Panel that will select the Community Police Commission announcedRead the Press Release
Mayor Frank G. Jackson and U.S. Attorney Steven M. Dettelbach announced today the appointment of an 11-member selection panel that will have the duty to appoint 10 representatives to the City of Cleveland Community Police Commission, as detailed in the agreement between the City of Cleveland and the U.S. Department of Justice.
“I have confidence in this panel to accomplish their goal of selecting qualified members for the Community Police Commission and to keep the city on track as we continue down the Road to Reform,” said Mayor Jackson.
“It is now time for this impressive panel to independently select 10 members of Cleveland's first-ever Community Police Commission, said U.S. Attorney Dettelbach. “Looking at the commitment, diversity and accomplishments of this group, I have every confidence that they will pick a panel that will serve the people well. I hope Cleveland's best and brightest will follow this group's lead and apply to serve.”
The Community Police Commission will be comprised of 13 members, 10 selected by the newly formed selection panel and three selected by City of Cleveland police unions. The Community Police Commission will make recommendations to the Chief of Police and the City, including the Mayor and City Council, on policies and practices related to community and problem-oriented policing, bias-free policing and police transparency.
The members of the selection panel are:
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- Eugenia Cash, Chair, Alcohol Drug Addiction and Mental Health Services Board of Cuyahoga County
- Gabriella Celeste, Director, Case Western Reserve University Schubert Center for Child Studies
- Rev. Dr. Jawanza Colvin, Pastor, Olivet Institutional Baptist Church
- Colleen M. Cotter Esq., Executive Director, Legal Aid Society
- Rev. Jimmy Gates, Pastor, Zion Hill Missionary Baptist
- Anita Gray, President/CEO, Anti-Defamation League
- Phyllis Seven Harris, Executive Director, LGBT Center of Greater Cleveland
- Dr. Alex Johnson, President, Cuyahoga Community College
- Ronald B. Richard, President/CEO, The Cleveland Foundation
- Victor A. Ruiz, Executive Director, Ezperanza Inc.
- Timothy L. Tramble, Executive Director, Bell-Burten-Carr Development Corporation
The selection panel will ensure that members of the Community Police Commission include one representative from faith-based organizations, civil-rights advocates, the business/philanthropic community, organizations representing communities of color, advocacy organizations, youth or student organizations, academia and individuals with expertise in the challenges facing people with mental illness or the homeless. Additionally, the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield will each select a representative to serve on the Commission.
“We are honored to be part of the selection panel and look forward to getting to work,” stated the members in a joint statement. “We embrace our role in building community trust and engagement, and encourage a diverse pool of people to consider applying to serve on the Community Police Commission. We plan to regularly update the public on our progress, beginning with a public meeting in the near future in which we will explain the application process and the role of the Commission.”
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Navajo Man from Magdalena, N.M., Sentenced to 25 Years in Federal Prison for Sexually Abusing Four ChildrenRead the Press Release
ALBUQUERQUE – Chris Apachito, 41, an enrolled member of the Navajo Nation who resides in Magdalena, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 25 years in prison for sexually abusing four minor females over a twenty-one-year period. Apachito will be on lifetime supervised release after completing his prison sentence. He also will be required to register as a sex offender after completing his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
“The defendant in this case sexually abused at least four children over the course of two decades, displaying an utter disregard for human decency and the law. The victims demonstrated remarkable courage by bravely reporting the defendant’s crimes and helping to bring an end to a sexual predator’s abusive actions,” said U.S. Attorney Damon P. Martinez. “I commend the FBI agents, the Navajo Nation’s tribal officers and the prosecutors for working together to protect our tribal communities. It is only through cooperative efforts like this that we can keep sexual predators away from our children.”
“I commend our tribal officers, the FBI and the U.S. Attorney's Office for their excellence and hard work on this case. The facts giving rise to this case are very unfortunate, and our prayers are with the victims and their families,” said Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Apachito was arrested on Nov. 21, 2014, on an indictment charging him with sexually abusing a child under the age of 16 from May 2012 through Jan. 2014. The indictment alleged that Apachito violated the victim in locations within the Navajo Indian Reservation in Socorro County, N.M.
On March 26, 2015, Apachito entered a guilty plea to a felony information charging him with having unlawful sexual contact with four children between 1991 and 2012. In entering his guilty plea, Apachito admitted sexually molesting an eight-year-old child and a six-year-old child between Sept. 1991 and Oct. 1991. He also admitted sexually molesting a 16-year-old child in March 2006, and a 13-year-old child between May 2012 and Sept. 2012. Apachito committed these crimes in Alamo, N.M., which is within the Navajo Indian Reservation.
This case was investigated by the Albuquerque office of the FBI and the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorneys Kristopher N. Houghton and Niki Tapia-Brito as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Monroe man sentenced to 72 months in prison for drugs, weapons chargesRead the Press Release
MONROE La. – United States Attorney Stephanie A. Finley announced that a Monroe man was sentenced Monday to 72 months in prison for possession with intent to distribute marijuana and possession of a firearm in relation to drug trafficking.
Edward A. Jordan, 49, of Monroe, was sentenced by U.S. District Judge Robert G. James on one count of possession of marijuana with intent to distribute and one count of possession of a firearm in relation to drug trafficking. He was also sentenced to five years of supervised release. According to evidence presented at the March 27, 2015 guilty plea, law enforcement searched Jordan’s residence on May 20, 2013 after receiving tips that distribution of marijuana and prescription pills were taking place. The search yielded a sizeable amount of marijuana, drug paraphernalia, prescription pills, a loaded Hi-Point 9mm carbine, 27 rounds of live ammunition and $1,102.
The ATF and the Ouachita Parish Sheriff’s Office Special Crimes Apprehension Team conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Monroe grocery store owner, workers sentenced for $7 million SNAP/WIC benefits fraud conspiracyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Monroe grocery store owner and workers were sentenced Monday for their roles in a $7 million scheme to exchange SNAP and WIC benefits to customers for cash and ineligible items.
Kimberlia Harris, 46, of Monroe, was sentenced to 51 months in prison and three years of supervised release, and was ordered to pay $7 million in restitution; Angela Woods, 28, of Monroe, was sentenced to five years of probation and ordered to pay $848,633 in restitution; and Willie Mae Woods-Jackson, 43, of Dallas, was sentenced to five years of probation and ordered to pay $337,220.76 restitution for one count of criminal conspiracy by U.S. District Judge Robert G. James. Juanita Woods, 38, of Monroe, was also sentenced by Judge James to five years of probation and ordered to pay $209,878 restitution for one count of theft of government money. According to evidence presented at the guilty pleas, the defendants conspired to provide customers cash and ineligible items for their Supplemental Nutrition Assistance Program (SNAP) benefits and Women Infant and Children (WIC) program benefits from August 2008 to early 2014 at Dee’s Grocery Store in Monroe where Harris was the owner, Angela Woods was a manager and cashier, Woods-Jackson was a cashier, and Juanita Woods was a cashier. During the time the scheme took place, they acquired approximately $7 million.
“This benefit program was set up to help those most in need in our communities and not as a cash grab for people seeking to make a quick buck,” Finley stated. “Business owners have a responsibility to administer these federal programs honestly and fairly. Not doing so will result in prosecution.”
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Monroe County Man Sentenced on Heroin Trafficking and Firearms Charges and A Second Man Enters Guilty PleaRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today to 37 months’ imprisonment by Senior United States District Judge Edwin M. Kosik for heroin trafficking and firearms charges and a second man involved in the same case pleaded guilty.
According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, pleaded guilty in January 2015 to the charges of possession with intent to distribute heroin and being a convicted felon in possession of firearms. Crawford and Harry Rivera, age 39, of East Stroudsburg, were indicted by a grand jury in Scranton in November 2014.
The charges stemmed from an incident on June 17, 2014, in Monroe County, in which investigators found approximately 97 grams of heroin in a hidden compartment in a vehicle in which Crawford and Rivera were travelling. Police also seized a Glock pistol and a Smith &Wesson rifle after a search of Crawford’s residence in Marshall’s Creek. Crawford, who was previously convicted of a felony offense, is prohibited by law from possessing a firearm.
Senior Judge Kosik also ordered that Crawford be supervised by a probation officer for three years following his release from prison.
Rivera pleaded guilty today before Senior Judge Kosik to the charge of aiding the possession with intent to distribute heroin. The guilty plea was pursuant to a plea agreement filed by the government in June 2015.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
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Monmouth County, New Jersey, Nursery School Teacher and Camp Counselor Charged with Receiving Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey man was arrested this morning on charges that he received images of child sexual abuse on his home computer, U.S. Attorney Paul J. Fishman announced.
James Paroline, 26, of Red Bank, New Jersey, an assistant at a nursery school (School 1) and as a summer camp counselor at a private school (School 2), both located in Monmouth County, New Jersey, is charged by complaint with two counts of receiving images of child pornography over the Internet. He appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained pending a bail hearing scheduled for July 9, 2015.
According to the criminal complaint and statements made in court:
On March 1, 2015, and March 2, 2015, Paroline downloaded videos and images depicting child sexual abuse from “Website A,” an online bulletin board and website dedicated to the advertisement and distribution of child pornography. Law enforcement officers discovered the images and videos downloaded from the website, and the recipient’s username and IP address were traced back to Paroline’s residence. His home was searched today and numerous images and videos containing child pornography were found on computer equipment belonging to Paroline.
Each count of receiving child pornography over the Internet carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest. He also thanked the Red Bank Police Department, under the direction of Chief of Police Darren McConnell, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Kentucky Doctor Sentenced to Prison for Tax Fraud for Claiming Millions in Fraudulent Business ExpensesRead the Press Release
A London, Kentucky, doctor was sentenced today to federal prison in the U.S. District Court for the Eastern District of Kentucky in London for filing false federal income tax returns that claimed millions in fictitious business expenses, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Dr. Visa Haran Sivasubramaniam, 44, was sentenced by U.S. District Judge Amul R. Thapar to serve two years in prison and one year of supervised release to be served in the county jail with work release involving providing services at a local medical clinic. At sentencing, Judge Thapar also ordered Sivasubramaniam to pay a fine of $100,000 and restitution of $4,532,777 to the Internal Revenue Service (IRS).
According to court documents, Sivasubramaniam owned and operated Hematology Oncology Physicians East (HOPE), a medical clinic where he offered oncology and hematology services. From 2007 through 2009, Sivasubramaniam earned more than $16 million in total income from HOPE. However, on his 2008 and 2009 personal and corporate income tax returns, Sivasubramaniam underreported his income and claimed millions in false and fictitious medical supply expenses. Over a three-year period, he claimed nearly $13 million in fraudulent business expenses. On Jan. 9, Sivasubramaniam pleaded guilty to two counts of filing false individual income tax returns.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Yael T. Epstein and Thomas Voracek of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Announces Settlement Agreement with Longview, Washington, Car Dealership to Protect Employment Rights of Military ApplicantsRead the Press Release
The Department of Justice announced today that it has reached a settlement with Bud Clary Chevrolet of Longview, Washington, to resolve a lawsuit it filed on behalf of Darrel Forney, a U.S. Navy Airman from Kelso, Washington. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it terminated Forney in January 2014, after learning of his intention to join the armed services. If approved by the court, the settlement will resolve the allegations that the defendant violated the employment rights of Forney.
Bud Clary Chevrolet is a multiple-location car dealership and service center based out of Longview. According to the department’s complaint, filed in the U.S. District Court for the Western District of Washington in Seattle, the dealership violated USERRA by terminating Forney from his position as a lube technician in its service department after learning that he intended to join the armed services. Forney initially intended to join the Navy Reserves, but after being terminated and unable to find other employment, he enlisted as an active duty Naval Airman. Forney is currently stationed in Pensacola, Florida. His family continues to reside in Kelso.
“The brave men and women who volunteer for our Armed Forces should never have to fear losing their job for signing up to protect our country,” said Acting Associate Attorney General Stuart F. Delery. “This settlement demonstrates the Department of Justice’s commitment to protecting service members from unlawful employment discrimination and we will continue to devote time and resources to these efforts.”
“No service member should have to make a choice between keeping his civilian job and serving his country,” said Vanita Gupta, Head of the Civil Rights Division. “The Civil Rights Division is committed to preserving the rights and privileges of those who, through their bravery and dedication, secure the rights and liberties of all Americans.”
“While our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “The men and women who serve in our military cannot be penalized for that decision. This case is another example of the United States Attorney’s Office’s commitment to enforcing the laws that protect the employment rights of those who serve our country.”
Under the terms of the settlement, embodied in a consent decree that has been submitted for approval to the federal district court in Seattle, the defendants must pay Forney $15,500 to compensate him for lost wages. Among other things, the settlement also requires the defendants to provide training to Bud Clary Chevrolet’s management and human resources staff on the USERRA rights and obligations of employers and covered employees, including USERRA’s prohibition on terminating employees based upon their application to the military.
The case was litigated by Assistant U.S. Attorney Christina Fogg of the Western District of Washington, in collaboration with Andrew Braniff, Special Counsel and USERRA/U.S. Attorney’s Office Program Coordinator, in the Civil Rights Division’s Employment Litigation Section.
The Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s website at www.justice.gov/crt/emp and www.servicemembers.gov as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm. The Justice Department also has a special website dedicated to protection of service members’ rights which can be found at www.justice.gov/opa/blog/acting-associate-attorney-general-stuart-f-delery-announces-servicemembers-and-veterans.
Justice Department Announces Settlement Agreement with Longview, Washington Car Dealership to Protect Employment Rights of Military ApplicantsRead the Press Release
WASHINGTON - The Department of Justice announced today that it has reached a settlement with Bud Clary Chevrolet of Longview, Washington to resolve a lawsuit it filed on behalf of Darrel Forney, a U.S. Navy Airman from Kelso, Washington. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it terminated Forney in January 2014, after learning of his intention to join the armed services. If approved by the court, the settlement will resolve the allegations that the car dealership violated the employment rights of Forney.
“While our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Annette L. Hayes. “The men and women who serve in our military cannot be penalized for that decision. This case is another example of the United States Attorney’s Office’s commitment to enforcing the laws that protect the employment rights of those who serve our country.”
Bud Clary Chevrolet is a multiple-location car dealership and service center based out of Longview, Washington. According to the department’s complaint, filed in the U.S. District Court for the Western District of Washington in Seattle, the dealership violated USERRA by terminating Forney from his position as a lube technician in its service department after learning that he intended to join the armed services. Forney initially intended to join the Navy Reserves, but after being terminated and unable to find other employment, he enlisted as an active duty Naval Airman. Forney is currently stationed in Pensacola, Florida. His family continues to reside in Kelso, Washington.
Under the terms of the settlement, embodied in a consent decree that has been submitted for approval to the federal district court in Seattle, the defendants must pay Forney $15,500 to compensate him for lost wages. Among other things, the settlement also requires the defendants to provide training to Bud Clary Chevrolet’s management and human resources staff on the USERRA rights and obligations of employers and covered employees, including USERRA’s prohibition on terminating employees based upon their application to the military.
“The brave men and women who volunteer for our Armed Forces should never have to fear losing their job for signing up to protect our country,” said Acting Associate Attorney General Stuart F. Delery. “This settlement demonstrates the Department of Justice’s commitment to protecting service members from unlawful employment discrimination and we will continue to devote time and resources to these efforts.”
“No service member should have to make a choice between keeping his civilian job and serving his country”, said Vanita Gupta, Head of the Civil Rights Division. “The Civil Rights Division is committed to preserving the rights and privileges of those who, through their bravery and dedication, secure the rights and liberties of all Americans.”
The case was litigated by Assistant U.S. Attorney Christina Fogg in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, Special Counsel and USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm. The Justice Department also has a special website dedicated to protection of service members’ rights. You can find the information here: www.justice.gov/opa/blog/acting-associate-attorney-general-stuart-f-delery-announces-servicemembers-and-veterans
Judge Sentences Southwest PA Man to 15 Years in Prison for Violating Federal Drug, Gun and Money Laundering LawsRead the Press Release
PITTSBURGH - A resident of Arnold and Lower Burrell, Pennsylvania, has been sentenced in federal court to 180 months (15 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Omali P. McKay, 29, a citizen of Trinidad who formerly resided in Lower Burrell, Pa., and in Arnold, Pa.
Last year, McKay was sentenced to 15 to 30 years’ imprisonment following his conviction in the Court of Common Pleas of Westmoreland County, Pennsylvania, for sexually abusing a child. Today, Judge Cercone ordered that 120 months (10 years) of the 180-month federal sentence must be served consecutively to McKay’s sentence in Westmoreland County, while the remaining 60 months of the sentence would run concurrently.
According to information previously presented to the court, McKay conspired with others from 2006 to Aug. 25, 2012, to distribute five to 15 kilograms of cocaine and 280 to 840 grams of crack cocaine. McKay obtained kilogram quantities of cocaine from out-of-state sources of supply and then cooked much of that cocaine into crack. He then sold cocaine and crack in small quantities to street-level distributors and drug users in order to maximize his profits.
Also, McKay admitted possessing with intent to distribute one kilogram of cocaine seized from his Lower Burrell residence on Aug. 25, 2012, while simultaneously possessing an assault rifle in furtherance of the drug crime. Specifically, on Aug. 25, 2012, search warrants were conducted at McKay's residences. In the master bedroom closet of the Lower Burrell residence, officers discovered more than one kilogram of cocaine, an assault rifle, approximately 3,000 rounds of ammunition, two ballistic vests, and $272,000 in cash hidden in a bag containing McKay's identification cards. Seized from the garage were a 2004 Mercedes Benz and a 2004 Lexus.
Finally, McKay admitted to conspiring with three others to launder his drug trafficking proceeds. He used those laundered funds to purchase the Lower Burrell residence for $243,000 in cash in August 2011. Specifically, between May and July 2011, McKay repeatedly provided sums of cash to three individuals who then deposited the cash into their respective bank accounts and wrote checks back to McKay. Some of checks were written to make them appear to be payments for services rendered from McKay's non-existent lawn care business. In total, $243,500 was laundered in this manner in a little more than a month and a half.
The Mercedes Benz, the Lexus, the $272,000 in cash, and the residence in Lower Burrell will be forfeited since they were proceeds of McKay’s drug trafficking activities.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Department of Homeland Security, the Drug Enforcement Administration, and the Lower Burrell Police Department for the investigation leading to the successful prosecution of McKay.
Joplin Business Owner Who Sold $1.1 Million of K2 Sentenced for Mail Fraud, Money LaunderingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Joplin, Mo., business was sentenced in federal court today for his role in a mail fraud conspiracy and to money laundering related to the sale of more than $1.1 million of synthetic marijuana, also known as K2.
Timmy J. Ridgway, 53, of Weir, Kan., was sentenced by U.S. District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Ridgway to forfeit to the government $285,949, which represents the proceeds of the mail fraud conspiracy, as well as his business property in Joplin, a residential property in Pittsburg, Kan., and $299,037 that was seized from his business and bank accounts.
On July 22, 2013, Ridgway pleaded guilty to distributing synthetic marijuana, also known as K2, at his business, The Looking Glass, 1860 W. 20th St., Joplin. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. Ridgway attempted to conceal his drug distribution by marketing K2 products as “incense” that was “not intended for human consumption.” In reality, however, the K2 products were intended for human consumption as a drug.
Ridgway obtained approximately $1,129,500 from the sale of approximately 94 kilograms of synthetic marijuana between December 2011 and March 2013. Ridgway deposited $830,467 into his bank accounts during that timeframe. Law enforcement seized $299,037 from Ridgway’s bank accounts on March 4, 2013.
According to court documents, Ridgway filled a vacuum created by the arrests of other distributors of K2 in the Joplin area. Effective law enforcement, which led to the arrests of his competitors, did not deter Ridgway’s criminal conduct. In fact, Ridgway’s profits skyrocketed between the summer of 2012 and March 2013.
On March 4, 2013, law enforcement officers executed a search warrant at The Looking Glass and seized approximately 615 packages of “Bizarro,” 268 packages of “Orgazmo,”and $7,575 in cash. The same day, approximately $123,512 was seized from two bank accounts.
The labels on these packages of synthetic marijuana stated that the contents were “incense” or “potpourri” and “not for human consumption.” However, Ridgway admitted that he distributed K2, which contained a controlled substance analogue, for human consumption.
K2 was delivered to The Looking Glass via United Parcel Service (UPS) and FedEx from distributors and manufacturers in Ohio and California on at least 80 occasions between Dec. 29, 2011, and March 4, 2013. Invoices seized from The Looking Glass recorded the delivery of and payment for 93,931.5 grams of synthetic marijuana.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Missouri State Highway Patrol, the Jasper County Drug Task Force and the Joplin, Mo., Police Department.
Home Health Agency Executive Director to Pay U.S. Government over $1 Million to Settle Civil ClaimsRead the Press Release
LEXINGTON – The executive director of a Lexington-based home health agency has agreed to pay the U.S. Government $1,082,416 to settle allegations that she provided unlawful compensation to physicians who referred patients to the agency.
Vicki S. House, a resident of Scott County, was the Secretary and an Executive Director of Nurses’ Registry and Home Health Corporation (“Nurses’ Registry”), an agency that provides home health services to patients throughout Central Kentucky.
According to the settlement agreement, from March 2006 through April 2010, House provided compensation to three local physicians who referred patients to Nurses’ Registry. Nurses’ Registry then submitted claims to Medicare seeking payment for the services it provided to the patients referred by these physicians. The U.S. Government contends that this conduct violated the Stark Law, which prohibits the submission of claims resulting from referrals from physicians to whom the agency has provided compensation.
“We intend to use every tool available to protect the taxpayers from those who abuse federal health care programs for personal gain,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Every dollar lost to fraud and abuse is a dollar that is unavailable to meet the needs of those who depend on Medicare for vital healthcare needs. We will continue to vigorously protect the interests of the United States in this litigation.”
Nurses’ Registry and the Estate of its former owner and Chief Executive Officer, Lennie G. House, are also defendants in the United States’ complaint that alleges False Claims Act violations.
This settlement only resolves the government’s claims against Vicki House; it does not resolve any allegations for False Claims Act violations against Nurses’ Registry or Lennie House’s Estate. Those defendants are scheduled for trial in August 2015. If they are found liable, Nurses’ Registry and Lennie House’s Estate will be liable for three times the amount of money Medicare paid the agency for false claims, and the agency would be excluded from further participation in federal health care programs.
The investigation was conducted by the Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the FBI; the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit; and the U.S. Attorney’s Office for the Eastern District of Kentucky. Assistant U.S. Attorneys Paul McCaffrey and Christine Corndorf represented the federal government in this case.
Fulton Fish Market Dealer and President Plead Guilty in Long Island to Fraud, Falsifying Federal Records, and Lacey Act ViolationsRead the Press Release
Lou’s Fish Market Inc , a federally-licensed fish dealer located in the Bronx, New York, and its company president, Mark Parente, of Englishtown, New Jersey, pleaded guilty today in federal court in Central Islip, New York, to federal felonies stemming from their role in systematically covering up purchases of illegal fluke (summer flounder), scup and black sea bass that were being harvested in violation of the federal Research Set-Aside (RSA) Program, the Justice Department’s Environment and Natural Resources Division announced.
Parente pleaded guilty to two counts of wire fraud, one count of aiding and abetting mail fraud and one count of falsification of federal records for fraud schemes that ran from May through December 2011. Parente’s schemes involved two Long Island trawlers, one based in southern Nassau County and another in northern Suffolk County. The trawlers utilized the RSA Program as a mask for unlawful quota overages. In order to conceal the fishermen’s illicit catch, Parente directed unwitting company personnel to prepare and file at least 78 false dealer reports to the National Oceanic and Atmospheric Administration (NOAA), which omitted or misidentified approximately 203,000 pounds of fluke, 50,000 pounds of scup and 12,000 pounds of black sea bass. The wholesale value of the fish was stipulated as $481,000. Lou’s Fish Market Inc. pleaded guilty to the falsification of federal records charge as well as one count of Lacey Act False Labeling for the knowing use of false documents in connection with approximately 70,000 pounds of fluke that was shipped to interstate customers.
As part of the plea deal, the two defendants agreed to pay $932,000 in combined fines and restitution. The defendants also agreed to make a $110,000 community service payment for the enhancement of seagrass and fluke habitat around Long Island. The jointly proposed sentence includes a ban on Parente from holding a federal dealer license, accessing NOAA’s SAFIS computer system, participating in the RSA program, or being in a position to direct others to complete dealer reports. Lou’s Fish Market also agreed to increased recordkeeping and auditing requirements. The court will hear sentencing recommendations regarding non-agreed terms at a hearing set for Dec. 3, 2015.
“The Department will continue to vigorously prosecute those who jeopardize our nation’s fisheries by providing a market for illegally caught fish,” said Assistant Attorney General John C. Cruden. “In this case, the crime is all the more aggravated because the participants took advantage of a federal program designed to study fish populations and enable law-abiding fishermen to increase their catch.”
“Protecting our nation's honest fishermen is, and will always be, a top priority for NOAA. Egregious acts that undermine the sustainable management of our fisheries resources and steal from those in the industry who follow the rules will not be tolerated,” said Eileen Sobeck, Assistant Administrator for NOAA Fisheries.
The case was investigated by agents of NOAA’s National Marine Fisheries Service. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Former Warner Chilcott Sales Manager Pleads Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
BOSTON – A former district manager of Warner Chilcott Sales U.S., LLC (Warner Chilcott), a pharmaceutical company based in Rockaway, N.J., pleaded guilty today in U.S. District Court in Boston in connection with a scheme to deceive insurance companies and Medicare so that they would cover the costs of Warner Chilcott’s osteoporosis medications, Actonel and Atelvia.
Jeffrey Podolsky, 48, of East Meadow, N.Y., pleaded guilty before U.S. District Court Chief Judge Patti B. Saris to an information charging one count of conspiracy to commit health care fraud.
Actonel and Atelvia belong to a class of pharmaceuticals known as bisphosphonates, which physicians prescribe for the prevention and treatment of osteoporosis. There are few, if any, clinical differences between most bisphosphonates on the market, including the generic version. For that reason, in 2010 and throughout 2011, many insurance companies did not include Actonel or Atelvia on their pharmaceutical formularies. The only way to get a prescription for Actonel or Atelvia paid for by an insurance company was through a prior authorization, which required the prescribing physician to explain to the insurance company why the non-formulary drug was medically necessary for the patient, as opposed to the generic version or any other bisphosphonate on the market.
Beginning in 2010 and throughout 2011, Podolsky directed the sales representatives in his district to fill out prior authorizations for physicians who prescribed Actonel and Atelvia using false clinical justifications as to why the patient needed Warner Chilcott drugs and submit them to health insurance companies. In some instances, Podolsky’s sales representatives reviewed patients’ medical charts to get the information necessary to fill out the prior authorizations, in violation of the Health Insurance Portability and Accountability Act (HIPAA). Podolsky also directed sales representatives to utilize a website to submit prior authorizations to insurance companies to disguise their identity as pharmaceutical sales representatives. Podolsky and the sales representatives that he supervised knew that they should not be involved in the preparation or submission of prior authorizations.
As a result of the scheme that Podolsky directed, insurance companies and Medicare paid at least $200,000 for Actonel and Atelvia prescriptions that were not medically necessary and would not have been paid but for the false information submitted by Warner Chilcott sales representatives.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the Medicare program or twice the gross gain to Podolsky (whichever is greater), forfeiture of any proceeds of the offense, and exclusion from the Medicare program. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Leigh Alistair Barzey, Assistant Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; Scott Rezendes, Special Agent in Charge of the U.S. Office of Personnel Management, Office of Inspector General, Office of Investigations; 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. Attorneys Miranda Hooker and David S. Schumacher of Ortiz’s Health Care Fraud Unit and Sonya Rao of Ortiz’s Civil Division.
Former Manger of Federal Credit Union Sentenced on Embezzlement ChargeRead the Press Release
LYNCHBURG, VIRGINIA – The former manager of a local, federal credit union, who pled guilty in March to federal embezzlement charges, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg.
Claudia Rawes, 61, of Forest, Va., previously waived her right to be indicted and pled guilty to a one-count Information charging her with theft and embezzlement from a federal credit union. Today in District Court, she was sentenced to 78 months in federal prison and five years of supervised release thereafter. In addition, Rawes was ordered to pay $1.97 million in restitution to Centra Health Credit Union.
According to information presented at a previous hearing by Assistant United States Attorney Daniel Bubar, Rawes was hired by the Centra Health Credit Union [CHCU] in 1990 and began managing the Lynchburg General Hospital branch of CHCU around 2005. Rawes admitted that beginning in the early 1990s she began embezzling and stealing funds from CHCU in a variety of ways.
Mostly commonly, Rawes wrote checks from CHCU corporate accounts in order to make payments on her personal credit cards. Rawes also took a variety of steps to hide her theft. The theft created an increasingly large deficit in CHCU’s corporate account. To avoid further scrutiny, Rawes began altering the credit union’s corporate account statements. She would then provide the altered statements to examiners.
Examiners found a variety of inconsistencies, including statements in Rawes’ possession that had differing amounts of corporate account balances written in tape on top of what appeared to be the original statements. Investigators found that there was a shortfall of over $1 million between what CHCU was carrying on its books for its corporate account versus what was actually in the bank where CHCU kept its corporate deposits.
The investigation of the case was conducted by the Federal Bureau of Investigation and the United States Secret Service and the Virginia State Police. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Former Lynrocten Federal Credit Union Manager Sentenced for Embezzlement, Bank Fraud, Aggravated ID TheftRead the Press Release
LYNCHBURG, VIRGINIA – A Madison Heights woman, the former manager of the Lynrocten Federal Credit Union in Lynchburg who pled guilty in February to embezzlement, bank fraud and identify theft charges, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg.
Linda Sue Newcomb, 64, of Madison Heights, previously pled guilty to one count of embezzlement from a Federal Credit Union, two counts of bank fraud and one count of aggravated identity theft. Today in District Court, Newcomb was sentenced to 120 months in federal prison. Newcomb was also ordered to pay $11,733,683 in restitution, $500,000 of which is due immediately. Teresa Humphries, the former head bank teller at Lynrocten, previously pled guilty to related charges.
“To cover expenses incurred by herself and her family members and to support an extravagant lifestyle, over the course of 14 years Ms. Newcomb stole from her employer, caused untold financial hardship to members of the credit union and betrayed the trust of others who relied upon her,” said Acting United States Attorney Anthony Giorno. “In doing so, she forfeited her integrity and her reputation. The sentence imposed today will provide some measure of compensation to the victims and will send a message that fraudulent conduct will be investigated and punished.”
According to evidence presented at previous hearings by Acting United States Attorney Anthony P. Giorno and Assistant United States Attorney Daniel Bubar, from as early as 2000, Newcomb and Humphries, who were the only two full-time employees of Lynrocten, carried out a scheme to defraud, embezzle and steal funds from the credit union’s accounts. The defendants carried out their scheme in a variety of manners.
Newcomb and Humphries originated loans in the names of credit union members without those members’ knowledge or consent, including forging the member’s name to fictitious loan documents. In order to make the loans look legitimate, they drafted the documents and Newcomb would approve them. They would then take the false loan proceeds and divert them to their personal accounts or use the money to pay off other fictitious loans.
In addition, Newcomb and Humphries transferred funds and wrote checks on certain credit union members’ accounts without their knowledge or consent, an act known as “Check Kiting.” At least three credit union members’ accounts were subject to check kiting. The two also attempted to hide their fraud by altering or withholding credit union member statements from delivery.
In all, the two caused more $12 Million in losses from the deposits of Lynrocten Federal Credit Union.
The investigation of the case was conducted by Federal Bureau of Investigation, the United States Secret Service and the Lynchburg Police Department. Acting United States Attorney Anthony P. Giorno and Assistant United States Attorney Daniel Bubar are prosecuting the case for the United States.
Former Chicago Man Sentenced to 18 Months in Federal Prison for Accepting Cash to Help 80 People Avoid City Impound FeesRead the Press Release
CHICAGO — A former Chicago resident who accepted cash payments to help 80 people file false bankruptcy petitions as a way of avoiding City of Chicago impound fees was sentenced today to 18 months in federal prison.
Daniel Rankins, 32, of Storm Lake, Iowa, and formerly of Chicago, pleaded guilty in December to one count of bankruptcy fraud. He was ordered to pay $142,737.00 in restitution by U.S. District Judge Robert M. Dow Jr. Rankins must surrender to begin serving his sentence on Sept. 29, 2015.
“What he came up with was a pretty sophisticated system,” Judge Dow said in imposing the sentence. “He could have found a better way to apply himself.”
Rankins assisted 80 people with filing false Chapter 7 bankruptcy cases in order to get their vehicles released from the City of Chicago impound lot without paying fines or fees. Rankins had approached these individuals outside a City office or was referred to them by acquaintances. He personally accompanied them to the U.S. Bankruptcy Court in downtown Chicago, and furnished them with partially completed bankruptcy applications which named the City and its impound lot as the only creditors. In exchange, Rankins accepted cash payments from the false debtors which equaled approximately half of what was owed to the City.
“This was a sophisticated hustle,” said Assistant U.S. Attorney Megan Church, who represented the government. “It was a street scam, and he was ripping off the taxpayers.”
The scheme was uncovered in May 2012 when the City of Chicago’s Department of Revenue (now Finance Department) alerted the U.S. Trustee for the Northern District of Illinois to a significant increase in the number of individuals who were using bankruptcy as a means of obtaining their impounded vehicles without paying fines or fees. The U.S. Trustee’s Office reviewed the applications and learned that the false debtors had claimed an inability to pay the $306 Bankruptcy Court filing fee and hadn’t appeared for court hearings. All of the cases were eventually dismissed, and the court fees were never collected.
In January 2013 Rankins arranged for an undercover officer to file a false bankruptcy petition under the guise of obtaining a release of the officer’s vehicle from the impound lot, in exchange for a cash payment to Rankins of $600.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, City of Chicago Inspector General. The U.S. Bankruptcy Court and the U.S. Trustee’s Office for the Northern District of Illinois cooperated and assisted with the investigation.
Former Bosnian Prison Guard ExtraditedRead the Press Release
ROANOKE, VIRGINIA – Acting United States Attorney Anthony P. Giorno and Special Agent in Charge Clark Settles of ICE-HSI, announced today that the United States government extradited a wartime camp guard to Bosnia last week, following an extended investigation led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and legal proceedings that spanned multiple years.
Almaz Nezirovic, 54, formerly of Roanoke, Virginia, was extradited to Bosnia on July 1, where he is accused of perpetrating torture and inhumane treatment against Serbian civilians detained at the Rabic Prison Camp in Derventa Municipality. He was charged in Bosnia with committing war crimes against civilians between April and July 1992 during the Bosnian War.
In April 1992, Nezirovic joined a mixed Croatian-Muslim paramilitary group in northern Bosnia, and became a prison guard. Bosnian officials charge that while serving as a prison guard, Nezirovic committed war crimes by beating, humiliating and traumatizing unarmed civilian prisoners, causing severe personal injury. This included allegedly stripping victims naked, beating them severely with a club, and forcing them to eat grass on which others had urinated.
In 2009, ICE’s Human Rights Violators and War Crimes Center received information from the Bosnian Prosecutor’s Office in Sarajevo about suspected war criminals who had absconded. The center and HSI Washington, DC special agents initiated an investigation after identifying and locating Nezirovic in Roanoke, Virginia. In April 2010, HSI special agents identified and interviewed former prisoners of the Bosnian camp who had been severely beaten in 1992. That investigation led to a criminal indictment in the Western District of Virginia U.S. District Court.
On June 23, 2011, HSI Washington, DC special agents arrested Nezirovic at his residence pursuant to a two-count indictment charging him with naturalization fraud due to his omissions and false statements about his wartime activities and other conduct during his application for citizenship. On April 19, 2012, he was indicted on a superseding five-count indictment for unlawful possession of immigration documents and unlawful application for naturalization. In July 2012, the United States, on behalf of the government of Bosnia, filed a complaint to extradite Nezirovic pursuant to an extradition treaty between the two countries, which has been in place since 1901, and the United Nations Convention Against Torture.
Nezirovic was subsequently taken into custody July 17, 2012, on a provisional arrest warrant pending the outcome of the extradition matter. On September 16, 2013, after several hearings, a United States Magistrate Judge in Roanoke, Virginia, found sufficient evidence to sustain the allegation under the treaty and certified the request for extradition to the Secretary of State.
Nezirovic then filed a petition for review with the U.S. District Court in Roanoke, Virginia, and the District Court denied his petition on March 13, 2014. After hearing oral argument in December 2014, the U.S. Court of Appeals for the Fourth Circuit affirmed the District Court’s decision. The Fourth Circuit Court of Appeals rejected Nezirovic’s arguments that his extradition was untimely or precluded by an exception in the treaty for political offenses.
“This extradition marks the culmination of years of legal effort to have Mr. Nezirovic properly face trial for the horrible acts of abuse he is charged with committing against civilian victims while he was a prison guard in Bosnia, despite the fact that he later left that country,” Acting United States Attorney Anthony P. Giorno said. “The case marks a significant achievement in law enforcement’s important, ongoing efforts to help bring international fugitives such as Mr. Nezirovic to justice, consistently with the laws and treaty obligations of the United States.”
“The investigation and extradition of individuals like Mr. Nezirovic are paramount to the mission of Homeland Security Investigations and to the safety and security of the United States,” said Special Agent in Charge Clark Settles. “War criminals will not be left to hide in our communities; they will be hunted down and made to face the consequences of their crimes.”
The investigation was conducted by HSI Washington, DC and ICE’s Human Rights Violators and War Crimes Center along with the United States Attorney’s Office for the Western District of Virginia and the U.S. Department of Justice’s Criminal Division’s Office of International Affairs. Former United States Attorney Timothy J. Heaphy and Assistant U.S. Attorney Elizabeth Wright represented the United States. The extradition was conducted by the U.S. Marshals Service in conjunction with Bosnian law enforcement partners and was facilitated by U.S. Customs and Border Protection.
Former Bank Vice President Pleads Guilty to Financial Institution FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michael Whipple, 43, of Williamsville, NY, pleaded guilty to financial institution fraud before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum sentence of 30 years in prison of 30 years and a fine of $1,000,000.“This represents one of the largest fraud schemes in recent years,” said U.S. Attorney Hochul. “A multi-million dollar fraud scheme such as this has the potential to harm more than just the immediate victim of the crime. It also affects the greater community. In this case, thanks to the actions of both the bank and law enforcement, this defendant will not be in a position to commit further crimes in the foreseeable future.”
Assistant U.S. Attorney Trini Ross, who is handling the case, stated that between 2008 and November 2013, Whipple, an M&T Bank Vice President, devised a scheme to defraud the bank involving creation and origination of fraudulent “funding loans.” These loans were created in the names of entities which were credit worthy, or made by the defendant to appear credit worthy. The proceeds were then given to entities of Whipple’s choosing.
As part of the scheme, Whipple forged signatures on loan documentation related to the origination of many of the “funding loans” and had mail diverted to locations other than the credit worthy clients’ addresses to avoid detection. When customers questioned the defendant regarding irregularities in their loan accounts, Whipple told them it was a mistake or a bank error and promised to correct the problem. These problems were never corrected as the defendant stated they would be and he subsequently covered the irregularities up through the creation of new funding loans.
In addition, the defendant caused official checks drawn on M&T Bank to be created to fund the fraudulently originated loans. The proceeds of the fraudulent loans were used to make payments on the fraudulent loans in order to avoid detection by M&T Bank and the customer whose credit was utilized for funding and to divert funds to other business banking customers who likely would not have credit qualified for funding.
At the time the scheme was discovered, there were at least 12 funding loans fraudulently created by Whipple. As a result of the defendant’s actions, M&T Bank suffered a loss of $5,332,397.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for October 7, 2015 at 10:00 a.m. before Judge Wolford.
Former Bank Teller Pleads Guilty to EmbezzlementRead the Press Release
WICHITA, KAN. - A former Labette County bank clerk pleaded guilty Tuesday to a federal charge of embezzlement, U.S. Attorney Barry Grissom said.
Angela S. Littlejohn, 41, Chetopa, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred while she worked as a teller during 2013 and 2014 at the Chetopa State Bank in Chetopa, Kan. She stole a total of at least $82,000 from multiple accounts at the bank.
Sentencing is set for Sept. 28. Both parties are recommending a sentence of time served, two years on probation and restitution of $82,000. Grissom commended the Federal Bureau of Investigation and Assistant U.S. Attorney Lanny Welch for their work on the case.
Final Member of a Scheme that Defrauded Capitol Finance Out of Hundreds of Thousands of Dollars Sentenced to Two Years in PrisonRead the Press Release
LONDON - The final member of a scheme, in which the defendants used other people’s identities to defraud a Leslie County bank out of hundreds of thousands of dollars, has been sentenced today to prison.
On Thursday, July 2, Nicole Lewis, 34, of Leslie County received two years in prison for aggravated identity theft. U.S. District Judge Gregory F. Van Tatenhove had previously sentenced her co-defendants, Deborah Wilson, 53, and Theresa Bowling, 46, to 18 months and 42 months respectively, for their roles in the scheme. Judge Van Tatenhove ordered that all three defendants, together, pay $420,806.60 in restitution to Capitol Finance in Leslie County. Under federal law, all of them must serve at least 85 percent of their prison sentences.
According to court documents, in November 2008 and continuing to April 2009, Bowling, Lewis and Wilson illegally obtained copies of other people’s drivers’ licenses, dates of birth and social security numbers from various sources to apply for loans. Bowling and Lewis, who held management positions at a loan company called Capitol Finance, processed the loans as if they were legitimate and issued the checks for the fraudulent loans. Lewis and Bowling cashed the checks at Hyden Citizens Bank in Leslie County. All three defendants spilt the money and used it for their personal gain.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Craig Hutzell, Acting Special Agent in Charge, United States Secret Service, jointly announced the sentence.
The investigation was conducted by Secret Service. Assistant U.S. Attorney Andrew Sparks prosecuted this case on behalf of the federal government.
Federal Court Prohibits Three Florida Tax Preparers and Their Businesses from Preparing Tax Returns for OthersRead the Press Release
A federal court has barred three Florida men from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order, to which Geto Dorlizier, Lival Gourdet and Jourmel Thomas consented, was signed by U.S. District Judge Kenneth A. Marra of the U.S. District Court for the Southern District of Florida. The order also bars the businesses the defendants were operating — Atlantic Multi Services LLC, Authentic Financial Services LLC, and JTS Paperworks and Tax Services Inc. — from preparing federal tax returns for others.
According to the complaint, the defendants prepared federal income tax returns for customers that understated the tax that was due or overstated customers’ refunds by improperly claiming fuel tax credits, education credits and earned income tax credits. Of the returns the defendants prepared for tax years 2009 through 2012 that were examined by the Internal Revenue Service (IRS), all returns contained false or frivolous tax credits or deductions. The injunction requires the defendants to provide the government with a list of all customers for whom they have prepared federal tax returns since Jan. 1, 2009.
Dorlizier and Thomas previously were sentenced to serve 111 months in prison to be followed by three years of supervised release and 61 months in prison to be followed by three years of supervised release, respectively, following their guilty pleas to aggravated identity theft, among other crimes, for their participation in a scheme to commit stolen identity tax refund fraud. Dorlizier and Thomas obtained identifying information on individuals, filed fraudulent tax returns on their behalf, and then cashed U.S. Treasury checks they received using these stolen identities, according to the suit. As part of their plea agreements, Dorlizier and Thomas agreed to be permanently enjoined from preparing tax returns for others.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Elko County Residents Charged with Possessing Stolen FirearmsRead the Press Release
RENO, Nev. – Five Elko County residents, including three convicted felons, have been indicted by the federal grand jury in Reno on charges that they possessed multiple stolen firearms, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and ATF Acting Special Agent in Charge Eric D. Harden.
Joshua James Stout, 29, Danny Duane Wharton, 46, and Sarah Gravelle, 25, of Elko, Nev., are charged with two counts of possession of stolen firearms, and Mason Miller Warren, 37, and Janae Stanton, 24, of Wells, Nev., are charged with one count of possession of stolen firearms. Warren, Stout and Wharton are also charged with felon in possession of firearms. The indictment was returned by the grand jury on July 1. The defendants were arrested and had their initial appearances and arraignments on Mon., July 6 before U.S. Magistrate Judge Valerie P. Cooke in Reno. Defendants Stout, Wharton, and Warren were detained pending trial. Defendants Gravelle and Stanton were released on personal recognizance bonds pending trial.
“Stolen firearms frequently end up being used in violent crimes and drug trafficking offenses,” said U.S. Attorney Bogden. “We will pursue federal charges against persons who possess stolen weapons, especially against persons who previously have been convicted of felony offenses.”
”Fortunately, we recovered a significant number of stolen handguns, rifles and shotguns in this case before they were used to harm others,” stated Acting Special Agent Harden. “I would like to specifically thank the Elko County Sheriff’s Office and Assistant U.S. Attorney Megan Rachow for their partnership in the course of this investigation.”
According to the charges in the indictment, on June 3, 2015, the defendants possessed 64 stolen firearms, including handguns, shotguns, and rifles. On the same date, Stout, Wharton and Gravelle allegedly possessed an additional 12 stolen firearms. Wharton is charged with felon in possession, as he was previously convicted of a drug trafficking offense in Nevada. Stout is charged with felon in possession, as he was previously convicted of a stolen goods offense in Nevada. Warren is charged with felon in possession, as he was previously convicted of being a prohibited person in possession of a firearm in federal court in Nevada.
The case is being investigated by ATF and the Elko County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Megan Rachow.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Edgecombe County Man Sentenced for Cocaine Conspiracy and Firearm OffenseRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced JOSHUA MICHAEL EDMONDSON, 26,of Pinetops, North Carolina, to 79 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute cocaine and for using and carrying a firearm during and in relation to a drug trafficking crime. EDMONDSON previously pled guilty to these charges on July 15, 2014.
The Greenville Regional Drug Task Force used a confidential informant to buy cocaine and Vicodin pills from EDMONDSON in September 2012. On October 3, 2012, EDMONDSON met with the informant to sell him 12 ounces of cocaine. Detectives arrested EDMONDSON during the meeting and found EDMONDSON in possession of 348 grams of cocaine and a stolen 9 mm pistol. The investigation revealed that EDMONDSON was responsible for trafficking 476 grams of cocaine.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
District Man Sentenced to 18 Years in Prison for Armed Carjacking on Christmas Eve and Other OffensesRead the Press Release
WASHINGTON – Andy Thompson, 23, was sentenced today to 18 years in prison for various crimes, including a carjacking of a delivery truck on Christmas Eve 2014 and a subsequent shoot-out with police, Acting U.S. Attorney Vincent H. Cohen, Jr., announced.
Thompson, of Washington, D.C., pled guilty in April 2015, in the Superior Court of the District of Columbia, to four counts: armed carjacking, assault on a police officer while armed, attempted robbery, and attempted burglary. He was sentenced by the Honorable Zoe Bush. Upon completion of his prison term, Thompson will be placed on six years of supervised release.
The armed carjacking and confrontation with police took place on Dec. 24, 2014. According to the government’s evidence, at approximately 5:20 p.m., Thompson put on a mask and approached a FedEx employee making deliveries in the 1300 block of Adams Street NE. Thompson pointed a gun at the driver and demanded that he leave the FedEx truck. The driver complied, and Thompson drove away in the FedEx vehicle. An officer with the Metropolitan Police Department (MPD) spotted the vehicle almost immediately and attempted to pull it over. Thompson refused to pull over and fled into an alleyway off the 2200 block of 16th Street NE. There, the FedEx truck became wedged between an exterior brick wall and a police cruiser.
When the police ordered Thompson to display his hands and exit the vehicle, he pointed his gun at the police officers and fired. The police returned fire. Thompson was the only person struck in the exchange of gunfire, with a bullet grazing him in the head. The police recovered a 9mm handgun next to where the stolen truck was stopped.
The other crimes targeted convenience stores. The attempted robbery took place at about 2:30 a.m. on Dec. 16, 2014 at a 7-Eleven convenience store in the 300 block of Hawaii Avenue NE. Thompson approached a store employee, asked that new milk be placed in the coffee machine, and then reached behind the counter and stole four cartons of cigarettes. He smacked at the hand of a second employee who tried to stop him.
The attempted burglary took place at about 8 a.m. on June 29, 2013, at another 7-Eleven store, this time in the 2200 block of New York Avenue NE. Thompson took multiple packs of cigarettes from the store. In pleading guilty, he admitted that he stole cartons of cigarettes from four different 7-Eleven stores on 11 different occasions.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also expressed appreciation for the work of Assistant U.S. Attorneys Christine Macey and Gilead Light, of the Felony Major Crimes Trial Section, who prosecuted the matters.
Dennis Helmer Sentenced to More Than 12 Years in Prison for Orchestrating $1.3 Million Coin Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of DENNIS CHARLES HELMER, a/k/a “Jeff Jones,” a/k/a, “Mr. Diamond,” a/k/a, “Dennis Dimon,” 54, to 150 months in prison for devising an elaborate coin fraud scheme and defrauding dozens of elderly victims of more than $1.3 million. HELMER was indicted on August 5, 2014, and pleaded guilty on September 25, 2014. He was sentenced today before Senior Judge David S. Doty.
According to the defendant’s guilty plea and documents filed in court, HELMER operated Wholesale Assets Worldwide, LLC (WAW) and Best Price International, LLC (BPI), which engaged in appraising, buying, selling, and trading of coins and precious metals. From November 2009 through January 2014, through WAW and BPI, HELMER contacted dozens of victims, many of whom were in their 80s and 90s. He visited potential victims in their homes and persuaded them to entrust to him money, coins, and precious metals, based on false promises. HELMER falsely told victims that his businesses had more than 75 employees and $500 million in annual revenue, and also provided a falsely obtained “Dun & Bradstreet Credibility Review” of his business.
According to the defendant’s guilty plea and documents filed in court, WAW and BPI received over $1.3 million in coins, precious metals, and cash from victims. Instead of fulfilling their orders, HELMER sold many of the coins and used customers’ money and proceeds from those sales to fulfill other orders, make payments to other customers, pay his own personal expenses, and attempt to fund start-up costs for another purported company, Smoke Shack, LLC.
According to the defendant’s guilty plea and documents filed in court, HELMER targeted elderly victims because they were particularly vulnerable. HELMER took note of anything that would make it easier to steal from them. For example, HELMER targeted a 79-year-old stroke victim, an 86-year-old victim who fell asleep during an in-person meeting with HELMER, a 99-year-old victim suffering from dementia, a victim in hospice care, and a legally blind octogenarian.
According to the defendant’s guilty plea and documents filed in court, HELMER used various aliases, including “Jeff Jones,” in an attempt to hide his three prior criminal convictions for similar conduct in both Dakota and Hennepin Counties. In November 2013, when HELMER learned that WAW was under investigation, he moved his coin fraud operation to Florida where he continued to operate his scheme under the newly formed BPI under the aliases, “Mr. Diamond” and “Dennis Dimon.”
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Minnesota Department of Commerce.
Assistant U.S. Attorney Kimberly A. Svendsen prosecuted this case.
Defendant Information:
DENNIS CHARLES HELMER, 54
Farmington, Minn.
Convicted:
- Mail Fraud, 1 count
Sentenced:
- 150 months in federal prison
- 3 years supervised release
- $1,329,873.25 restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Dallas Man Pleads Guilty to Federal Offense in Bankruptcy-Related CaseRead the Press Release
DALLAS — Al Hakeem Muhammad, II, 26, appeared today before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of misrepresentation of a Social Security number, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Muhammad, who is on bond, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for October 21, 2015, before U.S. District Judge Barbara M. G. Lynn.
According to plea documents filed in the case, in early January 2015, Muhammad used a Social Security number that he knew was not his when he completed a credit application to fraudulently obtain a lease on an apartment located in Victory Park in Dallas.
This case represents one of the felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. Since February 2013, 12 defendants have been charged with various felony offenses as a result of criminal referrals from the U.S. Trustee Program to the U.S. Attorney’s Office. Eight defendants have been convicted either following a trial or guilty plea. Five defendants have been sentenced. Three defendants are awaiting trial, and one defendant remains in fugitive status with an outstanding arrest warrant.
The FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Dallas Man Pleads Guilty to Child Sex Trafficking OffenseRead the Press Release
DALLAS — A Dallas man who facilitated his 16-year-old girlfriend’s commercial sex acts appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of sex trafficking of children, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Trenton McLemore, 29, faces a statutory maximum penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. However, the parties agree if the Court accepts the plea agreement, the appropriate term of imprisonment in this case is 252 months (21 years) in federal prison. Sentencing is set for October 21,2015, before U.S. District Judge Barbara M. G. Lynn.
According to documents filed in the case, McLemore met “Jane Doe” and her family when she was 11-years-old. In July 2013, when Jane Doe was 16-years-old, she ran away from home to be with McLemore, and the two began living in motels.
On August 1, 2013, McLemore began facilitating Jane Doe’s commercial sex acts in several ways. He asked friends and family to rent rooms for them at a Super 8 Motel and a Motel 6 in the Dallas area for her to use with commercial sex customers. McLemore also provided Jane Doe a cell phone for her to use to communicate with commercial sex customers. McLemore often used that phone to communicate with Jane Doe’s customers, sometimes posing as her and texting her customers to arrange “dates” and then leaving the motel room shortly before the customer arrived.
McLemore also took sexually explicit photos of Jane Doe that he distributed via text message to potential customers. Often, McLemore would stay near the motel room to act as Jane Doe’s bodyguard while she engaged in the commercial sex acts, and he would return to the room shortly after the customer left to collect the proceeds.
In mid-September 2013, a detective with the Irving Police Department conducting an operation to identify possible victims of human trafficking, found a commercial sex advertisement on Mocospace.com with photographs of a female who appeared to be underage. He contacted the number, and after exchanging several messages regarding a potential commercial sex act, they agreed to meet on September 19, 2013, in a specific room at a Super 8 Motel in Irving, Texas.
As McLemore left that room shortly before the “date,” he was seen texting at the same time the detective was receiving messages about the “date.” When the detective arrived and entered the motel room, Jane Doe agreed to engage in a commercial sex act with him. She was then placed in custody and law enforcement determined she was a 16-year-old runaway from Dallas.
McLemore had stayed nearby while that “date” occurred, and his personal items were later found inside that motel room. When law enforcement learned Jane Doe’s age, they arrested McLemore for compelling prostitution of a person under the age of 18 and human trafficking. He has been in custody since that time.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Convenience Store Owner Pleads Guilty to Trafficking in Food StampsRead the Press Release
ATLANTA - Tessema Lulseged, the owner and operator of Big T Supermarket in Decatur, Georgia, has pleaded guilty to trafficking in food stamps. Lulseged allowed his customers to exchange their food stamp benefits for cash in a scheme that netted him $6.5 million.
“Food stamps are intended to provide assistance to our citizens most in need,” said Acting U.S. Attorney John A. Horn. “This defendant ran a corrupt exchange scheme that, until his scheme was discovered, undermined the purpose of the program and resulted in great financial benefit to himself.”
“This defendant, in knowingly and so aggressively stealing government assistance from vulnerable individuals who were already struggling, demonstrates a new level of insensitivity and greed. The FBI will continue to provide assets and resources to assist in ensuring that these much needed federally funded assistance programs are used as intended and not abused by such individuals as Mr. Lulseged,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“USDA-OIG dedicates its resources to ensuring integrity in its programs. One of the ways in which USDA-OIG does this is through vigorously investigating allegations of fraud in the EBT program,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG. “Tessema Lulseged made a choice to defraud the EBT program and in doing so defrauded the taxpayers of millions of dollars through purchasing benefits from recipients. He, like countless others, may look at this as a victimless crime. However, it is not a victimless crime, but rather a crime that takes away needed food from the mouths of those the program was intended for. More often than not, those victims, many of whom are children, have no say in how the benefits are used. USDA-OIG will continue to work with DOJ and its law enforcement partners to investigate and prosecute those who greedily and selfishly traffic in EBT benefits.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: From January 2009 through April 2014, Lulseged unlawfully allowed his customers to exchange their food stamp benefits for cash at the rate of 60 cents on the dollar. As part of the deal, Lulseged required customers to purchase eligible food products equal to 10% of the value of the transaction. For example, if a customer wanted to sell $100 worth of food stamp benefits for $60, that customer also had to purchase $10 worth of eligible food products from Lulseged’s store. The fraudulent scheme netted Lulseged approximately $6.5 million.
Pursuant to search and seizure warrants that were executed in February 2014, the government seized and forfeited over $700,000 in funds tainted by the fraud. The government also forfeited two pieces of real property – the defendant’s personal residence in Gray, Georgia, and his store property in Decatur, Georgia, on the grounds that they were proceeds of the fraud and properties involved in money laundering transactions.
Lulseged, 49, of Decatur, Georgia, pleaded guilty before U.S. District Court Judge Leigh Martin May. His sentencing hearing is scheduled for September 22, 2015, at 10:00 a.m.
This case is being investigated by the United States Department of Agriculture, Office of Inspector General, Investigations Division, and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips and Jenny R. Turner are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.