Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 August 2015
Former North Tonawanda Man Sentenced for Pharmacy RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Phillip A. Krehan, 32, currently of Addison, Maine, formerly of North Tonawanda, NY, who was convicted of pharmacy robbery, was sentenced to time-served and three years of supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on May 9, 2013, Krehan walked into the Walgreens Pharmacy at 1066 Payne Avenue in North Tonawanda and threatened a pharmacy employee while demanding fentanyl patches and Opana tablets. The defendant made away with 40 fentanyl patches and 240 Opana tablets.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the North Tonawanda Police Department, under the direction of Chief William R. Hall.
Former Internal Revenue Service Employee Sentenced to Federal Prison for Wire Fraud and Identity Theft SchemeRead the Press Release
In Austin today, 57-year-old former Internal Revenue Service employee Kenneth Goheen of Austin was sentenced to two years plus one day in federal prison for his role in a stolen identity refund fraud scheme announced United States Attorney Richard L. Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and U.S. Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge Ruben Florez, Dallas Field Division.
United States District Judge Lee Yeakel also ordered that Goheen forfeit $15,442.02 seized from his bank accounts and pay a remaining sum of $104,292.02 restitution to the government. Judge Yeakel also ordered that Goheen be placed on supervised release for a period of three years after completing his prison term.
On June 3, 2015, Goheen pleaded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty, Goheen, a former Tax Examining Technician, admitted that he wrongfully obtained identification information from Individual Tax Identification Number (ITIN) applicants and used it to file more than 50 fraudulent tax returns between March 2013 and January 2015. Goheen collected over $120,000 in refunds based on those fraudulent tax returns.
“Goheen’s conduct is doubly offensive. He not only stole money from the government, but he used his unique position in the government—a position of trust—to wrongfully enrich himself,” stated U.S. Attorney Richard L. Durbin, Jr.
This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorneys Matt Harding and Daniel Castillo prosecuted this case on behalf of the Government.
Former City of San Antonio Employee Sentenced to Federal Prison in Bribery SchemeRead the Press Release
In San Antonio, 44–year-old Fernando Jose De Leon, former Assistant Development Services Director of the Land Development Division within the City of San Antonio’s Planning and Development Services Department, was sentenced to 14 months in federal prison for his role in a bribery scheme involving city contracts announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that De Leon pay almost $284,949.21 restitution and be placed on supervised release for a period of three years after completing his prison term.
According to court records, between 2004 and 2009, the defendant conspired with 51-year-old Oscar Gilberto Rodriguez, a former employee of the San Antonio firm Pape-Dawson Engineers, Inc., to defraud and steal money from Pape-Dawson and its clients through Rapid Permit Service, Inc. (RPS). RPS was a hoax company created by De Leon and Rodriguez to do permit expediting work on Pape-Dawson projects. As part of the conspiracy, Rodriguez would submit fraudulent RPS invoices to Pape-Dawson for payment. Rodriguez and De Leon subsequently divided the illegally obtained proceeds.
Last month, Rodriguez was sentenced to 30 months in federal prison and ordered to pay over $315,000 restitution. On October 16, 2014, Rodriguez and De Leon each pleaded guilty to conspiracy to commit wire fraud, mail fraud and to use interstate communication facilities to facilitate bribery under Texas law.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.
Former Charter School Director Sentenced to 42 Months for Embezzling Government FundsRead the Press Release
Contact Person: Benjamin Garner (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Benita Dinkins-Robinson, age 40, of Bishopville, South Carolina, was sentenced in federal court in Columbia, South Carolina, for embezzling government funds in violation of 18 U.S.C. § 641. United States Chief District Judge Terry Wooten sentenced Dinkins-Robinson to 42 months’ imprisonment and ordered her to pay over $1.5 million in restitution.
Evidence presented during the ten-day trial and during the asset forfeiture phase of the case established that from 2007 to 2013, Dinkins-Robinson embezzled more than a million dollars in federal funds supplied by United States Department of Agriculture and the United States Department of Education that were intended to be used for the Mary L. Dinkins Higher Learning Academy, a charter school Dinkins-Robinson established in 2005. The jury also determined that Dinkins-Robinson must forfeit over $750,000 in annuities that she purchased while serving as the Executive Director of the charter school as well as her share in a Camden house that she owned.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Education Office of Inspector General. Assistant United States Attorneys Winston Holliday and Ben Garner of the Columbia office handled the case.
#####
El Dorado Company Sentenced for Mishandling ChemicalsRead the Press Release
WICHITA, KAN. - An El Dorado company was ordered Wednesday to pay $97,612 in restitution and a $10,000 fine for mishandling waste chemicals, U.S. Attorney Barry Grissom said. The company also must pay a $400 special assessment and serve three years on probation to include participating in a compliance and ethics program.
Integrated Plastic Solutions, LLC, a plastics recycling company in El Dorado, Kan., pleaded guilty to one count of unlawful storage of a hazardous waste. In its plea, the company admitted that from 2009 to July 16, 2013, the company knowingly stored hazardous waste without a permit at its facility in El Dorado. The waste included paints and solvents. Many of the chemicals were highly inflammable and subject to flash fire or explosion if not properly stored.
Co-defendants include: company owner Sean M. Riley, who previously was sentenced to 18 months on probation and restitution of $118,807, and company owner Brian J. Riley, who was sentenced to three years on probation and $118,807 restitution.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Domestic violence offender charged with unlawful possession of firearmsRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury returned an indictment today charging convicted domestic violence offender Adam Bradford Linch, 35, of Nutter Fort, West Virginia, with unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
In August 2005, the Circuit Court of Duval County, Florida issued a domestic violence protective order against Linch. Further, he was convicted of “Domestic Battery” in February 2010 in the Magistrate Court of Harrison County, West Virginia. As a result of these prior offenses, Linch is prohibited from possessing a firearm. He was discovered in March 2015 in Harrison County, West Virginia in possession of a .45 caliber pistol and ammunition.
Linch is charged with: • One count of “Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence,” and
• One count of “Possession of a Firearm by a Person Subject to a Domestic Violence Protective Order.”He faces up to 10 years in prison and a fine of up to $250,000 on each of the two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins is prosecuting the case on behalf of the government. The Clarksburg, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant in Prior SEC Enforcement Action Arrested and Charged in Manhattan Federal Court for Scheme to Hide Assets from Court-Appointed Receiver and the CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today that ROBERT A. OLINS was arrested this morning on conspiracy, obstruction, and bank fraud charges stemming from his scheme to hide assets from a receiver (the “Receiver”) appointed by U.S. District Judge Denise L. Cote of the United States District Court for the Southern District of New York to oversee the liquidation of OLINS’s art and antiques collection (the “Art and Antiques Collection”) to satisfy a $3.3 million disgorgement judgment entered in connection with an enforcement proceeding by the Securities and Exchange Commission (“SEC”).
Among other misrepresentations, OLINS caused the Receiver to make false statements to the Court concerning the value of the items in the Art and Antiques Collection in order to induce the Receiver and the Court to approve sales of certain items without knowledge that OLINS had secretly sold or planned to resell the items at higher prices, with OLINS illicitly pocketing the difference instead of paying the SEC.
OLINS is expected to be presented today in federal court in Manhattan before United States Magistrate Judge James L. Cott.
U.S. Attorney Preet Bharara said: “As alleged, Robert Olins carried out a brazen shell game to deceive and hide assets from two federal courts, a court-appointed receiver, and the SEC. Olins allegedly lied repeatedly, grossly understating what he received from the sale of valuable art and antiquities so that he could pocket money that should have gone to satisfy a court judgment.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Olins had a $3 million judgment due from previous securities violations, but instead of paying it back, he sought to conspire and hide assets to profit himself. This case should be a warning to others who seek to enrich themselves rather than pay judgments. This type of scheming only ends in handcuffs.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Similar to Mr. Olins’s innovative ways to enrich himself, the Postal Inspectors will also be innovative, as well as tireless, to investigate individuals who create fraudulent schemes to enrich themselves.”
According to the allegations contained in the Complaint and in court documents previously filed in federal court:[1]
On or about December 20, 2007, the SEC filed a civil complaint against OLINS in the United States District Court for the Northern District of California (the “California Court”) alleging that OLINS had violated provisions of the federal securities laws. See SEC v. Olins, 07 Civ. 6423 (MMC). On or about February 25, 2011, the California Court entered a $3,373,225 disgorgement judgment against OLINS (the “Disgorgement Judgment”). On or about July 27, 2011, the SEC filed an action in the United States District Court for the Southern District of New York (the “New York Court”), registering the Disgorgement Judgment and asking that a receiver be appointed to liquidate certain assets belonging to OLINS, including the Art and Antiques Collection. See SEC v. Olins et al., 11 Misc. 261 (DLC). On or about May 11, 2012, the New York Court issued an order appointing American Bank and Trust Company as the Receiver. The order prohibited OLINS, as well as any person or entity with “possession, custody or control” of any item from the Art and Antiques Collection, from engaging in any form of side deal, self-help, set-off, or transaction not approved by the Court.
OLINS devised a scheme, in coordination with an executive (“CC-1”) of an arts and antiques dealer based in London and New York (the “Antiques Dealer”), to hide assets from the Receiver and the Courts and personally enrich himself. Based on material misrepresentations by OLINS and CC-1, the Receiver and the New York Court approved sales of certain items in the Art and Antiques Collection without the knowledge that OLINS and CC-1 had secretly sold or planned to resell the items at higher prices, with OLINS illicitly pocketing the difference.
Specifically, OLINS illicitly profited from the improper liquidation of at least two pieces from the Arts and Antiques Collection:
The Antique Vases
On or about April 3, 2012, the Antiques Dealer recorded the sale of a Louis XV Porcelain Garniture of Three Vases (the “Vases”) to a client for approximately $1.2 million. At the time of the sale, the Vases were part of the Art and Antiques Collection and not owned by the Antiques Dealer. On or about April 10, 2012, the Antiques Dealer received payment of approximately $1.2 million, a fact which was relayed via email to CC-1.
On or about June 14, 2012, the Receiver filed an application requesting approval to sell the Vases to the Antiques Dealer for $540,000. The application was supported by a declaration of a vice president at the Receiver (“Individual-1”), based on information he received from CC-1 that the Antiques Dealer was negotiating the sale of the Vases to a client for approximately $600,000. Based on this information, the New York Court approved the sale of the Vases from the Receiver to the Antiques Dealer for $540,000.
In truth, and as OLINS and CC-1 well knew, in or about April 2012, the Antiques Dealer had already pre-sold the Vases to another client for approximately $1.2 million and received payment for that sale. OLINS personally received at least $460,000 in cash and credit from the sale of the Vases.
At no time did OLINS disclose his receipt of the proceeds from the Vases to the SEC, the Receiver, the New York Court, or the California Court, nor did he provide those proceeds to the SEC or the Receiver.
The Dragon Candelabra
In November and December 2012, Individual-1 communicated with OLINS and CC-1 concerning the sale of a pair of Louis XV Gilt Bronze Dragon Candelabra (the “Dragon Candelabra”), an item from the Art and Antiques Collection.
In or about November 2013, Individual-1 agreed to sell the Dragon Candelabra to an individual not named herein (“Individual-2”) for $235,000. At the time he approved the sale, Individual-1 understood that Individual-2 intended to place the Dragon Candelabra on consignment with the Antiques Dealer in an effort to find a buyer who would pay in excess of $235,000.
On or about November 19, 2013, after taking possession of the Dragon Candelabra from Individual-2, the Antiques Dealer recorded a sale of the Dragon Candelabra to a client not named herein for approximately $1.2 million. Individual-2 was subsequently credited at least $653,000 for the sale of the Dragon Candelabra.
Notwithstanding the representation by OLINS to Individual-1 that OLINS would not receive any proceeds from the sale of the Dragon Candelabra, OLINS in fact received at least $197,000 from the sale of the Dragon Candelabra.
At no time did OLINS disclose his receipt of the proceeds from the Dragon Candelabra to the SEC, the Receiver, the New York Court, or the California Court, nor did he provide those proceeds to the SEC or the Receiver.
The 2014 Contempt Proceeding
On September 29, 2014, the California Court issued an order to show cause why OLINS should not be held in contempt for failure to pay the Disgorgement Judgment. In response, OLINS filed a declaration with the California Court in which he made the following statements, among others:
a. “There has been no effort on my part to secret assets or ignore the Disgorgement Judgment.”
b. “I have spent untold hours trying to find buyers for pieces of the [Arts and Antiques] Collection so that [the Receiver] will be paid in full and the SEC will get monies from the proceeds as well.”
c. “I continue[] to work cooperatively with the Receiver/Bank in assisting in the sales of the Receivership assets. I have been doing everything I can to repay my debt to [the Receiver] and the SEC’s penalty Judgment and Disgorgement Order.”
d. OLINS also made the following representations about his income for the 2012 and 2013 calendar years:
i. Apart from $114,281 in consulting fees, OLINS said he “received no other . . . income for 2012.”
ii. Apart from $57,882.06 in consulting fees, OLINS said he “received no other . . . income for 2013.”
In truth, OLINS had earned a total of at least $657,000 in 2012 and 2013: (a) in 2012, OLINS received at least $460,000 in proceeds from the sale of the Vases; and (b) in 2013, OLINS received at least $197,000 in proceeds from the sale of the Dragon Candelabra.
* * *
OLINS, 58, was arrested this morning in West Hartford, Connecticut. He is charged with one count of conspiracy to obstruct justice, one count of obstruction of justice, one count of conspiracy to commit bank fraud and one count of bank fraud.
The conspiracy to obstruct justice count carries a maximum of five years in prison; the obstruction charge carries a maximum of 10 years in prison; each of the conspiracy to commit bank fraud and bank fraud charges carries a maximum of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service, and thanked the SEC for its assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Christine I. Magdo are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Davis Man Serving Sentence for Bank Fraud Arraigned for Threatening Retaliation Against WitnessRead the Press Release
“The following named individual has been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROY LYNN WESBERRY, age 57, of Davis, Oklahoma was arraigned in federal court today on charges of Threatening to Retaliate Against a Witness, in violation of Title 18, United States Code, Section 1513(b)(1).
The Criminal Complaint alleges that from on or about August 12, 2015, and continuing until August 25, 2015, in the Eastern District of Oklahoma and elsewhere, the defendant did willfully and knowingly threaten to engage in conduct to cause bodily injury to another person with intent to retaliate against any person for the attendance of a witness at an official proceeding or any testimony given in an official proceeding.
The defendant was indicted in February 2014 and charged with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1349 and 4 counts of Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2. A jury found WESBERRY guilty of the charges in October 2014. He was sentenced to 87 months in prison on August 12, 2015.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment is up to 30 years imprisonment, up to $250,000.00 in fines or both.
Assistant United States Attorney Melody Nelson represented the United States.
Curry County Woman Sentenced to 60 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jeanette Driever, 38, of Grady, N.M., was sentenced today in Albuquerque, N.M., to 60 months in prison for her methamphetamine trafficking conviction. Driever will be on supervised release for five years after completing her prison sentence.
Driever and her three co-defendants, Christopher Jason Kidd, 38, Tina Tafoya, 33, and John Jesse Perez, Jr., 46, all of Clovis, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment charged the four defendants with conspiring to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 charged Kidd and Tafoya with possession of methamphetamine with intent to distribute on Nov. 6, 2013. Count 3 charged Driever and Perez with possession of methamphetamine with intent to distribute also on Nov. 6, 2013.
Driever and Perez entered guilty pleas to federal drug trafficking charges on Nov. 20, 2014. Each pled guilty to participating in a conspiracy to distribute methamphetamine in Curry County. Driever admitted that she and Perez obtained quantities of methamphetamine from Kidd and Tafoya and then distributed the methamphetamine to others. Perez acknowledged participating in a methamphetamine trafficking conspiracy that involved Driever, Kidd, Tafoya and others.
Tafoya entered a guilty plea on Dec. 17, 2014, and admitted conspiring with Kidd, Driever and Perez to distribute methamphetamine in Curry County in fall of 2013. Kidd entered a guilty plea on Nov. 17, 2014, and admitted that he conspired with his co-defendants to distribute methamphetamine in Curry County. More specifically Kidd admitted that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that day, Kidd and Tafoya possessed another half-pound of methamphetamine at their residence. The methamphetamine was seized later that day pursuant to search warrants.
Kidd was sentenced on June 16, 2015, to 78 months in prison followed by five years of supervised release. Tafoya was sentenced on July 23, 2015, to 78 months in prison followed by five years of supervised release. Under the terms of his plea agreement, Perez will be sentenced to 36 months followed by a period of supervised release to be determined by the court. Perez remains in custody pending his sentencing hearing which is currently scheduled for Sept. 22, 2015.
This case was investigated by the Las Cruces Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.
Cherry Creek Man Sentenced for Abusive Sexual Contact by ForceRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on August 24, 2015, by U.S. District Judge Roberto A. Lange.
Kenneth John Counting, a/k/a John Counting, age 46, was sentenced to 37 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction arose from an incident that occurred between October 25 and October 26, 2013, when Counting visited a neighbor at Cherry Creek. During that visit, Counting engaged in sexual contact by force with the victim. The victim tried to resist and attempted to push Counting away, but he was too strong and continued to touch the victim.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Counting was immediately turned over to the custody of the U.S. Marshals Service.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that James Humphrey, Jr., 41, of Buffalo, NY, who was convicted of conspiracy to distribute over 500 grams of cocaine, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the defendant, along with co-defendants, distributed multiple quantities of cocaine between 2009 and January 2010. Humphrey traveled to Ohio to obtain quantities of cocaine for distribution. The defendant was arrested along with four others. All five defendants have now been convicted.
Items seized during the execution of search warrants executed at the time of the arrests of the defendants included quantities of cocaine, crack cocaine, marijuana, supplies used in the packaging of cocaine and crack cocaine, $153,000 in cash, ammunition and three vehicles.
The investigation resulted in the liquor license revocation of “The Good Life,” a Bailey Avenue sports bar.
The sentencing is the culmination of any investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Boston Man Sentenced to 324 Months (27 Years) in Drug ConspiracyRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Boston man was sentenced today to 324 months (27 years) in prison by U.S. District Court Chief Judge Christopher C. Conner in Harrisburg.
According to United States Attorney Peter Smith, the defendant, Fremo Santana, previously pleaded guilty in December 2014 to conspiracy to distribute and possess with intent to distribute heroin and cocaine hydrochloride.
Santana was known as the leader of a drug trafficking organization and was a major Boston-based source of supply of cocaine and heroin to distributors in Harrisburg. Santana maintained a premises in Harrisburg and utilized couriers to travel between Harrisburg and the Boston area.
Santana was indicted by a federal grand jury in April 2012, as a result of an investigation by the Drug Enforcement Administration and the Dauphin County Drug Task Force.
Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
# # #
Baltimore Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, sentenced Stephon Lowery, age 30, of Baltimore, today to 10 years in prison followed by four years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from no later than December 2013 through May 2014, Lowery and his co-defendants operated a street-level drug shop in the southwest area of Baltimore City that sold cocaine base daily to customers. Multiple times a day, they ordered crack cocaine from suppliers, ranging in quantities up to 28 grams, which they then sold in user-quantity amounts to street level users.
Lowery admits that he and his conspirators distributed more than 112 grams of crack cocaine.
To date, seven co-defendants have pleaded guilty to their participation in the conspiracy.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Seema Mittal, who prosecuted the case.
Attorney General Loretta E. Lynch Statement on the Passing of Civil Rights Leader Amelia Boynton RobinsonRead the Press Release
Attorney General Loretta E. Lynch released the following statement today on the passing of civil rights leader Amelia Boynton Robinson:
“With the passing of Amelia Boynton Robinson, America has lost a spirited advocate, a passionate activist and a trailblazing champion in the fight for civil rights and social justice. Driven by her faith and her moral convictions, Ms. Boynton Robinson stood on the front lines of the Civil Rights Movement in Selma and beyond, inspiring countless men, women and children to stand up to injustice, to speak out for equality and to demand their opportunity to shape the future of this nation. Her legacy continues to be felt today – at the Department of Justice and across the country – in the expanded voting rights she helped to win; in the ongoing work of equality she helped to advance; and in the desire for a more just society that will always drive us forward. While Ms. Boynton Robinson’s journey on this earth has come to an end, the principles to which she dedicated her life – and the spirit of determination she brought to her mission – will forever march on. My thoughts and prayers are with her family, her friends and all who loved her.”
Arrowhead Regional Medical Center Agrees to Comply with Federal Law by Improving Access for People Who are Deaf or Hard of HearingRead the Press Release
Arrowhead Regional Medical Center (ARMC) in Colton, California, has entered into an agreement with the United States to resolve allegations that the hospital violated the Americans with Disabilities Act (ADA) by failing to provide qualified interpreters and other services to persons who are deaf or hard of hearing. Under the voluntary compliance agreement, ARMC will provide equipment and services to ensure that people who are deaf or hard of hearing have equal access to medical services, which includes giving them the ability to effectively communicate with hospital staff.
“Ensuring equal access to hospital services for individuals with disabilities, including those who are deaf or hard of hearing, is a priority of the Civil Rights Division,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We are proud to partner with and support the U.S. Attorney's important work in this area.”
“People who are deaf or hard of hearing have a right to clear and effective communication with physicians, nurses and all hospital staff members in order to ensure that they and their loved ones receive the same medical care that is available to every other person,” said U.S. Attorney Eileen M. Decker of the Central District of California. “This settlement is the latest step in the Justice Department's ongoing efforts to eliminate discriminatory barriers of all kinds.”
ARMC, which is operated by San Bernardino County, California, is a 456-bed general medical and surgical hospital that includes a burn center, a primary stroke center, a behavioral health center and four primary care centers. The hospital’s emergency room saw more than 116,000 patient visits in 2014.
The department received a complaint in 2012 from a deaf woman who alleged that ARMC personnel failed to provide a qualified sign language interpreter when necessary to ensure effective communication with her while her husband was a patient at ARMC.
Subsequently, the U.S. Attorney’s Office of the Central District of California received a complaint from a deaf patient who alleged that ARMC failed to provide her with a sign language interpreter while she was a patient. The office opened an investigation and, following extensive discussions with the hospital, ARMC agreed to voluntarily resolve the allegations.
Under the settlement, ARMC must take steps to ensure that it provides effective communication to persons who are deaf or hard of hearing. For example, ARMC will set up Video Remote Interpreting (VRI) equipment within 20 minutes of a request for VRI, or will provide an in-person interpreter within two hours of an emergency, if possible.
ARMC has also agreed to:
-
provide auxiliary aids necessary for effective communication;
-
designate an employee as an ADA coordinator;
- revise its policy on the provision of effective communication to issue clear direction to its staff and physicians regarding the need to provide auxiliary aids to deaf and hard-of-hearing persons;
-
modify its patient intake form;
-
train its staff and physicians on relevant ADA matters;
-
monitor the effectiveness of contract interpreters; and
-
provide reports to the U.S. Attorney's Office so it can assess compliance with the ADA.
The people who made complaints to the department about ARMC’s violations of the ADA filed a lawsuit that also was settled this week. As part of that settlement, ARMC will pay a total of $100,000 and the hospital will comply with the terms of the settlement with the U.S. Attorney’s Office.
The settlement with ARMC is part of the nationwide Barrier-Free Health Care Initiative (BFHCI), a partnership of the Civil Rights Division and U.S. Attorney’s Offices around the country to ensure that people with disabilities have equal access to medical services. This is the first settlement under the BFHCI involving a health care provider in San Bernardino County.
The agreement with ARMC is the second settlement with a health care provider under the BFHCI in the Central District of California. The U.S. Attorney’s Office entered into a settlement last month with Integrated Healthcare Medical Group Inc. (IHMG), a family practice with medical offices in Redondo Beach and Westwood. Pursuant to the agreement, IHMG agreed to implement an ADA policy for effective communication; provide auxiliary aids and services to the deaf and hard of hearing when necessary for effective communication; train its doctors and staff on the provision of such auxiliary aids and services; provide notice to patients that such aids and services are available; and provide certifications to the U.S. Attorney’s Office.
For more information on the ADA, visit www.ada.gov or call the department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY).
CONTACT: Assistant U.S. Attorney Monica L. Miller
U.S. Attorney’s Office for the Central District of California
Civil Division
(213) 894-4061
-
Arrowhead Regional Medical Center Agrees to Comply with Federal Law by Improving Access for People Who Are Deaf or Hard of HearingRead the Press Release
LOS ANGELES – Arrowhead Regional Medical Center (ARMC) in Colton has entered into an agreement with the United States to resolve allegations that the hospital violated the Americans with Disabilities Act (ADA) by failing to provide qualified interpreters and other services to persons who are deaf or hard of hearing. Under the voluntary compliance agreement, ARMC will provide equipment and services to ensure that people who are deaf or hard of hearing have equal access to medical services, which includes giving them the ability to effectively communicate with hospital staff.
“People who are deaf or hard of hearing have a right to clear and effective communication with physicians, nurses, and all hospital staff members in order to ensure that they and their loved ones receive the same medical care that is available to every other person,” said United States Attorney Eileen M. Decker. “This settlement is the latest step in the Justice Department's ongoing efforts to eliminate discriminatory barriers of all kinds.”
ARMC, which is operated by San Bernardino County, is a 456-bed general medical and surgical hospital that includes a burn center, a primary stroke center, a behavioral health center and four primary care centers. The hospital’s emergency room saw more than 116,000 patient visits in 2014.
The Department of Justice received a complaint in 2012 from a deaf woman who alleged that ARMC personnel failed to provide a qualified sign language interpreter when necessary to ensure effective communication with her while her husband was a patient at ARMC. Subsequently, the United States Attorney’s Office received a complaint from a deaf patient who alleged that ARMC failed to provide her with a sign language interpreter while she was a patient. The United States Attorney’s Office opened an investigation and, following extensive discussions with the hospital, ARMC agreed to voluntarily resolve the allegations.
Under the settlement announced today, ARMC must take steps to ensure that it provides effective communication to persons who are deaf or hard of hearing. For example, ARMC will set up Video Remote Interpreting (VRI) equipment within 20 minutes after a request for VRI, or will provide an in-person interpreter within two hours (if possible) of an emergency.
ARMC also has agreed to:
• provide auxiliary aids necessary for effective communication;
• designate an employee as an ADA Coordinator;
• revise its policy on the provision of effective communication to issue clear direction to its staff and physicians regarding the need to provide auxiliary aids to deaf and hard-of-hearing persons;
• modify its patient intake form;
• train its staff and physicians on relevant ADA matters;
• monitor the effectiveness of contract interpreters; and
• provide reports to the United States Attorney’s Office so it can assess compliance with the ADA.
The people who made complaints to the Justice Department about ARMC’s violations of the ADA filed a lawsuit that also was settled this week. As part of that settlement, ARMC will pay a total of $100,000 and the hospital will comply with the terms of the settlement with the United States Attorney’s Office.
The settlement with ARMC is part of the nationwide Barrier-Free Health Care Initiative (BFHCI), a partnership of the Department of Justice’s Civil Rights Division and United States Attorney’s Offices around the country to ensure that people with disabilities have equal access to medical services. This is the first settlement under the BFHCI involving a health care provider in San Bernardino County.
“Ensuring equal access to hospital services for individuals with disabilities, including those who are deaf or hard of hearing, is a priority of the Civil Rights Division,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We are proud to partner with and support the U.S. Attorney's important work in this area.”
The agreement with ARMC is the second settlement with a health care provider under the BFHCI in the Central District of California. The United States Attorney’s Office entered into a settlement last month with Integrated Healthcare Medical Group, Inc. (IHMG), a family practice with medical offices in Redondo Beach and Westwood. Pursuant to the agreement, IHMG agreed to implement an ADA policy for effective communication, provide auxiliary aids and services to the deaf and hard of hearing when necessary for effective communication, train its doctors and staff on the provision of such auxiliary aids and services, provide notice to patients that such aids and services are available, and provide certifications to the United States Attorney’s Office.
For more information on the ADA, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY).
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Jaquan Arkeem Hale, 25, of Mobile, was sentenced to 111 months in federal court this afternoon for his convictions on drug and gun offenses. Hale pled guilty to two charges, possession with intent to distribute marijuana and using and carrying a firearm in relation to a drug trafficking felony, in March of this year. Court documents show that Hale already had two prior convictions in state court for possession of marijuana in the first degree when he was arrested on the gun and drug offenses giving rise to the federal indictment.
United States District Court Judge Callie V. S. Granade pronounced the sentence in Hale’s case, which consisted of 51 months imprisonment on the drug count, to be followed by a consecutive sentence of 60 months on the gun count, for a total prison sentence of 111 months. Judge Granade ordered that Hale serve a three-year term of supervised release when he completes his prison sentences, but she did not impose a fine. She ordered that Hale pay $200 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Another Former Soldier Convicted of Alien SmugglingRead the Press Release
BROWNSVILLE, Texas – A fourth soldier, formerly on active duty with the U.S. Army based at Fort Hood, has admitted she is guilty of alien smuggling charges, announced U.S. Attorney Kenneth Magidson. Yashira Marie Perez-Morales, 25, of Killeen, appeared in court today and admitted she smuggled undocumented aliens pass the immigration checkpoint located at Sarita.
Three other former soldiers have also been convicted. Eric Alexander Rodriguez, 20, from Odem, Brandon Troy Robbins, 20, from San Antonio, and Christopher David Wix, 21, from Abilene, were all formerly on active duty with the U.S. Army based at Fort Hood. They were charged along with Arnoldo Gracia, 45, from Harlingen, who also entered a plea of guilty.
Evidence presented at the guilty plea today proved that during late spring to early fall 2014, Gracia provided undocumented aliens to Rodriguez, Robbins, Wix and Perez-Morales who would then drive separately through the immigration checkpoint located at Sarita. The former soldiers were successful on several occasions as they hid the aliens under their military gear. However, on three separate occasions occurring on April 13, June 21 and Sept. 11, 2014, authorities discovered the aliens with Robbins, Wix, and Rodriguez, respectively. That prompted Homeland Security Investigations (HSI) to further the overall investigation which led to the identification of Gracia and Perez-Morales.
U.S. District Judge Andrew S. Hanen, who accepted the guilty plea, has set the sentencing for Perez-Morales for Nov. 30, 2015. Rodriguez, Robbins and Gracia are set for Oct. 6, 2015, before U.S. District Judge Hilda Tagle. At that time, each faces up to 10 years in federal prison and a possible $250,000 fine. U.S. District Judge Hilda Tagle sentenced Wix on July 7, 2015, to a term of 12 months and one day to be followed by two years of supervised release.
The charges are the result of an investigation conducted by HSI with the assistance of Customs and Border Protection. Assistant U.S. Attorney Oscar Ponce is prosecuting the case
Anniston Army Depot Employee Indicted for Bribery, Providing Contraband to Federal PrisonersRead the Press Release
BIRMINGHAM – A federal grand jury today indicted an Anniston Army Depot employee for bribery and introducing contraband to federal prisoners, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of the Inspector General’s Miami Field Office.
MARK DAVID THORNTON, 55, of Gadsden, was charged in an 18-count indictment filed in U.S. District Court.
“An individual who supervises prisoners and takes bribes in order to deliver contraband to them corrupts the underpinnings of our prison system,” Vance said. “Those crimes will be punished.”
“The introduction of contraband creates safety hazards for both inmates and staff,” Bourbon said. “The Department of Justice Office of the Inspector General will continue its efforts to ensure that federal prisons are as safe and secure as possible, and that anyone who supervises inmates and accepts bribes is brought to justice.”
Counts one through 15 of the indictment charge Thornton with bribery for corruptly accepting money from inmates at the Federal Correctional Institution, Talladega, in exchange for providing them with contraband between March 2014 and May 2015.
Count 16 charges Thornton with providing a cell phone to one inmate. Counts 17 and 18 charge Thornton with providing, or attempting to provide, t-shirts, protein powder and cigarettes to prisoners housed at FCI, Talladega.
Bribery carries a maximum penalty of 15 years in prison and a $250,000 fine. Introducing contraband into a prison is a misdemeanor, with a maximum sentence of up to one year in prison and a $100,000 fine.
The case was investigated by special agents of the U.S. Department of Justice Office of the Inspector General, and will be prosecuted by Assistant U.S. Attorney Davis A. Barlow.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Acoma Pueblo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Dwight T. Brown, 18, a member and resident of Acoma Pueblo, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an involuntary manslaughter charge. The guilty plea was entered without the benefit of a plea agreement.
Brown was arrested on April 15, 2015, on a criminal complaint charging him with killing an Indian child on April 9, 2015, while driving under the influence of alcohol on the Acoma Pueblo in Cibola County, N.M. During today’s hearing, Brown pled guilty to a felony information charging him with involuntary manslaughter in connection with the death of the victim.
At sentencing, Brown faces a statutory maximum penalty of eight years in federal prison. Maximum potential sentences are prescribed by Congress and the sentence imposed on Brown will be determined by the court. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
14 Arrest Warrants Issued in Alleged Food Stamp Fraud, Drug Trafficking ConspiracyRead the Press Release
DAYTON, Ohio – An investigation by federal, state and local law enforcement in Butler County has led to the issuance of 14 arrest warrants on people charged in a conspiracy to defraud the United States, wire fraud, illegal use of Food Stamp benefits, theft of public money, money laundering and possession with intent to distribute a controlled substance (including near schools and playgrounds).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Harold Torrens, Agent in Charge, Ohio State Highway Patrol, Ohio Investigative Unit, Anthony Mohatt, Special Agent in Charge, United States Department of Agriculture (USDA) Office of Inspector General, Mark Porter, Special Agent in Charge, United States Secret Service, Butler County Sheriff Richard Jones, Hamilton County Sheriff Jim Neil, Fairfield Police Chief Mike Dickey, Cincinnati Police Chief Jeffrey Blackwell and Warren County Sheriff Larry Sims and other members of the Southern District of Ohio Task Force announced the arrests that took place today.
This morning federal, state and local law enforcement officials executed 19 search warrants, 14 arrest warrants and four seizure warrants against the owners, operators and employees of Butcher Shop Food Distributors, LLC of 300 Commercial Drive, Fairfield, OH and US Beef of Cincinnati, LLC of 3210 Profit Drive, Fairfield, OH.
Locations searched included business premises, residences and vehicles. Today’s raid culminated an 18-month undercover investigation into the suspected criminal practices of both of these retail meat home delivery services that operate in an approximate 50-mile radius of Fairfield. Their door-to-door retail sales of beef, poultry, pork and sea food products have impacted residential customers in Butler, Hamilton, Warren, Montgomery and Greene Counties.
Court documents allege that since 2011, individuals associated with Butcher Food Shop Distributors LLC and U.S. Beef Cincinnati LLC in Fairfield, Ohio actively engaged in illegal/fraudulent SNAP EBT (Food Stamp) transactions in exchange for cash. It is alleged that the owners, managers and other employees of the door-to-door meat retailers repeatedly, continually and illegally acquired and redeemed SNAP benefits in exchange for ineligible items, including money, Oxycodone, heroin and marijuana.
USDA records show that between December 2011 and May 2015, approximately 8,145 suspected fraudulent SNAP EBT transactions were completed via voucher for U.S. Beef employees for a total amount of approximately $1.1 million. The total estimated fraud for the Butcher Shop is approximately $382,000 and the total estimated number of SNAP EBT transactions for that shop is 7,912.
Initial court appearances for the arrestees are scheduled for 1:30 PM on August 27, 2015 before U.S. Magistrate Judge Michael J. Newman. They include:
- Steven E. Mueller, 61, of Fairfield
- Joseph Raymond Gray, 34, of Fairfield
- Jeffrey C. Knab, 58, of Cincinnati
- Andrie Lamarr Scott, 22, of Cincinnati
- Francis E. Racicot, IV, 32, of Cincinnati
- Rici Lynn Hopkins, 25, of Cincinnati
- Christopher Doane, 29, of Cincinnati
- Scott Andrew Traum, 45, of Cincinnati
- Joey Lightcap-Traum, 43, of Cincinnati
- Dalton Andrew Traum, 19, of Cincinnati
- Keith Blankenship, 35, of Loveland
- Gregory M. Brown, 35, of Cincinnati
- Jordan A. Kaiser, 22, of Fairfield
- William N. King, 22, of Fairfield
The Southern District of Ohio Task Force is an electronic and financial crimes task force made up of approximately 60 federal, state, and local law enforcement agencies in Ohio. This task force, along with an additional 80 electronic and financial networks across the United States, has been established to prevent, detect and investigate various forms of criminal activity that have large community impact.
U.S. Attorney Stewart commended the cooperative investigation by the local, state and federal law enforcement, as well as Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
13 Indicted on Conspiracy Charges in Counterfeit Check Cashing SchemeRead the Press Release
Memphis, TN – Thirteen people were indicted today on conspiracy charges for their alleged participation in a counterfeit check cashing scheme that defrauded Kroger of more than $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment.
The case is being investigated by the United States Secret Service and the United States Postal Inspection Service.
The defendants indicted include:
• Eureka Roshanda Mathis a/k/a Eureka Barnes, 36, Memphis
• Khiyenne Tarinee Daniel, 20, Memphis
• Iesha Lazaira Davis, 24, Memphis
• Crystal Lynette Dennis, 40, Memphis
• Paul Anthony Dowdy, 25, Memphis
• Zakiyyah Lateefah Fitzgerald a/k/a Zakiyyah Adams, 38, Memphis
• Christopher La Renza Gathright, 23, Memphis
• Larry Joseph Lennix Jr, 24, Memphis
• Marcus T. Simmons, 25, Memphis
• Candice Cammille Starks a/k/a Candice Gaither, 36, Memphis
• Dorsett Starks, 28, Memphis
• Tischinna Amon Walton, 19, Memphis
• Lonell D. Weeks Jr., 39, Memphis
As the indictment alleges, the scheme was orchestrated by 36-year-old Eureka Mathis, a resident of Memphis. From February 2013 to August 2014, Mathis stole checks from the mailboxes of local businesses, primarily the United Food and Commercial Workers Union’s (UFCW) local chapter #1529 in Cordova, TN. Other businesses in the Cordova area were also victims of Mathis’ mail thefts.
The UFCW is a labor union representing approximately 1.3 million grocery, retail, food processing, and meat packing industry workers in the United States. According to the indictment, approximately 75 percent of Kroger employees are represented by the UFCW through its 400 local union chapters.
Mathis fraudulently altered the stolen UFCW checks by changing the name of the payee to one of her co-conspirators. She also used the stolen checks as templates to create counterfeit checks made payable to her co-conspirators and to others she recruited to further her scheme.
Over the two-plus-year period Mathis executed her scheme, she recruited more than two dozen individuals to cash the counterfeit checks. The co-conspirators traveled to various Kroger locations nationwide, as well as other establishments that provided check cashing services, to cash the counterfeit checks. The checks ranged from several hundred dollars to more than $2,000.
• Each defendant is being charged with one count of conspiracy to commit mail theft and to pass and utter fictitious obligations. If convicted, they each face up to five years imprisonment and individual fines of up to $250,000.
• Each defendant is being charged with one count of conspiracy to commit bank fraud. If convicted, they each face up to 30 years imprisonment and individual fines of up to $1 million.
• In addition to the aforementioned charges, Mathis is being charged with four counts of receipt and possession of stolen mail. Walton is being charged with two counts of receipt and possession of stolen mail. Davis is being charged with one count of receipt and possession of stolen mail. They each face up to five years imprisonment and individual fines of up to $250,000 per offense of conviction.
• Mathis is also being charged with one count of manufacturing counterfeited and forged securities. If convicted, she faces up to 10 years imprisonment and up to $250,000 in fines.
Assistant U.S. Attorney Leetra Harris is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
25 August 2015
Woman in Prison for BP Oil Spill Fraud Pleads Guilty to Food Stamp Fraud and Tax EvasionRead the Press Release
BIRMINGHAM -- A McCalla woman, already serving time for attempting to defraud the Gulf Coast oil spill claims fund, pleaded guilty today in federal court to charges of food stamp fraud and evading income taxes. U.S. Attorney Joyce White Vance, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox announced the plea.
SHERICA LACEY LEE, 33, entered her guilty pleas to one count each of tax evasion and wire fraud before U.S. District Court Judge L. Scott Coogler. Her sentencing date has not been set.
The U.S. Attorney's Office filed the charges against Lee in June and Lee entered a plea agreement with the government at that time. As part of her plea, Lee agrees to forfeit $23,757 to the government as proceeds of illegal activity. She also agrees to pay restitution of $134,448 to the IRS for taxes not paid in 2008 through 2010, plus $23,757 to the Department of Agriculture for food stamp benefits she was not eligible to receive between July 2009 and June 2013.
According to the charges and Lee's plea, she evaded income taxes for 2008 by preparing and submitting a personal tax return that falsely reported she had no taxable income, when she had $229,147 in taxable income that year. Lee ran a tax preparation business, Lacey's Income Tax Service, with several locations in the Birmingham area. Between 2008 and 2010, Lee's company filed more than 2,000 tax returns and generated about $2.5million in receipts.
Lee committed wire fraud as part of a scheme to obtain federal benefits from the USDA Supplemental Nutrition Assistance Program. USDA administered SNAP, formerly known as the Federal Food Stamp Program, in conjunction with the Alabama Department of Human Resources.
Although Lee had income in excess of $200,000 in 2009, she applied for SNAP benefits by falsely stating on her application to DHR that she had no household income, cash on hand, or money in the bank, according to her plea. Lee submitted additional false application forms in 2010, 2011 and 2012. Her applications caused the $23,757 in SNAP benefits to be wired to an account established in her name and loaded monthly onto an Electronic Benefit Transfer card, which could be used as a debit card to purchase food.
Lee is serving a one-year and a day prison term for attempting to defraud the Gulf Coast Claims Facility.
IRS, Criminal Investigation, and USDA-OIG investigated the case, which Assistant U.S. Attorney Pat Meadows is prosecuting
Williamson County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On August 20, 2015, Michael A. Boyt, Jr., 19, of Marion, pled guilty to one-count of conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that between 2013 and January 2015, Boyt, Jr. was involved with his father, Michael Boyt, Sr., and others in the manufacture of methamphetamine. Boyt, Jr. cooked methamphetamine and collected pseudoephedrine pills from others. On January 5, 2015, Boyt, Jr., also sold methamphetamine to a confidential source working for law enforcement. The offense occurred in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Boyt, Jr. is currently being held without bond pending a December 8, 2015, sentencing hearing. The methamphetamine offense carries a maximum penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a $1,000,000 fine. Two co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Video Poker Owner Pleads GuiltyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larry W. Flynn, a/k/a “L.W. Flynn,” age 40, of Columbia, South Carolina has entered guilty pleas in federal court to Operating a Gambling Business, a violation of 18 U.S.C. § 1955, and Evading Federal Taxes, in violation of 26 U.S.C § 7201. Senior United States District Judge Joseph F. Anderson, Jr. accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented to the Court established that Flynn operated a video-poker gambling business in violation of South Carolina gambling laws and evaded paying taxes on the money he made from his gambling business. Between 2010 and 2013, Flynn owned and ran Magic Minutes, a South Carolina company that placed video-poker machines in various locations, such as convenience stores, liquor stores, party shops, and bowling alleys. On the machines owned by Flynn – as well as others who paid to utilize the name Magic Minutes – users could buy a “voucher” for phone minutes and then play black jack, keno, poker, and other games of chance. SLED seized over 200 Magic Minutes’ machines, which FBI experts determined to be illegal gambling devices. In operating this illegal gambling business in 2011 and 2012, Flynn had a substantial taxable income yet took various steps to evade his tax responsibility including not filing tax returns, operating a significant portion of his business and personal life in cash, and paying employees in cash.
Mr. Nettles stated the maximum penalty for operating a gambling business is imprisonment for 5 years and/or a fine of $250,000, and the maximum penalty for tax evasion is imprisonment for 5 years and/or a fine of $100,000.
The case was investigated by agents of the FBI, SLED, and IRS-CID. Assistant United States Attorneys Jim May and Jay Richardson are prosecuting the case, along with attorneys from the South Carolina Attorney General’s Office.
#####
U.S. Attorney’s Office, U.S. Marshals Service and City of Buffalo Team up in Historic Demolition of Drug HousesRead 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 six drug houses used by the Anderson family drug trafficking organization are being demolished following a historic agreement reached between the City of Buffalo and the U.S. Marshals Service. The houses were forfeited as a result of the Office’s prosecution of the Anderson organization. All members of the organization have been convicted, with Theresa Anderson receiving a sentence of 188 months in prison.U.S. Attorney Hochul was joined by Buffalo Mayor Byron Brown, United States Marshal Charles Salina, NYS Police Captain Steven Nigrelli, Drug Enforcement Administration Resident Agent in Charge John Flickinger and Deputy Buffalo Police Commissioner Kim Beatty as the wrecking ball began to tear down these neighborhood eyesores.
“Drug dealing in houses such as this has the potential to cause physical, psychological and emotional harm to an entire neighborhood,” said U.S. Attorney Hochul. “By removing this blight, law enforcement and the City send a strong message that Buffalo continues to make positive progress, while restoring confidence to those who call this community home. We look forward to continuing our efforts to make Buffalo and its neighborhoods safer and healthier places to live.”
"This is what it’s really about when we take something and then turn it back over to the community and revitalize a neighborhood,” said City of Buffalo Mayor Byron Brown. “Today’s demolition is the first of six demolitions of forfeited properties from the Theresa Anderson drug prosecution and marks the end of a long chapter. This was a team effort to make our city even better and it worked. The partnership between the City of Buffalo, the United States Attorney’s Office and the United States Marshals Service has proven to be a significant tool in strengthening the quality of life in our community and fighting crime, contributing to the over 25% drop in overall crime in Buffalo since 2005.”
From approximately 2005 to 2012, the Anderson drug trafficking organization controlled drug sales in a multi-block neighborhood on the East Side of Buffalo, including Swinburne and Deshler Streets. The organization employed family members to sell crack cocaine on a daily basis, and engaged in violence in order to monopolize narcotics sales in the area. Organization members also purchased several homes in the area which were used for selling and storing the illegal narcotics.As part of the prosecution, over $50,000 in U.S. Currency was seized and eight drug houses were forfeited. Two of the houses were destroyed by fire. The remaining six properties will be demolished by the City of Buffalo working in conjunction with the U.S. Marshals Service. The demolitions will be paid for by funding from the federal asset forfeiture program. These funds include the illegal proceeds of criminal activity.
Hochul further stated “The work that begins today is the largest and most wide ranging demolition of forfeited drug houses that has occurred to date in the United States. “By using forfeiture funds to pay for the demolition, we are not only taking the profit out of criminal activity, we are using the money of criminals to pay for improving the neighborhood by removing visible reminders of their past crimes.”
The six properties being demolished are:
• 41 Deschler
• 54 Deschler
• 19 Swinburne
• 26 Empire
• 39 Empire
• 214 Hutchinson
Two other drug houses, 31 and 74 Deshler Street, burned down earlier this year.Theresa Anderson was arrested in February 2012 along with eight others: Steven Butler; Dion Anderson; Melvin Calhoun; Anquensha Hodge, a/k/a Anne Anderson; Wymiko Anderson, a/k/a Red; Toshia Hodge, a/k/a Toshia Anderson; Tajia Anderson, a/k/a Porkchop; and Leo Mellerson; all of Buffalo. Five of these defendants are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. All nine have been convicted and sentenced.
Two defendants plead guilty to forced labor scheme that exploited Guatemalan migrants at egg farmsRead the Press Release
A leader of a human trafficking ring pleaded guilty yesterday in federal court to charges that he lured Guatemalan minors and adults into the United States on false pretenses, then used threats of physical harm to compel their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio.
Aroldo Castillo-Serrano, 33, of Guatemala, pleaded guilty to a labor trafficking conspiracy, one count of labor trafficking, one count of witness tampering and a related immigration offense. His co-conspirator, Conrado Salgado Soto, 52, of Mexico, pleaded guilty on Aug. 5 to participating in the same labor-trafficking conspiracy, as well as an immigration offense, the Justice Department also announced today. The guilty pleas are pending approval from a federal court judge and are not final until that approval is granted.
According to the indictment, which was unsealed on July 2, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. Castillo-Serrano also pleaded guilty to convincing a witness to lie to the FBI about the scheme. Eight minors, as young as 14, and two adults were identified in the indictment as victims of the forced labor scheme.
“These defendants exploited children who were poor, vulnerable and entirely at their mercy,” said Principal Deputy Assistant Attorney General Gupta. “We will pursue and prosecute such behavior with all of the tools at our disposal.”
“Our laws and a sense of common decency require that people not be treated like commodities,” said U.S. Attorney Dettelbach. “This defendant treated workers as if they were less important than the eggs that they would help produce. Now he is going to learn the hard way that in this nation, there is a big difference."
“The defendants forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. “These reprehensible actions are unacceptable and the FBI will continue to work with our partners to bring to justice those that engage in human trafficking.”
Charges are still pending against a third co-conspirator, Ana Angelica Pedro Juan, 21, of Guatemala. Pedro Juan is charged with labor trafficking and conspiracy to commit labor trafficking, as well as witness tampering and making false statements to law enforcement. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case.
Castillo-Serrano’s sentencing will be scheduled at a later date, and Salgado Soto’s sentencing is scheduled for Dec. 14. The forced labor counts and the witness tampering count each carry a statutory maximum sentence of 20 years in prison. The charges involving immigration violations and false statements carry statutory maximum sentences of five years in prison.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Two Sentenced for Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Two area residents have been ordered to federal prison for their participation in a scheme to obtain tax refunds in the names of others, announced U.S. Attorney Kenneth Magidson. Carey Jermaine Johnson aka Jermaine Johnson, 38, of Houston, and Tarmera Renee Wyckoff aka Toni Wyckoff, 39 of Richmond, had each pleaded guilty to conspiracy to commit mail and wire fraud, conspiracy to make false claims to the IRS and making a false claim to the IRS.
Today, U.S. District Judge Gray Miller ordered Johnson to serve 28 months in prison, while Wyckoff will serve a 41-month-term. Johnson and Wyckoff were further ordered to pay $705,323 and $472,591.37 in restitution, respectively. A third defendant - Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, 38, of Humble, is set for sentencing on Sept. 10, 2015.
The scheme for which all were convicted involved the electronic submission of federal tax returns in the names of numerous individuals, each of which falsely claimed tax credits that resulted in a refund. The defendants directed most of those refunds into their bank accounts or those of their co-conspirators. The co-conspirators claimed more than $2,261,000 in false first time home buyer credits on the 2008 returns filed with the IRS. Those fraudulent claims resulted in the defendants and their co-conspirators claiming more than $2,329,000 in fraudulent refunds.
Carey Johnson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Wyckoff and Cheryl Johnson will remain in custody.
This investigation was conducted by IRS-Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Two Men Involved in Hartford Gang-Related Narcotics Trafficking Are SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two men involved in gang-related narcotics trafficking in Hartford were sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven federal court.
HORACE STARKS, JR., also known as “Head” and “Little Head,” 23, of East Hartford, was sentenced to 10 months of imprisonment, followed by four years of supervised release. On April 30, 2015, STARKS pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”). STARKS had no prior criminal record, which made him eligible for a reduced sentence.
SHAQILLE BROWN, also known as “Shaq,” 23, of Hartford, was sentenced to five years of probation. In addition, BROWN had been detained for approximately 16 months since his arrest in April 2014. On December 23, 2014, BROWN pleaded guilty to one count of using a telephone to facilitate a narcotics trafficking offense.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, including STARKS and BROWN, distributed crack cocaine in the Westland Street area of Hartford.
On April 3, 2014, STARKS participated with Scott and others in the sale of approximately 130 grams of crack for $2,600 to an individual cooperating with law enforcement.
Twenty-five individuals were charged as a result of the investigation, and 24 have been convicted. One defendant was shot and killed while his case was pending.
Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Two Men Federally Indicted for Attempted CarjackingRead the Press Release
Acting United States Attorney Gregory J. Haanstad announced today that two Milwaukee men were indicted for the August 12, 2015 attempted armed carjacking at 76th Street and W. Layton Avenue in Greenfield. Devonte Hayes, age 19, and Norman Howard, age 18, were charged with one count of attempted motor vehicle robbery and one count of brandishing a firearm in furtherance of a crime of violence.
The attached Criminal Complaint provides a detailed account of the allegations against the defendants. If convicted, each man faces up to 15 years in prison on the motor vehicle robbery count and a minimum mandatory sentence of 7 years and up to life in prison on the charge of use of a firearm during a crime of violence.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Greenfield Police Department, the Oak Creek Police Department, the West Allis Police Department, and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
# # # # #
Two Defendants Plead Guilty to Forced Labor Scheme that Exploited Guatemalan Migrants at Ohio Egg FarmsRead the Press Release
A leader of a human trafficking ring pleaded guilty yesterday in federal court to charges that he lured Guatemalan minors and adults into the United States on false pretenses, then used threats of physical harm to compel their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio.
Aroldo Castillo-Serrano, 33, of Guatemala, pleaded guilty to a labor trafficking conspiracy, one count of labor trafficking, one count of witness tampering and a related immigration offense. His co-conspirator, Conrado Salgado Soto, 52, of Mexico, pleaded guilty on Aug. 5 to participating in the same labor-trafficking conspiracy, as well as an immigration offense, the Justice Department also announced today. The guilty pleas are pending approval from a federal court judge and are not final until that approval is granted.
According to the indictment, which was unsealed on July 2, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. Castillo-Serrano also pleaded guilty to convincing a witness to lie to the FBI about the scheme. Eight minors, as young as 14, and two adults were identified in the indictment as victims of the forced labor scheme.
“These defendants exploited children who were poor, vulnerable and entirely at their mercy,” said Principal Deputy Assistant Attorney General Gupta. “We will pursue and prosecute such behavior with all of the tools at our disposal.”
“Our laws and a sense of common decency require that people not be treated like commodities,” said U.S. Attorney Dettelbach. “This defendant treated workers as if they were less important than the eggs that they would help produce. Now he is going to learn the hard way that in this nation, there is a big difference."
“The defendants forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. “These reprehensible actions are unacceptable and the FBI will continue to work with our partners to bring to justice those that engage in human trafficking.”
Charges are still pending against a third co-conspirator, Ana Angelica Pedro Juan, 21, of Guatemala. Pedro Juan is charged with labor trafficking and conspiracy to commit labor trafficking, as well as witness tampering and making false statements to law enforcement. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case.
The forced labor counts and the witness tampering count each carry a statutory maximum sentence of 20 years in prison. The charges involving immigration violations and false statements carry statutory maximum sentences of five years in prison.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Trio Convicted of Multiple Narcotics Charges in Federal Wiretap CaseRead the Press Release
On August 24, 2015, Eddie Lee Perry, aged 44, of Cairo, Georgia; Joseph Davenport, aged 52, of Thomasville, Georgia; and Chad Ragin, aged 42, of Opalocka, Florida were convicted in United States District Court of all counts of an indictment charging them with conspiracy to possess with intent to distribute cocaine and crack cocaine, possession of cocaine and crack cocaine with intent to distribute (Davenport), use of a telephone in furtherance of a drug crime (Perry and Davenport), conspiracy to falsify records in a Federal investigation (Ragin), and falsifying records in a Federal investigation (Ragin). A copy of the indictment is attached. The guilty verdict is the result of a nine-day jury trial held in Albany, Georgia before the Honorable W. Louis Sands, Senior United States District Court Judge.
Evidence presented at trial showed that during 2013, the three defendants were part of a criminal organization that distributed cocaine and crack cocaine in Cairo, Georgia. Mr. Ragin acted as a courier of drugs and money between Mr. Perry and Roger Ross, of the Miami, Florida area. Mr. Davenport “cooked” the powder cocaine converting it into crack cocaine. The organization was responsible for trafficking/distributing kilogram quantities of cocaine.
Mr. Perry faces a mandatory minimum sentence of twenty years imprisonment. Mr. Davenport will receive a mandatory life sentence. Mr. Ragin is facing ten years to life imprisonment on Count 19 and twenty years imprisonment each on Counts 20 and 21. Sentencing will take place in about 60 days following a presentence investigation.
U.S. Attorney Michael Moore said, “Through outstanding cooperation between local, state and federal agencies, we have dismantled another large-scale drug distribution organization. We will continue to use every tool available to take the drugs off the streets and put the dealers in the jails.”
“Residents of Cairo should not have to live with drug dealers operating in their community,” stated Daniel R. Salter, Special Agent in Charge, U.S. Drug Enforcement Administration, Atlanta Field Division, “and these convictions will help protect the citizens of Cairo and the surrounding area. DEA will continue to work closely with our partners to protect our communities from the scourge of dangerous drugs.”
The case was investigated by the Thomas County Vice/Narcotics Squad, the Thomasville Police Department, the Grady County Sheriff’s Office, the Cairo Police Department, the Pelham Police Department, the Georgia State Board of Pardons and Paroles District Office and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Three Men Face Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Ill. - A federal grand jury returned indictments last week charging three men in separate, unrelated cases with federal gun charges in the Rock Island Division of the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances.
Jeremy Elias Munday, 26, of the 1300 block of 13th Street, East Moline, Illinois, is charged with unlawful possession of a handgun on July 25, 2015, after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is up to 10 years in prison and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the East Moline Police Department and the Federal Bureau of Investigation.
Guadalupe Paulie Granado, 34, of the 900 block of 2nd Street, Colona, Ill., is charged with unlawful possession of a handgun on June 10, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is up to 10 years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation.
Samuel Cruz, 27, of the 700 block of 12th Street, Moline, Illinois, is charged with unlawful possession of a handgun on March 27, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation.
On August 25, 2015, all three defendants appeared in federal court in Rock Island for their initial appearances before U.S. Magistrate Judge Stephen B. Jackson, Jr., and all three defendants were ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Tax Return Preparer Pleads GuiltyRead the Press Release
DALLAS — A woman who owned a tax preparation business that had locations in Addison, Farmers Branch and Irving, Texas, My Kyung Ryoo, appeared in federal court today and pleaded guilty to one count of aiding or assisting in the preparation or presentation of a false or fraudulent individual income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Ryoo, who stated in open court today that she is 51 years of age, faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. In addition, according to the plea agreement filed in the case, Ryoo is to pay the Internal Revenue Service (IRS) $65,319 in restitution. Sentencing is set for December 17, 2015, before U.S. District Judge Jane J. Boyle.
According to the factual resume filed in the case, since 2006, Ryoo, a/k/a “Micky Ryoo,” was the owner and a return preparer at Quick File Tax Service located in Addison, Farmers Branch and Irving, Texas. During tax years 2007 through 2010, Ryoo prepared and filed more than 2000 tax returns from her various offices, and her name, business and electronic filer identification number appeared on every tax return prepared. Ryoo voluntarily closed Quick File in April 2011 and terminated her tax preparation business.
IRS’s audit of 30 fraudulent returns, according to the factual resume, resulted in an estimated tax loss of $65,319. The IRS Austin Scheme Detection Center identified 1,001 suspect tax returns prepared by Ryoo that appeared to contain questionable Schedule “A” deductions. Ryoo stipulates that the government likely could prove that a reasonable estimate of the total tax harm resulting from a substantial number of returns she prepared and filed for tax years 2007 – 2010, inclusive, is no more than $200,000.
The factual resume further states that in March 2011, a taxpayer, “AO,” requested Ryoo prepare her 2010 tax return. In 2010, AO was employed as a housekeeper, and her recently deceased husband had worked in a furniture store. In preparing and electronically filing that tax return, at AO’s request, Ryoo attempted to minimize AO’s and her late husband’s tax liability. After advising AO of the possible consequences of filing a questionable return, Ryoo falsely overstated on the return that AO and her deceased husband were entitled to more than $25,000 in itemized deductions on Schedule “A.” Ryoo also claimed that AO and her deceased husband were entitled to more than $1,500 in educations credits for which they did not qualify.
IRS Criminal Investigation is investigating. Assistant U.S. Attorney Joseph M. Revesz is in charge of the prosecution.
# # #
St. Thomas Man Charged with Federal Firearm OffensesRead the Press Release
St. Thomas, USVI – Lued Browne, 44, made his initial appearance in District Court today before U.S. Magistrate Judge Ruth Miller after being charged in a two-count Indictment with possession of a firearm by a convicted felon and possession of a firearm in a school zone, United States Attorney Ronald W. Sharpe announced. Browne was detained pending a detention hearing on August 27, 2015.
According to the Indictment which was filed August 6, 2015, in District Court on St. Thomas, Browne was found in possession of a firearm on the grounds of Antilles School. Browne was previously convicted in the District Court for the Northern District of Florida of armed bank robbery and use or possession of a firearm during a crime of violence.
If convicted of possession of a firearm by a convicted felon, Browne faces a maximum sentence of 10 years in prison and a $250,000 fine. Additionally, Browne faces a maximum sentence of 5 years in prison and a $250,000 fine for possession of a firearm in a school zone, to run consecutively to any other sentence.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Virgin Islands Police Department (VIPD). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Thomas Man Charged in District Court with Firearm OffensesRead the Press Release
St. Thomas, USVI – Michael Lewis, 27, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in an Indictment with possession of a firearm by a convicted felon, two counts of possession of ammunition by a convicted felon, and the local offenses of possession of a firearm by a convicted felon and possession of an unlicensed firearm, United States Attorney Ronald W. Sharpe announced. Lewis was detained pending a detention hearing on August 27, 2015.
According to the Indictment which was filed August 6, 2015, in District Court on St. Thomas, Lewis was found in possession of three firearms and numerous rounds of ammunition. Lewis was previously convicted in the Superior Court of two counts of unauthorized possession of a firearm and third degree assault with a deadly weapon.
Under federal law if convicted of possession of a firearm by a convicted felon and possession of ammunition by a convicted felon, Lewis faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of possession of a firearm by a convicted felon under territorial law, he faces a maximum sentence of 20 years in prison and a $25,000 fine; and if convicted of possession of an unlicensed firearm, he faces a maximum sentence of 5 years in prison and a $15,000 fine.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Virgin Islands Police Department (VIPD). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Man Pleads Guilty to Advertising ScamRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Andrew Miles Ross, waived indictment and pled guilty to defrauding more than 6,500 small businesses in more than 32 states in a telemarketing advertising scam. Ross, 32, of the 3100 block of S. Woodward St., owned and operated a telemarketing company that sold advertising space on placemats or take-home menus purportedly to be used by popular Mexican restaurants. As a result of the scheme, Ross sold more than $900,000 in false advertisements.
Ross appeared in federal court yesterday and entered a plea of guilty to five counts of wire fraud before U.S. Magistrate Judge Thomas P. Schanzle-Haskins. Ross is currently on bond awaiting sentencing, which is scheduled on Jan. 18, 2016, before U.S. District Judge Sue E. Myerscough.
The telemarketing company operated under various names including A. Ross and Associates and Coast-to-Coast Advertising, LLC, doing business as Nationwide Advertising and Nationwide Marketing. Between 2005 and April 2011, as part of the scheme, advertising space was sold primarily to small businesses, such as auto repair shops, insurance agents and beauty salons located in the area of Mexican restaurants. The telemarketers falsely represented to small businesses that they were employed by or associated with a local Mexican restaurant that was selling the ad space on its placemats or take-home menus. Further, the telemarketers falsely represented a one-time annual fee for purchasing advertisement, although Nationwide Marketing routinely debited the checking or credit card account of the small businesses without the businesses’ authorization or consent on multiple occasions during the year.
As part of the scheme, Ross, or someone else associated with Nationwide Marketing, contacted popular Mexican restaurants throughout the U.S. and attempted to persuade them to accept free placemats or take-home menus. Nationwide Marketing falsely represented that the items were a gift for being named in a survey as the top Mexican restaurant in the area. In some instances, although the restaurant advised that it did not want the items, Nationwide Marketing sent the placemats and take-home menus, which were of poor quality, regardless.
The case is being prosecuted by Assistant U.S. Attorney Gregory K. Harris. The investigation was conducted by agents of the FBI and the U.S. Postal Inspection Service. The case was referred to the U.S. Attorney’s Office by the Illinois Attorney General’s Office.
At sentencing, Ross faces a maximum possible penalty of up to 20 years in prison, a fine of up to $250,000 and a term of supervised release of up to three years to follow any term of imprisonment. The defendant may also be ordered to pay restitution.
Silicon Valley Employee Arrested for Theft of Trade SecretsRead the Press Release
SAN FRANCISCO – Jing Zeng appeared in United States District Court today after being arrested by the Federal Bureau of Investigation (FBI) on a criminal complaint alleging theft of trade secrets, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the affidavit in support of the criminal complaint, Zeng, 42, of San Ramon, Calif., is alleged to have downloaded over one hundred files containing propriety, non-public information from a confidential Machine Zone, Inc. database after he learned that his employment was to be terminated. Machine Zone, Inc., makes the on-line video game Game of War: Fire Age. The affidavit also sets forth evidence that after Zeng downloaded this information onto his company laptop, he transferred it to an external device, wiped and reformatted the laptop, and then returned the laptop to the company. The complaint alleges there is probable cause to believe Zeng’s acts amount to a theft of trade secrets in violation of 18 U.S.C. § 1832(a)(2).
Zeng was arrested at San Francisco International Airport on August 20, 2015, as he prepared to board a flight for China. He made his initial appearance on August 21 in federal court in San Francisco and has been detained pending determination of bail. The complaint was unsealed today at Zeng’s bail hearing before Magistrate Judge Joseph C. Spero in San Francisco. Zeng was released on a $100,000 secured bond and placed on electronic monitoring.
A criminal complaint only alleges probable cause that a defendant committed a crime, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted violating 18 U.S.C. § 1832(a)(2), Zeng faces a maximum sentence of 10 years in prison, and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office, and is being investigated by the Federal Bureau of Investigation, Palo Alto.
San Antonio Area Businesswoman Sentenced to Federal Prison for Orchestrating Estimated $1.4 Million Fraud SchemeRead the Press Release
This afternoon, San Antonio businesswoman Lea Ann Blystone was sentenced to seven years in federal prison for orchestrating an estimated $1.4 million wire fraud scheme announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher H. Combs.
In addition to the prison term, Senior United States District Judge David Ezra ordered that Blystone pay a monetary judgment in the amount of $1,402,935.45 which represents the amount of proceeds traceable to the above mentioned scheme. Judge Ezra also ordered that Blystone be placed on supervised release for a period of three years after completing her prison term. Judge Ezra remanded Blystone into federal custody following today’s sentencing.
Blystone, age 48, is the owner and managing partner of HipDingo stores in Boerne and Fredericksburg, and formerly in San Antonio; and, the former marketing director for a land development company, Rinco of Texas, Inc. (Rinco), and its Rockin J Ranch (Rockin J) development.
On September 9, 2014, the Boerne, TX, resident pleaded guilty to one count of wire fraud and agreed to forfeit to the government any and all HipDingo inventory, assets and equipment; five real estate properties in Kendall County (TX); and, three vehicles. By pleading guilty, Blystone admitted that from January 2009 until August 2011, she devised and implemented a scheme to defraud Rinco and Rockin J to obtain money and other property by means of false and fraudulent pretenses.
As marketing director for Rinco and Rockin J, Blystone was responsible for coordinating the staffing and payments to vendors for promotional booths or display space at shows, malls, sporting, and other events. In defrauding the victims, Blystone caused them to pay several cohorts for purportedly working at the displays, when in fact they performed no such work. According to courtroom testimony, they shared these payments with Blystone. In some instances, Rinco and Rockin J paid for services when Blystone had provided no promotional work on their behalf. In others, Blystone caused Rinco and Rockin J to pay monies she used to pay persons working at her Hip Dingo stores, work wholly unrelated to promotions for the victims.
This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Rollinsford Man Sentenced for Serial Bank FraudRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald A. Feith announced that United States Senior District Judge Joseph A. DiClerico today sentenced Christopher J. Bailey to a term of 33 months in federal prison based upon his previous pleas of guilty to one count each of Bank Fraud, False Statement on a Loan or Credit Application, and False Representation of Military Decorations and Medals (Stolen Valor). Bailey, age 28, lived in Rollinsford, New Hampshire, at the time of the offenses for which he was sentenced.
According to statements and documents relating to Bailey’s and sentencing, the Bank Fraud and loan-related offenses arose from Bailey’s execution of a scheme to serially defraud the federal government and at least ten private financial institutions of more than $1.6 million dollars. The gist of Bailey’s scheme was to apply for loans based on the false pretense that the defendant had a successful agricultural business and the false representation that the defendant intended to use the funds to purchase farming equipment or other agricultural assets for use in that business. Bailey executed the scheme over a nearly five year period beginning in late 2009. The Stolen Valor charge arises from claims of military heroism that Bailey made to facilitate his fraud. Bailey attempted to substantiate his false claims of service and heroism by counterfeiting military documents and presenting them to lenders. In fact, Bailey never served in the military.
“Schemes to defraud government programs and financial institutions cause significant harm to those programs and to the system lenders rely upon when making decisions on lending,” stated Acting United States Attorney Donald Feith. “Our financial system relies on borrowers providing truthful and accurate information when seeking loans. Fraudsters such as Mr. Bailey damage the entire system of lending by imposing greater costs on truthful borrowers. Our office will continue to work with law enforcement to identify financial fraudsters and bring them to justice.”
In addition to the prison term, Judge DiClerico sentenced Bailey to a period of five years of supervised release, which Bailey must serve after completing his prison term. While on supervised release, Bailey will be required to abide by rules established by the court. If he fails to abide by those rules, he can be forced to serve additional time in prison. Finally, Judge DiClerico ordered Bailey to pay more than $670,000 in restitution to the lenders he defrauded.
This case was investigated by criminal investigators in the Manchester (N.H.) office of the U.S. Secret Service and the Salem (N.H.) office of the U.S. Department of Agriculture, Office of Inspector General, and the Boston office of the Department of Defense’s Criminal Investigative Service (DCIS). The case was prosecuted by Assistant U.S. Attorney Bill Morse.
Rochester Man Pleads to Drug Conspiracy Involving 1998 MurderRead 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 Angelo Cruz, of Rochester, N.Y., 39, pleaded guilty to conspiracy to distribute 280 grams or more of crack cocaine before U.S. District judge Frank P. Geraci. The charge carries a mandatory minimum penalty of 20 years and a maximum of life, and a $10,000,000 fine.“This case – like so many before it – demonstrates the success of using federal tools to combat violent gang activity,” said U.S. Attorney Hochul. “We will continue to be engaged in such investigations when appropriate situations arise.”
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that while pleading guilty in court to the drug charge the defendant also admitted to assisting in the murder of Francisco Santos at the Seneca Indian Reservation in Erie County, N.Y., in October 1998. The murder was part of a drug trafficking conspiracy in the Rochester area, which included cocaine, crack cocaine, heroin and marijuana, from 1993 to March 2011.
The victim, Francisco Santos, was a member of the drug distribution conspiracy and was believed to have stolen drugs and money from other members of the conspiracy. In retaliation for the theft, members of the conspiracy assaulted Santos and slashed Santos across the side of the head with a knife. Sometime after the beating, the co-conspirator who slashed Santos on the head was arrested for the assault.
To further retaliate for the original theft and to prevent Santos from testifying against the co-conspirator on the assault charge, Cruz admitted that he and a group of other co-conspirators found Santos and drove him to the Seneca Indian Reservation. Once at the reservation, they took Santos down a dirt path behind some trees where Santos was stabbed to death and buried in a shallow grave. Cruz admitted to having been present and observed Santos being stabbed while he was acting as a lookout.
Also charged in the Santos murder: James Kendrick, Pablo Plaza, born in 1972, Pablo Plaza, born in 1976, and Janine Plaza Pierce, the mother of Kendrick and the older Plaza. The trial of remaining defendants is expected to take place later this year and June 2016.
The plea is the culmination of a joint investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, under the direction of Special Agent in Charge Delano Reid, and the Rochester Police Department, Violent Crime Team/Firearms Suppression Unit, under the direction of Chief Michael Ciminelli. Numerous federal, state and local law enforcement agencies assisted in the investigation, including the New York State Police, under the direction of Major Craig Hanesworth; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy B. Howard; the Federal Bureau of Investigation; the United States Drug Enforcement Agency, under the direction of Special Agent in Charge James J. Hunt, New York Field Division. Also assisting in the investigation was the Schenectady County District Attorney’s Office, under the Direction of District Attorney Robert M. Carney.Sentencing is scheduled for January 4, 2016 at 9:30 a.m. before Judge Geraci.
Registered Fort Worth Sex Offender Sentenced to 40 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A registered sex offender, living in Fort Worth, Texas, who pleaded guilty to a two-count indictment charging child pornography offenses, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Mark Anthony Pape, 24, was sentenced by U.S. District Judge Terry R. Means to 40 years in federal prison. He pleaded guilty in October 2014 to an indictment charging one count of production of child pornography and one count of committing this offense as a registered sex offender. Pape has been in federal custody since his arrest in April 2014 in San Marcos, Texas, on a related federal criminal complaint.
According to documents filed in the case, on approximately April 9, 2014, officers with the Fort Worth Police Department executed a search warrant at Pape’s residence in Fort Worth and seized computer media and a cell phone. A forensic examination of the phone revealed a video depicting Pape and a prepubescent female, approximately six-years-old, engaged in sexually explicit conduct. The video was taken in Pape’s home in February 2014.
The investigation was initiated when the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip regarding an individual who had uploaded an image, containing suspected child pornography, to the Internet. The investigation led to the identification of Pape, a registered sex offender.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney A. Saleem prosecuted.
# # #
Record Distributor Pleads Guilty to Copyright Infringement ChargesRead the Press Release
DALLAS – The owner of a record distribution company that knowingly sold counterfeit Latina music CDs to retailers from its stores/distribution centers in Dallas, Chicago and Phoenix, appeared in federal court today in Dallas and pleaded guilty to federal charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Arizona resident, Melek Ackay Portillo, 52, who owns Angelica’s Record Distributors, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to two counts of copyright infringement, stipulating that she willfully reproduced or distributed numerous copyrighted sound recordings on CDs without authorization from the copyright holders. Angelica’s Record Distributors pleaded guilty to three counts of trafficking in counterfeit labels and counterfeit packaging. A sentencing date was not set.
According to plea agreements filed in the cases, if acceptable to the Court, the parties agree that Portillo and Angelica’s Record Distributors will each receive a five-year term of probation. In addition, Portillo must pay, jointly and severally with Angelica’s Record Distributors, $250,000 in restitution to the Recording Industry Association of America, forfeit $250,000 in cash to the Department of Homeland Security, and forfeit 155,441 counterfeit CDs and DVDs that were seized from Angelica’s Record Distributors in Dallas, Chicago and Phoenix.
From September 2010 through April 27, 2011, Angelica’s Record Distributors obtained music CDs that it knew contained counterfeit labels and counterfeit packaging. These music CDs that contained the counterfeit packaging and illicit labels, and which Angelica’s Record Distributors knew were copyrighted works, were purchased from a company in California and then distributed to retailers across the country through Angelica’s Record Distributors store locations.
Employees at all three store locations knowingly sold legitimate and counterfeit CDs to retailers. Employees mixed legitimate product with counterfeit product containing counterfeit labels and packaging, and they told their customers either that the counterfeit product was from a cheaper distributor or that it was “grey market,” meaning that the CDs were legitimate but produced for distribution in Mexico or abroad, and not intended to be sold in the U.S.
Because of its conduct, Angelica’s Record Distributors caused the record labels associated with the Recording Industry Association of America to suffer more than $250,000 in losses.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
# # #
Quest Diagnostics Pays the United States $1.79 Million to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Quest Diagnostics Inc. and Quest Diagnostics Clinical Laboratories Inc. (collectively “Quest Diagnostics”) have paid the United States $1,79 million to settle claims that it violated the False Claims Act, United States Attorney Benjamin B. Wagner announced today.
This settlement resolves allegations that Quest Diagnostics submitted duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests and select components of those panels. The United States alleged that these payments violated the False Claims Act.
“We are committed to fighting fraud and abuse to help preserve scarce Medicare funds for those who need it the most, the sick and the elderly.” said U.S. Attorney Wagner.
The settlement announced today resolves a lawsuit filed in the Eastern District of California under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower in this case will receive $358,000 of the recovery proceeds.
This case was investigated by the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Providence Man Detained on Sex Trafficking, Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Dujuan Harris, 35, of Providence, R.I., has been ordered detained in federal custody on charges that he allegedly sex trafficked a 17-year-old female from Texas, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Police Chief Hugh T. Clements, Jr., and Bruce M. Foucart, Special Agent in Charge of Homeland Security (HSI) Investigations for New England.
Harris is also charged with production of child pornography, after investigators allegedly discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone taken from Skype conversations with the victim while she was in Texas.
Harris appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan on Monday and was ordered detained in federal custody after having been detained in state custody on related state charges since June 30, 2015.
Harris is charged by way of a federal criminal complaint with one count each of sex trafficking a child, transportation of a minor with intent to engage in criminal sexual activity, production of child pornography and possession of child pornography.
According to federal court documents, after allegedly befriending the teenager on the Internet, it is alleged that Harris provided funds to the teenager to pay for her to travel by bus from her home in Texas to Boston. It is alleged that Harris met the young woman when she arrived in Boston on June 12, 2015, and then paid for her to travel with him by bus to Providence. It is alleged that within a few days of her arrival in Providence, the defendant took photographs of the victim in various stages of undress and posted them in ads on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security, the response to the ad was immediate and several sexual encounters with the 17-year-old for a fee were arranged. All of the funds were allegedly turned over to Harris.
According to court documents, when Harris told the young woman that he wanted to earn more money by having her engage in an increased number of sexual encounters for payment, the young woman told Harris she no longer wanted to participate. It is alleged that Harris removed the battery from the victim’s cell phone so that she could not be located and on several occasions refused to allow her to leave the Providence apartment they were staying in.
On June 30, 2015, Homeland Security agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Parmelee Man Sentenced for Abusive Sexual Contact by Force and Child AbuseRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact by Force and Child Abuse was sentenced on August 24, 2015, by U.S. District Judge Roberto A. Lange.
Ilijah White Lance, a/k/a Iliajh White Lance, age 18, was sentenced to a total of 180 months in custody, followed by 6 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
White Lance was indicted by a federal grand jury on March 10, 2015. He pled guilty on June 2, 2015.
The conviction stems from incidents on February 10, 2015, when White Lance was at the home of some friends in Parmelee, and after the occupants of the house had fallen asleep, he went into a child’s bedroom and had sexual contact with the young victim. While White Lance was abusing the first victim, a second young child witnessed the abuse. Later, White Lance exposed himself to the second victim and also punched the child.
This case was investigated by the Federal Bureau of Investigation, as well as the Rosebud Sioux Tribe Law Enforcement Agency. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
White Lance was immediately turned over to the custody of the U.S. Marshals Service.
Parkersburg man sentenced to federal prison for cocaine and heroin traffickingRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man who possessed heroin and cocaine in his home and a rented storage unit was sentenced today to eight years in federal prison, United States Attorney Booth Goodwin announced. Dustin Keith Jarvis, 34, of Parkersburg, West Virginia previously pleaded guilty in April to possession with intent to distribute cocaine.
On April 23, 2014 drug task force officers searched Jarvis’ apartment and a storage unit in Mineral Wells. They seized more than 120 grams of cocaine, approximately 400 grams of heroin, and more than $12,000 cash. This case is part of a larger cooperative investigation by drug task forces in Wood County, West Virginia and Washington County, Ohio.
Other individuals prosecuted in federal court as part of this investigation include Brent J. Sidwell who pleaded guilty on April 24, 2015 to conspiracy to distribute more than 100 kilograms of marijuana, Timothy Fields who was sentenced to six years in federal prison for conspiracy to distribute cocaine and marijuana, and David Naylor who pleaded guilty to conspiracy to distribute marijuana.
This prosecution is a result of the ongoing cooperation between the Parkersburg Drug & Violent Crime Task Force, Washington County, Ohio Major Crimes Task Force, and the Internal Revenue Service. Assistant United States Attorney, Joshua Hanks handled the prosecution. The sentence was imposed by District Judge John T. Copenhaver, Jr.
This case is 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 and heroin. 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 pills and heroin in communities across the Southern District.
Owner of Local Tax Preparation Business Indicted for FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Eyob Tilahun, the owner of a local tax return preparation business known as "Tax King," was indicted on charges of conspiring to submit false claims to the United States Government and Aiding and Abetting the Filing of False Tax Returns.
Tilahun owned and operated several Tax King locations in St. Louis, Missouri, and East St. Louis, Illinois. According to the indictment, Tilahun and co-defendant Mason B. Richmond trained Tax King’s return preparers on how to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was allegedly placed on the returns includes: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
The indictment alleges that Tilahun and Tax King profited by charging its clients fees which ranged from approximately $400 to $650. The indictment states that the return preparers also profited by requesting cash "tips" from the clients that ranged from approximately $100 to $1,000.
"Every American citizen is harmed when false tax returns are filed seeking fraudulent refunds," United States Attorney Wigginton noted. "My office will continue to aggressively prosecute the tax cheats who engage in these types of schemes."
Tilahun was arraigned on Monday at the Federal Courthouse in East St. Louis. A detention hearing for Tilahun will be held Tuesday (today) at 1:00 p.m. This detention hearing will determine whether Tilahun is held in custody pending his trial or whether he is released on bond. Richmond was also arraigned yesterday in East St. Louis. Richmond was released on bond.
On January 22, 2015, five of the return preparers who worked at the East St. Louis location were indicted on federal tax charges. The return preparers who were charged are: Edric A. Russell, Lakesha R. Wilson, Melissa L. Wiley, Tanesa L. Beverly, and Pierre J. Carter. Beverly and Wiley have both pled guilty. The charges against Russell, Wilson, and Carter are still pending.
The charge of conspiring to submit false claims carries a maximum sentence of 10 years of imprisonment, a $250,000 fine, and restitution. Each charge of preparing false income tax returns carries a maximum sentence of 3 years of in federal prison and a fine of $250,000.
The investigation is being conducted by agents from the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Newcomb, N.M., Man Sentenced to Prison for Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Randolph, 31, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., was sentenced this morning in Albuquerque, N.M., for an aggravated sexual abuse charge. Randolph was sentenced to 144 months in prison followed by ten years of supervised release. He will be required to register as a sex offender after he completes his prison sentence.
Randolph was arrested on Dec. 30, 2013, on a criminal complaint alleging that he sexually abused a child under the age of 12 years on Dec. 19, 2013, within the Navajo Indian Reservation in San Juan County, N.M. Randolph subsequently was indicted on that same charge.
On Feb. 18, 2015, Randolph entered a guilty plea to a felony information charging him with aggravated sexual abuse. Randolph admitted assaulting the victim by intentionally touching the victim’s genitalia with his hands and fingers.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback 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/.
New Jersey Businessman Goes to Prison for Defrauding an Atlanta Financing CompanyRead the Press Release
ATLANTA – Samuel Perez, a New Jersey businessman, has been sentenced to three years, ten months in federal prison for falsifying over $6 million in accounts receivables and invoices that he sold to an Atlanta, Georgia, financing company.
“This defendant swindled a financing company to obtain money to run his own company and finance his personal lifestyle,” said U.S. Attorney John A. Horn. “His fraud put the victim into bankruptcy and cost people at that company their jobs.”
“As Mr. Perez serves his prison sentence, he will have plenty of time to reflect on his greed based criminal conduct that not only negatively affected the victim company but also many of its employees,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Samuel Perez owned and operated Comp Care Partners, LLC, a New Jersey company that was located and operated in New Jersey. Comp Care was in the business of managing occupational medical testing programs for other companies.
Beginning in about December 2009, Perez began “factoring,” or selling Comp Care’s accounts receivables to a financing company headquartered in Atlanta, Georgia. Perez falsified and caused to be falsified many, if not most, of the accounts receivables that he sold to the Atlanta finance company. To support the false accounts receivables, Perez created false invoices purporting to reflect work that Comp Care had done for its customers. When purchasing accounts receivables, the financing company attempted to contact Comp Care’s customers to verify that the accounts receivables and invoices were valid obligations of the customers. Perez created fictitious identities and used those identities to pose as employees of Comp Care’s customers and verify the fraudulent invoices that he was selling to the financing company. Perez created and used internet domain names, telephone numbers, and email addresses to pose as these fictitious employees of Comp Care’s customers.
To further conceal that he was selling false accounts receivables, Perez paid off false receivables by selling the financing company even more false accounts receivables. Over time, the amount of false and fraudulent accounts receivables steadily increased, which ensured that Perez had enough funds to pay the financing company for previous fraudulent accounts receivables that he had sold it. Perez also used the money that he obtained from the financing company to operate and fund Comp Care and his personal lifestyle. In 2013, before the financing company uncovered his fraud, Perez sold over $6 million in fraudulent accounts receivables.
Samuel Perez, 38, of Manahawkin, New, Jersey, has been sentenced by U.S. District Court Judge Steve C. Jones to three years, ten months in prison to be followed by three years of supervised release.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Douglas W. Gilfillan 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/gan/.