Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 6 July 2015
Cleveland man charged for armed robbery in Cleveland HeightsRead the Press Release
A two-count indictment was filed charging a Cleveland man for his role in an armed robbery in Cleveland Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Keyonte Oates, aka Keyontae Berry, aka “Pacco,” 23, of with one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and In relation to a crime of violence.
The indictment alleges that Oates, Monroe (named but not charged in the present indictment), and other unknown individuals, attempted to rob a Family Dollar store in Cleveland Heights, Ohio, on September 23, 2014. It further alleges that Monroe, aided and abetted by Oates, carried and brandished a firearm during the incident.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police Department.
An indictment is only a charge 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.
Child Sex Trafficker Gets Ten YearsRead the Press Release
SAN DIEGO – Lamar Moore, a.k.a. “El Brivv,” a.k.a. “Briv,” a twenty-four year-old resident of San Diego, was sentenced today to 120 months in prison for trafficking two minor girls for commercial sex.
In February 2014, Detectives Chris Haughey and Eric Drilling, members of the San Diego Police Human Trafficking Team, rescued a 17-year-old girl from Moore at a local motel. They then arrested Moore.
Moore pleaded guilty on October 9, 2014. In his plea agreement, he admitted that he coerced the rescued 17-year-old, and a second, 15-year-old victim, to engage in commercial sex for his financial benefit. He also provided hotel rooms, condoms, and internet advertisements for their sexual services. Moore received hundreds of dollars in proceeds from the victims’ acts of prostitution.
Moore’s crimes were part of a criminal enterprise which he led that involved two additional minor males, one additional adult male, and two additional adult females. Since his arrest, one of those males – a San Diego resident named Darius Chambers – has also pled guilty to child sex trafficking. Another – San Diegan named Daijon Vailes – has been arrested and charged with the same offense. Chambers will be sentenced on July 31, 2015 by U.S. District Judge Janis L. Sammartino. Vailes entered a plea of not guilty and awaits trial.
United States Attorney Laura Duffy said, “We take these crimes very seriously. If you traffic a child for commercial sex in the Southern District of California, you should expect to spend many, many years in federal prison.”
DEFENDANT Case Number: 14CR1754-AJB Lamar Moore Age: 24 CHARGESChild sex trafficking, in violation of Title 18, United States Code, Section 1591
INVESTIGATING AGENCIES
Maximum penalty: LifeSan Diego Police Department
Cedar Rapids Man Pleads Guilty to Being a Felon and Unlawful Drug User in Possession of a Loaded HandgunRead the Press Release
A two-time felon and unlawful drug user who was found in possession of a loaded handgun during a traffic stop pled guilty today to a firearms offense in federal court in Cedar Rapids.
Anthony Hall, Jr., age 30, from Cedar Rapids, Iowa, was convicted of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Hall admitted that Cedar Rapids Police Officers stopped him for a traffic violation on April 13, 2015. Hall lied about his true identity when questioned by the officers. When officers smelled marijuana coming from the car, they searched the car and found a loaded .40 caliber handgun in the center console, along with several baggies of marijuana. When officers moved to arrest Hall, he fought with the officers until they deployed a taser to subdue him. Hall has two prior felony convictions. In 2009, he was convicted in Linn County of Delivery of a Controlled Substance, and in 2003, he was convicted of Robbery in Austin, Texas. Hall also admitted to being an unlawful user of marijuana.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hall remains in custody of the United States Marshal pending sentencing. Hall faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-55-LRR. Follow us on Twitter @USAO_NDIA.
Bulgarian Citizen Admits Role in $6 Million Tax Refund SchemeRead the Press Release
NEWARK, N.J. – A citizen of the Republic of Bulgaria today admitted his involvement in a $6 million fraudulent tax return scheme that used personal identifying information stolen from multiple accounting firm networks, U.S. Attorney Paul J. Fishman announced.
Vanyo Minkov, 32, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with one count of conspiring to file false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
In late 2012, Minkov and his conspirators hacked into the networks of at least four accounting firms and stole the 2011 tax filings for over 1,000 of the firms’ clients. Minkov and others then used the stolen information to file fraudulent tax returns in the clients’ names for the 2012 tax year or sold the information to others for the same purpose. To date, the IRS has identified over $6 million in fraudulent claims made in connection with the scheme.
The charge to which Minkov pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 13, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Carl Agnelli, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the Justice Department’s Office of International Affairs in Washington, as well as the Supreme Cassation Prosecutor’s Office of the Republic of Bulgaria and its law enforcement partners, for their extraordinary support.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jack Arseneault Esq., Chatham, New Jersey.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to Defrauding Elderly Victims Across New York StateRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALLAH JUSTICE MCQUEEN pled guilty today in Manhattan federal court to conspiracy to commit wire fraud and wire fraud in connection with a scheme that targeted and victimized elderly people across New York State. MCQUEEN, who was arrested in December 2014, entered his plea before U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Allah Justice McQueen had a key role in a conspiracy that preyed on the emotions of vulnerable grandparents, falsely convincing them that their grandchildren were in legal trouble and needed bail money. With his guilty plea, McQueen will be held to account for his role in a heartless scheme that exploited familial love for personal gain.”
According to the Complaint, Superseding Indictment, and plea proceeding:
In or about August and September 2013, MCQUEEN and his co-conspirators perpetrated a scheme to defraud elderly victims around the United States by tricking them into believing their grandchildren had been imprisoned and needed immediate bail money. In particular, in each case, a member of the conspiracy contacted the victim by phone, purported to be a law enforcement official or attorney, and falsely claimed that the victim’s grandchild had been taken into custody for a narcotics offense and would not be released unless the victim paid thousands of dollars, and in some cases tens of thousands of dollars, in purported bail money. A member of the conspiracy also frequently posed on the call as the victim’s grandchild, typically crying and pleading with the elderly victim to send money to secure the grandchild’s release from jail, and asking the victim not to contact any other family members because the grandchild felt ashamed. In each case, in extreme distress, the victim sent thousands of dollars, at a minimum, as instructed, to certain individuals who, among other things, provided that money to MCQUEEN at his direction. In each case, after paying the “bail” money as directed, the victim directly contacted his or her grandchild and thereupon learned that the grandchild had not, in fact, been arrested, that the grandchild knew nothing about the claims made on the call to the victim, and that the call was fraudulent.
For example, a 79-year-old victim in New York received a phone call in August 2013 from an individual who identified himself as a police sergeant and claimed that the victim’s grandson had been arrested after drugs were discovered in a car in which the grandson was a passenger. The purported sergeant said the grandson would be released if the victim sent $6,000 in bail money as directed. The victim, who briefly heard, on the phone, an individual who sounded like the victim’s grandson, wired the money as directed. The victim subsequently spoke directly with the victim’s grandson, and learned that he had not been arrested, and knew nothing about the purported sergeant or the basis for his request for bail money. The victim never received any money back from the purported sergeant.
In fact, the victim’s money was wired to particular individuals working with and at the direction of MCQUEEN who collected the wired funds on MCQUEEN’s behalf and provided the money to MCQUEEN and his co-conspirators. As to a portion of the victim’s money, MCQUEEN appeared personally at a particular location in Brooklyn to arrange for the collection of the proceeds. MCQUEEN subsequently deposited another portion of the money sent by the victim directly into his personal bank account.
* * *
MCQUEEN, 33, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud. He faces a maximum sentence of 40 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for November 2, 2015, at 4:30 p.m., before U.S. District Judge Shira A. Scheindlin.
Mr. Bharara praised the outstanding investigative work of the FBI. Mr. Bharara also thanked the Bronx District Attorney’s Office for its assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
AstraZeneca and Cephalon to Pay $46.5 Million and $7.5 Million, Respectively, for Allegedly Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
AstraZeneca LP has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
“We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs,” said First Assistant U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania. “As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process.”
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the Average Manufacturer Prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The two settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amounts to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, have not yet been determined.
These settlements illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements with AstraZeneca LP and Cephalon Inc. were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Pennsylvania and the Department of Health and Human Services-Office of Inspector General.
The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.). The claims settled by these agreements are allegations only, and there have been no determinations of liability.
AstraZeneca and Cephalon to Pay Millions for Allegedly Underpaying Medicaid RebatesRead the Press Release
PHILADELPHIA – AstraZeneca LP has agreed to pay the United States and participating individual states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the average manufacturer prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The settlements were announced today by First Assistant United States Attorney Louis D. Lappen and the Department of Justice. “We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs. As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process,” said Lappen.
The settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amount to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, has not yet been determined.
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Benjamin C. Mizer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlements were handled by Assistant United States Attorney Eric D. Gill. The United States’ investigation and settlements were also conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division. The claims settled by these agreements are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.).
These settlements illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
Aplington Woman Pleads Guilty to Social Security FraudRead the Press Release
A woman who committed Social Security Fraud for approximately eleven years pled guilty on July 2, 2015, in federal court in Cedar Rapids.
Angela Carmichael, 49, from Aplington, Iowa, was convicted of one count of Supplemental Security Income Benefits Fraud.
In a plea agreement, Carmichael admitted that, between June 2003 and June 2014, she hid the fact from the Social Security Administration that she was living with her husband in order to continue to receive Supplemental Security Income benefits. Carmichael admitted she lied to the Social Security Administration in order continue to receive benefits to which she would not have been entitled if the Social Security Administration knew she was living with her husband. During this period of time, Carmichael received over $68,000 in benefits to which she was not entitled.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Carmichael remains free on conditions of release previously set pending sentencing. Carmichael faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Social Security Administration Office of Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-2010.
Follow us on Twitter @USAO_NDIA.
Andover Man Sentenced for Mishandling ChemicalsRead the Press Release
WICHITA, KAN. - A co-owner of a plastics recycling company in El Dorado, Kan., pleaded guilty Monday to mishandling waste chemicals and was sentenced to pay more than $118,000 in restitution to the Environmental Protection Agency, said U.S. Attorney Barry Grissom. In addition, the defendant was sentenced to serve 18 months on probation.
Sean M. Riley, 39, Andover, Kan., co-owner of Integrated Plastic Solutions, LLC., pleaded guilty to one count of aiding and abetting negligent exposure to a hazardous air pollutant. In his plea, he admitted the company stored hazardous wastes at its facility in the form of paints, solvents and other chemicals. The paints and solvents contained ethylbenzene, which is classified as a hazardous air pollutant. After becoming aware that the Kansas Department of Health and Environment was investigating the company’s waste handling practices, Riley’s brother and business partner, Brian J. Riley, allowed some paints and solvents to be dumped on the IPS grounds, releasing ethyl benzene and exposing employees to the risk of flash fire and explosion.
Brian J. Riley was sentenced in May to three years on probation and the same restitution as Sean M. Riley.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Amarillo Woman Admits Embezzling from Road Construction Company EmployerRead the Press Release
AMARILLO, Texas — Becky Renee Kite, 37, of Amarillo, Texas, appeared in federal court this morning before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of embezzlement from a federally-funded program, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Kite, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, from November 2013 until approximately February 2015, Kite embezzled approximately $71,011.13 from her employer, Gilvin-Terrill, Ltd., an organization that received federal assistance from the U.S. Department of Transportation, through the Texas Department of Transportation. Kite was an agent of Gilvin-Terrill in that she was employed as a contract administrator and accounts payable clerk for the road construction company.
Kite admitted using the company Chase credit cards for personal expenses without permission and changing account preferences so that she could take out cash advances from one card. Kite further admitted changing the account preferences to where the statements would be mailed to her, instead of the office. She also admitted making payments to Chase electronically from Gilvin-Terrill’s operating account. An analysis of credit card statements shows that Kite conducted a total of 759 unauthorized transactions totaling $71,011.13.
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Joshua Frausto is prosecuting.
# # #
Amarillo Man Admits Robbing Amarillo National BankRead the Press Release
AMARILLO, Texas — An Amarillo, Texas, man appeared in federal court today and admitting robbing a branch of Amarillo National Bank (ANB) in March 2015, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
William Eugene Boyd, 51, appeared before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of bank robbery. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case today, on March 13, 2015, a robber, later identified as Boyd, approached a teller at the ANB located at 2401 S. Coulter, in Amarillo, and told her, “This is a robbery.” He instructed her to give him all the money, nothing marked, and not make a sound. He told her that if she handed over all her money she would not get hurt, and he kept his left hand by his waistband, making her fearful he had a weapon. The teller complied with his instructions and Boyd left the bank with the case.
After providing surveillance photographs to the media that were broadcast to the public, Arlington Police Department investigators received several tips from Boyd’s friends/family members identifying him as the robber. Investigators located a hat matching the color and style of the one Boyd wore during the robbery in a vehicle registered to Boyd’s mother, and bank employees later identified him in a photo line-up.
The Federal Bureau of Investigation and the Amarillo Police Department investigated.
Assistant U.S. Attorney Joshua Frausto is prosecuting.
# # #
Albuquerque Man Arrested on Federal Sex Trafficking ChargesRead the Press Release
ALBUQUERQUE – Shane Roach, 25, of Albuquerque, N.M., appeared in federal court this morning on a criminal complaint charging him with sex trafficking charges. Roach remains in federal custody pending a detention hearing scheduled for July 8, 2015.
Roach was arrested by federal authorities on July 1, 2015, on a criminal complaint charging Roach and co-defendant Angela Santillanes, 30, also of Albuquerque, with commercial sex trafficking. The complaint alleges that the victim who allegedly was sex trafficked by Roach and Santillanes contacted the Albuquerque Police Department (APD) with a request for help on June 10, 2015. During subsequent interviews, the victim reported she had been trafficked for sex by Roach for approximately a month and a half. During that time, the victim allegedly was forced to engage in sex with men four or five times a day earning between $400.00 and $500.00, and Roach allegedly kept all the money. During that time, Roach allegedly beat the victim on a number of occasions, and threatened to harm her family if she left him.
Both Roach and Santillanes were previously arrested on state human trafficking charges and other offenses. Santillanes has yet to be arrested on the charges in the federal criminal complaint.
If convicted of the offenses charged in the federal criminal complaint, Roach and Santillanes each face a mandatory minimum of 15 years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD’s Vice Unit. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Akron men indicted for extortion plotRead the Press Release
A federal grand jury returned a six-count indictment charging Franklin D. Conley, 27, and Patrick W. Griffin, 28, both of Akron, with conspiracy to affect commerce by extortion and use of a communications facility to facilitate a drug trafficking offense, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Conley and Griffin began threatening the victims and their family in February 2015 with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to the indictment.
They were arrested after investigation revealed the extortion plot.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge 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.
A Waterloo Felon and Female Friend Plead Guilty to Obstruction of Justice for Providing a False Letter to Federal CourtRead the Press Release
A man and woman who created a false letter to be provided to a federal court pled guilty to obstruction of justice in federal court in Cedar Rapids.
Asa Adams, age 26, from Waterloo, Iowa, pled guilty on June 29, 2015, to obstruction of justice. Nicole Wells, age 36, from Waterloo, Iowa, pled guilty on July 6, 2015, to the same charge.
In plea agreements, Adams and Wells admitted that they worked together to create a false letter to be presented in federal court in a failed attempt to help Adams evade a revocation of his supervised release. Adams was convicted in 2011 of being a felon in possession of a firearm. After serving a sixteen-month sentence in federal prison, Adams was placed on supervised release on October 2, 2014. One of the conditions imposed on supervised release was that Adams not use controlled substances. His use was tested by random urinalysis. On December 24, 2014, Adams submitted a urine sample that tested positive for marijuana. In an attempt to evade having his supervised release revoked and being sent back to prison, Adams recruited his coworker and friend, Nicole Wells, to fabricate a false letter. The letter, purportedly written by a supervisor at the restaurant where Adams and Wells worked, falsely claimed another employee had brought in marijuana-laced brownies to work. The letter was not written by the supervisor and there were no marijuana-laced brownies.
Adams provided the false and fictitious letter to his defense attorney, who unwittingly filed it with the federal court as an exhibit. At a hearing on a petition to revoke Adams’s supervised release, however, the letter was shown to be false when the supervisor and employee who allegedly brought the brownies to work testified. The court found Adams had tested positive for marijuana because he had used marijuana, and sentence Adams to a year in federal prison for violating the terms of his supervised release.
Sentencing before United States District Court Chief Judge Linda R. Reade for the obstruction of justice conviction will be set after a presentence report is prepared. Adams remains in custody of the United States Marshal pending sentencing. Wells remains released on bond pending sentencing. Adams and Wells each face a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-42-LRR.
Follow us on Twitter @USAO_NDIA.
Friday 3 July 2015
Wakpala Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Wakpala, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 22, 2015, by U.S. District Judge Charles B. Kornmann.
Adrian Spotted Horse, age 36, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Spotted Horse was indicted by a federal grand jury on January 14, 2015. He pled guilty on March 30, 2015.
The conviction stems from Spotted Horse failing to register as a sex offender between August 26, 2014, and November 17, 2014, as required by federal law. Spotted Horse was previously convicted of a sex offense in federal court, which requires him to register as a sex offender for 15 years starting in 2014.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Samuel L. Bradbury Found Guilty by Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Samuel L. Bradbury, 23, of Pine Village, Indiana, was found guilty, late July 2, 2015, after a weeklong jury trial, of maliciously conveying false information.
According to the evidence presented at trial, on June 19, 2014, Bradbury posted threats on social media to kill two specific law enforcement officials and two specific judges in Tippecanoe County. He also threatened to damage the Tippecanoe County Courthouse along with police vehicles using thermite, an incendiary device. On June 21, 2014, law enforcement executed search warrants on the house where Bradbury lived, locating the social media posting along with other relevant evidence to include materials to make thermite.
Sentencing for Bradbury will be scheduled at a later date by a separate court order. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of Tippecanoe County Law Enforcement Agencies. This trial was handled by Assistant United States Attorneys Jill Koster and Abizer Zanzi.
# # #
Mobridge Man Sentenced for Excavation of Archaeological ResourcesRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man charged with Excavation of Archaeological Resources pled guilty to and was sentenced on June 25, 2015, by U.S. Magistrate Judge William D. Gerdes.
Carl Overbey, a/k/a CJ Overbey, age 40, was sentenced to 1 year probation, a fine in the amount of $1,000, and a special assessment of $25 to the Federal Crime Victims Fund. Overbey was also ordered to turn over the illegally taken artifacts.
The conviction stems from an incident that took place during the week of September 15, 2014, when a U.S. Fish and Wildlife agent was notified by the Walworth County Sheriff’s office that the Sheriff had seized a collection of Native American artifacts from Overbey. The agent had contact with two U.S. Army Corps of Engineers Archaeologists in October of 2014, who recognized that the collection contained numerous artifacts that appeared to be consistent with those known to come from public land along the Missouri river. The agent also identified two eagle bone whistles in the collection. Overbey admitted that he had personally collected the artifacts from the Revheim Recreation area, southeast of Mobridge, and the Point of View area north of Mobridge. He also admitted that he knowingly went to those areas looking for artifacts and removed any artifacts he found.
The investigation was conducted by the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Kansas Man Sentenced for Simple AssaultRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Kansas man charged with Simple Assault pled guilty to and was sentenced on June 25, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Sebastian Rosas, age 43, was sentenced to 8 days in custody, and a $10 assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on June 17, 2015, in Eagle Butte, South Dakota, when Rosas attempted to keep the victim from walking away from him by grabbing at her, scratching her neck, and pulling her hair.
The investigation was conducted by the Cheyenne River Sioux Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Howes Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Howes, South Dakota, man convicted of Larceny was sentenced on June 24, 2015, by U.S. District Judge Roberto A. Lange.
Leland Logg, age 38, was sentenced to 4 years of probation, $7,583.15 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Logg was indicted by a federal grand jury on January 14, 2015, for Larceny. He pled guilty to the Indictment on March 23, 2015.
The conviction arose when Logg, as treasurer of the Dakota Oyate Challenge Basketball Tournament Board, stole $7,583.00 from the Board by writing checks to himself, his girlfriend, and various businesses, from the Dakota Oyate bank account with Wells Fargo Bank. Logg used this money for his own personal use and to pay his personal bills in and around Eagle Butte and Dewey County.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 22, 2015, by U.S. District Judge Roberto A. Lange.
David Marrowbone, age 51, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marrowbone was indicted by a federal grand jury on June 10, 2014. He pled guilty to the Indictment on March 26, 2015.
The conviction arose from Marrowbone’s failure to register and update his sex offender registration from between February 3, 2014, and March 13, 2014, as required by federal law. Marrowbone was required to register due to his federal conviction in 1982 for Assault with Intent to Commit Rape.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S Marshals Service to begin serving his sentence.
Eagle Butte Man Sentenced for Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Assault by Striking, Beating, and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Assault by Striking, Beating, and Wounding was sentenced on June 22, 2015, by U.S. District Judge Roberto A. Lange.
Julius Titus, III, age 35, was sentenced to 7 months in custody, followed by 18 months of supervised release, and a $125 special assessment to the Federal Crime Victims Fund.
The conviction arose from a June 26, 2014, incident when Titus and his intimate partner got into a verbal argument. A male victim tried to intervene and Titus became angry, and without just cause or excuse, struck the male victim one time in the face, knocking him out. At that point, Titus’s intimate partner became angry and upset at Titus, who then physically assaulted her by pushing her down and causing her to twist and injure her ankle.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Titus was immediately turned over to the custody of the U.S. Marshals Service.
Court of Appeals Affirms Convictions and Sentence of Sioux Falls Man for 26 Investment Fraud FeloniesRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that the Eighth Circuit Court of Appeals, in a published opinion issued June 30, 2015, affirmed all 26 felony fraud convictions and the nine-year federal prison sentence of Randal Kent Hansen. Hansen, age 67, is originally from Doland, South Dakota, and most recently from Sioux Falls.
Hansen was convicted in a January 2014 federal jury trial and sentenced in May 2014 by U.S. District Judge Karen E. Schreier. Hansen was convicted for Conspiracy to Commit Wire Fraud and Mail Fraud, four counts of Wire Fraud, and twenty-one counts of Mail Fraud.
The case involved the investigation of a hedge fund known as RAHFCO Funds, Limited Partnership, and RAHFCO Growth Fund, Limited Partnership. As president of the fund, Randy Hansen collected money from over a hundred investors that totaled over $20 million dollars. Investors were told that only a small portion of the money would be used to make trades on the futures market for the S&P 500, that the rest was securely invested in government securities, and that they could withdraw funds at will. The fund operated from 2007 until April 2011, when one of Hansen’s co-conspirators turned himself into authorities. The investigation revealed that the fund was operating in a Ponzi-like fashion, with new investor money being used to pay off existing investors seeking to withdraw funds. As part of his sentence, Hansen has also been ordered to pay over $17.5 million in restitution to his victims.
Hansen appealed his convictions, arguing that there was insufficient evidence presented of Hansen’s knowledge that the funds were a fraud. The Eighth Circuit Court of Appeals disagreed, citing Hansen’s role as a founder and general partner of one of the fraudulent funds. The appellate court discussed numerous examples of evidence presented at trial that Hansen made false statements directly to investors about the fund’s investment strategy, investor balances, and its performance. At multiple times, Hansen also falsely assured investors that the fund was secure, misrepresenting to them that it was being audited and that balances were being verified by several accounting firms. These sorts of affirmative misrepresentations, the court concluded, provided sufficient evidence for the jury to conclude that Hansen knew the fund was fraudulent and that he intended to defraud investors.
Acting U.S. Attorney Seiler lauded the decision. “The appellate court’s decision, affirming more than two dozen felony convictions, brings to a close our successful prosecution of this complex, multi-million dollar fraud scheme. Hansen’s scheme left many victims without their life’s savings. His prison sentence and hefty restitution judgment should send a clear message about the high price of greed and deception,” said Seiler.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Thursday 2 July 2015
Wisconsin Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced July 1, 2015, to more than 10 years in federal prison.
Ryan Michael Schroeder, 27, from LaCrosse, Wisconsin, received the prison term after a February 27, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Schroeder admitted his involvement from January 2012 through December 2014 in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine. Schroeder was involved in selling methamphetamine in Hampton, Iowa, as well as selling methamphetamine to numerous others in Minnesota.
Schroeder was sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Schroeder was sentenced to 121 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Schroeder is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office; Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3071.
Follow us on Twitter @USAO_NDIA.
Windham Man Sentenced to Three Months for Fraud and Identity TheftRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Manuel J. Arruda, 46, of Windham, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to three months in prison and two years of supervised release for mail and access device fraud and identity theft. He was also ordered to pay $11,962.85 in restitution. Arruda pleaded guilty to the charges on February 20, 2015.
According to court documents, in March of 2012, the defendant applied on-line, over the Internet, for a Chase Bank Freedom credit card in the name of another person. In doing so, the defendant used the victim’s name, date of birth and Social Security number. He obtained the victims personal identifiers using his position as service manager at a car dealership in Portland when the victim brought his truck in for servicing. Chase Bank approved the application and mailed two credit cards to the defendant in Windham. Between about March and December of 2012, the defendant used the card to make about $12,000 worth of purchases, took over $2,300 in cash advances, made payments of about $1,200, and received about $350 in credits.
In pronouncing sentence, Judge Levy stated that identity theft is a serious crime that involves significant planning and causes more than monetary harm and that some incarceration was required to deter others who might be similarly inclined.
The case was investigated by the U.S. Postal Inspection Service.
West Suburban Nurse Sentenced to 60 Months in Federal Prison for Shipping Firearms to the PhilippinesRead the Press Release
CHICAGO — A registered nurse from Lombard who admitted purchasing and shipping more than 30 weapons to the Philippines has been sentenced to 60 months in federal prison.
Makasiar also admitted in his plea agreement that he filed a false report on Aug. 17, 2012, with the Lombard Police Department after learning that two of the weapons would be inspected by U.S. Customs and Border Protection. In the report, Makasiar falsely stated that the 2 weapons had been stolen from him prior to their being shipped.
“Defendant’s conduct implicates the foreign policy and national security interests of the United States and threatens the safety of the Philippines by contributing to the proliferation of the small arms trade,” Assistant U.S. Attorney Ryan Fayhee argued in a government sentencing memorandum. “The illegal trafficking of firearms from the United States to the Philippines is a significant law enforcement problem.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James Gibbons, acting special agent-in-charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
"The illegal exportation of firearms is tantamount to breaching the border," Gibbons said. "The prosecution of weapons smugglers is an HSI priority as we work to interdict illegally trafficked guns and secure our nation’s borders in both directions."
Waterbury Man Who Robbed Undercover ATF Agent Sentenced to 7 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEVIN RODRIGUEZ, also known as “Orlando,” 21, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for robbing an undercover ATF special agent at gunpoint.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, a confidential informant and an ATF special agent working in an undercover capacity arranged to purchase an ounce of crack cocaine from two individuals identified as “Cali” and “Orlando” in Waterbury. On June 3, 2014, the informant and the undercover agent traveled to a location on West Farm Street in Waterbury to conduct the transaction. At the location, “Orlando,” who was subsequently identified as RODRIGUEZ, pointed a gun at the undercover agent, “racked” the slide of the pistol thereby readying it to fire, and demanded that the agent give him all of his money. The agent handed RODRIGUEZ his wallet, which contained $1,300 in government funds that was to be used to conduct the controlled purchase of narcotics.
RODRIGUEZ then entered a vehicle being driven by Calrissian Smith, also known as “Cali.” Other ATF agents who had been monitoring the transaction immediately arrived at the scene. After colliding with an ATF vehicle, Smith and RODRIGUEZ fled the scene at a high rate of speed.
RODRIGUEZ was apprehended in Waterbury on June 5, 2014, and Smith was apprehended in Virginia on June 13, 2014.
RODRIGUEZ has been detained since his arrest. On March 31, 2015, he pleaded guilty to one count use of a firearm during and in relation to a crime of violence.
On April 20, 2015, Smith pleaded guilty to one count of attempted distribution of 28 grams or more of cocaine base (“crack cocaine”). He is detained while awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
Waco Man Who Ran Utility Fraud Scheme That Defrauded TXU Energy is Sentenced to 37 Months in Federal PrisonRead the Press Release
DALLAS — A Waco, Texas, resident, Christopher Scott Gant, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 37 months in federal prison and ordered to pay $110,344.00 in restitution to TXU Energy following his guilty plea in February 2015 to an indictment charging one count of wire fraud. He must surrender to the Bureau of Prison on August 18, 2015. John Parker, Acting U.S. Attorney for the Northern District of Texas, made today’s announcement.
According to documents filed in the case, beginning in early 2012 and continuing to February 2013, Gant, 58, ran a scheme to set up fraudulent utility accounts with TXU Energy. At the time of the scheme, TXU’s policy was to give electricity account holders a grace period to remedy delinquent payments before disconnecting power. As part of his scheme, before the grace period ended, Gant would call TXU customer service centers located outside of Texas. He then used more than 200 stolen Social Security numbers to set up more than 600 new fraudulent accounts. The residents would continue to receive electricity without paying TXU. Gant received payment from the residents to execute this scheme.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Brandon McCarthy prosecuted.
# # #
Two Suburban Developers and an Attorney Among Six Defendants Charged with Mortgage FraudRead the Press Release
CHICAGO— A federal grand jury returned a 25-count indictment yesterday charging six defendants with devising and participating in a mortgage fraud scheme which caused more than $16 million in losses to banks, mortgage lenders, Fannie Mae, and Freddie Mac. Among those named as defendants are two real estate developers—VINCE MANGLARDI, 59, of Long Grove, and THEODORE “TJ” WOJTAS, JR., 43, of Glenview—who are accused of committing fraud in connection with the marketing and sale of condominiums at a 50-acre development in Palatine known as “The Woods at Countryside.”
The indictment accuses Manglardi and Wojtas of, among other things, using an assortment of advertising methods and sales pitches—on air, online, in writing, and at live presentations—to falsely promote the purchase of condos at the Woods as a means to financial independence and wealth, enticing prospective condo buyers with substantial, unsustainable financial incentives, including down payment refunds and up to three years’ worth of mortgage payments, maintenance costs, and property tax payments.
The indictment alleges that Manglardi, Wojtas, and their co-schemers colluded with each other to induce people to purchase condos at the Woods based on false promises and assurances. The indictment further alleges that the defendants colluded with one another and with others to misrepresent and conceal material facts from banks and mortgage lenders in order to fraudulently induce such banks and mortgage lenders to approve non-conforming loans to condo buyers, thereby exposing numerous lenders and Fannie Mae and Freddie Mac to millions of dollars in losses.
Four alleged co-schemers are named as defendants, specifically: attorney DAVID W. BELCONIS, 56, of Long Grove; NUNZIO L. GRIECO, 63, of Palatine, formerly an employee of the developers; WALTER VALI, 62, of Mundelein, formerly a mortgage loan originator; and KARIN L. GANSER, 62, of Palatine, formerly a licensed real estate salesperson. All six defendants will be arraigned on the criminal charges on a date to be determined by the U.S. District Court.
The indictment also seeks the forfeiture of $16 million. It charges various acts of wire fraud, mail fraud, and false statements to financial institutions. Each count of the indictment carries a maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. If a defendant is convicted, the court must impose a reasonable sentence pursuant to the federal criminal code and the advisory sentencing guidelines.
The criminal charges were announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Barry McLaughlin, Special Agent-in-Charge of the Midwest Regional Office of the Federal Housing Finance Agency’s Office of Inspector General; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant United States Attorney Brian Havey.
The public is reminded that an indictment contains only allegations; it is not evidence of guilt. The defendants are presumed innocent of the charges and they are entitled to a fair trial at which the government has the burden of proving their guilt beyond a reasonable doubt.
Indictment
Two Schuele Boys Gang Associates Plead Guilty to 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 two Schuele Boys Gang associates pleaded guilty before U.S. District Judge Richard J. Arcara. Benjamin Peoples, aka Beans, 26, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine which carries a penalty up to 20 years in prison and a $1,000,000 fine. Shawntorrian Travis, 35, also of Buffalo, pleaded guilty to conspiracy to distribute marijuana. That charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Peoples purchased cocaine from co-defendant Michael Robertson which he then re-sold in the Buffalo area. Travis sold marijuana to co-defendant Damario James for redistribution.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Peoples and Travis were arrested along with 14 other Schuele Boys Gang members and associates in July 2014. To date, nine of the defendants have been convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Shawntorrian Travis will be sentenced on October 14, 2015 at 1:00 p.m. Peoples sentencing is scheduled for October 26, 2015 at 1:00 p.m., both before Judge Arcara.
Two Louisiana Residents Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
Two residents of Tangipahoa Parish, Louisiana, pleaded guilty today to multiple criminal charges for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
At today’s plea hearing in the U.S. District Court for the Eastern District of Louisiana, Angela Chaney, 43, pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft, and Thaddeus Richardson, 50, pleaded guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering and seven counts of theft of public money.
According to court documents, Chaney and Richardson conspired with each other and others to file false federal income tax returns using stolen identities that included false claims for tax refunds. Richardson owned and operated a funeral home in Tangipahoa Parish and used the business bank account as part of the scheme. Chaney and others used individuals’ names and social security numbers to prepare false tax returns and directed the Internal Revenue Service (IRS) to mail refund checks to addresses in Louisiana, including to post office boxes opened by some of the co-conspirators. Chaney and others falsely endorsed the refund checks and then brought those checks to Richardson and others. Richardson deposited the checks into the business bank account before dividing the proceeds amongst the co-conspirators.
The defendants are scheduled to be sentenced on Oct. 6 and each faces a statutory maximum sentence of five years in prison for conspiracy to defraud the United States. Chaney also faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Richardson also faces a statutory maximum sentence of 10 years in prison for each theft of public money count and 20 years in prison for conspiracy to commit money laundering. In addition to a prison sentence, the defendants face potential fines, forfeiture and restitution.
After today’s guilty pleas, six of the seven defendants charged in the indictment have pleaded guilty. Corey Lewis, aka Coco, 37; Craig Lewis, 40; Brad Lewis, aka Bird, 32; and Cedrick Mitchell, aka Skeet, 39, previously pleaded guilty to conspiracy and related charges and await their sentencing hearings scheduled in August and September. The case of Martin Jackson Sr., 48, of Tangipahoa Parish, is still pending.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
Two Louisiana Residents Plead Guilty in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – Two residents of Tangipahoa Parish, Louisiana, pleaded guilty today to multiple criminal charges for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
At today’s plea hearing in the U.S. District Court for the Eastern District of Louisiana, Angela Chaney, 43, pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft, and Thaddeus Richardson, 50, pleaded guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering and seven counts of theft of public money.
According to court documents, Chaney and Richardson conspired with each other and others to file false federal income tax returns using stolen identities that included false claims for tax refunds. Richardson owned and operated a funeral home in Tangipahoa Parish and used the business bank account as part of the scheme. Chaney and others used individuals’ names and social security numbers to prepare false tax returns and directed the Internal Revenue Service (IRS) to mail refund checks to addresses in Louisiana, including to post office boxes opened by some of the co-conspirators. Chaney and others falsely endorsed the refund checks and then brought those checks to Richardson and others. Richardson deposited the checks into the business bank account before dividing the proceeds amongst the co-conspirators.
The defendants are scheduled to be sentenced on Oct. 6 and each faces a statutory maximum sentence of five years in prison for conspiracy to defraud the United States. Chaney also faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Richardson also faces a statutory maximum sentence of 10 years in prison for each theft of public money count and 20 years in prison for conspiracy to commit money laundering. In addition to a prison sentence, the defendants face potential fines, forfeiture and restitution.
After today’s guilty pleas, six of the seven defendants charged in the indictment have pleaded guilty. Corey Lewis, aka Coco, 37; Craig Lewis, 40; Brad Lewis, aka Bird, 32; and Cedrick Mitchell, aka Skeet, 39, previously pleaded guilty to conspiracy and related charges and await their sentencing hearings scheduled in August and September. The case of Martin Jackson Sr., 48, of Tangipahoa Parish, is still pending.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
Thaddeus Richardson Factual Basis.pdf (174.88 KB)
Angela Chaney Factual Basis.pdf (214.63 KB)
Two Arrested Following Federal Officer-involved ShootingRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Downing, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA) Little Rock District Office today announced the filing of a federal Complaint and subsequent arrest of two Little Rock men charged with drug crimes. The Complaint and arrest warrants were sought following an early-morning shooting at the home of defendant David Eduardo Verduzco that left a DEA Task Force Officer wounded.
Verduzco, age 22, of Little Rock, was arrested on Thursday morning in Temple, Texas. Gerarto Iriarte, aka “Ed,” age 43, of Little Rock, was arrested at his residence on Laver Circle at approximately 2 a.m. Thursday morning as he and a female holding an infant were getting into a vehicle, approximately 90 minutes following the shooting.
Verduzco and Iriarte are charged with distribution and possession with intent to distribute more than 50 grams of a mixture or substance containing methamphetamine.
On Thursday, Verduzco was scheduled to appear before a United States Magistrate Judge in the Western District of Texas, prior to being transported to the Eastern District of Arkansas. Also on Thursday, Iriarte appeared before United States Magistrate Judge J. Thomas Ray in Little Rock and remains in custody pending the return of a federal Indictment.
According to the Complaint, shortly after midnight on July 2, 2015, two law enforcement agents (Agent 1 and Agent 2), drove to Verduzco’s residence at 57 Jan Drive, Little Rock, Arkansas, as part of an investigation. Agent 1 (a DEA Task Force officer), who was driving a Chrysler 300, dropped off Agent 2 (a DEA Special Agent) at 57 Jan Drive. Agent 1 then drove further down the street. Later, as Agent 1 was driving past 57 Jan Drive on the way to pick up Agent 2, a shot was fired into Agent 1’s Chrysler 425 West Capitol Avenue, Suite 500 (501) 340-2600 Post Office Box 1229 Little Rock, Arkansas 72203-1229 300. Agent 2 heard the gunshot. The gunshot shattered the car’s driver’s side window. The bullet or glass punctured Agent 1’s shoulder, and the glass cut Agent 1’s face and neck. Agent 1 was treated at Saline Memorial Hospital and released.
Law enforcement agents who responded to the shooting at 57 Jan Drive observed a semiautomatic pistol in plain view on the ground underneath Verduczo’s car. At approximately 7 a.m., law enforcement located and stopped Verduczo traveling on I-35 in Temple, Texas, approximately 450 miles from Little Rock and heading in the direction of Mexico. Another Hispanic male was in the car with Verduczo.
The drug charges stem from earlier conduct. According to the Complaint, on June 3, 2015, DEA agents conducting surveillance on a suspected methamphetamine dealer, Individual A, observed Verduzco meet with Individual A at the K-Mart on Rodney Parham and Shackleford Road. After this meeting law enforcement agents followed and stopped Individual A, who gave consent to search the vehicle. After agents located approximately 65 grams of suspected methamphetamine, Individual A admitted meeting with Verduzco at K-Mart to obtain the methamphetamine. Individual A stated that he/she normally purchases methamphetamine from Iriarte, but on this occasion Verduzco supplied the methamphetamine. Individual A has also seen Verduzco supply Iriarte with methamphetamine in the past.
One day prior to Thursday’s shooting, on July 1, 2015, Individual A, under law enforcement supervision, placed a recorded call to Iriarte for the purpose of setting up a controlled purchase of methamphetamine. Individual A asked to purchase two ounces for $1600, and Iriarte agreed to supply the methamphetamine. Individual A and Iriarte later met at the Academy Sports on Markham Street in Little Rock, where Iriarte provided two ounces of methamphetamine. Iriarte later told DEA agents that he purchased those two ounces of methamphetamine from Verduzco.
The charge of distribution and possession with intent to distribute more than 50 grams of a mixture or substance containing methamphetamine carries a statutory penalty of not less than five years’ imprisonment, not more than 40 years’ imprisonment, not more than a $5,000,000 fine, and not less than four years of supervised release. This case is being investigated by the DEA and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Julie Peters.
The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these or any additional charges. Verduzco and Iriarte are presumed innocent until proven guilty.
Two Additional Defendants Charged in Kidnapping of Jewelry Store EmployeeRead the Press Release
PHILADELPHIA - Salahudin Shaheed, 34, Khayree Gay, 31, and Basil Buie, 23, all of Philadelphia, PA, were charged today by superseding indictment with conspiracy, kidnapping, and attempted Hobbs Act robbery, announced United States Attorney Zane David Memeger. The superseding indictment adds the conspiracy charge to the existing indictment that charged Gay with attempted Hobbs Act robbery and kidnapping, and adds defendants Shaheed and Buie.
According to the indictment, Shaheed recruited defendants Gay and Buie, a/k/a “Basil Tucker,” to rob National Watch and Diamond Exchange, at 101 S. 8th Street in Philadelphia, to obtain luxury watches, jewelry, and money which Shaheed said could be found there. It is further alleged that the defendants conducted surveillance of National Watch and its employees from a parking lot at 733 Chestnut Street, to identify and then, in disguise, abduct an employee from whom they would forcibly obtain keys, security codes, and the code to the company’s safe from which the robbers would steal luxury watches, jewelry, and money.
On April 3, 2015, Shaheed identified the employee to target but postponed the robbery when the victim entered the parking lot accompanied by other persons. The next day, the defendants returned. Upon seeing the employee enter the garage and approach her car, Shaheed and Buie, wearing masks, gloves, and sunglasses, confronted the victim, Shaheed assaulted her with a Taser, and they kidnapped her.
If convicted, each of the defendants face a maximum possible statutory sentence of life in prison, five years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tory Hughes Sentenced to 71 Months in Prison for Defrauding Elderly Victims in Coin Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of TORY EVAN HUGHES, 45, to 71 months in federal prison for stealing more than $700,000 through a gold and coin investment scheme. HUGHES was indicted on August 6, 2014, and pleaded guilty on October 8, 2014. He was sentenced today before United States District Court Judge Richard Kyle.
According to the defendant’s guilty plea and documents filed in court, from August 2009 through September 2010, the defendant owned and operated Reputable Rare Coins, LLC (“RRC”), located in Roseville, Minnesota. HUGHES claimed to buy, sell and trade gold, silver and other coins. To generate business, the defendant made unsolicited phone calls primarily to elderly individuals in an effort to encourage them to purchase or exchange coins at RRC.
According to the defendant’s guilty plea and documents filed in court, HUGHES received more than $600,000 in coins and cash from at least nine victims in Minnesota and elsewhere, including one victim who mailed $50,000 to RRC. However, instead of reimbursing the victims—some of whom had sent him their life’s savings—HUGHES told his customers that he was having ongoing issues with coin suppliers and instead used the victim’s money to fuel his gambling addiction and pay for personal expenses.
According to the defendant’s guilty plea and documents filed in court, in May 2013 HUGHES incorporated a new business, U.S. Collectables, in Gilbert, Arizona. Between May 2013 and May 2014, HUGHES used U.S. Collectables to defraud more than $100,000 from at least six victims who expected to receive money or coins from HUGHES.
“These victims have suffered immeasurably as a result of HUGHES’ callous behavior,” said Assistant U.S. Attorney Karen B. Schommer. “HUGHES lied to them, gave them false hope and gambled away their life’s savings. I hope that the victims find some measure of comfort in today’s sentence.”
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Roseville Police Department.
This case was prosecuted by Assistant U.S. Attorney Karen B. Schommer.
Defendant Information:
TORY EVAN HUGHES, 45
Minneapolis, Minn.
Convicted:
- Mail fraud, 1 count
Sentenced
- 71 months in prison
- $753,203.83 in restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three charged with forcing immigrant minors to work at Ohio egg farmsRead the Press Release
In an indictment unsealed today, a federal grand jury charged three people with smuggling Guatemalan minors into the United States and forcing them to work at egg farms in Ohio, law enforcement officials said.
A fourth defendant was charged with harboring illegal aliens as part of a 15-count superseding indictment.
The indictments were announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, and Marlon Miller, Special Agent in Charge for HSI Detroit, which covers Michigan and Ohio.
The defendants and their associates smuggled workers as young as 14 or 15 from Guatemala to the United States, falsely promising them that they would be able to attend school in the United States. The defendants transported the minors 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. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens, and vaccinating chickens, according to the indictment.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. The indictment lists eight victims under the age of 18 and two adult victims.
Indicted are: Aroldo Castillo-Serrano, 33, of Pecos, Texas; Conrado Salgado Soto, 52, of Raymond, Ohio; Ana Angelica Pedro, 21, of Columbus and Juan Pablo Duran Jr., 23, of Marysville, Ohio.
Aroldo Castillo-Serrano, Conrado Salgado Soto, and Ana Angelica Pedro Juan are charged with a labor-trafficking conspiracy. Castillo-Serrano is also charged with 10 individual counts of forced labor; Salgado Soto and Pedro Juan are charged in eight of those 10 counts. Castillo-Serrano and Salgado Soto are also charged with harboring illegal aliens, as is an additional defendant, Pablo Duran Jr.
Castillo-Serrano and Pedro Juan are charged with witness tampering for trying to persuade another person to give false information to the FBI. Pedro Juan herself is also charged with lying to the FBI.
“This indictment charges the defendants with putting profits ahead of common decency,” Dettelbach said. “Human beings are not commodities like farm products. Those who are somehow confused about that difference need to learn that lesson.”
“These defendants preyed upon vulnerable children and families,” Anthony said. “This investigation revealed how they used threats, humiliation, deprivation and other means to keep these minors working and enriching the defendants.”
“Human trafficking and forced labor are forms of modern-day slavery,” Miller said. “Criminal organizations involved in human trafficking truly damage their victims and undermine basic human decency. HSI, FBI, U.S. Border Patrol as well as our state and local law enforcement partners will continue to aggressively combat human trafficking and forced labor in all its forms.”
Each of the 11 trafficking counts and the witness tampering count carries a sentence of up to 20 years. Each count of harboring illegal aliens and lying to the FBI carries a sentence of up to 5 years.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty. The investigation is ongoing.
This case is being investigated by the Federal Bureau of Investigation’s Cleveland Office, Mansfield Resident Agency; and the Department of Homeland Security. The case is being jointly prosecuted by Civil Rights Division Trial Attorney Dana Mulhauser and Assistant U.S. Attorney Chelsea Rice.
Three Defendants Charged with Operating Forced Labor Scheme That Exploited Guatemalan Migrants at Ohio Egg FarmsRead the Press Release
Victims Included Minors as Young as 14 or 15 Years Old
Today, a federal court in the Northern District of Ohio unsealed a 15-count superseding indictment charging three defendants with luring Guatemalan minors and adults into the United States on false pretenses, then using threats of physical harm to compel their labor at egg farms in Ohio. The indictment was announced by Head of the CIvil Rights Division, Vanita Gupta, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. A fourth defendant was charged with related immigration offenses.
Aroldo Castillo-Serrano, 33, Ana Angelica Pedro Juan, 21, both of Guatemala, and Conrado Salgado Soto, 52, of Mexico, are charged with labor trafficking conspiracy. Castillo-Serrano is also charged with 10 counts of forced labor, and Salgado Soto and Pedro Juan are charged in 8 of those 10 counts. Castillo-Serrano and Salgado Soto are also charged with related immigration offenses, along with a fourth defendant, Pablo Duran Jr., 23, an American citizen.
According to the indictment, 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. 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. Eight minors and two adults are identified in the indictment as victims of the forced labor scheme.
Castillo-Serrano and Pedro Juan are also charged with witness tampering, and Pedro Juan is further charged with making false statements to law enforcement.
Each of the 11 forced labor and forced labor conspiracy counts carries a statutory maximum sentence of 20 years in prison. The charges involving immigration violations, witness tampering and false statements carry statutory maximum sentences of five years in prison.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. The investigation is ongoing.
This case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency and the Department of Homeland Security. 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.
Tax Preparer Charged with Filing False Claims with the IRSRead the Press Release
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, was charged by indictment with ten counts of filing false claims with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. Owanikin had his initial appearance and arraignment today in Fort Lauderdale before United States Magistrate Judge Patrick M. Hunt. He pled not guilty.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed false and fraudulent claims, that is, false 2008 individual United States income tax returns and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming tax refunds of $7,500 per return.
If convicted, the defendant faces up to 50 years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Woman Sentenced to 11 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Eneshia Carlyle to 11 years and 6 months in federal prison for wire fraud and aggravated identity theft. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $1,820,759 and an order of restitution in the same amount. Carlyle pleaded guilty on November 26, 2014.
According to court documents, Carlyle conspired with others to use the stolen personal identifying information of more than 7,000 individuals to file false tax returns and open pre-paid debit cards. From an unknown date in 2011, and continuing through November 2013, Carlyle, her husband James Cobb, and others, filed false tax returns claiming approximately $5 million in refunds.
During the execution of a search warrant at the home of Carlyle and Cobb, law enforcement officers recovered lists and medical records containing the names, dates of birth, and Social Security numbers of more than 7,000 victims. The search also recovered more than 300 pre-paid debit cards opened in the names of those victims, as well as documents and computer files containing information on the filing of false tax returns. Many of the victims had their identities stolen from healthcare facilities, including from the James A. Haley VA hospital; the Florida Hospital (formerly known as University Community Hospital); ambulance services in Virginia, Georgia, and Texas; a local medical billing company; and court records. In addition, a number of deceased victims’ names were obtained from genealogy websites.
James Cobb previously pleaded guilty for his role in this scheme. On June 19, 2015, he was sentenced to 27 years in federal prison.
This case was investigated by the Tampa Police Department, the Internal Revenue Service - Criminal Investigation, the U.S. Department of Veterans Affairs - Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the members of the Tampa Bay Identity Theft Alliance, including the Hillsborough County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Thomas N. Palermo and U.S. Department of Justice Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Swiss Bank Reaches Resolution under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Privatbank Von Graffenried AG has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
-
Make a complete disclosure of their cross-border activities;
-
Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
-
Cooperate in treaty requests for account information;
-
Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
-
Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
-
Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Von Graffenried agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute Von Graffenried for tax-related criminal offenses. Von Graffenried also has provided certain account information related to U.S. taxpayers that will enable the government to make requests under the 1996 Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Von Graffenried is a private bank founded in 1992 and based in Bern, Switzerland. Starting in at least July 1998, Von Graffenried, through certain practices, assisted U.S. taxpayer-clients in evading their U.S. tax obligations, filing false federal tax returns with the Internal Revenue Service (IRS) and otherwise hiding assets maintained overseas from the IRS.
Von Graffenried opened and maintained undeclared accounts for U.S. taxpayers when it knew or should have known that, by doing so, it was helping these U.S. taxpayers violate their legal duties. Von Graffenried offered a variety of traditional Swiss banking services that it knew could assist, and that did assist, U.S. clients in the concealment of assets and income from the IRS. For example, Von Graffenried would hold all mail correspondence, including periodic statements and written communications for client review, thereby keeping documents reflecting the existence of the accounts outside the United States. Von Graffenried also offered numbered account services, replacing the accountholder’s identity with a number on bank statements and other documentation that was sent to the client.
In late 2008 and early 2009, Von Graffenried accepted accounts from two European nationals residing in the United States who had been forced to leave UBS and Credit Suisse, respectively. At the time it accepted the accounts, Von Graffenried knew that UBS was the target of an investigation by the Department of Justice. It also knew that both individuals had been forced to leave their respective banks because the banks were closing their accounts, and that both individuals had U.S. tax obligations and did not want the accounts disclosed to U.S. authorities. Senior management at Von Graffenried approved the opening of these accounts.
When Von Graffenried compliance personnel sought to obtain an IRS Form 8802, Application for U.S. Residency Certification, from one of the accountholders, that accountholder replied that completing the form would be problematic for him and that he believed the relationship manager knew why. The beneficial owner of the second account was referred by an external fiduciary, who handled the account at Credit Suisse. The fiduciary told a Von Graffenried relationship manager that Credit Suisse was attempting to exit its U.S. offshore clients to other banks if the clients would not sign an IRS Form W-9. The relationship manager agreed to take on the account, which was held by a Liechtenstein “stiftung,” or foundation, with the beneficial owner as the primary beneficiary and U.S. citizens as other beneficiaries.
Between July 1998 and July 2000, Von Graffenried accepted approximately two dozen accounts from a specific external asset manager. Von Graffenried was aware that the external asset manager seemed to be targeting U.S. clientele. Sixteen of the accounts were beneficially owned by individuals with U.S. tax and reporting obligations, and most of those accounts were held by U.S. citizens residing in the United States. At the time, Von Graffenried did not have a policy in place that required U.S. clients to show tax compliance. Consequently, Von Graffenried accepted these accounts without obtaining IRS Forms W-9 or assurances that the accounts were in fact tax compliant. By early 2009, Von Graffenried determined that some of the external asset manager’s accountholders likely were attempting to evade U.S. tax requirements. In 2010, Von Graffenried began to close the existing U.S.-related accounts that originated with the external asset manager. Von Graffenried did not complete the exit process for these accounts until late 2012.
Since Aug. 1, 2008, Von Graffenried held a total of 58 U.S.-related accounts with approximately $459 million in assets. Von Graffenried will pay a penalty of $287,000.
In accordance with the terms of the Swiss Bank Program, Von Graffenried mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Von Graffenried who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Von Graffenried must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance, Kathleen E. Lyon, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
-
Statement of United States Attorney James L. Santelle on His Retirement from Government ServiceRead the Press Release
The United States Attorney for the Eastern District of Wisconsin, James L. Santelle, today released the following remarks:
“This Sunday, July 5, 2015, marks my 30th anniversary of employment with the United States Department of Justice and nearly 35 years of public service in the United States Government.
At this important milestone, I have decided that this is the right time to conclude my five and one-half years as the United States Attorney for the people of Eastern Wisconsin. I expect to spend many of the days of this month in my present position, completing a number of projects and initiatives—related to the litigation, community, and administrative functions of my office—that have been and remain important to our goals and missions.
I am exceptionally mindful and supremely appreciative of the many, enriching and strengthening opportunities that the United States of America, including the United States Department of Justice, has extended to me and in which it has supported me unfailingly.
Following my graduation in 1983 from the University of Chicago Law School, the Honorable Robert W. Warren, United States District Judge for the Eastern District of Wisconsin, brought me home to Milwaukee for a two-year term as one of his judicial law clerks. It was in that position that I not only began my legal career but also came to understand with greater depth the importance of litigation—both criminal and civil—as a mechanism to promote the interests of our citizens, to ensure due process and equal protection, and to accomplish justice in furtherance of the principles on which our nation was founded.
Two years later, the Honorable J.P. Stadtmueller, then serving as the United States Attorney, extended to me the opportunity to pursue those goals further as an Assistant United States Attorney. He, like all of the other United States Attorneys who followed him, encouraged and sustained my growth as a litigator for the federal government. Throughout many of the past 30 years, it has been my supreme honor to prosecute a wide variety of criminal cases with the purpose of promoting the safety and security of our community and ensuring the protection of victims. I have also been privileged to litigate a broad spectrum of civil cases, defending the interests of the United States in some and affirmative seeking remedial relief on behalf of its citizens in others.
Along the way, my supervisors and colleagues have vested in me various special responsibilities and tasks—including work as a Senior Litigation Counsel, as an Executive Assistant United States Attorney, and, arguably with most case- and court-related focus, as the Civil Division Chief for this district and for the Western District of Michigan. In all of these litigation assignments—and in various opportunities to provide training to colleagues both locally and nationally—I have benefited immeasurably from the counsel, the direction, the wisdom, and the judgment of my many outstanding colleagues throughout the United States Department of Justice—including Assistant United States Attorneys, Litigating Division Attorneys, and equally skilled and highly experienced professional staff.
That same Justice Department, led by distinguished and committed Attorneys General and Deputy Attorneys General, has further permitted me the professionally transformative and personally enriching opportunities to serve in other special roles—including two years of work with the Iraqi people, their leadership, and their nation in developing the institutions of good government and the rule of law in areas throughout that still-emerging nation, including Baghdad and the United States Mission there. And for some 2-1/2 years, I was specially honored to serve in a leadership position of the Executive Office for United States Attorneys at the Robert F. Kennedy Main Justice Building in Washington, D.C.—working in collaboration with lawyers and others there and throughout the nation on issues, cases, challenges, and projects critical to the work of the Offices of United States Attorneys nationwide and other vital litigation units of the Department.
Since January of 2010, Attorneys General Eric H. Holder, Jr. and Loretta E. Lynch have not only supported, encouraged, and inspired me and my cherished colleagues of United States Attorneys nationwide in the pursuit of our assigned roles as chief federal law enforcement officers but they, along with their exceptionally engaged staffs, have also given to me and others the mechanisms, the discretion, the capacity, and the vision to do what the Department was initially and remains to this day commissioned to do—that is, serve our nation and its people in abiding, focused pursuit of an achievable aspiration—justice. I extend my deep thanks to Attorneys General Holder and Lynch for doing just that—and I communicate with equal spirit and sincerity my unqualified appreciation to and admiration of the many Assistant United States Attorneys, professional staff members, and the tireless, brave, and honorable law enforcement officers here in Eastern Wisconsin and in every state of our Union—who every day live up to and exceed our country’s expectations for the delivery of balanced justice, fair treatment, and thoughtful humanity, even in the midst of dramatic challenges and compelling human tragedy.
Because the job of United States Attorney typically concludes at or about the time that a new President is sworn in, and because I have been privileged already to have worked in the federal government for over three decades, I have long considered options for my next, suitable engagements with the community I so cherish and whose leadership representatives—in social service agencies, advocacy and victim support groups, health care and educational units, faith and familial associations, and many other industrious and productive non-governmental organizations—are assets of terrific depth and immeasurable scope. As my time with the United States Department of Justice nears a conclusion, I am looking forward to those continued, exhilarating engagements in this place—my home—and perhaps beyond. Among other pursuits, I hope to do some long-delayed writing about my life experiences, some teaching to those who may benefit from those modest perspectives, and perhaps even some renewed traveling to places where people—our fellow women and men—seek with hope and are committed to achieving the lives and livelihoods of the sort that we enjoy with imperfection but abundance here in America.
It has been and will always remain my honor to have served our nation and our citizenry, and I am appreciative beyond words for the opportunities for that that have been bestowed generously and graciously on me to engage in this work. To the people of Wisconsin and of our nation—to all of you who have animated and breathed life into mine—I extend, as I have in other farewell settings, this adopted commission: “More Life. The Great Work Begins.”
# # # # #
Statement by Justice Department Spokesperson on Recent Church Fires Across Five StatesRead the Press Release
The following statement is attributable to Justice Department spokesperson Melanie Newman regarding recent church fires across five states:
“The federal law enforcement team of ATF, FBI, the Civil Rights Division and U.S. Attorneys’ Offices are actively investigating several church fires across five states that have occurred over the past two weeks. Preliminary investigations indicate that two of the fires were started by natural causes and one was the result of an electrical fire. All of the fires remain under active investigation and federal law enforcement continues to work to determine the cause of all of the fires. To date the investigations have not revealed any potential links between the fires.
“If in fact there is evidence to support hate crime charges in any one of these cases, the FBI, in coordination with the ATF and local authorities, will work closely with the Civil Rights Division and the U.S. Attorneys’ Offices to bring those forward.”
Statement by Attorney General Loretta E. Lynch on the Agreement in Principle with BP to Settle Civil Claims for the Deepwater Horizon Oil SpillRead the Press Release
Today, BP disclosed that it has reached agreements in principle with the United States, state, and local governments for a settlement of civil claims arising from the April 20, 2010, Deepwater Horizon oil spill in the Gulf of Mexico. The Attorney General made the following statement:
“Since the Deepwater Horizon oil spill – the largest environmental disaster in our nation’s history – the Justice Department has been fully committed to holding BP accountable, to achieving justice for the American people and to restoring the environment and the economy of the Gulf region at the expense of those responsible and not the American taxpayer. In December 2010, my predecessor, Attorney General Eric Holder, announced a civil lawsuit against BP and its co-defendants. Since that time, the Deepwater trial team has fought aggressively in federal court for an outcome that would achieve this mission, proving along the way that BP’s gross negligence resulted in the Deepwater disaster.
“Today, I am pleased to say that after productive discussions with BP over the previous several weeks, we have reached an agreement in principle that would justly and comprehensively address outstanding federal and state claims, including Clean Water Act civil penalties and natural resource damages. BP is also resolving significant economic claims with the impacted state and local governments. We will work diligently during the next several months to incorporate the agreement in principle into a consent decree, which would then undergo public comment before court approval. If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come.
“I am so very grateful to the Deepwater civil trial team, made up of men and women from the department’s Environment and Natural Resources Division and Civil Division, as well as the incredible response, investigative and supporting efforts of the Departments of Homeland Security, Interior, Commerce and Agriculture and the Environmental Protection Agency, whose efforts have made this important step possible. I also appreciate the extraordinary effort of the many state leaders and environmental professionals who collaborated to advance this agreement in principle.”
Six Charged with Running Lottery ScamRead the Press Release
PHILADELPHIA – An indictment was filed today charging six people with running a “Jamaican lottery” scam in the United States between January 2012 and March 2015, announced United States Attorney Zane David Memeger and Homeland Security Investigations Special Agent-in-Charge John P. Kelleghan.Maurice Simmonds, were charged with conspiring to commit mail, bank and wire fraud in a scheme that obtained more than $200,000 from mostly elderly victims with diminished mental capacity.Simmonds, the organizer and leader of the conspirators, and some of the other members of the conspiracy were also charged with wire fraud and travel fraud as the result of specifically defrauding an elderly resident of Drexel Hill, Pennsylvania.
According to the indictment, the victims were informed that they had won the “Jamaican lottery” but that in order to claim their winnings they first needed to pay tens of thousands of dollars for certain “fees.” The victims were repeatedly coerced to provide the conspirators with cash, checks, and property but never received any winnings from the purported lottery.
If convicted, each defendant faces a substantial prison term, possible fines, special assessments, and supervised release.
The case was investigated by Homeland Security Investigations, the Delaware County District Attorney's Criminal Investigation Division Senior Exploitation Unit, and the Delaware County Office of Services for the Aging. It is being prosecuted by Assistant United States Attorney Anita Eve.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sentencings for June 29 - June 30, 2015Read the Press Release
Ricardo Miranda, aka “Pee-Wee”, 28, of Springhill, Florida, was sentenced by Federal District Court Judge Alan B. Johnson on June 30, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Miranda was arrested in Cheyenne, Wyoming. He received 100 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Steven Henry Kichelmann, 41, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 30, 2015, for conspiracy to distribute at least 200 grams of a mixture or substance containing a detectable amount of methamphetamine. Kichelmann was arrested in Salt Lake City, Utah. He received 130 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Casey Piburn, 29, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 30, 2015, for conspiracy to distribute no less than 350 grams of a mixture or substance containing a detectable amount of methamphetamine. Piburn was arrested in Rock Springs, Wyoming. He received 78 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Fred Thomas Lowery, 62, of Alpine, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 29, 2015, for possession of child pornography. Lowery was arrested in Alpine, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment, a $400.00 fine, and restitution in the amount of $3,500.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
San Antonio Man Pleads Guilty to Bank Robberies Along I-35Read the Press Release
In Austin today, Willie James Cleveland, age 34, plead guilty to bank robberies he committed earlier this year along the Interstate 35 corridor between Austin and San Antonio announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
Appearing before United States Magistrate Judge Andrew W. Austin, Cleveland pleaded guilty to two counts of bank robbery with a dangerous weapon. By pleading guilty, Cleveland admitted he robbed nine banks between February 2015 and the end of April 2015. According to court records, Cleveland is responsible for the following bank robberies:
- February 12, 2015 – Woodforest National Bank – 1500 block of N. Loop 1604 East in San Antonio;
- February 18, 2015 – Woodforest National Bank – 9300 block of IH-35 South in Austin;
- February 26, 2015 – Wells Fargo Bank – 1000 block of Texas Highway 80 in San Marcos;
- March 14, 2015 – Wells Fargo Bank – 1200 block IH-35 South in New Braunfels;
- March 16, 2015 – Chase Bank – 5400 block of IH-35 North in Austin;
- March 26, 2015 and April 7, 2015 – Air Force Credit Union – 3100 block of Wurzbach in San Antonio;
- April 16, 2015 – BBVA Compass Bank – 7500 block of Wurzbach in San Antonio; and,
- April 18, 2015 – BBVA Compass Bank – 5700 block of Cameron Road in Austin.
The total amount stolen from all nine bank robberies was in excess of $50,000.00
Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015. By pleading guilty, Cleveland agrees to pay restitution for all nine bank robberies as well as restitution for a separate theft of $1,000. Cleveland faces up to 25 years in federal prison and a $250,000 fine on each of the two bank robbery counts.
The case resulted from a joint investigation by the FBI, San Antonio Police Department, Austin Police Department, San Marcos Police Department and the New Braunfels Police Department. This case is being prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.
#####
Ring Leaders Plead Guilty in $20 Million WIC & Food Stamp Fraud ConspiracyRead the Press Release
88 Defendants Have Now Pled Guilty In One Of The Largest
Food-Benefit Fraud Cases Ever Prosecuted
SAVANNAH, GEORGIA- Brandon and Kimberly Sapp, husband and wife from Atlanta, Georgia, pled guilty last week before United States District Judge William T. Moore, Jr. to running a criminal organization that defrauded the WIC and Food Stamp programs of approximately $20 million. The Sapps initially exercised their rights to a jury trial. However, after 2 days of testimony, they changed their pleas to guilty and the jury was dismissed. The Sapps are currently awaiting sentencing.
In June of 2014, The Sapps were indicted along with 86 other defendants in one of the largest WIC and Food-Stamp frauds ever prosecuted in the United States. To date, all 88 defendants have pled guilty.
Georgia’s Women, Infants and Children Program (WIC) provides healthy foods to low-income pregnant and postpartum women, and to infants and children up to age 5 who are nutritionally at risk. Participants in the WIC program receive 3-month supplies of WIC vouchers, which they can exchange at authorized stores for the healthy foods listed on the vouchers. The Food Stamp program, now known as the Supplemental Nutrition Assistance Program (SNAP), provides “Food Stamp” benefits to low-income families through Electronic Benefit Transfer (EBT) cards, which are similar to debit cards. It is unlawful to exchange WIC or Food Stamp benefits for cash. Both the WIC and Food Stamp programs are administered through the United States Department of Agriculture (USDA), and paid for by federal tax dollars.
According to evidence presented during the trial and numerous guilty plea hearings, the Sapps conspired with numerous others to open 14 phony grocery stores in Savannah, Macon, Atlanta, Garden City, Lithonia, LaGrange, Stone Mountain, Riverdale, and elsewhere for the purpose of buying WIC and Food Stamp benefits for cash. Once the stores were opened and stocked with enough prop foods to pass WIC and SNAP inspections, many of the defendants canvassed low-income neighborhoods and solicited WIC and Food Stamp participants to illegally exchange their benefits not for food, but for cash. The defendants purchased the WIC and Food Stamp benefits for cash at a fraction of the amount they received from the USDA by redeeming the benefits they had purchased. Typically, the conspirators would buy Food-Stamp benefits from participants for 50 cents on the dollar. The conspirators would buy WIC vouchers for even less, sometimes as low as 15 cents on the dollar.
54 defendants, including the Sapps, were charged together for their roles in organizing, running and operating the phony grocery stores set up throughout the state. The Sapps created a sophisticated criminal enterprise, which included district managers, who were in charge of getting cash to the stores each day for the purpose of buying WIC vouchers and Food Stamp benefits; store managers, who were in charge of taking orders and making sure enough prop foods stayed in the stores to pass inspections; and, drivers, who would take cash to WIC and Food Stamp participants in exchange for their benefits. During the course of the conspiracy, which lasted over 2 years, the criminal enterprise received over $30,000 each day in fraudulently obtained money from the USDA. The Sapps, who paid their coconspirators in weekly salary checks, were the beneficiaries of a large portion of the ill-gotten gains. They bought expensive cars, rang up over $1 million in credit card charges, withdrew over $3 million in cash from various accounts, and brazenly set up a record label named “We In Control,” the acronym of which is WIC. A listing of the 54 defendants convicted for their roles in the Sapps’ criminal enterprise is attached.
In addition to those responsible for owning or operating the phony grocery stores across the State, 34 recipients residing in the Southern District of Georgia who sold their WIC and Food Stamp benefits for cash to the Sapps’ organization were also charged. The number of recipients charged represents a small fraction of those who sold their food-program benefits for cash to the Sapps’ organization. Indeed, the number of WIC recipients whose vouchers were fraudulently purchased by the Sapp conspiracy exceeded 45,000. A significant percentage of the 45,000 individual WIC recipients were the children whose parents or guardians that chose 15 cents on the dollar over healthy foods for their children. Each of the 34 WIC and Food-Stamp recipients indicted either had a significant criminal history and/or traded significant amounts of food-program benefits. Each of the 34 recipient-defendants pled guilty to stealing from the United States. A listing of these defendants is attached.
United States Attorney Edward Tarver said, “This prosecution, one of the largest federal food programs fraud prosecutions in history, was a complete success. Within one year, all of the 88 defendants charged have been convicted. Justice was swift and those convicted have been held accountable for stealing millions of dollars in federal tax dollars intended to feed the most needy families and children in our state. No matter how complex the scheme to steal tax payer dollars, this United States Attorney’s Office and its law enforcement partners will work tirelessly to bring those responsible to justice.”
Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations, stated, “The USDA-OIG conducts hundreds of investigations nationwide on a yearly basis regarding EBT fraud. In 2010, we became aware of a large number of Georgia WIC vendors redeeming tremendous dollar amounts from the alleged sale of WIC items. These small establishments were, on average, redeeming more in WIC sales than chain stores such as Kroger and Wal-Mart. From 2010 through the present, USDA-OIG conducted 16 separate WIC investigations, primarily in the Southern District of Georgia, with the assistance of DOJ, the Georgia Department of Public Health, and other federal and state law enforcement agencies. One of those investigations determined that a criminal organization, led by Brandon and Kimberly Sapp, operated phony grocery stores across the State for the sole purpose of defrauding the WIC and EBT programs. The investigation of the Sapps netted the largest WIC fraud in the history of USDA. The U.S. Attorney’s Office, Southern District of Georgia, in a bold and unprecedented move, indicted 88 individuals, including 34 WIC and EBT recipients, for their roles in the criminal enterprise. The Sapp prosecution netted a perfect score for the taxpayers, with all 88 defendants pleading guilty to various charges. So far, the total restitution ordered in the Sapp investigation stands at $61,249,279. Brandon and Kimberly Sapp will be sentenced later this summer to what surely will sit as the steepest number of years in prison. By indicting and convicting WIC and EBT recipients, the U. S. Attorney’s Office has set a new precedent that basically says, ‘You will suffer the same consequences for selling benefits as those who purchase those benefits.’ It is with much gratitude that we applaud and commend DOJ and all of our federal, state, and local law enforcement partners in this joint effort.”
“Fraud of any kind against WIC will not be tolerated, and offenders will be prosecuted and convicted,” said Brenda Fitzgerald, M.D., Commissioner of the Georgia Department of Public Health. “I applaud the U.S. Department of Justice, all of our federal and state partners, and our own Inspector General's office for taking action to send a strong message to those who plan to defraud American taxpayers and harm a program that many Georgians rely on to provide high quality, nutritious food for their children and families.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The Sapps’ convictions mark the conclusion of a lengthy and complex fraud investigation whose subjects were targeting federal government programs intended for those in need. These defendants, working together to illegally profit from federal food based assistance programs, showed a complete disregard for those who were truly in need. The FBI is pleased with the role that it played in ensuring that these individuals are being held accountable for their greed based criminal conduct."
The investigation of this case was led by Special Agents with the United States Department of Agriculture, Office of Inspector General; Investigators with the Georgia Department of Health and Human Services and Georgia Department of Public Health, Office of Inspector General; and forensic auditors with the United States Attorney’s Office and the FBI. Assistant United States Attorney E. Greg Gilluly, First Assistant United States Attorney, James D. Durham and, both with the U. S. Attorney’s Office for the Southern District of Georgia, prosecuted the cases for the United States.
Defendants Convicted in 54-Defendant Indictment
Brandon Sapp, a/k/a “B,” 38, Austell, Georgia, awaiting sentencing.
Kimberly Sapp, a/k/a “The Money Wizard,” 35, Austell, Georgia, awaiting sentencing.
Calvin Williams, a/k/a “Slick,” 40, Atlanta, Georgia; sentenced to 78 months in prison and ordered to pay $1,529,951.04 in restitution.
Isaac Martin, a/k/a “Ike,” 38, Jonesboro, Georgia; sentenced to 48 months in prison and ordered to pay $1,169,962.56 in restitution.
John P. Jones, a/k/a “JP,” 40, Ellenwood, Georgia; sentenced to 46 months in prison and ordered to pay $1,079,965.44 in restitution.
Wayne Jackson, a/k/a “J5,” 33, Atlanta, Georgia; sentenced to 54 months in prison and ordered to pay $1,124,964.00 in restitution.
Gregory Thomas, a/k/a “Rich Gregg,” 38, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $1,402,465.31 in restitution.
Kerry Adams, a/k/a “Big Skreed,” a/k/a “Scrump,” 39, Atlanta, Georgia; sentenced to 60 months in prison and ordered to pay $1,402,465.31 in restitution.
Brian Lockhart, a/k/a “Lock,” 48, Atlanta, Georgia; sentenced to 40 months in prison and ordered to pay $989,968.32 in restitution.
Henry Ward, a/k/a “Tye,” 33, Savannah, Georgia; sentenced to 60 months in prison and ordered to pay $1,259,959.68 in restitution.
Vincent Harper, 41, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $1,304,598.24 in restitution.
Ostrando S. Brock, a/k/a “Shawn,” 33, Mableton, Georgia; sentenced to 38 months in prison and ordered to pay $1,214,961.12 in restitution.
Jesse McCoy, a/k/a “Jay Mac,” 43, Ellenwood, Georgia; sentenced to 36 months in prison and ordered to pay $944,969.76 in restitution.
Terence Cosby, a/k/a “Me Gold,” 34, Savannah, Georgia; sentenced to 30 months in prison and order to pay $1,124,959.68 in restitution.
Raymond Hargrove, 28, Savannah, Georgia; sentenced to 48 months in prison and ordered to pay $1,484,952.48 in restitution.
Jacqueline Beauchamp, a/k/a “Jackie,” 26, Pooler, Georgia; sentenced to 40 months in prison and ordered to pay $989,968.32 in restitution.
Elizabeth Beauchamp, 29, Pooler, Georgia; sentenced to 30 months in prison and ordered to pay $404,987.04 in restitution.
Gerald Patilla, a/k/a “PT,” 31, Savannah, Georgia; sentenced to 36 months in prison and ordered to pay $989,968.32 in restitution.
Clayton Talley, 32, Pooler, Georgia; sentenced to 30 months in prison and ordered to pay $224,992.80 in restitution.
Ebony Jacobs, 28, Savannah, Georgia; sentenced to 30 months in prison and ordered to pay $359,988.48 in restitution.
Olajawon Simmons, a/k/a “Wan,” a/k/a “Won,” 28, Savannah, Georgia; sentenced to 40 months in prison and ordered to pay $629,979.84 in restitution.
Reginald Simmons, a/k/a “Reggie,” 29, Savannah, Georgia; sentenced to 30 months in prison and ordered to pay $764,975.52 in restitution.
Gary Grier, a/k/a “Bundee,” a/k/a “Dee,” 38, Atlanta, Georgia; sentenced to 34 months in prison and ordered to pay $1,124,964.00 in restitution.
Magregor Warner, a/k/a “KB,” 41, Atlanta, Georgia; sentenced to 40 months in prison and ordered to pay $1,124,964.00 in restitution.
Benjamin Tookes, a/k/a “B,” a/k/a “Ben,” 41, Atlanta, Georgia; sentenced to 42 months in prison and ordered to pay $719,976.96 in restitution.
Carlos Davis, a/k/a “Lo,” 39, Atlanta, Georgia; sentenced to 30 months in prison and ordered to pay $1,034,966.88 in restitution.
Raymond Hixon, a/k/a “Dre,” 39, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $809,974.08 in restitution.
Thomas Thorton, a/k/a “Big Bo,” 28, Atlanta, Georgia; sentenced to 40 months in prison and ordered to pay $1,394,955.30 in restitution.
Branden Jordan, 33, Atlanta, Georgia; sentenced to 30 months in prison and ordered to pay $130,489.71 in restitution.
Mark White, 39, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $674,978.40 in restitution.
Tobias Render, a/k/a “Tee,” a/k/a “Toby,” 34, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $764,975.52 in restitution.
Eric Burkes, a/k/a “E,” 26, Atlanta, Georgia, sentenced to 3 years of probation and ordered to pay $217,482.85 in restitution.
Aryay Strong, 32, Atlanta, Georgia; sentenced to 30 months in prison and ordered to pay $179,994.24 in restitution.
Marshall Sears, 39, Atlanta, Georgia; sentenced to 42 months in prison and ordered to pay $1,349,956.80 in restitution.
Suleyma Arreola, 22, Marietta, Georgia; sentenced to 24 months in prison and ordered to pay $449,985.60 in restitution.
Emory White, 33, Marietta, Georgia; sentenced to 60 months in prison and ordered to pay $899,971.20 in restitution.
Obryan Moore, a/k/a “OB,” 30, Powder Springs, Georgia; sentenced to 46 in prison and ordered to pay $449,985.60 in restitution.
Terry Mitchell, Jr., 44, LaGrange, Georgia; sentenced to 30 months in prison and ordered to pay $674,978.40 in restitution.
Corey Mitchell, a/k/a “Stick,” 40, Atlanta, Georgia; sentenced to 42 months in prison and ordered to pay $1,034,966.86 in restitution.
Luquoise Clay, a/k/a “Qui,” 31, Atlanta, Georgia; sentenced to 4 years of probation and ordered to pay $539,982.72 in restitution.
Jessica Cameron, a/k/a “Keta,” 31, Grantville, Georgia; sentenced to 5 years of probation and ordered to pay $539,982.72 in restitution.
Joshua Dunlap, 39, Monticello, Georgia; sentenced to 24 months in prison and ordered to pay $494,984.16 in restitution.
Maurice Fudge, a/k/a “Reese,” 40, Macon, Georgia; sentenced to 25 months in prison and ordered to pay $314,989.92 in restitution.
Quinton Matthews, a/k/a “Q,” a/k/a “Chuck Matthews,” 40, Macon, Georgia; sentenced to 24 months in prison and ordered to pay $629,979.84 in restitution.
Charles Jackson, a/k/a “Cooley Slim,” a/k/a “Corey,” 36 Lithia Springs, Georgia; sentenced to 42 months in prison and ordered to pay $539,982.72 in restitution.
Ronnie Zachary, a/k/a “City,” 30, Byron, Georgia; sentenced to 38 months in prison and ordered to pay $584,981.28 in restitution.
Porsha Drewery, a/k/a “Parsha,” 38, Macon, Georgia; sentenced to 38 months in prison and ordered to pay $1,619,948.10 in restitution.
Taquilla Johnson, a/k/a “Quilla,” 36, Macon, Georgia; sentenced to 30 months in prison and ordered to pay $478,462.27 in restitution.
Raheem Waller, 30, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $629,979.84 in restitution.
Travis Rich, 36, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $1,259,959.68 in restitution.
Marlon Dobbins, 30, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $1,079,965.44 in restitution.
Derrick Heard, a/k/a “Da Man,” a/k/a “Heard,” 44, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $18,515,977.21 in restitution.
Roderick Turner, a/k/a “Rah Rah,” 37, Rockmart, Georgia; sentenced to 19 months in prison and ordered to pay $391,463.13 in restitution.
Antonio Dorsey, a/k/a “Bear,” 35, East Point, Georgia; awaiting sentencing.
List of Recipient-Defendants Charged in Separate Indictments
Chiquita Armstead, 41, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $3,008.71 in restitution.
Yontalay Bennett, 29, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $5,092.24 in restitution.
Precious T. Bevins, 25, Garden City, Georgia; sentenced to 2 years of probation and ordered to pay $4,407.18 in restitution.
Shanika C. Blige, 23, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $7,336.95 in restitution.
Deanna W. Boles, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $4,663.33 in restitution.
Candice Bostick, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,353.15 in restitution.
Danitra Bostick, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,060.71 in restitution.
Tia Bowers, 26, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,761.28 in restitution.
Tonya Clark, 42, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $6,963.34 in restitution.
Jocelyn Easterling, 49, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $10,233.97 in restitution.
Ebony Ellison, 28, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $5393.11 in restitution.
Deonka Ellison, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $6,079.69 in restitution.
Joanne Ferguson, 43, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $7,027.83 in restitution.
Fanchon Hill, 27, Jesup, Georgia; sentenced to 2 years of probation and ordered to pay $3,974.84 in restitution.
Shaquanna Hooper, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,332.58 in restitution.
Tameshia N. Jackson, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $3683.13 in restitution.
Koneshia N. Jenkins, 27, Pembroke, Georgia; sentenced to 2 years of probation and ordered to pay $5,931.47 in restitution.
Latisha V. Jones, 31, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $6124.88 in restitution.
Jameise’ Mayberry, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $10,460.00 in restitution.
Quinta Meggett-Mike, 38, Garden City, Georgia; sentenced to 2 years of probation and ordered to pay $9,228.34 in restitution.
Ebony Roberson, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,246.97 in restitution.
Shakeila D. Roberts, 23, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,215.98 in restitution.
Jasmine Sammuel, a/k/a “Jazmi Beasley,” a/k/a “Jazmi Smith,” 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $4,256,66 in restitution.
Deanna K. Scott, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,991.76 in restitution.
Whitney Denise Stokes, 26, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $7174.01 in restitution.
Regina C. Styles, 22, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,261.13 in restitution.
Hope Taylor, 34, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,651.06 in restitution.
Ebonilaestei Tremble, 35, Savannah, Georgia; sentenced to 4 years of probation and ordered to pay $27,458.95 in restitution.
Linda J. Walker, 23, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,596.64 in restitution.
Tiera L. Walthour, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $4,063.37 in restitution.
Alexis Washington, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,231.79 in restitution.
Rhonda Washington, 32, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $9,948.59 in restitution.
Amber Shaniqua Wilson, 24, Savannah, Georgia; sentenced to 6 months in prison, 12 months of supervised release and ordered to pay $2817.30 in restitution.
Ke’Airra Young, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $14,039.35 in restitution.
Previously Convicted Drug Felon Sentenced for Methamphetamine ChargesRead the Press Release
A man found in possession of methamphetamine was sentenced July 1, 2015, to more than 17 years in federal prison.
Mackenzie Everett Servantez, 26, from Mason City, Iowa, received the prison term after a February 13, 2015, guilty plea to possession more than 5 grams of methamphetamine. Servantez was previously convicted of a felony drug offense in 2007.
In a plea agreement, Servantez admitted on October 15, 2014, he was in possession of more than 5 grams of actual (pure) methamphetamine. Servantez was stopped by law enforcement after a car chase which turned into a foot pursuit. Servantez was found in possession of 19.82 grams of pure methamphetamine, at least some of which he intended to distribute. Officers also found a scale, a meth pipe and two cellular phones. Approximately $1227 cash was recovered from Servantez.
Servantez was sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Schroeder was sentenced to 210 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system. Servantez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office; Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3070.
Follow us on Twitter @USAO_NDIA.
Pensacola Man Sentenced to 21 Months for Wire FraudRead the Press Release
PENSACOLA, FLORIDA – Kevin D. Webster, 44, of Pensacola, Florida, was sentenced today to 21 months in prison for wire fraud. Restitution was ordered in the amount of $144,229.07. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his guilty plea in February 2015, Webster admitted that, between 2008 and 2012, as an insurance agent registered in Florida and other states, he knowingly defrauded NFL and NBA player clients by falsely representing that he had used the clients’ money to obtain umbrella insurance policies, with coverage amounts ranging from $5 million to $1 million, from United States Liability Insurance Group. Instead, Webster stole approximately $140,000 in client payments meant for policy premiums.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney Alicia H. Kim.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Owners of Popular Ocean City, New Jersey, Pizza Restaurants Admit Tax Evasion, Structuring Crimes and Making False StatementsRead the Press Release
CAMDEN, N.J. – The owners of popular Ocean City, New Jersey, restaurant chain Manco & Manco Pizza today admitted evading taxes, structuring cash payments to avoid reporting requirements and lying to IRS special agents, U.S. Attorney Paul J. Fishman announced.
Charles Bangle, 55, of Somers Point, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 5 of an indictment charging him with evading taxes with respect to his 2010 personal tax returns and Count 30 charging him with structuring financial transactions in 2011 to avoid reporting requirements. Mary Bangle, 54, also of Somers Point, pleaded guilty to Count 7 of the same indictment, which charges her with knowingly making materially false statements to IRS special agents.
According to the documents filed in this case and statements made in court:
Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.
Charles Bangle admitted to substantially underreporting his income on his 2010 U.S. individual income tax return, specifically, failing to report additional taxable income that he deposited in cash into his bank account during that year. According to the indictment, by only reporting $127,955 in 2010 and omitting an additional $263,113 in taxable income, Charles Bangle avoided $91,577 in taxes. Charles Bangle also admitted to making cash deposits into his TD Bank account in February of 2011 in increments of less than $10,000 in order to prevent TD Bank from filing a Currency Transaction Report with the U.S. Department of Treasury.
Mary Bangle admitted that she was interviewed by IRS special agents on May 30, 2012 at which time she was asked questions about her personal bank account. Mary Bangle falsely stated that, when cash receipts came into the business, she only retained enough to pay that week’s payroll and some bills, when in fact she retained cash receipts for her personal use. Mary Bangle also lied to agents about the amount of cash deposited into her personal banking account, which was substantially more that the net pay listed on her W-2 forms issued by Manco and Manco Pizza.
The tax evasion count to which Charles Bangle pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss arising out of the offense. The structuring count to which Charles Bangle pleaded guilty carries a maximum potential penalty of ten years in prison and a $250,000 fine or twice the gain or loss from the offense.
The false statements charge to which Mary Bangle pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both defendants is scheduled for Oct. 8, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel:
Charles Bangle: Vincent Sarubbi Esq., Haddonfield, New Jersey; Laurence S. Shtasel Esq., Philadelphia
Mary Bangle: Rocco Cipparone Esq., Haddon Heights, New Jersey
Operation Third World Results in Federal Indictment Against 39 DefendantsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a 58 page federal indictment charging 39 defendants in Operation Third World, an extensive investigation aimed at dismantling a violent drug trafficking network primarily operating out of Baton Rouge and Ascension Parish.
The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges, including allegations of a murder plot, threats to use a hatchet to cut off fingers, use of a daycare to distribute and store cocaine and proceeds from cocaine sales, and using a child to help transport 18 kilograms of cocaine. When the defendants were recently arrested pursuant to the indictment, agents seized cocaine, a stolen AR-15, a shotgun, three handguns, and substantial amounts of cash believed to be drug proceeds. On a previous occasion, agents seized 6 firearms and over $150,000 in cash as part of this operation.
The charged defendants are listed below. They face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity, although one of the charged defendants was killed on the day of the indictment.
- Kelly D. Williams, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of 28 grams or more of crack cocaine; distribution of oxycodone; conspiracy to acquire controlled substances by fraud; felon in possession of a firearm; unlawful use of communications facilities; and forfeiture.
- Charles C. London, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of MDMC and BZP; distribution of 28 grams or more of crack cocaine; distribution of cocaine, MDMC and 4-FMC; distribution of cocaine and BZP; distribution of cocaine; possession with intent to distribute BZP; felon in possession of a firearm; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of communications facilities; and forfeiture.
- C’Prien C. Nicholas, age 30, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful travel in aid of a racketeering enterprise; unlawful use of communications facilities; and forfeiture.
- Demitoris C. Alexander, age 49, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful use of communications facilities; and forfeiture.
- Tachi J. Williams, age 29, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Artey D. Foulcard, age 36, of Franklin, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Sylvester S. Smith, age 35, of Houston, Texas, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Myron Chevelle Hart, age 37, of Baker, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of 28 grams or more of crack cocaine; unlawful use of communications facilities; and forfeiture.
- Donald Sanders, Jr., age 38, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Derrick D. Hilliard, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Willie C. Lewis, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Sekari Davis Washington, age 37, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; conspiracy to acquire controlled substances by fraud; unlawful use of communications facilities; and forfeiture.
- Christopher Montrell Cooper, age 21, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Clarence White, age 51, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Vernon A. Powell, age 34, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Devon D. Foster, age 36, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Kenneth W. Gardner, age 57, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Eric O’Neal Selders, age 43, of Independence, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- James Edward Allen, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Colin Y. Knox, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Dwan M. Delavallade, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Kelvin Ronelle Johnson, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine, MDMC and 4-FMC; unlawful use of communications facilities; and forfeiture.
- Demarcus D. Norris, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Gerry Earl Griffin, age 44, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of oxycodone; unlawful use of communications facilities; and forfeiture.
- Kimberly Ann London, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Gregory C. Walker, age 51, of Donaldsonville, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- D’Andre Tavis Smith, deceased.
- Jeremy James Washington, age 36, of Donaldsonville, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Rudy McVay Cain, II, age 28, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Myron Derell Mills, age 35, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Johnny C. Alexander, age 34, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Andrea Rose Rumore, age 33, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; unlawful use of communications facilities, and forfeiture.
- Stephanie A. Zeringue, age 28, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Susan Lynn Zeringue, age 32, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Ashley H. Hebert, age 26, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Joseph D. Sergent, age 34, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute MDMA and forfeiture.
- Keeyon Mondrell Sanders, age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute MDMA and forfeiture.
- Jerron Albritton, age 20, of Baton Rouge, Louisiana, is charged with possession with intent to distribute marijuana and forfeiture.
- Barbara Deyatta Jordon, age 25, of Baton Rouge, Louisiana, is charged with misprision of a felony and forfeiture.
U.S. Attorney Green stated: “This indictment, which contains chilling allegations of a murder plot and other violence, is aimed squarely at the heart of a violent drug trafficking organization allegedly responsible for spreading significant amounts of crack cocaine, powder cocaine, MDMA, and other illegal drugs throughout our district. Every community and every person deserves peace, security, and freedom from the tyranny of violent drug traffickers. This indictment seeks to advance that goal. The combined federal, state, and local effort, which resulted in the indictment, reflects once again the unified front against crime in this district. I greatly appreciate the tremendous dedication and hard work by the agents and prosecutors working on this important matter.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “The benchmark for the success of any operation lies in the ties that bind the brotherhood of law enforcement officers who put their lives on the line each and every day to rid our communities of dangerous drugs. DEA’s complex Operation Third World did exactly that. With the Middle District U.S. Attorney’s Office leading the charge, DEA Baton Rouge and our area partners dealt a significant blow to a violent poly drug trafficking organization once thought to be untouchable. Today’s efforts prove that with investigative grit and community involvement, all drug dealers can be touched. This is only the beginning.”
East Baton Rouge Parish Sheriff Sid Gautreaux stated: “I am honored that the East Baton Rouge Sheriff’s Office was part of this important operation. I will continue to dedicate our resources and personnel to fight illegal drug and gun trafficking. We will work with our local, state, and federal counterparts to aggressively combat crime that plagues our community.”
Ascension Parish Sheriff Jeff Wiley stated: “This is the culmination of weeks and months of hard, dangerous work by a team of agents from federal and local agencies. The fruits of this effort are in the arrests of major drug dealers in and around Ascension Parish. It is evidence, once again, that joint operations are the key to success and we look forward to timely prosecution and significant jail sentences for these high level drug dealers.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter, Cam Le, and Adam Ptashkin, with assistance from Assistant United States Attorneys Robert Piedrahita, Kevin Sanchez, and Jamie Flowers.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.