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14 August 2015
Immigration Consultant and Former Federal Government Official Convicted in Scheme to Pay Bribes to Obtain Benefits for ImmigrantsRead the Press Release
LOS ANGELES – A former official with U.S. Customs and Border Protection (CBP), who went on to operate an immigration consulting service, has been found guilty of participating in a scheme to pay bribes to current government employees to obtain “Green Cards” and citizenship for immigrants.
George Wu, 62, of Pico Rivera, who worked as a CBP officer until early 2012, and then operated Great Eastern Immigration Services, was found guilty on Thursday of paying bribes in an effort to obtain citizenship and legal permanent resident status for several immigrants.
Following a seven-day trial before United States District Judge Michael W. Fitzgerald, Wu was found guilty of conspiracy and five counts of bribery of a public official.
Wu, another immigration consultant named Michael Bui and others solicited money from immigrants in exchange for help in obtaining benefits from U.S. Citizenship and Immigration Services (USCIS) that included lawful permanent residence and citizenship. Some of the money paid by the immigrants was used to pay bribes to public officials in exchange for granting immigration benefits.
During the trial, prosecutors presented evidence that Wu received and paid bribe money on behalf of immigrants. The overall conspiracy involved at least seven immigrants, one of whom was allowed to pass an English proficiency exam even though she could not speak English.
The five substantive bribery counts that resulted in guilty verdicts relate to three cases. In the first case, an attorney who also works as an immigration consultant paid Wu $15,000, and Wu subsequently paid Bui $10,000, to secure assistance with a citizenship application. In the second case, Wu paid the attorney a total of $15,000 for assistance in securing legal permanent resident status – commonly called a Green Card – for an immigrant. And in the third case, Wu paid a total of $3,000 to an official with USCIS – an official who was acting in an undercover capacity as part of the investigation – for help in obtaining a Green Card for an immigrant.
Wu is scheduled to be sentenced by Judge Fitzgerald on November 30. Wu faces a statutory maximum sentence of five years in prison for the conspiracy count and up to 15 years in prison for each of the five bribery charges.
Bui pleaded guilty in May to conspiracy and bribery, and he is scheduled to be sentenced by Judge Fitzgerald on November 2.
The case against Wu and Bui is part of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Office of Professional Responsibility and the Federal Bureau of Investigation. The investigation into corruption involving government officials and immigration consultants has resulted in charges against 11 defendants. Seven of those defendants – including Wu and Bui – have now been convicted, including:
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Attorney Kwang Man “John” Lee, who pleaded guilty in March to three counts of bribery and admitted, among other things, paying tens of thousands of bribes to a Senior Immigrations Services Officer with USCIS and arranging sham marriages to secure Green Cards for clients;
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James Dominguez, a former special agent with U.S. Immigration and Customs Enforcement (ICE), who pleaded guilty to making false statements to ICE investigators when he lied about accessing immigration files and providing information to an immigration lawyer; and
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Paul Lovingood, a former official with USCIS, who pleaded guilty to accepting an illegal gratuity from an immigration lawyer after adjudicating a petition for lawful permanent residence filed on behalf of one of the attorney’s clients.
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Husband and Wife Who Fled to the Bahamas Prior to Trial Sentenced to Federal PrisonRead the Press Release
DENVER – Donald and Karlien Winberg, of Earth, Texas, were sentenced today in separate hearings by U.S. District Court Judge Philip A. Brimmer to serve prison sentences for conspiracy to commit wire fraud, U.S. Attorney John Walsh and FBI Special Agent in Charge Thomas Ravenelle announced. Donald Winberg, age 44, was ordered to serve 87 months (over 7 years) in federal prison, followed by 3 years on supervised release. Karlien Winberg, age 33, was ordered to serve 87 months (over 7 years) in federal prison, followed by 3 years on supervised release in a separate sentencing hearing. Both defendants were ordered to pay $1,541,689.90 in restitution joint and several. The defendants appeared at the sentencing hearings in custody. Each was remanded after their individual hearing concluded.
The defendants were indicted by a federal grand jury in Denver on April 22, 2014. In October 2014, as the case was moving toward trial, the Winbergs fled, at one point staying in the Galveston, Texas area. The defendants purchased a sail boat that they then ran aground not far from the shore. At that time it was believed that they had a large amount of cash. Around that same time, the defendants were the subject of local publicity in the Galveston area. The Winbergs, who were traveling with their seven children, were able to obtain another boat and successfully travelled to the Bahamas. They were arrested without incident on a boat near the Staniel Cay Yacht Club in the Bahamas for failing to have proper identification and travel documents. The arrest was made by Bahamian authorities after a Louisiana family vacationing in the Bahamas recognized the family from a press story out of Galveston. The defendants failed to provide identification documents, and the Bahamian authorities, knowing about the federal arrest warrants, arrested the two defendants. They were then deported back to the United States via Miami, where they were arrested. The Winbergs were ultimately ordered to be transported to Colorado, which was accomplished by the U.S. Marshals Service. A superseding indictment was obtained on February 11, 2015. Donald and Karlien Winberg both pled guilty on April 16, 2015. They were sentenced on August 14, 2015.
According to court documents, including the stipulated facts contained in the plea agreement, the Winbergs, beginning in 2010, advertised on the internet that they had hay and corn for sale. Once a potential buyer contacted the defendants, a sale would be negotiated. Defendants claimed to buyers that they owned extensive farmland in Idaho and Texas; that they produced hay, straw, potatoes, and other agricultural crops in substantial quantities; that they shipped large quantities of agricultural products throughout the United States; that they had between 15,000 and 65,000 tons of hay for sale; and that they had trucks to deliver the large quantities of purchased hay or corn to the buyer. The defendants would then take the victims’ money and not deliver the material that was advertised, purchased and promised. While under pretrial supervision of the U.S. Probation Office, between May 2014 and until fleeing in October 2014, the defendants committed additional fraud against hay sellers.
This case was originally investigated by the FBI. The FBI wants to recognize the following agencies that assisted in the investigation and prosecution of the Winbergs: Drug Enforcement Administration, Customs and Border Protection, American Citizen Services at the U.S. Embassy in Nassau, Bahamas, the Galveston County Sheriff’s Department and the Royal Bahamas Police Force.
The defendants were prosecuted by Assistant U.S. Attorney Patricia Davies. The Justice Department’s Office of International Affairs also provided assistance in this case.
Greenville Man Sentenced for Firearms PossessionRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced TRAVIS JERMAINE PITTMAN, 31, of Greenville, North Carolina, to 72 months in prison and 3 years of supervised release for possession of firearm by a convicted felon. PITTMAN previously pled guilty to this charge on May 11, 2015.
The Greenville Police Department arrested PITTMAN on February 21, 2015, during an investigation into a domestic assault at an apartment at 600 Glendale Court, Greenville, N.C. The arresting officer found an unloaded .25 caliber pistol in PITTMAN’S back pocket during the investigation. The victim of the assault told the officer that PITTMAN hit her in the head and spit on her while she was holding their 10 day old son. She also reported that PITTMAN pressed the barrel of a gun against her head and threatened to kill her.
PITTMAN is prohibited from possessing a firearm due to his prior felony convictions for assault with a deadly weapon with the intent to kill and aiding and abetting the discharge of a weapon into occupied property.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Four Federal Indictments Unsealed Alleging Sex Trafficking of Children, Transportation of MinorsRead the Press Release
SALT LAKE CITY – Four indictments unsealed late Wednesday afternoon in U.S. District Court in Salt Lake City charge eight individuals with sex trafficking of children and other related violations of federal law. A federal grand jury returned the indictments July 21. Arrest warrants were executed Tuesday as a part of an investigation by the FBI and the Salt Lake City Police Department.
“Sex trafficking of children is a crime we take very seriously,” U.S. Attorney John W. Huber said today. “We appreciate the commitment and coordinated efforts of the FBI and the Salt Lake City Police Department in investigating these four cases. With the arrests made and the indictments unsealed, the criminal court process will now begin.”
Abiodu Damiloca Salankole, aka Case, age 20, last known address unavailable, is charged with two counts of sex trafficking of children in one indictment. The counts allege conduct involving two victims, both minors who had not attained the age of 18 years.
Gloire Seba, age 21, of Sandy and Kyle Jason Hale, age 21, of Riverton are charged in a nine-count indictment with sex trafficking of children, conspiracy to commit sex trafficking and transporting a minor for prostitution. This indictment involves four minor victims.
A third indictment charges Saquan Marcell Smith, age 23, and Raquel Consuela Knell, age 21, both of Salt Lake City, with four counts of sex trafficking of children and conspiracy to commit sex trafficking involving two minor victims.
Three individuals are charged with sex trafficking of children, conspiracy to commit sex trafficking, transportation with the intent to engage in criminal sexual activity, and transportation of a minor with intent to engage in criminal sexual activity in a nine-count indictment. Charged in this indictment are Ashley Nicole Poike, age 23, of Sandy; Hector Yordano Irizarry Castro, aka Jordan, age 24, of Salt Lake City; and Thomas Marte-Pena, aka Luigi, age 27, of Salt Lake City. This case involves one adult victim and two minor victims.
Some victims of the alleged crimes are included in more than one indictment.
Salt Lake City Interim Police Chief Mike Brown said these cases represent an important opportunity for state and federal law enforcement agencies to coordinate on investigating a serious crime. “Very few crimes are as serious as crimes against children," said Brown.
"Anytime we can disrupt that cycle of violence, it's a huge step in the right direction. I applaud our partnerships and the concerted effort made by everyone to get these alleged criminals off the street and away from future victims."
All of the defendants charged in the indictments had initial appearances in federal court Wednesday afternoon and entered pleas of not guilty to the charges. Knell and Kyle were released subject to supervision by the U.S. Probation Office. The other six defendants are in custody with several detention hearing set for Monday.
The potential maximum penalty for sex trafficking of children is life in federal prison with a 10-year mandatory minimum sentence. The potential penalty for conspiracy to commit sex trafficking has a penalty of any term of years or life. Transporting a minor for prostitution also carries a potential life sentence with a 10-year mandatory minimum sentence. Transportation with intent to engage in criminal sexual activity has a potential maximum sentence of 10 years.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Former Williamson County Judge Sentenced to Federal Prison for Firearms Violation and False Statement to a Government AgentRead the Press Release
In Austin today, 70-year-old former Williamson County Judge Timothy L. Wright, of Georgetown was sentenced to 18 months in federal prison for engaging in the business of dealing firearms without a license and making false statements to a Government agent announced United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, and Homeland Security Investigations (HSI) Acting Special Agent in Charge Aristides Jimenez.
In addition to the prison term, United States District Judge Sam Sparks ordered that Wright pay a $15,000 fine and be placed on supervised release for a period of three years after completing his prison term.
On May 28, 2015, Wright pleaded guilty to a superseding information charging one count of engaging in the business of dealing firearms without a license and one count of false statements to Government agents. By pleading guilty, Wright admitted that beginning in June of 2014, he sold in excess of sixty firearms without a federal firearms license (FFL). Dozens of those firearms were sold to two individuals who were illegally smuggling the firearms into Mexico.
In September 2014, Wright was told by ATF that he needed an FFL in order to engage in the business of selling firearms. Wright agreed to cease and desist all sales until he had his FFL. Wright applied for his FFL and received training on the responsibilities of an FFL, including the prohibition of selling firearms to individuals with felony convictions.
After being confronted by ATF and agreeing to cease all sales, but before beginning to act as a licensed dealer, Wright conducted a firearm sale in December 2014 during which he fraudulently filled out an ATF form at a licensed firearms dealer stating he was the actual buyer of two Glock firearms. In truth, Wright had already received payment from a buyer for those two Glocks and falsely indicated on the ATF form that he was not buying the guns for another person.
After he became a licensed dealer, on three separate occasions in February 2015, a person who Wright knew was a convicted felon met with Wright and another person while Wright conducted firearm sales.
When Wright was interviewed by an ATF agent about his firearm selling activity, Wright falsely told the agent he had not sold any firearms from the time he applied for his FFL until the time he began selling as a licensed dealer. In fact, Wright had sold a firearm in December during that time period and, in addition to falsely filling out the ATF paperwork as described above, Wright even created false paperwork for his internal records with a false sale date of August 2014 intending to conceal the actual sale date. Wright also falsely told agents that he did not allow a convicted felon to be present during firearm sales when in fact he allowed the convicted felon to be present and also allowed the felon to handle the firearms during those transactions.
“While sworn to uphold the law, Judge Timothy Wright repeatedly violated federal laws governing the sale of firearms. He sold dozens of firearms without license, many of which went to people smuggling them to Mexico. He falsified official firearms records to hide the true identity of the real buyer and then lied to federal investigators about his crimes. These are serious crimes for which he has been held accountable,” stated United States Attorney Richard L. Durbin, Jr.
According to ATF Houston Special Agent in Charge Robert Elder, “Thankfully, arrests and convictions of elected public officials is a rare event. Nevertheless, the sentencing today of Timothy Wright highlights the fact that ATF always has, and will continue, to prosecute individuals who violate federal firearms laws. The ripple effect of putting an untold number of firearms into Mexico is impossible to gauge, so it is imperative that we remain vigilant on all fronts.”
“Today's sentencing sends a clear message to individuals who facilitate the illegal sale and movement of weapons and related items. Combatting weapons smuggling is a top priority for Homeland Security Investigations,” said Acting Special Agent in Charge, Aristides Jimenez, HSI San Antonio. “Through collaborative law enforcement with our federal, state and local partners, we aggressively investigate individuals involved in these practices, regardless of their status or position and prevent weapons from falling into the hands of drug cartels and other transnational criminal organizations.”
This case resulted from an investigation conducted by ATF and HSI agents with assistance from the Internal Revenue Service-Criminal Investigation and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.
Former Virginia Short Sale Specialist Sentenced to Prison for Mortgage and Tax FraudRead the Press Release
An Ashburn, Virginia, resident was sentenced to prison today for mortgage and tax fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
Charise Stone, 46, was convicted by a federal jury on May 27 of 13 counts of mortgage fraud, passing fictitious financial instruments and tax fraud. U.S. Senior District Judge Claude M. Hilton of the Eastern District of Virginia sentenced Stone to serve five years in prison to be followed by three years of supervised release, and ordered her to forfeit $721,552.55 and pay $2,330,722 in restitution to the victim financial institutions and $143,218 in restitution to the Internal Revenue Service (IRS).
According to court records and evidence introduced at trial, from 2007 to 2010, Stone targeted distressed homeowners who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired the distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales and then resold the properties – often the same day or the next – to new buyers at a price above the short sale amount in violation of agreements made with mortgage lenders.
Co-defendant Jose Marinay owned a settlement company that closed every short sale transaction for Stone. Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions. Stone destroyed some of the incriminating documents after closings. Financial institutions suffered at least $2.2 million in losses from the scheme. Stone profited more than $700,000 from these transactions and failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente commended special agents of the FBI Washington Field Office and IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia and Assistant Chief Todd A. Ellinwood of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former U.S. Consulate Official Sentenced to 64 Months in Prison for Receiving over $3 Million in Bribes in Exchange for VisasRead the Press Release
Vietnam-Based Scheme Yielded Millions of Dollars in Bribes
A former U.S. Foreign Service Officer, Michael T. Sestak, 44, was sentenced today to 64 months in prison on federal charges in a scheme in which he accepted more than $3 million in bribes to process visas for non-immigrants seeking entry to the United States, announced Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service.
Sestak pleaded guilty on Nov. 6, 2013, in the U.S. District Court for the District of Columbia, to one count each of conspiracy to commit bribery and visa fraud and to defraud the United States, bribery of a public official, and conspiracy to engage in monetary transactions in property derived from illegal activity. He was sentenced by the Honorable John D. Bates. Following his prison term, Sestak will be placed on three years of supervised release.
Under the plea agreement, Sestak agreed to cooperate with the government’s investigation and the prosecution of other conspirators. He also agreed to the forfeiture of the proceeds of the crimes, which includes the sale of nine properties that he purchased in Thailand with his ill-gotten gains.
Three others have pled guilty to charges in the case.
“As a Foreign Service Officer, Michael Sestak should have been upholding his responsibilities to the United States, not illegally cashing in by collecting over $3 million in bribes to short-circuit our visa process,” said Acting U.S. Attorney Cohen. “Because of this defendant’s selfish greed, nearly 500 foreign nationals were able to enter the United States without the proper screening. This sentence reflects the seriousness of his corrupt conduct.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Director Miller. “When a public servant in a position of trust is alleged to have committed a federal felony such as passport fraud, we vigorously investigate claims of corruption.”
Sestak, a former police officer and Deputy U.S. Marshal, was arrested on May 13, 2013, and has been in custody ever since. According to the government’s evidence, he and his co-conspirators in Ho Chi Minh City, Vietnam, and elsewhere, created and/or submitted approximately 500 fraudulent applications for non-immigrant visas to the United States. The overwhelming majority of these applications were subsequently approved.
The others who have pled guilty include Binh Tang Vo; his sister, Hong Vo, both American citizens who had been living in Vietnam; and their cousin, Truc Tranh Huynh, a Vietnamese citizen.
Binh Tang Vo, 41, was sentenced in July 2015 to eight years in prison on charges of conspiracy to commit bribery and visa fraud, bribery of a public official and conspiracy to commit money laundering. His plea agreement also called for forfeiture of nearly $5.1 million. Hong Vo, 29, was sentenced in March 2014 to seven months in prison and three months of home detention. Truc Tranh Huynh, 31, was sentenced in February 2014 to 16 months of incarceration.
According to the government’s evidence, the criminal activity took place while Sestak was the Non-Immigrant Visa Chief in the Consular Section of the U.S. Consulate in Ho Chi Minh City, Vietnam from August 2010 to September 2012. His responsibilities included reviewing visa applications, conducting in-person interviews of visa applicants and issuing visas when appropriate. While at the State Department, Sestak held a sensitive position.
In pleading guilty, Sestak admitted that he and Binh Tang Vo met in Ho Chi Minh City in 2010 and began a personal friendship. They ultimately came up with a plan to obtain money in exchange for facilitating the approval of non-immigrant visas from Vietnam to the United States. Sestak conspired with other U.S. citizens and Vietnamese citizens who worked to recruit customers to the visa scheme. Before they appeared at the consulate for visa interviews, Sestak would be informed of the identities of foreign nationals who agreed to pay money in exchange for obtaining visas. He then attempted to issue a visa to each foreign national who had agreed to pay for obtaining a visa, often disregarding the veracity of the information on the application.
Sestak admitted that between February 2012 and September 2012, he caused visas to be approved for people whose applications were part of the scheme. Payments made by applicants to the conspirators in exchange for visas ranged from $15,000 to $70,000. Many of the individuals who received visas had been previously denied visas for a variety of reasons.
The entire scheme generated at least $9.78 million. Of this, Sestak personally received over $3 million in proceeds of the conspiracy, which he laundered through China into Thailand. In an attempt to hide the illegal proceeds of the scheme, Sestak purchased nine real estate properties in Thailand worth over $3 million. As part of his plea agreement, Sestak agreed to sell these properties and forfeit the proceeds in order to satisfy a portion of the money judgment of at least $6 million that will be entered against him.
The case was investigated and prosecuted by the U.S. Department of State Diplomatic Security Service and Assistant U.S. Attorneys Brenda J. Johnson, Alessio D. Evangelista of the National Security Section and Catherine K. Connelly and Jennifer Ambuehl of the Asset Forfeiture and Money Laundering Section, as well former Assistant U.S Attorneys Christopher Kavanaugh and Mona N. Sahaf.
Former U.S. Consulate Official Sentenced to 64 Months in Prison for Receiving over $3 Million in Bribes in Exchange for VisasRead the Press Release
WASHINGTON - A former U.S. Foreign Service Officer, Michael T. Sestak, was sentenced today to 64 months in prison on federal charges in a scheme in which he accepted more than $3 million in bribes to process visas for non-immigrants seeking entry to the United States, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Bill A. Miller, Director of the U.S. Department of State’s Diplomatic Security Service (DSS).
Sestak, 44, pled guilty on Nov. 6, 2013, in the U.S. District Court for the District of Columbia, to one count each of conspiracy to commit bribery and visa fraud and to defraud the United States, bribery of a public official, and conspiracy to engage in monetary transactions in property derived from illegal activity. He was sentenced by the Honorable John D. Bates. Following his prison term, Sestak will be placed on three years of supervised release.
Under the plea agreement, Sestak agreed to cooperate with the government’s investigation and the prosecution of other conspirators. He also agreed to the forfeiture of the proceeds of the crimes, which includes the sale of nine properties that he purchased in Thailand with his ill-gotten gains.
Three others have pled guilty to charges in the case.
“As a Foreign Service Officer, Michael Sestak should have been upholding his responsibilities to the United States, not illegally cashing in by collecting over $3 million in bribes to short-circuit our visa process,” said Acting U.S. Attorney Cohen. “Because of this defendant’s selfish greed, nearly 500 foreign nationals were able to enter the United States without the proper screening. This sentence reflects the seriousness of his corrupt conduct.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Director Miller. “When a public servant in a position of trust is alleged to have committed a federal felony such as passport fraud, we vigorously investigate claims of corruption.”
Sestak, a former police officer and Deputy United States Marshal, was arrested on May 13, 2013, and has been in custody ever since. According to the government’s evidence, he and his co-conspirators in Ho Chi Minh City, Vietnam, and elsewhere, created and/or submitted approximately 500 fraudulent applications for non-immigrant visas to the United States. The overwhelming majority of these applications were subsequently approved.
The others who have pled guilty include Binh Tang Vo; his sister, Hong Vo, both American citizens who had been living in Vietnam; and their cousin, Truc Tranh Huynh, a Vietnamese citizen.
Binh Tang Vo, 41, was sentenced in July 2015 to eight years in prison on charges of conspiracy to commit bribery and visa fraud, bribery of a public official, and conspiracy to commit money laundering. His plea agreement also called for forfeiture of nearly $5.1 million. Hong Vo, 29, was sentenced in March 2014 to seven months in prison and three months of home detention. Truc Tranh Huynh, 31, was sentenced in February 2014 to 16 months of incarceration.
According to the government’s evidence, the criminal activity took place while Sestak was the Non-Immigrant Visa Chief in the Consular Section of the U.S. Consulate in Ho Chi Minh City, Vietnam from August 2010 to September 2012. His responsibilities included reviewing visa applications, conducting in-person interviews of visa applicants, and issuing visas when appropriate. While at the State Department, Sestak held a sensitive position.
In pleading guilty, Sestak admitted that he and Binh Tang Vo met in Ho Chi Minh City in 2010 and began a personal friendship. They ultimately came up with a plan to obtain money in exchange for facilitating the approval of non-immigrant visas from Vietnam to the United States. Sestak conspired with other U.S. citizens and Vietnamese citizens who worked to recruit customers to the visa scheme. Before they appeared at the consulate for visa interviews, Sestak would be informed of the identities of foreign nationals who agreed to pay money in exchange for obtaining visas. He then attempted to issue a visa to each foreign national who had agreed to pay for obtaining a visa, often disregarding the veracity of the information on the application.
Sestak admitted that between February 2012 and September 2012, he caused visas to be approved for people whose applications were part of the scheme. Payments made by applicants to the conspirators in exchange for visas ranged from $15,000 to $70,000. Many of the individuals who received visas had been previously denied visas for a variety of reasons.
The entire scheme generated at least $9.78 million. Of this, Sestak personally received over $3 million in proceeds of the conspiracy, which he laundered through China into Thailand. In an attempt to hide the illegal proceeds of the scheme, Sestak purchased nine real estate properties in Thailand worth over $3 million. As part of his plea agreement, Sestak agreed to sell these properties and forfeit the proceeds in order to satisfy a portion of the money judgment of at least $6 million that will be entered against him.
The case was investigated and prosecuted by the U.S. Department of State Diplomatic Security Service and Assistant U.S. Attorneys Brenda J. Johnson and Alessio D. Evangelista of the National Security Section and Jennifer Ambuehl of the Asset Forfeiture and Money Laundering Section, as well former Assistant U.S. Attorneys Christopher Kavanaugh, Mona N. Sahaf, and Catherine K. Connelly.
Former Postmaster of Capitan Post Office Sentenced for Federal Embezzlement ConvictionRead the Press Release
ALBUQUERQUE – Kristi K. Sepkowitz, 56, of Alto, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to three years of probation and a $1,000.00 fine for embezzling money belonging to the United States. Sepkowitz was the Postmaster of the Capitan Post Office in Lincoln County, N.M., when she committed the offense.
In her plea agreement, Sepkowitz acknowledged that as Postmaster of the Capitan Post Office, she held a position of trust with respect to funds belonging to the U.S. Postal Service that came into her possession. Sepkowitz admitted that between Feb. 2012 and Dec. 2013, she betrayed that trust by engaging in an unlawful scheme pursuant to which she embezzled and converted funds, including cash and money orders, belonging to the U.S. Postal Service to her own use.
During the course of the scheme, Sepkowitz issued postal money orders to herself without making appropriate payment. She also took cash from daily postal deposits and used the cash for her own purposes. Sepkowitz attempted to pay back the postal funds she embezzled by writing checks on her personal bank account and depositing the checks with the daily postal deposits.
According to court filings, Sepkowitz embezzled and converted more than $450,000.00 in postal funds over the course of the scheme. She has fully repaid the U.S. Postal Service for the postal funds she embezzled and converted to her own use.
This case was investigated by the U.S. Postal Service, Office of Inspector General and was prosecuted by Assistant U.S. Attorney Brock E. Taylor, of the U.S. Attorney’s Las Cruces Branch Office.
Former Postal Employee Sentenced ForRead 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 Morgan Bush, 33, formerly of Cuba, N.Y., pleaded guilty to theft of mail matter by a postal employee and was sentenced to three years’ probation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that between January 1, 2014 and April 30, 2014, while working as a City Carrier Assistant assigned to the Cuba, New York Post Office, the defendant took and opened between 100 and 200 greeting cards which had been entrusted to him and which had come into his possession as part of his duties as a carrier. If the cards contained cash, the defendant took the cash and disposed of the cards, envelopes and any other content at various locations along his route. If the cards did not contain cash, the defendant resealed the envelopes with tape and returned the mail to the regular delivery stream. As part of his sentence, the defendant was ordered to pay a $400 fine, which represented the amount of money he admitted taking from the greeting cards.
The prosecution is the culmination of an investigation by the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.Former IRS Employee, Husband Plead to Filing More Than $160,000 in False Tax ReturnsRead the Press Release
Memphis, TN – A married couple pled guilty this week to defrauding the government of more than $160,000 in false tax returns.
According to the indictment, Ahmed Grant and his wife, Lillian Madyun, a former Internal Revenue Services (IRS) employee, used their tax preparation business, Superfast Taxes, to file false 2010 federal income tax returns. Many citizens were victimized during the defendants’ fraudulent scheme.
The defendants had several satellite locations for Superfast Taxes throughout the inner-city at which they employed contract tax preparers. After employees prepared tax return files, the defendants would then review and adjust the files before submitting false claims to the IRS. They utilized an electronic filing identification number to process and file the tax returns.
Several refundable tax credits, such as Schedule C and the American Opportunity Credit, were fraudulently used by the defendants to inflate their clients’ tax returns. Unaware of the defendants’ illicit behavior, the IRS paid more than $160,000 in false credits to Superfast Taxes.
On Thursday, August 13th, both Grant and Madyun pled guilty to conspiracy to commit fraud against the United States.
Both defendants face a maximum sentence of 10 years imprisonment. They also face individual fines of up to $250,000.
They will both be sentenced by Judge Sheryl H. Lipman on November 13, 2015.
The case is being investigated by the IRS.
Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on behalf of the government.
Former Georgia Department of Transportation Employee Charged with Accepting BribesRead the Press Release
ATLANTA - George H. Bell, a former employee of the Georgia Department of Transportation, has been arraigned on federal charges of conspiracy and accepting bribes. Bell was indicted by a federal grand jury on August 11, 2015.
“This defendant is charged with using his position with the Georgia Department of Transportation to benefit himself at the expense of the environment,” said U.S. Attorney John Horn. “His alleged conduct resulted in enormous clean-up costs to the Georgia Department of Transportation as well as environmental damage.”
“The FBI places a high priority on public corruption based investigations because they often ignore due process put in place to protect others. This case involves allegations of a State of Georgia official accepting bribes as he ignored environment laws put in place to protect so many,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Corruption in state government will not be tolerated. This case is an excellent example of state and federal law enforcement working together to insure government employees who are corrupt are held accountable,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“We are appalled by the corrupt actions of these lone individuals that in no way reflect the hard work and commitment displayed by more than 4,100 GDOT employees. We will exercise all legal actions to recover the costs associated with cleaning up these sites and ensure that every effort is made to correct the damage to the impacted sites once the investigation is closed,” said Commissioner Russell McMurry, Georgia Department of Transportation.
According to U.S. Attorney Horn, the charges, and other information presented in court: Bell was a supervisor with the Georgia Department of Transportation. In 2014, he began soliciting and accepting cash payments in exchange for allowing various individuals to dump unsuitable dirt in several GDOT locations. Unsuitable dirt is dirt that is removed during construction or landscaping projects, and cannot be used for other projects, usually because it contains organic material that would decompose and create problems for building on top of it. Bell is alleged to have allowed the unauthorized dumping to occur on at least four different GDOT sites.
George H. Bell, 49, of Lithonia, Ga., was arraigned before U.S. Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation Public Corruption Task Force, including the Georgia Bureau of Investigation and the Georgia Department of Transportation Investigation.
Assistant U.S. Attorney Jamie L. Mickelson is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
East St. Louis Man Sentenced for “Crack” DistributionRead the Press Release
Willie Butler, 34, from East St. Louis, Illinois, was sentenced on August 14, 2015, in federal district court, in East St. Louis, Illinois, following his recent plea of guilty to one count of Distribution of Crack Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Butler was sentenced to a term of 151 months imprisonment, as well as 3 years of supervised release, fined $500, and ordered to pay a $100 special assessment. Facts presented in court revealed that Butler sold approximately .75 grams of cocaine base in the form of "crack" on January 10, 2014, to an undercover officer in East St. Louis, Illinois. Butler has three prior felony convictions related to the distribution of cocaine in and around East St. Louis, Illinois.
This case was investigated by the Metropolitan Enforcement of Southwestern Illinois (MEGSI) and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Domestic Abuser Imprisoned 71 Months for Possessing a Loaded FirearmRead the Press Release
A domestic abuser who possessed a loaded firearm in the Cedar Rapids area last December was sentenced today to 71 months in federal prison.
Anthony Duane Lesain, Jr., age 22, from Cedar Rapids, Iowa, received the prison term after his May 11, 2015, guilty plea to the federal crime of Possession of a Firearm and Ammunition by a Prohibited Person. At the guilty plea hearing, Lesain admitted he knowingly possessed a loaded .22 short caliber revolver. Lesain also admitted to two prior convictions in Iowa state court for Assault Causing Bodily Injury (Domestic Abuse) and Assault Impeding Air Flow (Domestic Abuse).
Lesain was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 71 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Lesain 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 Tim Vavricek and investigated by the FBI’s Safe Streets Task Force and the Cedar Rapids Police Department. Court file information available at: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0018.
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Doctor at Brooklyn, New York, Clinic Sentenced to Two Years in Prison for Engaging in $13 Million Health Care Fraud SchemeRead the Press Release
A doctor at a Brooklyn, New York, clinic was sentenced to two years in prison for his role in a $13 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Special Agent in Charge Scott Lampert of the U.S. Department of Health of Human Services-Office of Inspector General (HHS-OIG) New York Region and Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office made the announcement.
Okon Umana, 68, of West Haven, Connecticut, pleaded guilty on Dec. 1, 2014, to conspiracy to commit health care fraud. In addition to imposing the prison term, U.S. District Judge John Gleeson of the Eastern District of New York ordered Umana to pay $6,429,330 in restitution and to forfeit $6,550,036.
From 2009 to 2012, Umana was the medical director of Cropsey Medical Care PLLC (Cropsey), a health care clinic. In connection with his guilty plea, Umana admitted that many of Cropsey’s medical services were provided by a physician’s assistant who was acting without supervision by a medical doctor, and that Cropsey nevertheless billed Medicare and Medicaid for the services using Umana’s provider number. In addition, Umana admitted that in seeking reimbursement for costs purportedly incurred transporting certain beneficiaries to and from Cropsey by ambulette, he falsely certified that transportation by ambulette was medically necessary.
Between November 2009 and October 2012, Cropsey submitted more than $13 million in claims to Medicare and Medicaid for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests. Medicare and Medicaid reimbursed Cropsey more than $6 million for the claimed services and procedures.
Eight other individuals charged in connection with the scheme previously pleaded guilty. To date, one other individual has been sentenced.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. This case is being prosecuted by Trial Attorney Sarah Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon C. Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Denver Resident Found Guilty of Escape and Failure to Register as a Sex OffenderRead the Press Release
DENVER – Eric Eugene Hartwell, age 52, of Denver, Colorado, was found guilty yesterday of escape and failure to register as a sex offender following a four-day jury trial before U.S. District Court Judge Philip A. Brimmer, the U.S. Attorney’s Office and the U.S. Marshal’s Service announced. The jury deliberated for approximately over two hours before reaching their verdicts. Hartwell, who was in custody during the trial, was remanded after the jury reached their verdicts. Judge Brimmer is scheduled to sentence the defendant on November 20, 2015. He was indicted by a federal grand jury in Denver on July 22, 2014.
According to facts presented to the jury during trial, Hartwell was convicted on March 19, 2010, in U.S. District Court for the Northern District of Texas for failure to register as a sex offender. As a result of this conviction, he was sentenced to a 60-month term of imprisonment and ordered to serve a life time of supervised release. After Hartwell served his federal prison sentence, he was transferred to Colorado to begin his term of supervised release and to begin a term of parole in conjunction with his Colorado Failure to Cancel Registration conviction. On January 6, 2014, during a meeting with a Senior U.S. Probation Officer, the defendant was provided information in relation to his federal supervised release requirements, both verbally and in writing, including his sex offender registration requirements. He signed an acknowledgement that he understood the conditions of his federal supervision, including that he was required to “register with state and local law enforcement as directed by the U.S. Probation Officer in each jurisdiction where the defendant resides, is employed, or is a student” and that he was required “no later than 3 business days after each change of name, residence, employment, or student status, appear in person in at least one jurisdiction and inform that jurisdiction of all changes in the information required in the sex offender registry.”
Additional conditions of federal supervised release included that the defendant was required to reside in a halfway house. Hartwell began residing at a residential reentry center in Denver on January 22, 2014. He updated his sex offender registration as required on January 24, 2014, to reflect his change of residence to the halfway house. On February 21, 2014, Hartwell packed his personal items and departed the halfway house without permission. A state warrant was issued in Colorado and a federal warrant was issued by the Northern District of Texas. The U.S. Marshal Service Violent Offender Task Force (COVOTF) conducted an investigation to locate Hartwell. It was confirmed that the defendant, who originally reserved his travel using the name “John Miller,” purchased an Amtrak train ticket from Denver, Colorado, to Chicago, Illinois on February 21, 2014. On that same day and before purchasing the Amtrak ticket, the defendant withdrew $3,600 from an ATM in Denver and removed and discarded a GPS-tracking ankle monitor that he was required to wear as a condition of his Colorado state-parole.
The U.S. Marshal’s investigation revealed that on February 27, 2014, Hartwell withdrew $503 from his bank account, leaving a balance of $5.87 in that account, from an ATM in Washington, DC. He then traveled on the Greyhound Bus Line under the name “John Miller” from Washington, DC to Norfolk, Virginia. On February 28, 2014, Hartwell was arrested after he was located by the U.S. Marshals in a motel in Norfolk, Virginia. The prosecution proved that on February 21, 2014, the defendant escaped the halfway house at which he was registered in Colorado, and, as of February 28, 2014, he had failed to register as a sex offender or update his sex offender registration in Colorado or any other state.
Hartwell faces not more than 5 years in prison, and up to a $250,000 fine for escape, and not more than 10 years in prison and up to a $250,000 fine for failure to register as a sex offender.
This case was investigated by the U.S. Marshals Service, including the U.S. Marshals Service Violent Offender Task Force.
Hartwell is being prosecuted by Assistant U.S. Attorneys David Tonini and Alecia Riewerts.
Del Rio Man Arrested on Federal Cyberstalking and Child Pornography ChargesRead the Press Release
In Del Rio, federal authorities arrested 26-year-old Michael Martinez on multiple charges involving online sextortion, cyberstalking and child exploitation of three female victims, including one minor, announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A seven-count federal grand jury indictment, returned Wednesday and unsealed late yesterday, charges Martinez with three counts of Internet stalking; one count of production of child pornography, one count of receipt of child pornography; one count of possession of child pornography; and, one count of coercion and enticement of a minor to engage in sexual activity.
According to the indictment, from October 2013 to August 2014, Martinez caused emotional distress to his victims by using the Internet and text messages to harass and intimidate them. Furthermore, Martinez allegedly threatened to post nude photographs he had of the victims on the Internet and send them to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs.
On August 21, 2014, FBI agents executed a search warrant at the defendant’s residence. During the execution of the search warrant, investigators seized several computers, an assortment of computer related storage devices and the defendant’s cell phone. A forensics examination of the seized items revealed the presence of approximately a dozen images of the minor victim engaged in sexually explicit conduct.
Martinez, who was arrested yesterday, remains in federal custody pending a detention hearing scheduled for 9:00am on August 18, 2015, before United States Magistrate Judge Victor R. Garcia in Del Rio.
Upon conviction, Martinez faces between ten years and life in federal prison for enticement of a minor; between 15 and 30 years imprisonment for production of child porn; between five and 20 years imprisonment for receipt of child pornography; up to 10 years imprisonment for possession of child pornography; and, up to five years imprisonment for sextortion.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Ralph Paradiso.
An indictment is merely a formal charge and should not be considered as evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Covington Woman Sentenced for Student Loan FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced Kamiecy Lashia Waller, age 33, of Covington, Georgia was sentenced August 13, 2015 by the Honorable Marc T. Treadwell, United States District Judge for the Middle District of Georgia in Macon, Georgia.
Ms. Waller was sentenced to 33 months imprisonment and ordered to pay restitution in the amount of $229,424.00 to the Department of Education for mail fraud involving a scheme to obtain Government issued student loans.
On May 16, 2012, Jasper County Sheriff’s Office executed an arrest warrant for Ms. Waller pursuant to a tip that she was committing fraudulent activity at her home in Monticello, Georgia. Ms. Waller was subsequently interviewed by the Covington Police Department and admitted to using the internet to apply for and fraudulently obtain federal student aid loans for more than thirty individuals. These individuals were not eligible for the student loans because they did not have either a GED or a high school diploma.
A search warrant of Ms. Waller’s residence uncovered state drivers licenses, tax forms, social security cards and school documents, as well as documents written by Ms. Waller detailing course information from Rio Salado College, the primary online academic institution targeted by the scheme. A subsequent investigation revealed that over the course of two years, Ms. Waller actively recruited approximately thirty-two students in furtherance of her scheme to defraud. Typically, she would charge the participant a minimum of $650 for getting them registered in college and taking the online courses for them until financial aid was paid and an overage check sent to the student or Ms. Waller.
Law enforcement determined some of the checks were deposited directly into Ms. Waller’s bank account. Other checks were sent through the U.S. Postal Service to her or to the participant. Ms. Waller’s fraudulent submissions caused the Department of Education to award $430,639.00. Of that, $229,424.00 was actually dispersed to the target college.
"Student loan programs often provide the only way for would-be college students to pursue a college degree,” U.S. Attorney Michael Moore said. “In that regard, they are almost sacred to those students who can't afford to follow their dreams without access to student loans. Through her scheme, Ms. Waller stole loan money from a program that has as its only purpose making a college education accessible. Her actions jeopardized the dreams of deserving students, and now she'll be sitting in prison for almost as long as it would take to get a college degree. There is something quite ironic in the sentence handed down by the court."
The case was investigated by the Department of Education Office of Inspector General, Special Agent Christopher Maisano. Assistant United States Attorney Sonja Profit represented the Government in the prosecution of the case.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Collinsville Man Sent to Prison for Drug Possession and DistributionRead the Press Release
Daniel O. Lockett, 30, formerly of Collinsville, Illinois, was sentenced to a total of 151 months in prison on a two-count indictment charging him with Possession with Intent to Distribute Controlled Substances, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Lockett will be on federal supervised release for 3 years. Lockett was also ordered to pay a fine of $500, as well as a $200 special assessment.
On November 5, 2013, Lockett was arrested by Collinsville Police Department for possession of cocaine, crack cocaine and heroin. Lockett has two prior drug offenses and was found to be a career offender at sentencing
This case was investigated by the Collinsville Police Department and Metropolitan Enforcement Group of Southwestern Illinois. The case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Canadian Man Pleads Guilty to Drug ConspiracyRead 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 Thomas Goodyer, 44, of Halifax, Nova Scotia, Canada, pleaded guilty to conspiracy to import 100 kilograms or more of marijuana into the United States from Canada, before U.S. District Judge Richard J. Arcara. The charge carries a minimum of 5 years and maximum of 40 years penalty of imprisonment and a $2,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on or about November 5, 2005, Daniel Hebert entered the United States at the Peace Bridge port of entry in Buffalo, NY, driving a tractor trailer. Hebert and the tractor trailer were sent to secondary inspection, and a search resulted in the seizure of multiple plastic wrapped packages containing a green, leafy substance, weighing approximately 145 kilograms, inside 7 cardboard boxes hidden among boxes containing frozen waffles. After Miranda warnings were waived by Hebert, he told Immigration and Customs Enforcement (“ICE”) Agents, among other things, that the marijuana was to be delivered to a man named "Brian" at Jim's Truck Plaza in Cheektowaga, NY. Hebert agreed to cooperate, and after the marijuana was removed from the boxes, the boxes were returned to the trailer. Agents surveilled Hebert as he drove the tractor trailer to Jim's Truck Plaza, and met a white male, who then entered a white conversion van. Agents surveilled the white van and Hebert, as he drove the tractor trailer, to Pilot Air Freight on Broadway in Buffalo, where Hebert backed the tractor trailer into the rear of the parking lot. Agents observed the white van back in next to the tractor trailer, and two males (later identified as Thomas Goodyer and Brian Brady), exit the van and walk to the rear of the tractor trailer. The trailer doors were opened and Goodyer and Brady were arrested as the boxes that had contained marijuana were handed to them.
ICE agents administered Miranda warnings to Thomas Goodyer, which he said he understood and waived, both orally and in writing, before agreeing to be interviewed. Among other things, Goodyer stated that: he received a call from Brian Brady within the week before the date of arrest and was asked whether he wanted to make “some quick cash;” Brady did not tell Goodyer how much he was going to make; Goodyer asked what he had to do to make the money and Brady said that Goodyer would have to ride along as they drove 150 pounds of marijuana to Boston, MA; Goodyer was going to be paid part of the money Brady made for delivering the marijuana; Goodyer crossed into the United States at the Peace Bridge on November 5, 2005 at approximately 10:13 p.m. and met Brady at a Citgo station near the Peace Bridge; Goodyer followed Brady to his ex-wife’s trailer in Cheektowaga, where Goodyer left his vehicle; and Goodyer stayed overnight with Brady while arrangements were made with Hebert, and then got into the van with Brady.
On November 7, 2005, a criminal complaint was filed in United States District Court for the Western District of New York charging Goodyer with offenses related to the importation and possession with intent to distribute marijuana that occurred on November 5, 2005. On November 9, 2005, Goodyer appeared before a federal Magistrate Judge, who ordered Goodyer released with various conditions, including that he post $10,000 bail and attend all court proceedings. Goodyer signed an acknowledgement of the conditions of his release and an appearance bond. Goodyer was required to attend a plea proceeding scheduled to occur before the District Court on December 21, 2006; however, he failed to appear, and an arrest warrant was issued for the defendant.
Approximately 145 kilograms (over 310 pounds) of marijuana is the amount involved in the defendant’s relevant conduct encompassed in the Indictment that could be readily proven by the government against the defendant.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and United States Customs & Border Protection under the direction of Rose Hilmey, Acting Director of Field Operations.
Goodyer is scheduled for sentencing on November 19, 2015 at 1:00 p.m. before Judge Arcara.
Camp Counselor Charged with Production, Possession and Receipt of Child PornographyRead the Press Release
A 21-year-old West Bloomfield man was charged in a criminal complaint with production, possession and receipt of child pornography, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, Immigration and Customs Enforcement, Homeland Security Investigations (HIS) and Police Chief Michael Patton, West Bloomfield Police Department. According to court records, Matthew David Kuppe, a camp counselor at the Jewish Community Center (JCC) day camp, photographed young boys in a locker room setting and posted those photographs on a foreign image sharing website. The photographs depicted the prepubescent boys’ genitalia. Kuppe was arrested on August 12, 2015, and appeared in federal court in Detroit before United States Magistrate Judge R. Steven Whalen on August 13. Kuppe was ordered temporarily detained pending a hearing on August 18, 2015. If convicted of these offenses, Kuppe faces a term of 15-30 years in custody for the production of child pornography charge, up to 20 years in custody for the possession and receipt of child pornography charges. Kuppe was an employee at JCC for the past two summers. McQuade praised the work of the West Bloomfield Police Department and agents of ICE-HSI for their thorough investigation of this case. An information line, e-mail address and website have been established on behalf of the West Bloomfield Police Department, Department of Homeland Security, and the United States Attorney’s Office. Parents and guardians of children who attended the Jewish Community Center (JCC) day camp who would like additional information should send an e-mail to [email protected]. Please include your name and contact information in your request. A response to your inquiry, via telephone call and/or e-mail, will be returned to you as quickly as possible. Further information can be obtained from the web page at www.justice.gov/usao-edmi or the information line at 1-888-702-0553 Assistant United States Attorneys Matt Roth and Sara Woodward are prosecuting this case for the United States.Buffalo Woman Pleads Guilty to Access Device FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jennifer Konidis, 47, of Buffalo, N.Y., pleaded guilty to access device fraud on August 13, 2015 before U.S. District Judge Elizabeth Wolford. The charge carries a maximum penalty of 10 years imprisonment and a $250,000 fine.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that the defendant, who had over 15 years of experience in the banking industry, authorized a man she met online to send credit cards to her home even though she knew that the credit cards had been obtained by fraud and without the true account holder’s knowledge or authority. Between July 17, 2013 and October 28, 2013, the defendant allowed thirty-one unauthorized access devices to be sent to her home and used nine of them to obtain or attempt to obtain things of value in excess of $20,000.
The plea is the result of an investigation by the United States Postal Inspection Service, Boston Division, under the direction of Inspector in Charge Shelly A. Binkowski.
Sentencing is scheduled for November 12, 2015 at 10:00 a.m. before Judge Wolford.Brownwood, Texas, Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Robert Lawrence Noll, 40, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in April 2015 to one count of possession of prepubescent child pornography, announced John R. Parker, U.S. Attorney for the Northern District of Texas. Noll was ordered to pay restitution in the amount of $27,500.
Noll, who had been on pretrial release, was ordered to surrender to the Bureau of Prisons on September 18, 2015.
According to documents filed in the case, Noll used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Noll located, downloaded, and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Brooklyn, New York, Resident Pleads Guilty to Conspiring to Provide Material Support to TerroristsRead the Press Release
Defendant Purchased Ticket to Travel to Turkey to Join ISIL
Abdurasul Hasanovich Juraboev, 25, a citizen of Uzbekistan and resident of Brooklyn, New York, pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization, the Islamic State in Iraq and the Levant (ISIL).
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office, Acting Special Agent in Charge Glenn Sorge of the Homeland Security Investigations (HIS) New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
According to previous court filings, in August 2014, Juraboev posted a threat on an Uzbek-language website to kill President Obama in an act of martyrdom on behalf of ISIL. In subsequent interviews by federal agents, Juraboev stated his belief in ISIL’s terrorist agenda, including the establishment by force of an Islamic caliphate in Iraq and Syria. Juraboev stated that he wanted to travel to Syria to fight on behalf of ISIL but lacked the means to travel. He stated that if he were unable to travel, he would engage in an act of martyrdom on U.S. soil if ordered to do so by ISIL, such as killing the President or planting a bomb on Coney Island, New York. During the next several months, Juraboev and a co-conspirator discussed plans to travel to Syria to fight on behalf of ISIL, culminating in Juraboev’s purchase on Dec. 27, 2014, of a ticket to travel from John F. Kennedy International Airport in Queens, New York, to Istanbul, departing on March 29, 2015.
Juraboev pleaded guilty before U.S. District Court Judge William F. Kuntz II of the Eastern District of New York. At sentencing, Juraboev faces up to 15 years in prison.
“Abdurasul Hasanovich Juraboev admitted that he conspired to provide material support to ISIL and that he was prepared to commit violence overseas or here in the United States,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and this case reflects our commitment to finding those who wish to provide material support to ISIL and to fight on behalf of the terrorist organization, either at home or abroad, and preventing them from doing so.”
“The defendant planned to travel to Syria to wage jihad on behalf of ISIL, and was prepared to commit a terrorist attack on American soil if he were not able to make that trip,” said Acting U.S. Attorney Currie. “The defendant’s guilty plea today is a testament to the hard work of the FBI’s Joint Terrorism Task Force in New York to prevent local residents from becoming foreign fighters in Syria or launching terrorist attacks at home.”
“Juraboev clearly expressed the desire to commit violence, either domestically or abroad, on behalf of a terrorist organization,” said Assistant Director in Charge Rodriguez. “His failure to carry out this desire is a testament to the tireless efforts of FBI New York’s Joint Terrorism Task Force. We will continue to work day and night, with our law enforcement partners, to ensure the safety of all Americans.”
“Today’s guilty plea is the culmination of just one of many efforts to arrest and prosecute individuals who wish to join terrorist organizations in order to do harm to Americans both here and abroad,” said Acting Special Agent in Charge Sorge. “As a member of the Joint Terrorism Task Force, HSI will continue to use its unique customs and immigration authorities to root out these evil individuals and bring them to justice.”
“Abdurasul Juraboev was quite clear that he wanted to provide material support to ISIL by fighting in Syria, if not, by his offer to assassinate the President of the United States, or by carrying out a terrorist attack in Coney Island,” said Commissioner Bratton. “This case is another example of the reach that ISIL has within the United Sates through social media, and the fact that some are willing to follow that call. I commend the work of the agents and detectives of the Manhattan based Joint Terrorism Task Force.”
The case is being investigated by the FBI’s Joint Terrorism Task Force in New York. The case is being prosecuted by Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
Juraboev Plea Agreement
Brooklyn Doctor Sentenced to 24 Months in Prison for Engaging in A $13 Million Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, defendant Dr. Okon Umana, 68, was sentenced to 24 months in prison for his role as the “no show” doctor in a $13 million health care fraud scheme. Umana previously pleaded guilty to health care fraud conspiracy on December 1, 2014. As part of the sentence, the court entered an order directing Umana to pay $6,429,330 in restitution and to forfeit $6,550,036. The sentencing proceeding was held before U.S. District Judge John Gleeson.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Scott Lampert, Special Agent-in-Charge, Health of Human Services, Office of Inspector General (HHS-OIG), New York Region; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
From 2009 to 2012, Umana was the medical director of Cropsey Medical Care PLLC (Cropsey), a health care clinic located in Bensonhurst, Brooklyn. In connection with his guilty plea, Umana admitted that many of Cropsey’s medical services were provided by a physician’s assistant who was acting without supervision by a medical doctor, and that Cropsey nevertheless billed Medicare and Medicaid for the services using Umana’s provider number. In addition, Umana admitted that in seeking reimbursement for costs purportedly incurred transporting certain beneficiaries to and from Cropsey by ambulette, he falsely certified that transportation by ambulette was medically necessary.
Between November 2009 and October 2012, Cropsey submitted more than $13 million in claims to Medicare and Medicaid for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests. Medicare and Medicaid reimbursed Cropsey more than $6 million for the claimed services and procedures. Eight other individuals charged in connection with the scheme previously pleaded guilty. To date, one other individual has been sentenced.
“Rather than using his license to practice medicine, Dr. Umana used it to fraudulently bill Medicare and Medicaid for services he did not provide,” stated Acting United States Attorney Currie. “Protecting taxpayer funded programs such as Medicaid and Medicare is a priority of this Office and the Department of Justice.” Mr. Currie extended his grateful appreciation to HHS-OIG and the FBI for their work on the investigation.
The government’s case is being prosecuted by Assistant U.S. Attorney Shannon C. Jones of the Eastern District of New York and Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
OKON UMANA
Age: 68
West Haven, ConnecticutE.D.N.Y. Docket No. 12 CR 617 (S-1)(JG)
Ashburn Woman Sentenced to 5 Years for Mortgage and Tax FraudRead the Press Release
ALEXANDRIA, Va. – Charise Stone, 46, of Ashburn, Virginia, was sentenced today to 60 months in prison, followed by three years of supervised release for her role in a real estate short sale scheme that included tax and mortgage fraud, and passing fraudulent financial documents. Stone was also ordered to forfeit $721,552, and ordered to pay restitution of $2,441,174 to the victim financial institutions and the IRS.
Stone was found guilty by a federal jury on May 27, 2015. According to court documents, from 2007 to 2010 Stone targeted distressed homeowners who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.
Jose Marinay owned a settlement company that closed every short sale transaction for Stone. Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions, and Stone destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme, while Stone profited more than $720,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and IRS–CI. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-127.
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Albany County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Nelson E. Ferguson, age 48, of Albany County, New York, pled guilty today in Albany before United States District Judge Mae D’Agostino to one count of receipt of child pornography, and four counts of possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Ferguson faces at least 5 years and up to 20 years of imprisonment, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Nelson will be sentenced in Albany, New York on December 15, 2015 at 10 AM in United States District Court.
As part of his guilty plea, Ferguson admitted that between December 26, 2008 and June 15, 2010, he knowingly received child pornography and that on June 16, 2010, he possessed child pornography involving prepubescent minors and minors who had not attained 12 years of age.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Emily T. Farber and former Special Assistant United States Attorney Amanda W. Cox.
Abilene Man Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
ABILENE, Texas — Paul Joseph Koestle, 33, of Abilene, Texas, appeared yesterday before U.S. Magistrate Judge E. Scott Frost in Abilene, Texas, and pleaded guilty to child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Koestle, who remains in custody, pleaded guilty to one count of production of child pornography and one count of receipt of child pornography. On the production conviction, he faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and a $250,000 fine. On the receipt conviction, he faces a statutory penalty of not less than five years or more than 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, earlier this year the Abilene Police Department (APD) began investigating Koestle based on information they received from the National Center for Missing and Exploited Children (NCMEC) indicating he had uploaded an image of child pornography to a Google account. The APD executed a search warrant at his home in late April 2015.
Koestle, who was home during the execution of the warrant, admitted to downloading child pornography and producing child pornography of a minor child, “Jane Doe.” A forensic evaluation of electronic equipment seized from his residence pursuant to the search revealed hundreds of images of child pornography located on a cellphone, a laptop computer and hard drive. In addition, multiple images of “Jane Doe” engaging in sexually explicit conduct were found.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department are investigating. Assistant U.S. Attorney Myria Boehm is in charge of the prosecution.
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13 August 2015
Welfare Fraud Probe Nets Prison Time for Three Karaein Brothers and Orders to Pay Back over A Million DollarsRead the Press Release
Emad, Jawad and Khader Karaein Sentenced for Role in Multiple Welfare Fraud Schemes
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that brothers Emad, Jawad and Khader Karaein were sentenced by U.S. District Judge Janet T. Neff for their roles in multiple schemes to defraud the federal government in connection with subsistence benefits.
On August 5, 2014, the three defendants, along with other family members, were charged with multiple federal offenses alleging that they engaged in fraud while operating the Middle Eastern Market ("MEM") in Grand Rapids, Michigan. One fraudulent scheme alleged against them was that they allowed customers receiving federal subsistence benefits to obtain cash and other prohibited items in exchange for the federal funds allotted to the customers. This fraudulent activity resulted in a large amount of federal welfare money being deposited into the MEM bank account. The charges further alleged that the Karaein brothers individually signed up for federal welfare benefits for themselves and their families. They did not disclose the MEM bank account and other sources of income that would have disqualified them from receiving the benefits and therefore fraudulently obtained food assistance, cash assistance and Medicaid benefits.
During December, 2014, Emad, Jawad and Khader Karaein each entered a guilty plea to one of the charges pending against them. In each case, the defendants agreed that the sentencing judge could consider all of the fraudulent conduct charged in arriving at the appropriate sentence. In exchange for these guilty pleas, the government agreed to dismiss the charges pending against their wives and other family members.
On June 2, 2015, Judge Neff sentenced Emad Karaein to a prison term of 34 months, to be followed by 36 months of supervision after release from prison. Emad Karaein was also ordered to pay restitution totaling $1,271,983 to the state and federal governments. Judge Neff sentenced Jawad Karaein on July 13, 2015. He received a prison term of 30 months, to be followed by supervised release of 24 months and restitution of $1,271,983. Khader Karaein was sentenced on August 13, 2015 and received a prison term of 12 months, to be followed by supervised release of 2 years and restitution of $1,272,713.
U.S. Attorney Pat Miles stated, "We work hard to stamp out fraud involving welfare benefits whenever we see it, because the taxpayers have the right to demand that the money they provide for these programs goes to those who are in need. Any unscrupulous person thinking of illegally taking advantage of the public welfare system should take notice—if you do it, you will find out the hard way that it is not worth it."
USDA Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt stated: "The Supplemental Nutrition Assistance Program and Women, Infant, and Children program were created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP, WIC, and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Federal Bureau of Investigation (FBI) and Michigan Department of Health and Human Services (MDHHS) has brought to justice Emad Karaein, Jawad Karaein, and Khader Karaein from Middle Eastern Market who obtained approximately $1.2 million from the SNAP and WIC programs through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our federal and state law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud."
This case was investigated by the Department of Agriculture, Office of Inspector General, the Federal Bureau of Investigation, and the Michigan Department of Health and Human Services, Office of Inspector General. The case was prosecuted by AUSA Timothy VerHey.
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Washington Men Sentenced for Unauthorized Possession of over 17,000 Electronically Stored Credit and Debit Card Account NumbersRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 13, 2015, Senior United States District Court Judge Lyle E. Strom sentenced Herman A. Fessehai, Bellevue, Washington, age 31, to a sentence of 27 months imprisonment, following his conviction for unauthorized possession of over 17,000 electronically stored credit and debit card account numbers not belonging to Fessehai. After his release from prison, Fessehai will begin a term of supervised release of 3 years. Fessehai was ordered to pay restitution in the amount of $815.87 and has also agreed to the forfeiture of over $25,000 in seized cash and money orders.
August 13, 2015, Senior United States District Court Judge Lyle E. Strom sentenced Emanuel Haile, Lynnwood, Washington, age 25, to a sentence of 11 months and 22 days, which term of imprisonment has already been served, following his conviction for possession of in excess of 17,000 electronically stored credit and debit card account numbers not belonging to Haile. Haile will immediately begin a term of supervised release of 3 years. Haile was ordered to pay restitution in the amount of $815.87 and has also agreed to the forfeiture of over $25,000 in seized cash and money orders.
On August 22, 2014, an officer with the La Vista Police Department conducted a traffic stop on a Chevy Tahoe traveling eastbound on Interstate 80 for speeding. During the traffic stop, a search of the vehicle and its contents was conducted by law enforcement officers. Officers located numerous fraudulent identification cards as well as fraudulently altered credit cards associated with Haile and Fessehai. Officers also located electronic equipment, which included a computer and instructions for software to read and write credit and debit card magnetic strips. A search of the computer revealed in excess of 17,000 unauthorized electronically stored debit card and credit card account numbers not belonging to Haile or Fessehai.
During search of the vehicle officers also located Federal Express receipts in the name of Fessehai. Officers were able to intercept the Federal Express packages sent by Haile and Fessehai prior to reaching their final destination. Those packages contained two credit card skimmers used to read and write credit and debit card magnetic strips as well as a card embosser used to imprint new credit cards.
Officers also located within the vehicle two bundles of U.S. currency as well as numerous money orders. The total amount of U.S. currency and money orders found was in excess of $25,000.
This case was investigated by the La Vista Police Department and United States Secret Service.
U.S. Attorney's Office participates in backpack drive at Sunset Middle SchoolRead the Press Release
LAFAYETTE, La. – This year the U.S. Attorney’s Office participated in a back-to-school backpack drive at Sunset Middle School. Staff members of the U.S. Attorney’s Office in Lafayette and Shreveport and federal courthouse employees in Lafayette collected school supplies and 20 backpacks for this school year that included spiral notebooks, loose leaf paper, construction paper, journals, pens, pencils, glue sticks, colored pencils, erasers, scissors, markers, pencil pouches and hand sanitizer.
The school is led by Principal Marquet Rideau, who along with staff members, accepted the backpacks on Monday and will distribute them among the students. The school’s mission statement is “Teacher, Parents and Community Working Together to Ensure That All Students Will Learn.” Sunset Middle School has been recognized by the Louisiana Department of Education as being a Top Gains School.
“This is just a little something to show support for a school, like so many others, that has young people who are eager and excited to learn,” Finley stated. “Sunset Middle School is working to keep children on track for academic success. A special thank you to everyone in the federal courthouse who participated in this project, and thank you to the staff at Sunset Middle for all of your hard work throughout the year. Our wish is that all schools across the nation and within the Western District of Louisiana will have a successful and rewarding school year.”
The U.S. Attorney’s Office is active with community outreach, to include educating youth in middle schools and high schools on social media and cyberbullying, mentoring high school and college students during back-to-school and career day events, supporting law enforcement during National Night Out events, serving meals during Thanksgiving at St. Joseph Diner, participating in events such as the Alzheimers’ Walk and Susan G. Komen Race for the Cure, and hosting annual drives for Coats for Kids, Dress for Success and Feds Feed Families.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010, to serve as the Western District of Louisiana’s chief law enforcement officer for 42 of the 64 parishes in the state. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Co-Chair of the U.S. Attorney’s Office of Management and Budget Committee.
Two Del Rio Residents Sentenced to Federal Prison for Role in Scheme to Smuggle Grenades into the Republic of MexicoRead the Press Release
In Del Rio today, 28-year-old Noe Ramirez and 28-year-old Juliette Ramirez (no relation) were sentenced to 97 months and 60 months in federal prison, respectively, for their roles in a scheme to smuggle three dozen grenades into Acuna, Mexico, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero, San Antonio Division.
In addition to the prison sentences, United States District Judge Alia Moses ordered that Noe Ramirez pay a $2,000 fine and Juliette Ramirez pay a $500 fine. Judge Moses further ordered that the defendants be placed on supervised release for a period of three years after completing their prison terms.
On November 6, 2014, both defendants entered guilty pleas: Juliette Ramirez, to one count of exportation of a military grade sub-munition (grenade); and Noe Ramirez, one count of aiding and abetting the exportation of a military grade sub-munition (grenade).
According to court records, on August 2, 2014, U.S. Customs and Border Protection (CBP) officers at the Del Rio Port of Entry arrested Juliette Ramirez. At the time, CBP agents discovered her to be in possession of a single grenade while she was attempting to walk from the United States into the Republic of Mexico. Subsequently, HSI agents executed a search warrant at the residence of Noe Ramirez where they discovered the remaining 35 grenades.
This case was investigated by Homeland Security Investigations together with U.S. Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Laredo Police Department Bomb Squad also assisted with the disposal of the ordinance. Assistant United States Attorney Matthew Watters prosecuted this case on behalf of the Government.
Two Charged in Large Scale Indoor Marijuana GrowRead the Press Release
PROVIDENCE, R.I. – Two Providence men charged by way of federal criminal complaints appeared in U.S. District Court in Providence today in connection with an ongoing FBI investigation into an alleged large scale indoor marijuana growing operation inside a converted mill building at 725 Branch Avenue in Providence and inside a Providence residence, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI, Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Providence Police Chief Colonel Hugh T. Clements, Jr.
On Wednesday, FBI agents, assisted by DEA agents and members of the Rhode Island State Police and Providence Police Department, executed nine federal court authorized search warrants in and around 725 Branch Avenue in Providence where it is alleged that law enforcement discovered approximately 1,400 marijuana plants in various stages of growth inside numerous otherwise vacant apartments and offices inside the converted mill building.
A tenth federal search warrant was executed at a Providence residence at 60 Valley Street where agents and officers allegedly discovered approximately 100 marijuana plants in various stages of growth.
Also seized by law enforcement was a .22 caliber firearm and ammunition, and approximately $14,000 in cash.
Richard L. Yang, 35, was released to home confinement and electronic monitoring by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance in federal court on charges of manufacturing over 100 marijuana plants and conspiracy to manufacture marijuana.
William L. Ricci, 69, the owner and a resident of the 725 Branch Avenue facility, was released by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance on a charge of being a felon in possession of a firearm.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A third defendant has been arrested and charged in state court in connection with the investigation.
The matter is being prosecuted in federal court by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Canadians Appear in Court on Alien Smuggling ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Junior Alcantara-Ramirez, 29, of Quebec City, and Ginna Reyes-Santos, 31, of Montreal, appeared today in United States District Court in Burlington following their arrest on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy ordered that both defendants be detained pending further proceedings.
According to the criminal complaint filed today, Border Patrol agents encountered the defendants near Highgate, Vermont at about 3 a.m. on August 12. The defendants were in a car parked by the side of the road with its lights off. In the back seat of the car, agents identified two Indian nationals who had no permission to be in the United States. Records checks showed that the car the defendants were driving had entered the United States from Canada lawfully about one hour earlier. At the time of entry, Alcantara-Ramirez and Reyes-Santos were the only occupants of the car.
According to the complaint, during a subsequent interview with Border Patrol agents, one of the aliens admitted that an unidentified Canadian female had driven the two aliens from Montreal to the border area, let them out and directed them to walk across the border into Vermont. The aliens were given directions where to rendezvous with another driver on the U.S. side of the border. The second driver would transport the aliens to New York City in exchange for a total of $4000.
The smuggled aliens are currently in custody and are being held as material witnesses.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Alcantara-Ramirez is represented by Assistant Federal Public Defender Liz Quinn. Reyes-Santos is represented by Katina Francis Ready. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Town and Country Woman Pleads Guilty to Filing a False Tax ReturnRead the Press Release
St. Louis, MO – GWENDOLYN BROWN, of Town & Country, Missouri, admitted to filing a false income tax return in violation of 26 USC 7206(1), a felony. Brown appeared this afternoon before U.S. District Court Judge Ronnie L. White in St. Louis.
Brown faces up to three years imprisonment, a fine of up to $100,000 or both at her sentencing which is set for November 13, 2015. According to her plea agreement, Brown admitted to looting the coffers of the Church of Jesus Christ, a congregation in the City of St. Louis, of which her husband Alfred Brown is pastor, since 2008. Brown also admitted to taking considerable income from a daycare facility - which is a ministry of the Church - while its director. In addition to taking unreported cash, Brown admitted to not reporting payments towards luxury automobiles driven by her and her husband on her 2008, 2009 and 2010 taxes.
Alfred Brown has previously pleaded guilty to the same offense and was ordered to serve one year and one day in prison on Tuesday by Judge White.
Three Defendants Sentenced in Manatee County Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. has sentenced three individuals for their roles in a conspiracy to commit stolen identity refund fraud in the Manatee County area between 2012 and 2013. Among those sentenced were Marcus Lowe (32, Tampa) to three years and six months’ imprisonment, Tedrick Randall (44, Bradenton) to three years and one month in federal prison, and Rachel Kerley (36, Bradenton) to a term of 6 months’ imprisonment. As part of each defendant’s sentence, the Court also entered a money judgment in the amount of $15,457, representing the proceeds of the charged criminal conduct. Randall and Kerley pleaded guilty in April 2015, and Lowe was found guilty on May 1, 2015, after a jury trial.
According to court documents, Lowe worked for the Manatee County Parole Services Division at the Manatee County Jail and, as such, had access to the jail booking sheets. These booking sheets contained personal identification information relating to the inmates, including their names, dates of birth, and Social Security numbers. Lowe provided that information to Randall and Kerley, who then used the data to file false and fraudulent income tax returns seeking tax refunds in the names of those inmates. The conspirators filed income tax returns seeking a total of approximately $72,254 in tax refunds from the Internal Revenue Service.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division, with assistance from the Manatee County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Taxicab Operator Pleads Guilty to Falsifying Titles of Salvaged Cars and Re-Using Them as Taxis on Chicago StreetsRead the Press Release
CHICAGO — A Northbrook man pleaded guilty Thursday to charges he illegally obtained clean titles for salvaged and rebuilt vehicles and put them to use as taxicabs on the streets of Chicago.
As the owner of Seven Amigos Used Cars Inc., ALEXANDER IGOLNIKOV fraudulently obtained paperwork to conceal the history of the damaged cars in order to bypass City of Chicago laws that prohibit the use of salvaged and rebuilt vehicles as taxicabs, according to a written plea agreement. Federal prosecutors contend that Igolnikov, who also served as vice president of Chicago Elite Cab Corp., caused approximately 180 impaired vehicles to be used as taxicabs on Chicago streets after they were falsely given clean titles in Indiana and Illinois, according to the plea agreement.
Igolnikov’s scheme, which spanned from 2007 through April 2010, was uncovered in an investigation by federal authorities and the City of Chicago Inspector General’s Office.
Igolnikov, 68, of Northbrook, pleaded guilty to one count of conspiracy to transport, receive and possess a counterfeit security. He faces a maximum sentence of 5 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss from the offense. U.S. District Judge Edmond E. Chang scheduled a sentencing hearing for November 19, 2015, at 10:00 a.m. As part of the plea agreement, Igolnikov reserved the right to dispute the total number of vehicles involved in the scheme.
After procuring from online auction sites significantly damaged cars with salvage titles, Igolnikov and his associates fraudulently obtained “rebuilt” titles for those damaged vehicles by submitting false paperwork– including affidavits with the forged signature of an Indiana law enforcement officer – to the Indiana Bureau of Motor Vehicles, the plea agreement states. The vehicles were then transported to the Chicago business of Chicago Carriage Taxi Company, which was also used by Seven Amigos Used Cars. After obtaining the Indiana rebuilt title for a salvaged vehicle, Igolnikov and his associates placed a sticker over the “rebuilt” section of the Indiana certification and then used that title to obtain a clean Illinois title from the Illinois Secretary of State’s Office, according to the plea agreement. Igolnikov purchased the newly certified vehicles in the names of Seven Amigos Used Cars, Chicago Elite Cab and other related corporate entities, the plea agreement states.
Igolnikov and his business associates, including Chicago Elite Cab, operated the fraudulently certified vehicles as taxicabs in Chicago – in violation of the city’s medallion laws, which prohibit any vehicle that was ever issued a “salvage” or “rebuilt” title in any state from being used as a taxicab, the plea agreement states.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
The government is represented by Assistant United States Attorneys Margaret Schneider and Steven Dollear.
Plea Agreement
Springfield Man Indicted for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was indicted today in U.S. District Court in Springfield for distributing crack cocaine.
Larry Smith, Jr., 28, was indicted on two counts of distribution of crack cocaine and one count of possession with intent to distribute crack cocaine.
According to the indictment, on Feb., 18, 2015 and March 5, 2015, Smith distributed crack cocaine. On April 3, 2015, he possessed crack cocaine with the intent to distribute it.
The charging statutes provide a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sierra National Forest Marijuana Cultivators IndictedRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Francisco Javier Gomez-Rodriguez, 37, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 30, and Humberto Ceballos-Rangel, 37, all citizens of Mexico, and Anthony Isaac Santibanez, 19, of Woodlake, Calif., charging them in connection with their involvement in a large marijuana cultivation in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
The men were each charged with conspiracy, manufacturing marijuana, distributing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources. According to court documents, Ceballos-Rangel was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants and a loaded firearm. Gomez-Rodriguez, Ramirez-Rojo, and Santibanez were found a short time later approaching the grow site in a vehicle previously identified as a load vehicle used for the delivery of supplies to the grow site. A .22 caliber rifle was also found in the load vehicle, along with .40 caliber rounds of ammunition.
The cultivation operation caused significant harm to the environmental landscape. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found in trash pits and throughout the site.
This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
All but Santibanez have been ordered detained pending trial. The defendants are scheduled to appear in federal court on August 14, 2015, for arraignment on the indictment.
If convicted the defendants face, as to each drug count, a maximum penalty of up to 20 years in prison and up to a $1 million fine. As to the environmental charge, the defendants face a maximum penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Selkirk Man Indicted on Drug and Money Laundering ChargesRead the Press Release
ALBANY, NEW YORK – Jeremey VanWormer, 28, of Selkirk, was arrested this morning on federal drug trafficking and money laundering charges, announced United States Attorney Richard S. Hartunian and Inspector in Charge Shelly Binkowski, U.S. Postal Inspection Service, Boston Division.
VanWormer is charged by indictment with one count of participating in a conspiracy to distribute more than 100 kilograms of marijuana and four counts of participating in a conspiracy to launder drug trafficking proceeds. VanWormer was arraigned today in Albany before the Honorable Randolph F. Treece, United States Magistrate Judge, and released under pretrial supervision and secured bond pending a trial scheduled for October 13, 2015 before the Honorable Mae D’Agostino, United States District Court Judge.
On the drug trafficking conspiracy charge, VanWormer faces at least 10 years of imprisonment and up to life, a maximum fine of $8 million, and a term of supervised release of 8 years to life.
On each of the money laundering conspiracy charges, VanWormer faces a maximum imprisonment term of 20 years, a maximum fine of $500,000, and a maximum term of supervised release of 3 years.
According to the indictment, VanWormer participated in a marijuana trafficking conspiracy from about January 1, 2013 to November 14, 2014, and also participated in 4 separate money laundering conspiracies during that time. The indictment also seeks forfeiture of assets, including real properties in Troy and Watervliet.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the United States Postal Inspection Service, Homeland Security Investigations and the Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Second Trafficker Targeting Eastern North Carolina Sentenced for Methampthetamine ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced LESLIE FAVIOLA-ALVARADO, 22, of Lawrenceville, Georgia, to 56 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. FAVIOLA-ALVARADO previously pled guilty to this charge on May 13, 2015. On June 9, 2015, Judge Flanagan sentenced FAVIOLA-ALVARADO’S co-defendant, FELIPE DE JESUS JARAMILLO-ROSAS, 29, of Gwinnett County, Georgia, to 56 months in prison and 5 years of supervised release.
The investigation revealed that on June 25, 2013, JARAMILLO-ROSAS and FAVIOLA-ALVARADO took possession of 907 grams of methamphetamine from a source of supply in the Atlanta, Georgia, area and began driving to Johnston County, N.C., to deliver the methamphetamine to drug traffickers. JARAMILLO-ROSAS and FAVIOLA-ALVARADO arrived in Johnston County on June 26, 2013. However, the drug traffickers decided not to accept the methamphetamine. As JARAMILLO-ROSAS and FAVIOLA-ALVARADO were attempting to deliver the methamphetamine back to the suppliers in Atlanta, the North Carolina Highway Patrol stopped their car in Graham, N.C. The trooper discovered that the driver, JARAMILLO-ROSAS, did not have a valid driver’s license and smelled a strong odor of marijuana from the car. The trooper asked for and received consent to search the car. Troopers located the methamphetamine in two plastic containers in the back seat of the car during the consent search.
This case was part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office, the North Carolina Highway Patrol, the Lenoir County Sheriff’s Office and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Rochester Woman Pleads Guilty to Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Kasandra Weeks, of Rochester, NY, pleaded guilty to sex trafficking using coercion, before U.S. District Judge David G. Larimer. The charge carries a minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that between June and August of 2013, Weeks and co-defendant Steven Jones approached an adult female while she was walking down Jay Street in Rochester. Weeks and Jones offered her drugs and drove her to a hotel in Henrietta. When the female victim asked for a ride home, Weeks and Jones agreed but instead drove her to Lancaster, NY. While in Lancaster, the two coerced the victim to engage in prostitution by refusing to drive her back to Rochester.
Weeks posted ads for the victim as an escort using the internet classified advertising website, Backpage.com. The victim engaged in commercial sex acts and gave the proceeds to Weeks and Jones. Eventually, the victim was able to escape.
Weeks was arrested along with Jones and five others in February 2015. She is the first to be convicted. 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 result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing will be scheduled at a later date.
Preston Man Pleads Guilty to Receiving Child PornographyRead the Press Release
POCATELLO - D. Gregory Schvaneveldt, 40, of Preston, Idaho, pleaded guilty yesterday to receipt of child pornography, U.S. Attorney Wendy J. Olson announced. Schvaneveldt was indicted by a federal grand jury in Pocatello on November 25, 2014.
According to the plea agreement, an undercover special agent with Homeland Security Investigations was able to download 48 images and four videos of child pornography from Schvaneveldt’s shared computer files, after Schvaneveldt shared the password protecting the files with the agent during an online chat. This led to a federal search warrant for Schvaneveldt’s residence, where law enforcement agents seized two computers, an external hard drive, and related equipment. On the computers and external hard drive, law enforcement agents discovered approximately 1,638 images and 409 video files of suspected child pornography. The National Center for Missing and Exploited Children identified victims in 502 of the images and in 57 documented “Series” of child pornography.
When interviewed by law enforcement, Schvaneveldt admitted that there was child pornography on the computers in his residence and “hundreds” of images on the external hard drive. He stated that he had found child pornography on the Internet about a year prior and admitted saving images of child pornography from the Interne to his computer. He also admitted to receiving child pornography through an online chat function.
The charge of receipt of child pornography is punishable by not less than five, and up to 20, years in prison, a maximum fine of $250,000.00, and up to a life term of supervised release.
Sentencing is set for October 27, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Pawn Shop Owner Indicted in Scheme to Sell Stolen Goods on eBayRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Noel Eric Anshel, age 48, of Owings Mills, Maryland for selling stolen goods and fraudulently obtained gift cards on eBay. The indictment was returned on August 11, 2015 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.
According to the one count indictment, Anshel operated Hilltop Cellular, a pawnshop located at 5450 Reisterstown Road in Baltimore. From no later than September 1, 2013 to April 1, 2015, Anshel paid cash to “boosters,” a common term for shoplifters, in exchange for items that he knew to be stolen property. This stolen property included faucets, garbage disposal units, drills, saws, digital cameras and televisions sets. Anshel allegedly sold the stolen property over eBay, often for less than the wholesale price for the items.
The indictment further alleges that boosters would also steal items from a store and return the stolen items to another location of the same chain in order to receive store credit in the form of gift cards. Anshel bought these cards knowing that the gift cards had been obtained by fraud. He then sold the gift cards over eBay.
The indictment seeks forfeiture of $1 million, the proceeds of the fraud scheme.
Anshel faces a maximum sentence of 10 years in prison for transporting stolen goods. An initial appearance was held this afternoon in U.S. District Court in Baltimore. Anshel was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore City Police Department and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Ozark Man Pleads Guilty to Conspiracy to Avoid Paying $585,000 in Federal TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man pleaded guilty in federal court today to his role in a conspiracy to avoid paying $585,000 he owed in federal taxes.
Wesley Vernon Delport, 69, of Ozark, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to defraud the United States by impeding the lawful government functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal taxes.
Delport was the owner of Abundant Health & Wellness, a business described as a holistic health clinic, located in Springfield. Between Jan. 1, 2004, and Dec. 31, 2013, Delport received a total of approximately $4.7 million in gross receipts for Abundant Health & Wellness, which he did not report to the IRS as required by law and upon which he did not pay taxes.
Delport conspired with co-defendant Alton Louis Vaughn, Sr., 58, of Greene County, in an attempt to avoid paying taxes on approximately $4.7 million in business receipts. Vaughn, who is self-employed, derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS. Vaughn has pleaded guilty to participating with Delport in the conspiracy.
In order to avoid paying taxes on his income, Delport purported to create an entity called The Shammah Foundation in the state of Washington on May 7, 2001. Delport described the purpose of The Shammah Foundation as “to do whatever will promote the Kingdom Of God, All Righteousness and the principles of Liberty and Justice.” Delport transferred a total of approximately $382,000 over a four-year period from Abundant Health & Wellness accounts to a bank account he controlled, held in the name The Shammah Foundation. Delport used The Shammah Foundation bank account to pay his personal expenses, without reporting those funds used for his personal expenses to the IRS as income, or paying any taxes.
Delport admitted that, on several occasions, he submitted documents to the IRS consisting of lengthy and frivolous arguments in order to impede and delay an IRS examination of his tax liability. Delport also admitted that he attempted to place his funds and assets beyond the reach of IRS collection efforts.
To impede a criminal investigation of Delport, Vaughn and Delport falsely reported to the Treasury Inspector General for Tax Administration that an IRS Revenue Officer and an IRS criminal investigator had coerced, intimidated and threatened Delport.
Delport and Vaughn also attempted to impede a federal grand jury in its investigation of Delport by refusing to comply with federal grand jury subpoenas for tax and business records, by sending correspondence to the U.S. Attorney’s Office falsely stating that an IRS Revenue Officer had personally seized and collected all of Delport’s original income documents for the years 2003 through 2009, and by Vaughn falsely testifying before the grand jury.
Delport and Vaughn admitted that they also attempted to impede a federal grand jury in its investigation by counseling an employee of Abundant Health & Wellness to refuse to testify before the grand jury, and by providing her with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify.
Under the terms of today’s plea agreement, Delport must pay the government approximately $585,710 in restitution, which is the amount of taxes he attempted to avoid.
Under federal statutes, Delport and Vaugh are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.
Owner of CT Media Agency that Advertised Mortgage Assistance Pleads Guilty to False Advertising ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW GOLDREICH, 46, of East Lyme, pleaded guilty today in New Haven federal court to a false advertising offense stemming from his production and dissemination of false advertisements for mortgage modification services.
According to court documents and statements made in court, GOLDREICH used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by GOLDREICH. The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications. For example, one advertisement that aired in 2010 stated: “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.” The same advertisement also stated: “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.”
The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages. In truth, NMHC did not provide mortgage modification services for any homeowners, and operated only as a front. Homeowners who called the toll-free telephone numbers advertised by NMHC were routed to National Media Connection’s clients. The clients, in turn, paid National Media Connection for these “leads.” Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return.
GOLDREICH pleaded guilty to one count of false advertising, an offense that carries a maximum term of imprisonment of one year and a fine of up to $100,000. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on November 5, 2015.
This ongoing investigation is being conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.
Nursing Facility Chain Agrees to Repay $415,000 to Resolve Civil Overpayment AllegationsRead the Press Release
Signature Care Centers, LLC, and its seven related nursing facilities – Gowrie Care Center, Lake Park Care Center, Perry Health Care Center, Primghar Rehabilitation and Care Center, Rosewood Manor, Woodlands Rehabilitation Center, and Sutherland Care Center – agreed to pay $415,044.46 to resolve civil allegations that the facility submitted inaccurate cost reports for Medicaid payments for the 2008 and 2010 fiscal years. As part of the investigation, the government did not allege any patient harm or jeopardy to patients’ conditions, and there was no admission of liability or wrongdoing as part of the settlement.
“This agreement signifies both the importance our office places on ensuring that all providers play by the rules and our office’s dedication to ensuring no federal money is misspent,” said Kevin W. Techau, United States Attorney for the Northern District of Iowa. “We appreciate the cooperation we received throughout the investigation and the willingness to resolve our concerns without the needless expense of additional resources.”
The matter was jointly pursued by the United States Attorney’s Office for the Southern and Northern Districts of Iowa. Of the total amount recovered, approximately $231,000 related to conduct associated with facilities in the Southern District of Iowa and the remaining $184,000 related to conduct associated with facilities in the Northern District of Iowa. The districts worked cooperatively during the investigation with Iowa Medicaid Enterprise, Iowa’s Medicaid Fraud Control Unit, and the Iowa Attorney General’s Office.
Non-Indian Physician Employed by Indian Health Services Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Thomas Murray, 62, a non-Indian who resides in Acoma Pueblo, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a federal child pornography charge.
Murray is a physician who relocated to New Mexico in Oct. 2014, from Ohio to take a position as a general practitioner with Indian Health Services at the Acoma-Canoncito-Laguna Service Unit located in Acoma Pueblo. Murray was charged in a criminal complaint with transporting, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
According to the criminal complaint, the FBI initiated the federal investigation leading to Murray’s arrest on Dec. 19, 2014, after receiving a report from the New Mexico Attorney General’s Office. The report alleged that investigation by an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Murray’s residential address in Acoma was being used to download and distributing images consistent with child pornography. According to the criminal complaint, the FBI arrested Murray and executed a federal search warrant at his residence on Jan. 5, 2015.
Murray was subsequently indicted on Jan. 21, 2015, and charged with receiving and possessing child pornography from Oct. 19, 2014 through Jan. 5, 2015, in Cibola County, N.M.
During today’s change of plea hearing, Murray pled guilty to possession of child pornography under a plea agreement with the U.S. Attorney’s Office.
At sentencing, Murray faces a maximum penalty of 20 years in federal prison. Murray will be required to register as a sex offender after completing his prison sentence.
This case was investigated by the Albuquerque office of the FBI, the New Mexico Attorney General’s Office, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
New Jersey Man Faces Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 12, 2015, Jonathan Nisbett, age 23, of Newark, New Jersey, was charged via federal criminal complaint with possessing with intent to distribute heroin. Nisbett made his initial appearance in federal court on August 12, 2015 before U.S. Magistrate Judge John M. Conroy. At that hearing, Judge Conroy scheduled a detention hearing for Monday, August 17, 2015. At the detention hearing, the Court will decide whether Nisbett will be detained pending trial or released to the supervision of the U.S. Probation Office. The U.S. Attorney’s Office has filed a motion asking the Court to detain Nisbett.
According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Nisbett. On the evening of August 11, 2015, Vermont State Police officers arrested Nisbett at the Amtrak train station in Essex Junction, Vermont after Nisbett arrived in a train from New York City. In Nisbett’s bag, officers found approximately 2,250 bags of heroin. Colonel Matthew Birmingham of the Vermont State Police praised the work of the Drug Task Force, noting that Nisbett’s arrest was the culmination of many months of work by the local, state, and federal agents and officers assigned to the Task Force.
If convicted on the current charge, Nisbett would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Nisbett is presumed innocent unless and until he is proven guilty.
United States Attorney Miller added, “This case is a perfect example of federal, state, and local law enforcement agencies working hand-in-hand to combat heroin distribution in Vermont.” Miller commended the efforts of the agencies involved in investigating heroin crimes, which include the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, the Vermont State Police Drug Task Force, and the Burlington Police Department.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Nisbett is represented by David McColgin of the Federal Public Defender’s Office.
Nevada Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. —Glenn Litton, 47, of Carson City, Nevada, pleaded guilty today to aggravated identity theft arising from false statements he made in an application for a United States Passport, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 19, 2014, Litton submitted an application for a U.S. passport to a passport acceptance officer in Sacramento. In the application, Litton presented a number of false statements, including a false name, birthdate, and Social Security number that belonged to a real individual. Litton also presented a birth certificate, a debit card, and employment ID card all bearing the false name that he used in the passport application. As a result of the application, Litton was issued a U.S. passport in a false name.
This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Nevada Department of Motor Vehicles. Assistant United States Attorney Shelley D. Weger is prosecuting the case.
Litton remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Morrison C. England Jr. on November 12, 2015 at 9:00 a.m. Litton faces a statutory penalty of two years in prison and up to a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.