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10 August 2015
Guilty Plea in $3.4 Million Forex Investment SchemeRead the Press Release
BOSTON – A Quincy man pleaded guilty today in U.S. District Court in Boston in connection with a scheme which defrauded $3.4 million from sixty-five individuals who sought to invest in the foreign currency exchange market.
Marcellus Lopes Lee, 47, pleaded guilty today to sixteen counts of wire fraud and six counts of money laundering. Lee was indicted on those charges in July 2014. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 2, 2015.
Lee owned and operated Taurus Global Markets, Ltd. (TGM), an entity which Lee held out as a company that engaged in foreign currency trading (forex) on behalf of investors. Lee defrauded investors by convincing them to wire funds to TGM’s Belize bank account for the purpose of trading in the highly-risky forex market. Lee, however, did not trade the investor money and instead used it for his personal expenses. Although TGM’s website represented that it had staff, management, and a computer network “distributed all across the world,” TGM, in fact, had no employees and Lee operated it by himself, primarily from his residence in Quincy. Lee also sent investors what purported to be account documents reflecting that their money was invested in the forex market. Eventually, most investors were told that most or all of their money had been lost in forex trading when, in reality, Lee had simply spent it.
The charge of wire fraud provides for a sentence of no greater than twenty years in prison, three years of supervised release, and a fine of $250,000. The charge of money laundering provides for a sentence of ten years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Founder of Delta Homes and Lending Inc. Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Moctezuma Tovar, 46, of Sacramento, and Sandra Hermosillo, 53, of Woodland, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento-based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf.
Between October 2004 and May 2007, both Tovar and Hermosillo conspired with others to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, and employment status. They provided money to the borrowers in order to inflate their bank account balances. Once the loans were secured, the borrowers returned the money to the defendants. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Brian A. Fogerty and Special Assistant United States Attorney Christine O’Neill are prosecuting the case.
Tovar and Hermosillo are scheduled to be sentenced by Senior United States District Judge William B. Shubb on December 7, 2015, along with co-defendants, Manuel Herrera, 35, of Sacramento, and Jun Michael Dirain, 42, of Antelope, who have already pleaded guilty in this case. Each defendant faces a maximum statutory penalty of 30 years in prison and a $1 million 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.
Co-defendants and licensed real estate agents Jaime Mayorga, 36, and Ruben Rodriguez, 38, both of Sacramento, as well as Christian Parada Renteria, 39, of Woodland, formerly a loan officer, have a trial date of September 22, 2015. The charges against Mayorga, Rodriguez and Parada Renteria are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Bliss Army Sergeant Sentenced to 20 Years in Federal Prison for Receipt of Approximately 200 Videos of Child PornographyRead the Press Release
On Friday afternoon, a federal judge in El Paso sentenced Stephen Thurwanger, a 36–year-old U.S. Army sergeant at Fort Bliss in El Paso, to 20 years in federal prison for receipt of approximately 200 videos of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Thurwanger pay $8,500 restitution and be placed on supervised release for a period of ten years after completing his prison term.
On May 20, 2015, Thurwanger pleaded guilty to receipt of child pornography. According to court records, on October 20, 2014, HSI Cyber Crimes Group agents together with officers from the El Paso County Sheriff’s Office executed a search warrant at Thurwanger’s residence and seized various items including laptop computers, cell phones, and digital media storage devices. The child pornography was discovered during a subsequent forensics examination of the seized items.
Thurwanger has remained in federal custody since his arrest on October 20, 2014.
This case was investigated by Homeland Security Investigations together with the U.S. Army Criminal Investigation Command and the El Paso County Sheriff’s Office. Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Owner of Virginia Based Stonewood Marketing Pleads Guilty to Mail Fraud Diverted and Stole More Than $1.1 Million for Political Campaigns, PACs and Non-Profit OrganizationsRead the Press Release
Victims Included McConnell Senate Committee Defendant Admits to Purchasing Vacation Condominiums, Luxury Automobiles and Jewelry with the Stolen Funds
The former vendor for multiple local, state and federal campaigns, political action committees (PACs) and non-profit organizations throughout the United States, including the McConnell Senate Committee pleaded guilty to three charges of mail fraud today in U.S. District Court for stealing more than $1.1 million in contributions and donations intended for committees and organizations announced U.S. Attorney John E. Kuhn, Jr. of the Western District of Kentucky.
“Samuel Pate, while working in a position of trust for political campaigns, political action committees and non-profit groups, stole more than a million dollars,” said U.S. Attorney Kuhn, Jr. “These organizations – as well as earnest citizens trying to participate in the political process through contributions – were unknowingly victimized by Pate’s selfishness and avarice. He used the stolen funds for personal expenses, vacation homes, luxury vehicles and jewelry. Thus far, due to the efforts of my office and the FBI, nearly half of all the stolen funds have been recovered and are being returned to the victim organizations.”
“Mr. Pate intentionally diverted campaign contributions and political action committee donations for his own personal financial gain,” said Special Agent in Charge Howard S. Marshall of the Louisville Division for the FBI. “As such, Mr. Pate's actions subverted the political process by denying individuals their right to participate in the political process. In a democracy, there is simply no greater right than to elect our political leaders. Anyone attempting to corrupt the political process, in this way or any other, will be investigated as a top priority for our office."
Samuel K. Pate Jr., 52, of Forest, Virginia, owned and operated Stonewood Marking in Forest, Virginia. Campaigns, PACs and organizations contracted with Pate to process contributions received through direct mail and to maintain donor records when required by the Federal Election Commission (FEC). Donations were received by the Campaign, PACS and organizations through the mail at their local offices, then automatically forwarded through the U.S. mail to Stonewood Marketing for processing. Pate maintained designated bank accounts at BB&T for the deposit of donations and campaign contributions.
According to the federal information, from February 2008 through November 2014, Pate routinely misappropriated client funds by diverting funds from their designated accounts or transferring funds from client accounts into other bank accounts he controlled. During the course of the scheme he stole donations and contributions totaling approximately $1,124,274.35 that were intended for the following political campaigns, PACs and non-profit organizations: McConnell Senate Committee ($118,294); Christians in Defense of Israel ($319,691.09); House Conservative Fund ($30,614); Vitter for Senate (Louisiana) ($480,821.26); Catholic Advocates ($153,445); Jewish Voice ($150); Reagan Action ($1,025); Ten Commandments Commission ($2,098); Republican Majority Campaign ($11,300); Policy Issues Institute ($2,280); Defund Obamacare ($100); NRSC ($100); Randall Terry for Senate ($6); Freedom Defense Advocates ($990); Frontline Ministries ($1,150); Christian Anti-Defamation League ($2,020); and Live Prayer ($190).
During this period, Pate used the stolen and misappropriated funds to pay credit card bills, purchase vehicles, condominiums in Myrtle Beach, South Carolina, decorate a residence, pay family members and pay personal expenses.
From February 2008 through November 2014 Pate paid approximately $284,841.85 in personal American Express credit card bills using stolen funds and transferred approximately $237,100 in stolen funds to his personal American Express savings accounts.
Further Pate admits that on or about Oct. 21, 2010, through July 21, 2014, he used $28,104 in stolen funds from an Exodus Mandate account to pay condominium maintenance fees for both condominium unit 210 and unit 1015 located at 161 Seawatch Drive, Myrtle Beach, South Carolina. Pate further admits that on or about Dec. 13, 2010, he used $10,800 in stolen funds from the Christian-Anti-Defamation Commission bank account to purchase a 2007 Jeep Compass; on or about March 10, 2010, he used $14,765 in stolen funds from an Exodus Mandate bank account to a purchase a 2.02 carat diamond, round, H color, VS1 clarity; on or about Aug. 26, 2010 Pate admits that he wire transferred $76,271.68 to a trust account for the purchase of a condominium identified as 161 Seawatch Drive, Unit 210, Myrtle Beach, Horry County, South Carolina. The wire transfer was drawn on a Christian Anti-Defamation Commission bank account. On or about Oct. 13, 2010, Pate used $8,800 in stolen funds from the Christian Anti-Defamation Commission bank account to purchase a 2004 Lincoln Navigator; on or about Jan. 7, 2011, Pate used $16,000 in stolen funds from a Christian anti-Defamation Commission bank account to purchase a 2007 Cadillac Escalade ESV; on or about Dec. 22, 2011, Pate used $6,000 in stolen funds from the Exodus Mandate bank account to purchase a 2010 Cadillac SRX vehicle; on or about April 28, 2013, the defendant used $9,999.45 in stolen funds from a Christian Anti-Defamation Commission bank account to purchase a 2007 GMC Acadia sport utility vehicle; on or about July 8, 2012, the defendant used $17,250 in stolen funds from a Christian Anti-Defamation commission bank account to purchase a 2007 Jeep Wrangler sport utility vehicle; on or about July 29, 2013, Pate purchased a condominium identified as 161 Seawatch Dive, Unit 1015 Myrtle Beach, South Carolina for $241,000. The stolen funds used for this transaction included the following: from the sale of 161 Seawatch Drive for $102,889.72; $39,050.46 from a Christian Anti-Defamation Commission bank account; and $5,000 from an Exodus Mandate bank account. Further, between January 2014 through July 2014 Pate used $11,446.42 in stolen funds from an Exodus Mandate bank account to pay Sheila Morgan Interiors to redecorate his condominium. On or about May 8, 2014, Pate used $23,500 in stolen funds from the Exodus Mandate bank account to purchase a 2013 GMC Terrain sport utility vehicle; in June 2014 and July of 2014, the defendant used $9,300 in stolen funds from Exodus Mandate bank account to pay ACE Golf Carts for the purchase of a golf cart.
During this same period, Pate knowingly caused campaigns and PACS to file multiple false FEC Form 3, Report of Receipts and Disbursements, quarterly reports with the FEC that omitted the names and amounts of donor donations.
To date, the United States has collected approximately $508,928.00 from Pate through seizures on bank accounts and the sale of forfeited property that Pate purchased with the stolen funds.
If convicted at trial, Pate faced no more than 60 years in prison, a $750,000 fine and nine years of supervised release and forfeiture of any assets acquired through stolen funds. During sentencing, the U.S. District Judge assigned to this case is expected to order Pate to pay restitution. The restitution will be made in the form of reimbursements to campaigns, PACs and organizations. For donations made to defunct organizations, reimbursements will be sent directly to the contributor.
This case is being prosecuted by Assistant U.S. Attorney Bryan Calhoun and is being investigated by the FBI.
Former Owner of Virginia Based Stonewood Marketing Pleads Guilty to Mail Fraud - Diverted and Stole $1,124,273.35 Intended for Political Campaigns, PACs,And Non-Profit OrganizationsRead the Press Release
Victims included McConnell Senate Committee
Defendant admits to purchasing vacation condominiums, luxury automobiles and jewelry with the stolen funds
LOUISVILLE, Ky. – The former vendor for multiple local, state, and federal campaigns, PACs, and non-profit organizations throughout the United States, including the McConnell Senate Committee pleaded guilty to three charges of mail fraud today, in U.S. District Court, for stealing more than $1.1 million in contributions and donations intended for committees and organizations announced United States Attorney John E. Kuhn, Jr.
“Samuel Pate, while working in a position of trust for political campaigns, political action committees and non-profit groups, stole more than a million dollars,” stated U.S. Attorney Kuhn. “These organizations – as well as earnest citizens trying to participate in the political process through contributions – were unknowingly victimized by Pate’s selfishness and avarice. He used the stolen funds for personal expenses, vacation homes, luxury vehicles and jewelry. Thus far, due to the efforts of my office and the FBI, nearly half of all the stolen funds have been recovered and are being returned to the victim organizations.”
"Mr. Pate intentionally diverted campaign contributions and political action committee donations for his own personal financial gain. As such, Mr. Pate's actions subverted the political process by denying individuals their right to participate in the political process," stated SAC Howard S. Marshall, "In a democracy, there is simply no greater right than to elect our political leaders. Anyone attempting to corrupt the political process, in this way or any other, will be investigated as a top priority for our office."
Samuel K. Pate, Jr., age 52, of Forest, Virginia, owned and operated Stonewood Marking in Forest, Virginia. Campaigns, PACs, and organizations contracted with Pate to process contributions received through direct mail and to maintain donor records when required by the Federal Election Commission (FEC). Donations were received by the Campaign, PACS, and organizations through the mail at their local offices, then automatically forwarded through the U.S. mail to Stonewood Marketing for processing. Pate maintained designated bank accounts at BB&T for the deposit of donations and campaign contributions.
According to the federal information, from February 2008 through November 2014, Pate routinely misappropriated client funds by diverting funds from their designated accounts or transferring funds from client accounts into other bank accounts he controlled. During the course of the scheme he stole donations and contributions totaling approximately $1,124,274.35 that were intended for the following political campaigns, PACs, and non-profit organizations: McConnell Senate Committee - $118,294; Christians in Defense of Israel - $319,691.09; House Conservative Fund - $30,614; Vitter for Senate (Louisiana) - $480,821.26; Catholic Advocates - $153,445; Jewish Voice - $150; Reagan Action - $1,025; Ten Commandments Commission - $2,098; Republican Majority Campaign - $11,300; Policy Issues Institute - $2,280; Defund Obamacare - $100; NRSC - $100; Randall Terry for Senate - $6; Freedom Defense Advocates - $990; Frontline Ministries - $1,150; Christian Anti-Defamation League - $2,020; and Live Prayer - $190.
During this period, Pate used the stolen and misappropriated funds to pay credit card bills, purchase vehicles, condominiums in Myrtle Beach, South Carolina, decorate a residence, pay family members, and pay personal expenses.
From February 2008 through November 2014 Pate paid approximately $284,841.85 in personal American Express credit card bills using stolen funds and transferred approximately $237,100 in stolen funds to his personal American Express savings accounts.
Further Pate admits that on or about October 21, 2010, through July 21, 2014, he used $28,104 in stolen funds from an Exodus Mandate account to pay condominium maintenance fees for both condominium unit 210 and unit 1015 located at 161 Seawatch Drive, Myrtle Beach, South Carolina. Pate further admits that on or about December 13, 2010, he used $10,800 in stolen funds from the Christian-Anti-Defamation Commission bank account to purchase a 2007 Jeep Compass; on or about March 10, 2010, he used $14,765 in stolen funds from an Exodus Mandate bank account to a purchase a 2.02 carat diamond, round, H color, VS1 clarity; on or about August 26, 2010 Pate admits that he wire transferred $76,271.68 to a trust account for the purchase of a condominium identified as 161 Seawatch Drive, Unit 210, Myrtle Beach, Horry County, South Carolina. The wire transfer was drawn on a Christian Anti-Defamation Commission bank account. On or about October 13, 2010, Pate used $8,800 in stolen funds from the Christian Anti-Defamation Commission bank account to purchase a 2004 Lincoln Navigator; on or about January 7, 2011, Pate used $16,000 in stolen funds from a Christian anti-Defamation Commission bank account to purchase a 2007 Cadillac Escalade ESV; on or about December 22, 2011, Pate used $6,000 in stolen funds from the Exodus Mandate bank account to purchase a 2010 Cadillac SRX vehicle; on or about April 28, 2013, the defendant used $9,999.45 in stolen funds from a Christian Anti-Defamation Commission bank account to purchase a 2007 GMC Acadia sport utility vehicle; on or about July 8, 2012, the defendant used $17,250 in stolen funds from a Christian Anti-Defamation commission bank account to purchase a 2007 Jeep Wrangler sport utility vehicle; on or about July 29, 2013, Pate purchased a condominium identified as 161 Seawatch Dive, Unit 1015 Myrtle Beach, South Carolina for $241,000. The stolen funds used for this transaction included the following: from the sale of 161 Seawatch Drive for $102,889.72; $39,050.46 from a Christian Anti-Defamation Commission bank account; and $5,000 from an Exodus Mandate bank account. Further, between January 2014 through July 2014 Pate used $11,446.42 in stolen funds from an Exodus Mandate bank account to pay Sheila Morgan Interiors to redecorate his condominium. On or about May 8, 2014, Pate used $23,500 in stolen funds from the Exodus Mandate bank account to purchase a 2013 GMC Terrain sport utility vehicle; in June 2014 and July of 2014, the defendant used $9,300 in stolen funds from Exodus Mandate bank account to pay ACE Golf Carts for the purchase of a golf cart.
During this same period, Pate knowingly caused campaigns and PACS to file multiple false FEC Form 3, Report of Receipts and Disbursements, quarterly reports with the FEC that omitted the names and amounts of donor donations.
To date, the United States has collected approximately $508,928.00 from Pate through seizures on bank accounts and the sale of forfeited property that Pate purchased with the stolen funds.
If convicted at trial, Pate faced no more than 60 years in prison, a $750,000 fine, and nine years of supervised release and forfeiture of any assets acquired through stolen funds. During sentencing, the U.S. District Judge assigned to this case is expected to order Pate to pay restitution. The restitution will be made in the form of reimbursements to Campaigns, PACs and organizations. For donations made to defunct organizations, reimbursements will be sent directly to the contributor.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and is being investigated by the Federal Bureau of Investigation (FBI).
Former New Jersey Resident Charged with Conspiracy and Attempt to Provide Material Support to ISILRead the Press Release
A former resident of Bergen County, New Jersey, was arrested this morning for allegedly conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
Nader Saadeh, 20, a former resident of Rutherford, New Jersey, is charged by complaint with conspiring with other individuals in New Jersey and New York to provide material support to ISIL and with attempting to provide material support to ISIL. He is scheduled to appear at 1:30 p.m. EDT before U.S. Magistrate Judge Cathy L. Waldor of the District of New Jersey.
According to documents filed in this case:
The FBI and the Joint Terrorism Task Force (JTTF) have been investigating a group of individuals from New York and New Jersey who have allegedly conspired to provide material support to ISIL. Nader Saadeh lived in Rutherford until leaving the country on May 5, 2015, allegedly to join ISIL. Nader Saadeh’s brother, Alaa Saadeh, was a resident of West New York, New Jersey, until he was arrested on June 29, 2015, and charged with conspiring to provide material support to ISIL, aiding and abetting an attempt to provide material support to ISIL and witness tampering. Samuel Rahamin Topaz was a resident of Fort Lee, New Jersey, until he was arrested on June 17, 2015, and charged with conspiring to provide material support to ISIL. Conspirator 1 (CC-1) was a Queens, New York, resident until he was arrested in New York on June 13, 2015, on terrorism charges.
Between 2012 and 2013, Nader Saadeh sent CC-1 electronic messages expressing his hatred for the United States and desire to form a small army that would include their friends. On July 1, 2014, the day ISIL’s leader declared an Islamic caliphate in Syria and Iraq, Nader Saadeh posted images of ISIL’s flag and the flag of the Islamic caliphate on his Facebook page.
According to an informant who was close to him for years, by April 2015, Nader Saadeh had become a radicalized supporter of ISIL who was preparing to travel overseas with other individuals. In addition, Nader Saadeh said that ISIL’s execution of a captured Jordanian Air Force pilot by burning him alive and the murders of several staff members of the French satirical magazine Charlie Hebdo in Paris earlier this year were justified.
During the investigation, the FBI obtained computer files showing that Nader Saadeh viewed ISIL propaganda videos and researched the availability of flights to Turkey, which borders Syria, where ISIL claims to control territory. The FBI also obtained electronic messages sent to Nader Saadeh on April 21, 2015, by family members living overseas, including his mother, who pleaded for him not to join ISIL.
On May 5, 2015, Nader Saadeh traveled overseas via John F. Kennedy International Airport, allegedly in order to join ISIL. On his way to the airport, while accompanied by Alaa Saadeh and CC-1, he said that he, Alaa Saadeh, CC-1 and Topaz had plans to reunite overseas within a few weeks.
On the day of his arrest, Topaz told the FBI that he agreed with Nader Saadeh, CC-1 and Alaa Saadeh to travel to join ISIL. In addition, Alaa Saadeh told the FBI in a post-arrest interview that he, Nader Saadeh and Topaz all watched ISIL propaganda videos together and discussed going overseas to join ISIL. Alaa Saadeh also stated that the night before Nader Saadeh left for Jordan, CC-1 provided Nader Saadeh with the name and number of an ISIL contact near the Turkey/Syria border who would facilitate his travel to ISIL-controlled territory.
Each count in the complaint carries a maximum of potential penalty of 20 years in prison and a fine of $250,000.
The case is being investigated by the FBI and JTTF. The case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with the assistance of Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nader Saadeh Complaint
Former New Jersey Resident Charged with Conspiracy and Attempt to Provide Material Support to ISILRead the Press Release
NEWARK, N.J. – A former resident of Bergen County, New Jersey, was arrested this morning for allegedly conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division announced.
Nader Saadeh, 20, a former resident of Rutherford, New Jersey, is charged by complaint with conspiring with other individuals in New Jersey and New York to provide services and personnel to ISIL, and with attempting to provide services and personnel to ISIL. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this and other cases:
The FBI and the Joint Terrorism Task Force (JTTF) have been investigating a group of individuals from New York and New Jersey who have allegedly conspired to provide material support to ISIL. Nader Saadeh lived in Rutherford until leaving the country on May 5, 2015, allegedly to join ISIL. Nader Saadeh’ s brother, Alaa Saadeh, of West New York, New Jersey, was arrested on June 29, 2015, and charged with conspiring to provide services and personnel to ISIL, aiding and abetting an attempt to provide services and personnel to ISIL, and witness tampering. Samuel Rahamin Topaz, of Fort Lee, New Jersey, was arrested on June 17, 2015, and charged with conspiring to provide services and personnel to ISIL. Conspirator 1 (CC-1) a Queens, New York, resident was arrested in New York on June 13, 2015, on terrorism charges.
Between 2012 and 2013, Nader Saadeh sent CC-1 electronic messages expressing his hatred for the United States and desire to form a small army that would include their friends. On July 1, 2014, the day ISIL’s leader declared an Islamic caliphate in Syria and Iraq, Nader Saadeh posted on his Facebook page images of ISIL’s flag and the flag of the Islamic caliphate.
According to an informant who was close to him for years, by April 2015, Nader Saadeh had become radicalized supporter of ISIL who was preparing to travel overseas with other individuals. Nader Saadeh said that ISIL’s execution of a captured Jordanian Air Force pilot by burning him alive and the murders of several staff members of the French satirical magazine Charlie Hebdo in Paris, France, earlier this year were justified.
The FBI obtained computer files showing that Nader Saadeh viewed ISIL propaganda videos and researched the availability of flights to Turkey, which borders Syria, where ISIL claims to control territory. The FBI also obtained electronic messages sent to Nader Saadeh on April 21, 2015, by family members living overseas, including his mother, who pleaded for him not to join ISIL.
On May 5, 2015, Nader Saadeh attempted to travel overseas via John F. Kennedy International Airport (JFK), allegedly in order to join ISIL. On his way to the airport, while accompanied by Alaa Saadeh and CC-1, he and stated that he, Alaa Saadeh, CC-1, and Topaz had plans to reunite overseas within a few weeks.
On the day of his arrest, Topaz told the FBI that he agreed with Nader Saadeh, CC-1, and Alaa Saadeh to travel to join ISIL. Alaa Saadeh told the FBI in a post-arrest interview that he, Nader Saadeh, and Topaz all watched ISIL propaganda videos together and discussed going overseas to join ISIL. Alaa also stated that the night before Nader Saadeh traveled overseas, CC-1 provided Nader Saadeh with the name and number of an ISIL contact near the Turkey/Syria border who would facilitate Nader Saadeh’s travel to ISIL-controlled territory.
Each count in the complaint carries a maximum of potential penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited the FBI and the JTTF, under the direction of Special Agent in Charge Frankel, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with the assistance of Trial Attorney Robert J. Sander of the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Download Saadeh Nader Complaint
Former Hillview, Kentucky Police Chief Sentenced to Serve 24 Months’ Probation and Fined $5,000.00 for Making A False Statement to Federal AgentsRead the Press Release
LOUISVILLE, Ky. – Former Hillview, Kentucky Police Chief Glenn A. Caple was sentenced today in U.S. District Court, by Senior District Judge Charles R. Simpson III, to 24 months’ probation and ordered to pay a $5000.00 fine for making a false statement to federal agents when questioned about his knowledge and involvement in moving evidence found on an elected official’s property on January 4, 2012, announced U.S. Attorney John E. Kuhn, Jr.
Caple was unanimously convicted by a jury that deliberated just over one hour before reaching a guilty verdict on February 13, 2015. During the four-day trial, the United States successfully proved that Caple lied to federal agents on April 26, 2012, when he was questioned by the Federal Bureau of Investigation (FBI) about his involvement in directing subordinate Hillview Police officers to move evidence. The evidence was a mobile meth lab inside a backpack. Caple ordered the backpack moved from its original location at the residence of the Hillview mayor, but in an interview with FBI agents, he denied that the suspected backpack had been found by Hillview police on the mayor’s property and that he had asked a Hillview officer to move it off of the property.
Hillview, Kentucky is a city of approximately 9,400 residents located in Bullitt County, Kentucky near Jefferson County. Hillview police officers testified under oath that a mobile meth lab in a black backpack was found in a tire next to a garage on the mayor’s property. They further testified that Chief Caple asked a Hillview police officer to move the backpack to a location believed to be off of the mayor’s property and failed to report the incident, in order to protect the mayor from bad publicity.
This case was prosecuted by Assistant United States Attorneys Thomas Dyke and Marisa Ford and was investigated by the Louisville field office of the FBI.
Former Erie Man Facing 10 Years in Prison for Failing to Register as a Sex OffenderRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of failure to register under SORNA, United States Attorney David J. Hickton announced today.
James Foster Wilcox, 28, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Wilcox knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
Judge Cercone scheduled sentencing for December 21, 2015 at 1:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation that led to the prosecution of Wilcox.
Former Detroit man sentenced to more than six years in federal prison on firearm chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that a convicted felon originally from Detroit, Michigan was sentenced in federal court in Huntington today to seventy months in prison for unlawfully possessing a firearm. Joseph Lovell Cook, 22, previously pled guilty to possessing an SKS semi-automatic assault rifle on July 3, 2014, in Barboursville, West Virginia. Cook was prohibited from possessing the firearm because of a 2010 assault with a dangerous weapon conviction in Michigan and a 2012 drug trafficking conviction in Cabell County, West Virginia.
The FBI Drug Task Force and the DEA Task Force conducted the investigation. Assistant United States Attorneys Greg McVey and Jennifer Rada Herrald are responsible for the prosecution.
The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Former Detroit man sentenced to federal prison on drug chargeRead the Press Release
HUNTINGTON, W.Va. – A former Detroit man was sentenced today to 41 months in prison on a federal drug charge, announced U.S. Attorney Booth Goodwin. Tony Searcy, 48, previously pled guilty in federal court in Huntington to possessing heroin with the intent to distribute it. Searcy admitted that on September 26, 2014, he traveled from Detroit, Michigan to Huntington, West Virginia, with approximately 100 grams of heroin that he intended to distribute.
The investigation was conducted by the DEA Task Force. Assistant United States Attorneys Greg McVey and Jennifer Rada Herrald are responsible for the prosecution.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Former Assistant Band Director Pled Guilty in Identity Theft Tax Fraud Scheme Involving Former Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A former assistant band director pled guilty for his participation in an identity theft tax fraud scheme involving former Broward County students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Delvis Demaine Rogers, 27, of Hollywood, Florida, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). As part of his plea agreement, the defendant agreed to pay restitution in the amount of $129,321. At sentencing, the defendant faces a maximum statutory sentence of ten years in prison for the unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to court documents, IRS-CI investigators noticed that 419 suspicious tax returns claiming refunds totaling $754,470 were filed from Rogers’ residential address from January 25, 2014 to April 20, 2014. Based on this information, a search warrant was executed at Rogers’ residence and agents discovered and seized papers, notes, and documents containing thousands of PII (including names, dates of birth, and social security numbers) including PII contained in records of more than a dozen Broward County School District students, some dating back to the late 1990s and others into the late 2000s. Agents also seized numerous printed 2013 tax returns.
Agents interviewed Rogers during the execution of the search warrant and he admitted to having prepared and filed hundreds of fraudulent tax returns without the permission of the people in whose names they were filed. Rogers further admitted that he electronically submitted the filings from his apartment. Rogers advised that he was employed as the band director at a school in Opa Locka, Florida, and that he previously was the assistant band director at a high school in Plantation, Florida.
Rogers is scheduled to be sentenced on October 23, 2015 at 9:30 a.m. before United States District Judge James I. Cohn.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and Daya Nathan.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Sentenced to Prison on Drug ChargesRead the Press Release
Gulfport, Miss - Five individuals have been sentenced by Chief U.S. District Judge Louis Guirola for their roles in a drug conspiracy case, announced U.S. Attorney Gregory K. Davis and DEA Special Agent in Charge Keith Brown.
On Thursday, August 6, 2015, Tonya Winn, 50, of Long Beach, was sentenced to 60 months in federal prison followed by three years of supervised release for attempted possession with intent to distribute marijuana; and Angel Case, 48, of Waveland was sentenced to 151 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine.
On Friday, August 7, 2015, Thomas Bernard, 34, of Pass Christian, was sentenced to 310 months in federal prison followed by five years of supervised release for attempted possession with intent to distribute cocaine; and Kenneth Casey, 41, of Gulfport, was sentenced to 480 months in federal prison followed by five years of supervised release for attempted possession with intent to distribute cocaine.
On July 1, 2015, Delano Lewis, of Kiln, was sentenced to 108 months in prison followed by three years of supervised released for conspiracy to possess with intent to distribute cocaine.
This case was investigated by the Drug Enforcement Administration and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Shundral H. Cole.
Erie Woman Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of aggravated identity theft, United States Attorney David J. Hickton announced today.
Katrina A. House, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that House conspired with another individual to defraud the United States by submitting false claims for income tax refunds using individuals’ identification information which was unlawfully obtained. House stole the identities of 71 individuals who were clients of a non-profit social service agency where House was employed. House and her co-defendant sought refunds from the IRS of more than $100,000.00 and used the stolen identities and falsified W-2 forms to perpetrate the fraudulent tax refund scheme. House and her co-defendant successfully obtained more than $60,000.00 in tax refunds from the fraudulent scheme and converted that money to their own use.
Judge Cercone scheduled sentencing for December 21, 2015 at 3:00 p.m. The law provides for a total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued House on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of House.
Erie Man Sentenced to 5 Years in Prison for Cocaine DealRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail and ordered to forfeit $142,780 and a Cadillac Escalade on his conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Dywon Rowan, 31.
According to information presented to the court, Dywon and his brother Levonne were arrested after ordering 3.5 kilograms of cocaine in exchange for $142,780. The cash was seized from them when they arrived in Edinboro, Pennsylvania to purchase the cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended OCDETF, a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) headed by the Drug Enforcement Administration and Homeland Security Investigations and is comprised of members drawn from the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service and the Bureau of Alcohol Tobacco Firearms and Explosives for the investigation leading to the successful prosecution of Rowan. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Elm Grove woman pleads guilty to stealing deceased mother’s benefit paymentsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a woman from Elm Grove pleaded guilty to stealing more than $36,000 worth of her deceased mother’s Worker’s Compensation benefits.
Rose M. Young, 60, of Elm Grove, La., pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of theft of government funds. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to evidence presented at the guilty plea, after Young’s mother died, Young continued to receive and spend her mother’s Worker’s Compensation benefits without notifying the U.S. Department of Labor that her mother had died. Young received a total of $36,716.76.
Young faces up to 10 years in prison, one to three years supervised release, a $250,000 fine and restitution. A sentencing date of November 19, 2015 was set.
The U.S. Department of Labor, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Eight Defendants Sentenced in $24 Million Stolen Identity Refund Fraud RingRead the Press Release
Montgomery, Ala. – Eight residents of Alabama and Georgia were sentenced today for their roles in a $24 million Stolen Identity Refund Fraud (SIRF) conspiracy, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
U.S. District Court Judge Kristi K. DuBose imposed the following sentences on each defendant:
- Tracy Mitchell, of Phenix City, Alabama, was sentenced to serve 159 months in prison;
- Talarius Paige, of Phenix City, Alabama, was sentenced to serve 60 months in prison;
- Mequetta Snell-Quick, of Columbus, Georgia, was sentenced to serve 24 months plus one day in prison;
- Latasha Mitchell, of Phenix City, Alabama, was sentenced to serve 36 months in prison;
- Dameisha Mitchell, of Phenix City, Alabama, was sentenced to serve 65 months in prison;
- Sharonda Johnson, of Phenix City, Alabama, was sentenced to serve 24 months in prison;
- Patrice Taylor, of Midland, Georgia, was sentenced to serve 12 months plus one day in prison;
- Cynthia Johnson, of Phenix City, Alabama, was sentenced to two years of probation.
Restitution amounts will be determined after additional testimony and evidence is presented.
According to court documents and sentencing proceedings, between January 2011 and December 2013, Keisha Lanier and Tracy Mitchell led this large-scale identity theft ring in which they and their co-defendants filed over 9,000 false tax returns that claimed in excess of $24 million in fraudulent claims. The IRS paid out close to $10 million in fraudulent refunds. The defendants obtained stolen identities from various sources to be used in filing false returns, including from the U.S. Army, several Alabama State agencies, a Georgia call center, and employee records from a Georgia company. Tracy Mitchell worked at the hospital at Fort Benning, Georgia. As a hospital employee, Mitchell had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. Tracy Mitchell stole personal information of soldiers and used them to file false tax returns.
Tamika Floyd, a defendant in a related case, stole personal information from two Alabama state agencies and provided those names to Keisha Lanier of Seale, Alabama. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Talarius Paige, and others for use in filing false tax returns. Keisha Lanier also obtained stolen identities from the Alabama Department of Corrections. Talarius Paige and Patrice Taylor worked in a call center for a Columbus, Georgia payment-processing company and stole identities. Paige, in turn, used those identities to file false tax returns and filed some of the returns from Tracy Mitchell’s residence. Tracy and Latasha Mitchell also obtained employee files from a Columbus, Georgia company.
In order to file tax returns, the defendants obtained several Electronic Filing Numbers (“EFIN”) in the names of sham tax businesses. On behalf of those sham tax businesses, the defendants applied for bank products from various financial institutions, which mailed blank check stock to the defendants’ homes. The defendants directed anticipated tax refunds to prepaid debit cards, to U.S. Treasury Checks, and to financial institutions which in turn issued the refunds via checks or prepaid debit cards. When the refunds were sent through the financial institutions, the defendants simply printed out the refund checks from the check stock sent to their homes.
After a period of time, the financial institutions stopped allowing the defendants to print out the tax refund checks. In order to continue the operation, Tracy Mitchell and her family recruited postal employees into the scheme. The corrupt postal employees provided addresses on their routes to have the checks mailed and then obtained those checks from the mail for a fee.
Not only did the case involve a web of stolen names and sham tax businesses, the case involved a sophisticated money laundering operation. Close to $10 million in fraudulent tax refund checks were cashed at several businesses located in Alabama, Georgia, and Kentucky. To orchestrate and coordinate this massive check cashing scheme, the defendants communicated with text messages and kept detailed records. For instance, Sharondra Johnson worked at the Walmart money center in Columbus, Georgia, and as part of her employment, she cashed checks for customers of the money center. Dameisha Mitchell approached Sharondra Johnson about cashing tax refund checks issued in the names of other individuals. Sharondra Johnson agreed to cash the checks and communicated with Dameisha and Tracy Mitchell via text message. In an attempt to conceal the crime from Walmart, the defendants employed multiple individuals to bring the fraudulent checks to Johnson to have her cash them.
At sentencing, prosecutors read impact statements from several victims whose identities were stolen and from companies and governmental agencies where the identity theft breaches occurred. As one agency representative noted, the identity theft was not only devastating as to cost, but it had a chilling effect on their ability to serve the residents of this state. A mother of a young Army soldier who was a victim described the consequences of the fraud on her, her son, and her family, stating:
While [my son] was fighting for our country and all back home I received a very disturbing phone call from [an] Agent from the IRS that my son while at Ft Benning training to defend our country, the land of the free, had his identity stolen and fraudulent tax returns were filed with his social security number. This news was devastating, to think that my simply 19 year old son who was defending the very freedom this country stands [for] was wronged by one of those people [he] was willing to die for. My whole family could not believe what was happening. We now had to worry about this terrible act by one of our own. As I tried my best to keep composed and handle all of the gruesome mounds of paperwork to get this straightened out with the IRS, [he] was then denied his tax refund. This created a financial hardship on [him]. We were too afraid to tell [him] while he was deployed because we did not want to worry him and we wanted him to focus only on getting home alive and not have to worry about such an atrocious act by someone who did not even know [him].
Tamaica Hosksins, who was also charged in the same indictment, was previously sentenced to 145 months of imprisonment. Tamika Floyd was previously sentenced to 87 months of imprisonment. Sentencing for Keisha Lanier is scheduled for August 24, 2015.
"No sentence is too strong for those who prey on our fighting men and women,” stated U.S. Attorney Beck. “War is hell on the home front, too, and the family left behind holding things together must be strongly protected. Shame on those vultures who steal from our military and their families!"
“The sentences handed down today, following each defendant’s guilty plea, demonstrate the Tax Division’s commitment to rooting out SIRF crimes across the nation and prosecuting individuals at every level of these complex criminal conspiracies,” stated Acting Assistant Attorney General Ciraolo. She continued that, “victimizing Soldiers, citizens, and the U.S. Treasury will not be tolerated, and the Tax Division will continue to seek significant prison time for anyone involved in these schemes and ask courts to order defendants to pay full restitution to the government.”
“Today’s sentencing of eight criminals who used the identities of American service members and hospital patients to enrich themselves by stealing tax refunds demonstrates the depths of how far criminals will stoop and the extent to which IRS CI will go to fight identity theft,” said Richard Weber, Chief, IRS-Criminal Investigation. “We will use every available resource in collaboration with our law enforcement partners to combat these serious crimes.”
"Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty and deceit deserve to be punished to the fullest extent of the law," stated Special Agent in Charge Veronica F. Hyman-Pillot, Internal Revenue Service Criminal Investigation. "We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system."
U.S. Attorney Beck and Acting Assistant Attorney General Ciraolo commended special agents of the IRS - Criminal Investigation and the United States Army – Criminal Investigation Division, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorneys Todd A. Brown, Jonathan S. Ross, and Kevin P. Davidson of the Middle District of Alabama, for prosecuting the case. Beck and Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
East Saint Louis Man Sentenced for Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Kasmiel Samuel Sumrall, 29, of East Saint Louis, was sentenced on the charge of Unlawful Possession of a Firearm by a Convicted Felon. The United States District Court in East Saint Louis sentenced Sumrall to serve 37 months in federal prison, to be followed by two years of supervised release. The district court also ordered Sumrall to pay a $250 fine and a $100 special assessment.
Court records indicate that Sumrall admitted that on October 6, 2014, in East Saint Louis, he possessed a 9-mm. caliber Ruger semi-automatic pistol handgun, its magazine and ten rounds of 9-mm. caliber ammunition, after he had previously been convicted on October 30, 2007, of the felony offense of Aggravated Fleeing or Attempting to Elude Police.
The case was investigated by the East Saint Louis Police Department, the East Saint Louis Housing Authority, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
EMI Owner Sentenced to Five Years in Prison for Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Michael R. Keebler, owner of Environmental Management of Illinois, Inc. (EMI), Springfield, Ill., to serve five years in federal prison for a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. The scheme, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
Judge Myerscough allowed Keebler to remain on bond pending his report to the federal Bureau of Prisons no later than Sept. 24, 2015. Keebler was ordered to remain on supervised release for a period of three years following his release from prison.
Keebler, of Sherman, Ill., was also ordered to pay restitution of no more than $13,363,665 to the Illinois EPA. Restitution will be ordered to be paid jointly and severally with Keebler’s co-defendants, EMI founder, Eric M. Andrews, of Springfield, and his brother, Joel T. Andrews, of New Berlin, Ill. Each pled guilty on Mar. 2, 2015, to one count of conspiracy to commit mail fraud. Sentencing for the Andrews brothers is scheduled on Oct. 2, 2015. Keebler entered pleas of guilty on Feb. 27, 2015, to two counts of conspiracy to commit mail fraud.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who has remained as the firm’s principal owner and president. EMI is located at 1154 N. Bradfordton Road, Springfield. The environmental consulting firm worked with property owners to clean up property contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
According to plea agreements filed by the parties, Michael Keebler, and Eric and Joel Andrews each admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, as principals of EMI, they admitted they reached agreements with their vendors to submit two invoices for certain services: one invoice listed the real costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Keebler and the Andrews would also pay certain vendors a reduced rate, but misrepresent to the Illinois IEPA that they had paid full price. At other times they would simply create or modify an existing invoice to reflect a higher charge than was actually paid and would submit that to IEPA for reimbursement.
In a separate but related case, Michael Keebler’s brothers, Duane T. Keebler, of Maryland Heights, Mo., and Joseph R. Keebler, of Carbondale, Ill., each pled guilty on Feb. 20, to one count of conspiracy to commit mail fraud. Both Duane and Joseph Keebler have agreed to a loss amount in their cases, and will pay restitution in the total amount of $179,438.They are scheduled to be sentenced on Aug. 24, 2015.
Another defendant, Jeremy L. VanScyoc, of Springfield, was an engineer for EMI and participated in the fraud.He waived indictment on Mar. 10, 2014, and pled guilty to one count of conspiracy to commit mail fraud. VanScyoc admitted that after he joined EMI he agreed to engage in the fraud scheme by inflating subcontractor invoices. On June 11, 2015, VanScyoc was sentenced to one day in prison; two years supervised release; and was ordered to pay restitution in the amount of $262,032.
The case is being prosecuted by Assistant U.S. Attorneys Patrick D. Hansen and John E. Childress. The charges are the result of a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division.
Drug Diversion Claims Against CVS Health Corp. Resolved with $450,000 Civil SettlementRead the Press Release
PROVIDENCE, R.I. - Pharmacy chain CVS Health Corp. has agreed to pay $450,000 to resolve the United States’ allegations that several of its Rhode Island stores violated the federal Controlled Substances Act by filling invalid prescriptions and maintaining deficient records, announced United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
The settlement caps an investigation by the United States Attorney’s Office for the District of Rhode Island and the DEA Office of Diversion Control of CVS’ conduct at its Rhode Island retail pharmacy locations in filling prescriptions for various controlled substances with a high potential for abuse. Under the Controlled Substances Act and its implementing regulations, substances such as painkillers and opioids can only be prescribed for legitimate medical purposes by a physician. The law, however, also places a “corresponding responsibility” on the pharmacist filling the prescription to ensure that the prescription is valid and legal, and that that the prescriber has the legal authority to prescribe the drug. The Act also imposes a number of recordkeeping requirements.
In this case, the United States alleged that CVS retail pharmacies in Rhode Island filled a number of forged prescriptions with invalid DEA numbers, and filled multiple prescriptions written by psychiatric nurse practitioners for the opioid painkiller hydrocodone, despite the fact that these practitioners were not legally permitted to prescribe these drugs. Additionally, the government alleged that CVS had recordkeeping deficiencies.
Under the terms of a civil agreement, CVS will pay a civil penalty of $450,000 for its alleged conduct in the State of Rhode Island. CVS, while acknowledging that its pharmacists bear a corresponding responsibility under the Controlled Substances Act, has denied wrongdoing in this case.
“It should come as no surprise to any Rhode Island citizen – individual or corporate –that diversion and misuse of prescription painkillers are a public health crisis in the State of Rhode Island,” commented U.S. Attorney Peter F. Neronha. “This crisis demands that all citizens – individual and corporate – act responsibly when it comes to the dispensing of controlled substances. Even in cases where there is no evidence of abuse or nefarious intent, this Office remains committed to using all the legal tools at our disposal to ensure that everyone in the chain of controlled substance distribution -- from physicians to pharmacists -- abides by the strict requirements of the law.”
“DEA registrants are responsible to handle controlled substances in compliance with the Controlled Substance Act,” said Special Agent in Charge Michael J. Ferguson. “Our obligation is to improve public safety and public health, and we are committed to working with our law enforcement and regulatory partners nationwide to ensure that these rules and regulations are followed.”
This matter was litigated by Assistant U.S. Attorneys Zachary A. Cunha and Bethany N. Wong.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Detroit man pleads guilty in federal court to selling heroinRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who sold heroin to undercover agents on multiple occasions in March of 2015 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Bryant D. Long, II, 28, entered a guilty plea in federal court in Huntington to distributing heroin.
On March 13, 2015, Long agreed to meet with undercover DEA agents in Huntington, where he sold them 8.5 grams of heroin for $1,200. During the meeting, Long also made arrangements with the agents for future heroin sales. The heroin distributed by Long was confirmed through laboratory testing to contain heroin and Fentanyl, a schedule II painkiller that is particularly dangerous when mixed with heroin. On March 23, 2015, Long met with agents again, and sold an additional 9.8 grams of heroin in exchange for $1,250.
On March 30, 2015, Long was arrested after agents executed a search warrant at 504 Marcum Terrace in Huntington. Agents seized additional heroin during the search and Long admitted that he had been in Huntington for the prior month distributing heroin and crack cocaine.
Long faces up to 20 years in federal prison, and is scheduled to be sentenced on November 9, 2015.
The United States Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Departments of Justice and Health and Human Services Issue Technical Assistance for Child Welfare Systems Under the Americans with Disabilities Act and Section 504 of the Rehabilitation ActRead the Press Release
The Department of Justice and the Department of Health and Human Services (HHS) today issued joint technical assistance to state and local child welfare agencies and courts on the requirements of Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act. The technical assistance released today is part of a new partnership between HHS and the Department of Justice to help child welfare agencies protect the welfare of children and ensure compliance with nondiscrimination laws.
The technical assistance addresses disability discrimination complaints that HHS and the Department of Justice have received from parents who have had their children taken away from them as well as individuals who have not been given equal opportunities to become foster or adoptive parents. Noting that the goals of child welfare and disability non-discrimination are complementary, the technical assistance provides an overview of Title II of the ADA and Section 504 and examples about how to apply them in the child welfare system, including child welfare investigations, assessments, guardianship, removal of children from their homes, case planning, adoption, foster care and family court hearings, including termination of parental rights proceedings. It also underscores that Title II and Section 504 prohibit child welfare agencies from acting based on unfounded assumptions, generalizations, or stereotypes regarding persons with disabilities.
“This technical assistance reflects an important milestone in the ongoing effort to realize equality for individuals with disabilities in all aspects of our society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The ADA and Section 504 ensure that all government providers of programs, activities, and services treat people with disabilities in a fair and equal manner. State and local agencies and courts are our partners in defending the rights of people with disabilities, and this guidance gives them an improved understanding of how to uphold those rights more effectively.”
“Ensuring nondiscrimination in the child welfare system is an Office for Civil Rights (OCR) priority and we’re very pleased to join with the HHS Administration on Children and Families and the Department of Justice in this important initiative,” said Director Jocelyn Samuels of HHS’ Office for Civil Rights. “It’s particularly fitting that we are beginning this initiative with guidance on the rights of parents and prospective parents with disabilities given our recent investigation with the Department of Justice in this area and as we commemorate the 25th Anniversary of the ADA. This guidance will help ensure that parents and prospective parents are not discriminatorily deprived of custody of their children, or denied the opportunity to adopt or serve as foster parents, because of stereotypes and unfounded assumptions about persons with disabilities, which we have seen in our complaints.”
“Providing this technical assistance to state and local agencies and courts will help ensure that families with a member with a disability get equal access to vital child welfare services,” said Acting Assistant Secretary Mark Greenberg of HHS’ Administration for Children and Families (ACF).
The Children’s Bureau in the Department of Health and Human Services, ACF administers funding for child welfare agencies and courts. ACF also provides guidance and technical assistance to child welfare agencies regarding child welfare law. OCR and the Civil Rights Division of the Department of Justice are responsible for protecting the rights of individuals with disabilities by enforcing Title II of the ADA and Section 504 of the Rehabilitation Act. These laws prohibit discrimination on the basis of disability, and require providers of government programs, services and activities to make reasonable modifications to their policies and practices when necessary to avoid discrimination on the basis of disability, unless such modifications would fundamentally alter the nature of the program or the services.
Additional information about the Civil Rights Division of the Department of Justice is available at www.justice.gov/crt. Additional information about the Department of Health and Human Services, Office of the Administration for Children and Families, Children’s Bureau is available at www.acf.hhs.gov/cb. Additional information about the Department of Health and Human Service’s Office for Civil Rights is available at www.hhs.gov/ocr/.
Dekalb Regional Crisis Center Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with DeKalb Regional Crisis Center (DeKalb Regional), a mental health and addiction facility, to resolve an investigation into allegations that it violated Title II of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“A person who is deaf or hard-of-hearing should be able to participate fully in his or her health care decisions,” said U.S. Attorney John Horn. “When a deaf patient is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care. Access to medical care is a fundamental part of our society, and we will continue to devote resources to eradicate barriers to health care for persons with disabilities.”
An investigation was initiated by a complaint filed with the U.S. Attorney’s Office alleging that, during a 13-day admission, DeKalb Regional failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication for the complainant. The complainant is deaf and uses American Sign Language as her primary means of communication. The complainant was admitted to DeKalb Regional for mental health treatment. On numerous occasions during her stay, the complainant alleged that DeKalb Regional failed to provide a qualified sign language interpreter when necessary to ensure effective communication.
Under the settlement agreement, DeKalb Regional agreed to ensure effective communication to patients who are deaf and hard of hearing. In the future, DeKalb Regional agreed to give primary consideration to the expressed preference for a particular auxiliary aid or service by an individual who is deaf or hard of hearing. Among other things, DeKalb Regional has agreed to provide mandatory in-service training to all its personnel and provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard-of-hearing patients and companions. DeKalb Regional also agreed to pay $60,000 to the complainant.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant United States Attorney Aileen Bell Hughes and Assistant United States Attorney Emily Shingler are representing the United States in this matter.
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.
Defendant Sentenced in Manhattan Federal Court to 20 Years in Prison for Leading Crew That Committed Violent Daytime Robberies of Jewelry and Watch Stores Across NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SEAN ROBINSON was sentenced today in Manhattan federal court to 20 years in prison for leading a robbery crew that committed violent daytime robberies of jewelry and watch stores in 2013 and 2014. Since February 2014, ROBINSON and ten other defendants have been charged for their respective roles in this robbery conspiracy. In May 2014, ROBINSON pled guilty to participating in the robbery conspiracy. ROBINSON was sentenced by United States District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “Sean Robinson led a violent robbery crew that terrorized employees and customers at high-end jewelry and watch stores up and down the Northeastern seaboard, from Manhattan, Brooklyn, and Connecticut to New Jersey and Virginia. Robinson’s crime spree included a gunpoint robbery in broad daylight of a Brooklyn jewelry store where the robbers shot the store owner.”
According to the allegations contained in court documents previously filed in federal court, and statements made in court during the pleas and sentencing proceedings of ROBINSON and other members of the conspiracy:
Between approximately July 1, 2013, and January 30, 2014, a highly organized crew engaged in a series of violent robberies of high-end jewelry and watch stores located in four states. During those robberies, crew members smashed display cases with hammers while customers and employees were in the stores and stole more than a million dollars in luxury watches.
The crew at times used violence to carry out the scheme. For example, during the September 23, 2013, armed daytime robbery of a jewelry store in Brooklyn, New York, in which two of the robbers displayed handguns, one of the robbers shot the store owner when he attempted to prevent members of the crew from fleeing with stolen jewelry. ROBINSON, the leader of the crew, planned the September 23, 2013, robbery, as well as a series of other robberies committed by this crew.
Among the stores robbed by the crew are: Cartier, Travers Jewelers, and Golden Nugget Jewelry, all in Manhattan, the Borgata Hotel and Casino in Atlantic City, New Jersey, Schwarzschild’s Jewelers in Richmond, Virginia, Martin Jewelers in Cranford, New Jersey, Henry Reid and Sons Jewelers in New Canaan, Connecticut, and Litan Jewelers in Brooklyn, New York.
* * *
In imposing today’s sentence, Judge Preska noted that ROBINSON “planned and organized all of these robberies,” which were “very serious offenses with serious consequences to victims [and] bystanders.” Judge Preska also said that ROBINSON’s “involvement reflects a total disregard for the law.”
Eleven defendants have been charged in this investigation. Two members of this conspiracy were previously sentenced. On March 18, 2015, Judge Preska sentenced Allen Williams to 108 months in prison. On October 23, 2014, United States District Judge Robert P. Patterson sentenced Terrell Ratliff to 33 months in prison. Two members of the conspiracy, Jamal Dehoyos and Courtney Hardin, are currently fugitives.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation’s Interstate Robbery Apprehension Team and the New York City Police Department. He also thanked the police departments of Cranford, New Jersey, Atlantic City, New Jersey Richmond, Virginia, and New Canaan, Connecticut, and the Manhattan and Brooklyn District Attorneys’ Offices, and the Union County, New Jersey, Prosecutor’s Office, for their assistance in the investigation, which he noted is ongoing.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Andrea M. Griswold and Richard Cooper are in charge of the prosecution.
Danbury Restaurant Owner Who Evaded Payment of Nearly $400K in Federal Income Taxes is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AGOSTINO INCORVAIA, 47, of Danbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which INCORVAIA must serve in home confinement, for tax evasion. INCORVAIA also was ordered to pay a fine of $5,000 and more than $800,000 in back taxes, interest and penalties.
According to court documents and statements made in court, from 2007 to 2012, INCORVAIA failed to report to the Internal Revenue Service approximately $2.65 million in gross receipts generated by “Augie’s #1,” a restaurant he operates in Danbury.
During the investigation of this matter, INCORVAIA admitted to an undercover IRS agent that, for five years, he understated the restaurant’s gross receipts on his income tax returns and provided false numbers to his accountant, that he employed a large group of “off the books” workers, and that a portion of the unreported receipts supported his business interests and properties, including those in the Dominican Republic. INCORVAIA’s admissions, which were recorded, were corroborated by the restaurant’s “point of sale” system that was seized pursuant to a search warrant.
In 2012, INCORVAIA advertised his restaurant for sale with an asking price of $1.25 million.
On April 14, 2015, INCORVAIA pleaded guilty to one count of tax evasion and admitted that he evaded payment of income taxes when filing his joint income tax returns for the 2007 through 2011 tax years.
As part of his sentence, INCORVAIA is required to pay $396,650 in back taxes, as well approximately $427,000 in interest and penalties.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Hal Chen.
Criminal Complaint Filed Against Brent A. GarrettRead the Press Release
FORT WAYNE- United States Attorney David A. Capp announced today that Brent A. Garrett, 38 of Bluffton, Indiana was charged with knowingly possessing firearms, including machineguns and other firearms, which were not registered to him in the National Firearms Registration and Transfer Record.
According to documents filed in the case, on or about May 15 through August 6, 2015, Mr. Garrett knowingly possessed firearms, including machineguns, silencers, and a short-barreled rifle, which were not properly registered to him in the National Firearms Registration and Transfer Record. During the investigation, an undercover ATF agent purchased fully automatic machineguns (one receiver and one assembled machinegun) and several silencers from Mr. Garrett, and Mr. Garrett possessed additional unregistered items at his home.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Bluffton Police Department, Fort Wayne Police Department, Indiana State Police and Wells County Sheriff’s Department. The case is being handled by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
Clarksburg man sentenced for heroin, marijuana traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marcus McBride, 25, of Clarksburg, was sentenced today to twelve months and one day in prison for his role in possessing and distributing heroin and marijuana in Harrison County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that McBride utilized his Clarksburg, West Virginia residence to further the unlawful storage, distribution, and use of heroin and marijuana throughout late 2014.
McBride pled guilty in March 2015 to one count of “Maintaining a Drug-Involved Premises – Aiding and Abetting.”
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Chapmanville man sentenced for selling OpanaRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced that Joseph Allen Rogers, 41, of Chapmanville, was sentenced to three years in federal prison for selling the powerful prescription painkiller oxymorphone, commonly known as Opana. The sentence was imposed by United States District Judge John T. Copenhaver, Jr. in Charleston.
Rogers previously pleaded guilty to distribution of oxymorphone. As part of the plea, Rogers admitted that he sold Opana to a confidential informant on three separate occasions on April 14, 15, and 16, 2014. Officers with the U.S. 119 Task Force also executed a search warrant on Rogers’ residence in Chapmanville and located additional oxymorphone, oxycodone, cash, and a firearm.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn is responsible for the prosecution.
The prosecution was brought as part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Centerville Man Sentenced to Prison for Firearm OffenseRead the Press Release
Demetrius Booker, 28, of Centerville, Illinois, was sentenced to 30 months in prison for Unlawful Possession of a Firearm by a Previously Convicted Felon, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Booker was also ordered to pay a $100 special assessment, a $250 fine, and to serve 1 year of supervised release following imprisonment.
"I hope that cases like this will help send out the message that my office will continue to vigorously prosecute any illegal use of firearms, and that the penalties are severe." said United States Attorney Wigginton.
Court documents establish that on October 19, 2014, officers responded to a report that witnesses observed a male subject armed with a black handgun. Upon arriving at the scene, officers observed the subject jump a fence and toss the handgun. Officers located the subject hiding on the porch of a residential property. A search of the area was conducted and officers located the weapon, which was a 9mm Millennium handgun with an extended magazine containing 19 live rounds.
The investigation was conducted by the East Saint Louis Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Michael Hallock.
California Resident Pleads Guilty to Providing Material Support to ISIL and Making False StatementsRead the Press Release
Adam Dandach, 21, of Orange, California, pleaded guilty today to a two-count second superseding information charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) and making a false statement in a passport application.
The guilty plea was announced today by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge David Bowdich of the FBI's Los Angeles Field Office. Dandach pleaded guilty before U.S. District Judge James V. Selna of the Central District of California.
“Adam Dandach attempted to travel to Syria to provide material support to ISIL, and lied in his passport application in order to do so,” said Assistant Attorney General Carlin. “One of the National Security Division’s top priorities remains stemming the flow of foreign fighters and bringing to justice those who seek to provide material support to foreign designated terrorist organizations.”
“This case demonstrates the need for continued vigilance and swift action to fight the false allure of foreign terrorist organizations that threaten the security of the United States,” said U.S. Attorney Decker. “As Mr. Dandach succumbed to ISIL’s online recruiting efforts, the Joint Terrorism Task Force was able to uncover his plan before he left the United States, which prevented this young man from becoming a foreign fighter. As a result of today’s guilty pleas, Mr. Dandach now faces a lengthy term in federal prison.”
“Mr. Dandach acknowledged his support for the Islamic State, a terrorist organization whose members are known for the torture and murder of innocent victims,” said Assistant Director in Charge Bowdich. “The FBI and our Joint Terrorism Task Force partners are committed to disrupting the increasing trend concerning individuals who travel, or attempt to travel, from the United States to train with terrorists, and who thereby pose a potential threat of returning to commit attacks on U.S. soil.”
Dandach admitted, pursuant to court documents, that beginning in approximately November 2013 and continuing until July 2, 2014, he attempted to travel to Syria to join ISIL with the purpose of providing material support to the designated foreign terrorist organization. He further admitted that he knew that ISIL was a designated foreign terrorist organization that engaged in terrorist activity and terrorism.
According to court documents, on July 1, 2014, Dandach purchased a ticket to fly from Santa Ana, California, to Istanbul. The FBI intercepted Dandach at the John Wayne International Airport the following day. Dandach told FBI special agents that his ultimate destination was Syria and that he intended to pledge allegiance to ISIL’s leader, Abu Bakr al-Baghdadi. He explained that he wished to live under the control of ISIL and intended to undergo weapons training.
Dandach also admitted that he made a false statement in a passport application, namely that he had lost his previous passport. In fact, a family member had taken Dandach’s passport from him during the previous year when he expressed an interest in traveling to Syria.
Dandach faces a statutory maximum sentence of 15 years for providing material support to a designated foreign terrorist organization and a statutory maximum sentence of 10 years for making a false statement in a passport application. A sentencing hearing is scheduled for Jan. 11, 2016.
The investigation was conducted by the FBI’s Joint Terrorism Task Force in Orange County, California. The case was prosecuted by Assistant U.S. Attorney Celeste Corlett of the Central District of California and Trial Attorney Annamartine Salick of the National Security Division’s Counterterrorism Section, with assistance from Trial Attorneys Jolie Zimmerman and Kelly Harris of the National Security Division’s Counterterrorism Section.
Dandach Plea Agreement
Cabell County man sentenced to federal prison for failing to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. - A 55-year old Cabell County man was sentenced to 15 months in federal prison for failing to register as a sex offender, U.S. Attorney Booth Goodwin announced. Daniel Walter Varnes, of Huntington, West Virginia, had previously entered a guilty plea before Chief District Court Judge Robert C. Chambers.
Varnes was convicted in 2000 in Colorado of Sexual Assault of a Child Under Age 15 by a Person in a Position of Trust and was required to register as a sex offender as a result. In August 2014, Varnes moved to Huntington, West Virginia, and did not register as a sex offender despite knowing it was required by law. He continued to reside and work in Huntington without registering until his arrest on February 6, 2015.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is responsible for the prosecution.
This case is being brought as part of Project Safe Childhood, U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Brooklyn Man Pleads Guilty in Scheme to Defraud IRSRead the Press Release
ERIE, Pa. – A resident of Brooklyn, New York, pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Kwame Asamoah, 35, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Asamoah allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Sarfo would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Judge Cercone scheduled sentencing for December 21, 2015 at 12:45 p.m. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Asamoah.
Bergen County, New Jersey, Doctor Admits Billing for Bogus Office Visits, Altering Patient Medical RecordsRead the Press Release
NEWARK, N.J. – A family medicine physician with offices in Cresskill and Little Falls, New Jersey, today admitted defrauding Medicare, Medicaid and private insurance companies out of hundreds of thousands of dollars by billing them for non-existent office visits, U.S. Attorney Paul J. Fishman announced.
Albert Ades, 60, of Englewood, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with health care fraud.
According to the documents filed and statements made in court:
From 2005 through June 2014, Ades, a licensed family medicine doctor who owns and operates Albert Ades M.D., P.A., fraudulently billed Medicare, Medicaid and various private payors for face-to-face physician office visits that never happened. Ades wrote prescriptions, authorized refills or performed other tasks without ever seeing those patients on the billed dates. Ades admitted today that he also altered patients’ medical charts by inserting fabricated blood pressure readings, other vitals and clinical notes on patients’ charts to make it appear as if they had visited Ades’s office on the billed dates.
Ades admitted that, between 2009 and 2013, his scheme caused a loss of approximately $280,000 to federal health care benefit programs and private insurers.
The charge of health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Nov. 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and investigators with the U.S. Attorney’s Office with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Jane H. Yoon and Danielle M. Corcione of the U.S. Attorney’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Alexander Spiro Esq., New York
Bastrop resident pleads guilty to sex offender registration violation chargeRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Bastrop man pleaded guilty to not updating his sex offender registration.
Solomon Lewis Devoil, 50, of Bastrop, La., pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of failure to register as a sex offender. His plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Devoil knowingly failed to register as a sex offender in Louisiana and traveled in and out of the Western District of Louisiana without registering as a sex offender in the State of Louisiana. In December 1997, Devoil pleaded guilty in San Bernadino Superior Court in California to lewd act upon a child. The victim was 14, and Devoil was 32. He is required to register as a sex offender for life. Bastrop Police arrested him for failure to appear in court in January 2014 and in February of 2014 for simple burglary. On May 12 and 14 of 2015, Devoil failed to appear in court for hearings related to the simple burglary charge, and a warrant for his arrest was issued. Devoil was arrested on June 15, 2016 at an Elementary School in Oklahoma where he was working.
Devoil faces up to 10 years in prison, three years supervised release and a $250,000 fine. A sentencing date of December 1, 2015 was set.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney F. Michael O’Mara is prosecuting the case.
Baltimore Getaway Driver Admits to Conspiring to Participate in Three Armed RobberiesRead the Press Release
Baltimore, Maryland – Antwan Travers, age 45, of Baltimore, Maryland, pleaded guilty today to charges arising from his participation in a conspiracy to commit three armed robberies of commercial establishments.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Travers’ plea agreement, in March 2014, Travers and co-defendant Darryl Green planned to commit an armed robbery at a pharmacy located in the 6600 block of Security Boulevard in Baltimore. According to his plea agreement, on March 19, 2014, Travers drove Green to the store and waited outside as the getaway driver. Green entered the store and asked an employee about medication for pink eye. At the time, the employee was holding her two-month old baby. The employee’s husband was also in the store. Green pointed a long-barreled BB pistol at the employee and her baby and said, “I’m going to kill the baby.” He then ordered the employee to move towards the cash register. The employee and her husband activated a loud panic alarm, and Green fled the store. Travers drove Green away from the pharmacy.
Travers also admitted that he and Green attempted to rob a grocery store on March 27, 2014. Travers drove Green to the supermarket. Green entered the store and asked a store employee about purchasing a Keno card. Green then pointed a handgun at the employee and demanded money from the register. Green said, “You better make it quick or I’m going to shoot you.” Travers drove away before Green could escape. Green attempted to run away, but he was quickly caught by members of the Baltimore County Police Department. Officers found the gun that Green had used during the robbery, a loaded .380 caliber handgun with an obliterated serial number, near the location where Green was arrested. Officers also found the stolen money, about $5,000, in a plastic bag.
Travers also admitted that he was the getaway driver in the February 16, 2014 robbery of a store in the 6600 block of Security Boulevard. In that robbery, Travers drove an unknown male to the store. The man brandished a firearm and demanded that the store employee empty the cash register and the safe. The man stole approximately $6,000.
Travers and the government have agreed that if the Court accepts the plea agreement, Travers will be sentenced to between 15 and 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for November 16, 2015 at 3:00 p.m.
Darryl Green, age 48, of Baltimore, previously pleaded guilty to his role in the robberies and is scheduled to be sentenced on September 14, 2015 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Joshua Ferrentino, who are prosecuting the case.
Austin Man Sentenced to Three Years in Federal Prison and Ordered to Pay More Than $870,000 in RestitutionRead the Press Release
In San Antonio, a federal judge sentenced 41–year-old Javier Guerra of Austin, TX, to 33 months in federal prison and ordered him to pay $874,801 restitution to two employers for fraudulently selling their computer parts announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
During the sentencing hearing last Thursday, U.S. District Judge Orlando L. Garcia also ordered that Guerra, a computer network engineer, be placed on supervised release for a period of three years after completing his prison term. Judge Garcia also ordered that Guerra, who is currently on bond, must surrender to federal authorities to begin serving his prison term after notification by the U.S. Bureau of Prisons of facility designation.
On August 6, 2014, Guerra pleaded guilty to one count of wire fraud. By pleading guilty, Guerra admitted that between 2008 and 2012, he stole computer related equipment from Cisco Systems, Inc. and H.E.B., then sold the equipment using the Internet for personal financial gain. The equipment Guerra sold included existing business inventory as well as replacement parts delivered to him based upon false declarations he made to his employer that the equipment was either damaged or defective.
This case was investigated by the Federal Bureau of Investigation with assistance from Cisco Systems Brand Protection investigators and H.E.B. Assistant U.S. Attorney Michael Hardy prosecuted this case on behalf of the Government.
Akron man sentenced to 30 months in prison for claiming he was disabled while actually workingRead the Press Release
An Akron man was sentenced to 30 months in prison for defrauding federal and state agencies out of nearly $350,000 by claiming he was disabled while actually working as a home-repair contractor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James Van Buskirk, 53, pleaded guilty earlier this year to 11 counts, including theft of government funds, wire fraud, and fraudulently securing Social Security benefits.
"These programs exist to help those who are truly disabled and cannot work," Dettelbach said. "We will continue to prosecute those who abuse programs like these for their own enrichment."
Van Buskirk stole $75,823 in Social Security benefits designated for the truly disabled by reporting complete disability while still performing physical labor as a home repair contractor. He similarly falsely applied for and received $269,932 from the Ohio Bureau of Worker’s Compensation (OBWC) through the same scheme to defraud. He executed this scheme from approximately November 2002 through April 2014, according to court documents.
Van Buskirk concealed and failed to disclose his self-employment, knowing that it would affect his right to Social Security disability benefits.
Assistant United States Attorney Matthew J. Cronin prosecuted the case following an investigation by the SSA Office of Inspector General and the OBWC.
7 August 2015
Voting Rights Act Marks 50th AnniversaryRead the Press Release
This week marks the 50th anniversary of the Voting Rights Act. Acting U.S. Attorney Randolph J. Seiler provided the following statement to commemorate the anniversary of the landmark civil legislation:
“The U. S. Attorney’s Office for the District of South Dakota has vigorously enforced the Voting Rights Act and other Federal elections statutes throughout South Dakota for many years. We will continue to work with State and County election officials to ensure equal access to the ballot box for all eligible voters. We are committed to providing every voter in every election the right to cast their vote in an environment free from intimidation and fear.”
The Civil Rights Division for the Department of Justice has assembled the attached fact sheet to provide information on the Department’s efforts to protect the right to vote. Of particular note, for the November 2014 general election, the department monitored elections in three counties where there are significant populations of Native American voters. Two of those counties were in South Dakota, which included Charles Mix County and Shannon County.
San Diego Loan Broker Indicted for Bribing Bank Vice PresidentRead the Press Release
NEWS RELEASE SUMMARY – August 7, 2015
SAN DIEGO – Jocelyn J. Brown, a loan broker for the now-defunct La Jolla Bank, was indicted yesterday by a federal grand jury on charges that she paid kickbacks to the bank’s vice president and Small Business Administration (“SBA”) lending department manager.
According to the indictment, which was unsealed today, Brown paid the bribes in return for the banker’s assurance that the loans Brown referred would be approved and funded, and, more importantly, that Brown’s commissions would keep on flowing. Brown allegedly collected tens of thousands of dollars in referral fees from La Jolla Bank, and kicked back a portion to the bank manager, in cash, every time she was paid, the indictment said.
La Jolla Bank was a bank and financial services company that provided consumer, business, and construction loans. It opened its SBA lending department in 2005. In February 2010, the bank failed, and was taken over by the FDIC. At the time of its failure, the bank had outstanding debt of over $1 billion, which the FDIC absorbed—and ultimately passed on to the American taxpayers.
According to the indictment, Brown worked as an unofficial broker for La Jolla Bank, referring business loan customers to the bank’s SBA department. As part of this job, Brown helped her borrowers compile their loan application packages and submit them to the bank. In return for generating business, La Jolla Bank paid Brown a commission or referral fee, calculated as a percentage of each loan she referred.
In 2006, as alleged in the indictment, Brown and the SBA manager made a deal where Brown would pay a portion of her commissions back to the SBA manager, in cash, after her clients’ loans were funded. In turn, the SBA manager would make sure that Brown’s clients’ loans were approved so that Brown could continue collecting tens of thousands of dollars in commission payments. In addition, the bank manager arranged to pay Brown a fraudulent $30,000 “commission” for a loan she in fact had no part in brokering or referring to the bank. Brown went so far as to generate a fake invoice, pretending that she had earned the commission. After she was paid, Brown cashed the $30,000 check and gave a portion of the cash to the bank manager.
Brown and the SBA manager allegedly agreed to conceal these bribe payments by hiding the commissions from borrowers, making the payments in cash, and lying to law enforcement agents if they were asked about the payments. In fact, the indictment charges, Brown did lie to law enforcement to conceal the conspiracy. Despite the fact that she and the SBA manager traded several phone calls and text messages and had a sit-down meeting in June 2014, Brown falsely reported to federal agents in September 2014 that she had not spoken to or seen the bank manager since before she learned about the federal investigation.
Brown was taken into custody this morning after self-surrendering at the San Diego FBI Field Office.
“As this case demonstrates, bribing bank officials to issue loans threatens the security of the banking system and our economy,” said U.S. Attorney Laura E. Duffy. “These charges reflect our commitment to rooting out corruption at all levels.”
“Inside deals like the one alleged in this case undermine our nation’s financial system and cost taxpayers millions of dollars,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI is committed to rooting out fraud and corruption within the financial industry.”
“Today’s indictment is a reminder that those who corrupt the banking system and place the integrity of government programs at risk will be brought to justice and held accountable for their actions,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Lies by individuals that are afforded a degree of trust by virtue of their professions are particularly egregious. I want to thank the U.S. Attorney’s Office for its dedicated leadership and professionalism in the pursuit of justice in this matter.”
“The Treasury Inspector General for Tax Administration is committed to investigating and prosecuting individuals to the fullest extent of the law when they choose to commit acts of bribery,” said TIGTA Special Agent in Charge Rod Ammari. “Bribery will never be tolerated and TIGTA is committed to rooting out such illegal activity, especially when the millions of dollars that are lost from bribery are passed on to the hard working American taxpayer.”
These charges are the result of an active, ongoing criminal investigation. Anyone with information relating to these charges should contact the San Diego branch of the Federal Bureau of Investigation at (858) 320-1800.
*An indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Case Number 15CR2049-AJB
Jocelyn J. Brown, Age: 59 San Diego, CA
CHARGES
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, three years supervised release, $100 special assessment, restitution.
Bank bribery, in violation of 18 U.S.C. § 215
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or three times the value of the thing given, offered, or promised, five years’ supervised release, $100 special assessment, restitution.
Making a false statement to a federal agent, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
U.S. Small Business Administration – Office of Inspector General
Treasury Inspector General for Tax Administration
Federal Deposit Insurance Corporation – Office of Inspector General
Department of the Treasury – Office of Inspector General
Federal Housing Finance Agency – Office of Inspector General
Russian Taliban Fighter Convicted of Terrorism ChargesRead the Press Release
Led Attack on U.S. and Afghan Forces in Afghanistan in 2009
Irek Ilgiz Hamidullin, 55, a Russian national and former Russian army tank commander, was convicted today by a federal jury of conspiring to provide material support to terrorists, conspiring to shoot down American helicopters and to kill U.S. and Afghan soldiers, conspiring to use a weapon of mass destruction and several other charges related to an attack he led on U.S. and Afghan forces in Afghanistan in November 2009.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office made the announcement.
“Irek Hamidullin was convicted of numerous terrorism offenses in connection with orchestrating and conducting a violent attack on Afghan and U.S. forces in Afghanistan in 2009, including conspiring to kill members of the U.S. military,” said Assistant Attorney General Carlin. “Hamidullin was captured and detained by the U.S. military in Afghanistan and brought to the United States for trial. This case once again demonstrates our resolve to find and bring to justice, using all available tools, those who target U.S. citizens and interests around the world.”
“This case is an example of our criminal justice system functioning exactly the way it was designed,” said U.S. Attorney Boente. “I want to commend our trial team for their hard work in this case, bringing it from indictment to conviction in 10 months. I would also like to thank our partners at the FBI’s Washington Field Office for their efforts on this case.”
“Hamidullin’s conviction today should serve as a reminder to terrorists around the globe that the FBI is committed to finding justice for Americans who are attacked both overseas and at home,” said FBI Assistant Director in Charge McCabe. “Along with our partners at the U.S. Attorney’s Office, we will aggressively bring to justice those who seek to kill U.S. troops and who provide material support to terrorist organizations.”
Hamidullin was indicted by a federal grand jury in October 2014, followed by a superseding indictment on April 23, 2015. The guilty verdict was accepted by U.S. District Judge Henry E. Hudson of the Eastern District of Virginia.
According to court records and evidence at trial, Hamidullin was a former Russian army tank commander who had contact with high level Taliban and Haqqani Network personnel. On Nov. 28, 2009, Hamidullin led a group of fighters in an attack on U.S. and Afghan forces at Camp Leyza, located in the Khost Province of Afghanistan, near the border of Pakistan. He had planned the attack for months, received approval from the Taliban and Haqqani Network, recruited other fighters and acquired weapons for the attack, including IED’s, heavy machine guns and a shoulder-fired rocket, with the intent of shooting down U.S. helicopters responding to the attack.
According to evidence presented at trial, on the night of Nov. 28, 2009, Hamidullin and his fighters initiated their attack, beginning with firing into Camp Leyza. Soon after the attack began, two U.S. Army helicopters responded to Camp Leyza, just as Hamidullin knew from his months of planning and reconnaissance. He positioned himself on a nearby hill, away from his fighters, where he had a clear view of the battlefield and could radio orders to his fighters. As the helicopters approached, he ordered his fighters to fire the anti-aircraft weapons he had strategically placed in the area. Both weapons malfunctioned and the helicopters were not fired upon. He then ordered his fighters to pack up their weapons and other gear and return to Pakistan. During their retreat, U.S. forces ultimately identified and eliminated approximately 20 of Hamidullin’s fighters.
The next morning, as U.S. and Afghan forces were conducting a battle damage assessment, Hamidullin was found hiding on the battlefield. After a brief firefight with U.S. Army soldiers, the two insurgents were killed and Hamidullin was wounded and captured.
Hamidullin faces a maximum penalty of life in prison when he is sentenced on Nov. 6, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s Washington, D.C., Field Office. The case is being prosecuted by Assistant U.S. Attorneys Michael Gill and James P. Gillis of the Eastern District of Virginia and Trial Attorney Jennifer E. Levy of the National Security Division’s Counterterrorism Section.
Hamidullin Evidence (Photograph of Surrender)
Hamidullin Evidence (Photograph of Weapons)
Rochester Man Sentenced on Child Pornography ChargesRead 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 Nicholas Matthew Skvarla, 33 of Rochester, NY, who was convicted of receipt and possession of child pornography following a non-jury trial, was sentenced to 72 months in prison and five years supervised release by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorneys Aaron J. Mango and Bradley E. Tyler, who handled the case, stated that between May 2008 and September of 2008, the defendant used a file sharing internet program to receive and distribute child pornography. The images included prepubescent minors engaged in sexually explicit conduct.
The sentencing is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick M. O’Flynn, the Federal Bureau of Investigation, and the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Rochester Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michael T. Williams, 50, of Rochester, NY, pleaded guilty to sex trafficking of a minor before U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorneys Tiffany H. Lee and Bradley E. Tyler, who are handling the case, stated that between January 2012 and February 2012, the defendant enticed a female victim who was under the age of 18 to engage in commercial sex acts. The victim, who was 16 years old, was taken to a Caroline Street address by Williams. The defendant had pictures taken of the victim which were advertised on "Backpage.com." The victim told investigators that all of the money she received after meeting the men and performing sexual acts was turned over to Williams.
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 is scheduled for November 9, 2015 at 11:15 a.m. before Judge Geraci.
Rhode Island Man Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
Ricky T. Wallace aka Justice, 34, of Pawtucket, Rhode Island, was sentenced today to 12 years in federal prison for trafficking a 17-year-old female resident of a group home in the Boston area to Rhode Island for the purposes of commercial sexual activity.
At the time of his guilty plea, Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she was directed to pose in photographs that were posted on Backpage.com and then offered for commercial sexual activity.
At sentencing, U.S. District Court Judge Mary M. Lisa also ordered Wallace to serve five years supervised release upon completion of his prison sentence and to have no contact, direct or indirect, with the victims. Wallace pleaded guilty on March 23, 2015, to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity and two counts of transportation of an individual for sexual activity.
Wallace’s sentenced is announced by U.S. Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office and Superintendent Colonel Steven G. O’Donnell of the Rhode Island State Police.
Two co-defendants in this matter, Kemont Bowie aka Daddy, 34, and Raechyl Spooner aka Kitty, 21, of Pawtucket, Rhode Island, are scheduled to be sentenced in September. Bowie pleaded guilty on June 11, 2015, to one count each of conspiracy, sex trafficking of a child and transportation of a minor for sexual activity. Spooner pleaded guilty on June 12, 2015, to one count of conspiracy.
“At bottom, the defendant here traded in, and made money on, the vulnerability of his teenage and young adult victims,” said U.S. Attorney Neronha. “Few, if any, crimes are more outrageous and he deserves every minute of the twelve years he will serve in federal prison. Those on the other side of these criminal transactions – the sex buyers – should also take notice, for they too are the focus of our law enforcement efforts and they too will have a price to pay, whether in the context of this case or in others.
“Mr. Wallace profited from a sex trafficking venture that used force and coercion to compel women to engage in commercial sex acts,” said Special Agent in Charge Lisi. “These crimes often go undetected because victims live in fear from physical abuse. My Office is committed to aggressively investigating individuals and organizations that profit from this illegal conduct.”
“Targeting and prosecuting those who prey on the vulnerability of young girls and women, and force them into trafficking for sex, is a major priority of the Rhode Island State Police,” said Superintendent Colonel O’Donnell. “This is another great example of collaborative law enforcement and prosecution. I applaud the strong sentence imposed today for being involved in this activity as a means to deter others from being involved in this underground culture and to send the message to victims that they have a place to turn for help.”
According to court documents and information presented to the court, the 17-year-old victim in this case was driven from South Station in Boston to Rhode Island in the early morning hours of Aug. 19, 2014, for the purposes of being trafficked for commercial sexual activity. The young woman was driven to a Pawtucket residence where she was located and rescued six days later by FBI agents and officers from the Pawtucket and Central Falls Police Departments.
Additionally, according to court documents, on Aug. 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge. Instead of being driving to Cambridge, the woman was driven first to Pawtucket and then to a motel in Seekonk, Massachusetts. The woman was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. She was able to get away from Wallace the next day after her repeated requests to be driven back to the Boston area were ignored.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The U.S. Marshal Service, the Arlington, Massachusetts, Police Department and the Pawtucket and Central Falls, Rhode Island Police Departments assisted the FBI and Rhode Island State Police in the investigation of this matter.
R.I. Man Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
PROVIDENCE, R.I. - Ricky T. Wallace, a/k/a Justice, 34, of Pawtucket, R.I., was sentenced today to 144 months in federal prison for trafficking a 17-year-old female resident of a group home in the Boston area to Rhode Island for the purposes of commercial sexual activity.
At the time of his guilty plea, Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she was directed to pose in photographs that were posted on Backpage.com and then offered for commercial sexual activity.
At sentencing, U.S. District Court Judge Mary M. Lisa also ordered Wallace to serve 5 years supervised release upon completion of his prison sentence and to have no contact, direct or indirect, with the victims. Wallace pleaded guilty on March 23, 2015, to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity, and two counts of transportation of an individual for sexual activity.
Wallace’s sentenced is announced by United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
Two co-defendants in this matter, Kemont Bowie, a/k/a Daddy, 34, and Raechyl Spooner, a/k/a Kitty, 21, of Pawtucket, R.I., are scheduled to be sentenced in September. Bowie pleaded guilty on June 11, 2015, to one count each of conspiracy, sex trafficking of a child and transportation of a minor for sexual activity. Spooner pleaded guilty on June 12, 2015, to one count of conspiracy.
“At bottom, the defendant here traded in, and made money on, the vulnerability of his teenage and young adult victims. Few, if any, crimes are more outrageous, and he deserves every minute of the twelve years he will serve in federal prison,” said United States Attorney Peter F. Neronha. “Those on the other side of these criminal transactions – the sex buyers – should also take notice, for they too are the focus of our law enforcement efforts, and they too will have a price to pay, whether in the context of this case or in others.
“Taking on the scourge of human trafficking requires a team approach, and that team is not limited to law enforcement. Accordingly, I want to especially thank our partners at Hasbro Children’s Hospital and Day One for efforts in assisting the victims in this case, and other cases like it. I also want to thank Attorney General Peter Kilmartin and the Rhode Island Department of Attorney General for their continuing partnership with this Office as we work these important cases.”
Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI added, “Mr. Wallace profited from a sex trafficking venture that used force and coercion to compel women to engage in commercial sex acts. These crimes often go undetected because victims live in fear from physical abuse. My Office is committed to aggressively investigating individuals and organizations that profit from this illegal conduct.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police commented, “Targeting and prosecuting those who prey on the vulnerability of young girls and women, and force them into trafficking for sex, is a major priority of the Rhode Island State Police. This is another great example of collaborative law enforcement and prosecution. I applaud the strong sentence imposed today for being involved in this activity as a means to deter others from being involved in this underground culture and to send the message to victims that they have a place to turn for help.”
According to court documents and information presented to the court, the 17-year-old victim in this case was driven from South Station in Boston to Rhode Island in the early morning hours of August 19, 2014, for the purposes of being trafficked for commercial sexual activity. The young woman was driven to a Pawtucket residence where she was located and rescued six days later by FBI agents and officers from the Pawtucket and Central Falls Police Departments.
Additionally, according to court documents, on August 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge. Instead of being driving to Cambridge, the woman was driven first to Pawtucket, R.I., and then to a motel in Seekonk, Mass. The woman was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. She was able to get away from Wallace the next day after her repeated requests to be driven back to the Boston area were ignored.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The United States Marshal Service, the Arlington, Mass., Police Department, and the Pawtucket and Central Falls, R.I. Police Departments assisted the FBI and Rhode Island State Police in the investigation of this matter.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Port St. Lucie Resident Sentenced for Unemployment insurance FraudRead the Press Release
Yesterday, a Port St. Lucie woman was sentenced to five years of probation, and was ordered to pay $14,421.00 in restitution, by United States District Judge Donald M. Middlebrooks, for her participation in an unemployment insurance fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of the Inspector General (DOL-OIG), and Jesse Pannucio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), made the announcement.
Hyacinth Oslin Reid, 55, of Port St. Lucie, previously pled guilty to one count of mail fraud.
According to court documents, Reid was a registered nurse who first filed for unemployment insurance benefits in October 2009, when she became unemployed. The unemployment payments were mailed to Reid bi-weekly by the DEO, which administers the unemployment insurance benefit program in the State of Florida using monies provided by the federal government. Every two weeks, Reid was required to certify to the DEO that she remained unemployed and eligible for the benefit payments.
After qualifying for the unemployment insurance benefits, however, Reid did find work again at a new job, which should have disqualified her for further payment under the program. Reid instead continued to fraudulently certify her eligibility for unemployment benefits every two weeks, between October 2009 and September 2010. In this manner, Reid fraudulently accumulated $14,421 in unemployment benefit check payments for which she was not lawfully entitled.
Mr. Ferrer commended the investigative efforts of the DOL-OIG and DEO. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Perry County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On August 6, 2015, Clinton W. Waters, 38, of DuQuoin, was sentenced for his involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Waters, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 188 months in federal prison, 3 years of supervised release, and fined $850.00. Waters was awarded 9 months credit for time served. The offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Evidence at the plea and sentencing hearings established that Waters was involved with numerous other persons in the manufacture of methamphetamine. Waters was a methamphetamine cook and taught others how to manufacture methamphetamine. Waters received an enhanced sentence based on his classification as a Career Offender. Three co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Three co-defendants have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Owner of Orange County Real Estate Investment Firm Found Guilty in Fraud Scheme that Ended in $169 Million BankruptcyRead the Press Release
SANTA ANA, California – The CEO of a now-defunct Southern California real estate investment firm was convicted this afternoon of federal fraud charges for perpetrating a scheme that ended with the bankruptcy of the company and hundreds of investors collectively losing as much as $169 million.
Michael J. Stewart, 68, who currently resides in San Clemente, was found guilty of 11 counts of mail fraud following a nine-day jury trial before United States District Judge Cormac J. Carney.
Stewart owned and was the chief executive of Pacific Property Assets (PPA), which had offices in Long Beach and Irvine. Along with co-defendant John Packard, Stewart created PPA in 1999 to purchase, renovate, operate, and resell or refinance apartment complexes in Southern California and Arizona. Typically, PPA financed property acquisitions through mortgages, and it raised money from private investors to pay for renovations to the properties. After several years, PPA would refinance (or sometimes sell) each property.
Although PPA’s apartment rental operations were not profitable, it was able to raise cash through refinancing and selling properties. As real estate values were generally increasing until approximately 2007, the properties were refinanced at ever-higher values, which enabled PPA to use the extra refinancing proceeds to not only pay off the original mortgages, but also to make payments on other loans, make payments to investors, to pay other business expenses, and to pay Stewart and Packard. In its 10 years of operations, PPA acquired more than 100 real estate properties and raised hundreds of millions of dollars from hundreds of investors. As Stewart told prospective investors, from 2004 to 2007, PPA was named three times to Inc. magazine’s list of the fastest growing privately held companies in the United States, was a regional finalist in Ernst & Young’s Entrepreneur of the Year Program, and was listed by the Orange County Business Journal as one of fastest growing businesses in Orange County.
But as the government argued at trial, by the end of 2007, when the real estate market began to decline and credit became scarce, PPA’s business model was no longer feasible. As the value of PPA’s properties was falling, PPA could no longer raise money by refinancing its properties with increasingly large mortgages or selling properties at a profit. Furthermore, PPA faced large debt payments to its mortgage lenders and private investors, while it was continuing to lose money in its business operations. In May 2008, PPA’s Controller warned Stewart and Packard that without a new source of funds, PPA faced losing as much as $2 million dollars per month, and emails between the owners revealed that they projected that trend to continue.
To keep PPA afloat, from early 2008 through April 2009, Stewart and Packard raised more than $34 million dollars from new investors, many of them elderly and retired persons investing their retirement funds in the company. For example, one 74-year-old investor testified at trial that in early 2009, shortly after her husband passed away, Stewart’s staff persuaded her to invest virtually all her retirement savings in PPA. The defendants used those new funds to pay earlier investors, mortgage lenders, other company expenses, and Stewart and Packard themselves – including annual salaries for the two co-owners of $750,000 and hundreds of thousands of dollars in additional compensation. Packard testified at trial that in 2008, he and Stewart knew that PPA was dependent on these investor loans to make its monthly debt payments and continue operating, and was unable to raise money through other means. PPA’s former Director of Investor Relations further testified that during that period, Stewart began to pressure her and others to raise more money from investors.
Evidence introduced at trial also showed that Stewart misrepresented PPA’s financial condition, claiming that its business model was still working, and that PPA was still financially stable and able to raise money through refinancing. In particular, Stewart created and provided to investors fraudulent financial statements, claiming that PPA had made millions of dollars in income in the first half of 2008 (it had actually lost millions), and Stewart arranged with Packard to temporarily deposit $2 million dollars into a company bank account to make the company’s cash position look stronger for investors, then quickly withdrew the funds from the account without reflecting the withdrawal in the balance sheet given to investors. Stewart and Packard also concealed from investors the fact that the business had effectively become a Ponzi scheme, using funds from new investors to pay back earlier investors.
In the last investor offering in early 2009, known as the Opportunity Fund, Stewart told investors that their funds would be used to purchase new real estate properties. In fact, none of the over $9 million raised was used for that purpose. Instead, the money was used to pay earlier investors and banks, to pay Stewart and Packard, and to pay PPA’s bankruptcy attorney. Stewart continued to raise money from investors until late April 2009, when he abruptly informed investors that PPA was suspending their monthly interest payments. Several investors testified at trial that even in mid-April 2009, after PPA had begun to default on some of its bank and investor loans, Stewart personally solicited investments from them in the Opportunity Fund, claiming that PPA was financially sound and their funds would be used for new real estate projects.
PPA and a group of related companies filed for bankruptcy in June 2009. When the bankruptcy was filed, PPA stated that it owed 647 private investors more than $91 million, and it owed banks approximately $100 million. The Chapter 11 trustee appointed in the bankruptcy case later estimated the total investor losses at $169 million, and predicted that investors would receive, at best, “pennies on the dollar” through the bankruptcy process.
Stewart, who was remanded into custody following today’s verdicts, faces a statutory maximum sentence of 220 years in federal prison when he is sentenced by Judge Carney on November 2.
PPA co-owner Packard pleaded guilty to one count of mail fraud in November 2014 and is scheduled to be sentenced by Judge Carney on November 9.
This investigation was conducted by the Federal Bureau of Investigation, which received assistance from the United States Trustee’s Office and the Securities & Exchange Commission.
Omaha Man Sentenced to 10 years in Prison for Possession with the Intent to Distribute Crack CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that Timothy Hickman-Smith, 26, of Omaha, Nebraska, was sentenced on August 7, 2015, to 10 years in prison by Senior United States District Judge Joseph Bataillon. Hickman-Smith had previously pled guilty after Omaha police officers had stopped him on September 11, 2014, for traffic infractions he committed while driving in North Omaha. Hickman-Smith ran from the scene of the stop but was apprehended after a short chase. A subsequent search of the car he was driving revealed approximately 2 pounds of crack cocaine in 18 individually wrapped packages ready for sale.
Hickman-Smith was sentenced to a mandatory minimum sentence because he possessed more than 280 grams of crack cocaine. After serving his sentence Hickman-Smith will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Omaha Police Department.
North Dakota Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Fort Yates, North Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on August 3, 2015, by U.S. District Judge Charles B. Kornmann.
Marissa Sitting Dog, age 27, was sentenced to 18 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Sitting Dog was indicted by a federal grand jury on March 10, 2015. She pled guilty on April 27, 2015.
The conviction stems from an incident on February 22, 2015, when the Corson County Sheriff made contact with Standing Rock Dispatch regarding a female victim who had been stabbed by Sitting Dog. A Bureau of Indian Affairs (BIA) officer responded to the call, arrived on scene, and made contact with the victim, who had a large laceration to her left armpit. The victim informed the officer that she had been stabbed with a knife by Sitting Dog after an argument arose between the two females. Law enforcement arrested Sitting Dog a short time later.
This case was investigated by the BIA, Standing Rock agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Sitting Dog was immediately turned over to the custody of the U.S. Marshals Service.
New Mexico Man Pleads Guilty to Scheme to Send Stolen Social Security Benefits to NigeriaRead the Press Release
BOSTON – A New Mexico man pleaded guilty yesterday in U.S. District Court in Boston in connection with a scheme in which Social Security benefits were obtained using stolen identities, and the proceeds wired to Nigeria.
Jasper Denetclaw, 43, pleaded guilty to theft of public money. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Nov. 10, 2015.
In early 2014, Denetclaw met a woman on Facebook who offered him the opportunity to earn some money. The woman put him in touch with “Simon” who was allegedly located in Nigeria. Following instructions from “Simon,” Denetclaw opened two bank accounts and provided “Simon” with the information for those accounts and for a third account he had previously opened. After funds had been placed in the accounts, Denetclaw then withdrew or wired a portion of the $205,879 that had been deposited as instructed by “Simon.”
The money in the accounts was from direct deposits of Social Security benefits, obtained illegally by filing applications for retirement benefits in the names of ten real people, including some Massachusetts residents. Each victim had reached full retirement age, and, therefore, the fraudulent applications resulted in lump-sum benefits payments of approximately $20,000 each. The government recovered about $100,000 when the fraud was detected; however, Denetclaw had succeeded in withdrawing the rest of the money, wiring over $67,000 to individuals in Nigeria, and keeping some of the money for himself. Denetclaw stated that, in the beginning, he thought it was a regular business, but, admitted that after he checked the accounts and realized the money was from the Social Security Administration, he knew it was wrong.
The charging statute provides a sentence of no greater than ten years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture of assets. 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 Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistance was provided by the Phoenix, Ariz. and El Paso, Texas field offices of the Social Security Administration, Office of Inspector General, Office of Investigations and the Redding, Calif. and Gallup, N.M. field offices of the Federal Bureau of Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.