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Tuesday 9 June 2015
Charleston man pleads guilty to unlawfully possessing a stolen firemanRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a man from Kanawha County pleaded guilty today in federal court in Charleston to unlawfully possessing a stolen firearm. Joshua Devere, 33, of Charleston entered a guilty plea to possession of a stolen firearm. On September 27, 2013, Devere stole a Remington 12-guage shotgun from the Trading Post sporting goods store in Marmet, Kanawha County, West Virginia.
Devere faces up to 10 years in federal prison when he is sentenced on September 9, 2015.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marmet Police Department. Assistant United States Attorney Joshua C. Hanks is in charge of the prosecution.
This case was brought as 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.
Carmel Resident Pleads Guilty to Conspiring to Distribute Crack CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Fern Dowling, 41, of Carmel pleaded guilty yesterday in U.S. District Court to conspiracy to possess with the intent to distribute and to distribute 280 grams of a mixture or substance containing cocaine base, commonly referred to as “crack.”
According to court records, between January 2010 and December 2013, the defendant sold crack in Penobscot County and elsewhere. She sold half-gram bags for $50 and gram bags for $100. She transferred the proceeds of her sales to her source of supply in the New Haven, Connecticut area and got cash and crack in exchange. The crack was transported from Connecticut to the Bangor area by other conspirators.
The defendant faces a minimum of 10 years and up to life in prison and a $10,000,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven Office).
Canadian Woman Sentenced for Identity TheftRead the Press Release
PORTLAND, Ore. - Carolyn Gallagher of Canada was sentenced today for the theft of at least 28 Forms I-9 from Urban Outfitters, where she once worked as a manager. Gallagher previously pleaded guilty to identity theft, admitting to stealing Forms I-9 from Urban Outfitters and selling them, knowing that false tax returns would be filed in the names of her victims. Gallagher appeared today before the Honorable Robert E. Jones and was sentenced to 12 months and a day in prison and ordered to forfeit $37,475—the total fraudulent refunds paid out by the Treasury based on the false tax returns in the names of her victims.
Gallagher’s co-conspirators, Jheraun Dunlap, Ernest Bagsby, Jermaine Moore, and Brandi McCall, who conspired in the preparation and filing of over 200 false tax returns, including 28 false tax returns in the names of Gallagher’s victims, were previously sentenced by the Honorable Robert E. Jones to 65 months, 51 months, 45 months, and 12 months and a day in prison.
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
California Man Sentenced for Bank Robbery in Twin FallsRead the Press Release
BOISE - Shawn Smith, 19, of Salinas, California, was sentenced today to 119 months in prison followed by four years of supervised release for bank robbery by use of dangerous weapons, and brandishing of firearms during the commission of a felony offense, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered forfeiture of any interest in the $7,351 stolen from the bank, and forfeiture of the three firearms involved in the bank robbery. Smith pleaded guilty on April 20, 2015.
According to court documents, on November 20, 2014, Smith and his co-defendant Juan Loredo, 22, also of Salinas, California, robbed the First Federal Bank in Twin Falls, Idaho. As the men entered the bank, Loredo brandished a sawed-off shotgun, and Smith brandished a semi-automatic pistol at the tellers and manager. They stole approximately $7,000, all of which was recovered by police when the men were arrested after a high-speed vehicle chase, and foot pursuit.
Sentencing for Loredo has been set for June 22, 2015, before Judge Lodge.
“Those who use firearms to commit violent crimes, such as bank robberies, will be vigorously investigated and prosecuted,” said Olson. “Innocent people who simply go to work each day in commerce, or who go into our banks to transact their daily business, must not be put in fear for their lives.”
The men were apprehended by, and the case was investigated by, the Twin Falls Police Department. The Bureau of Alcohol, Tobacco and Firearms assisted in the investigation and prosecution of these offenses.
Augusta Man Sentenced to Four Years for Leading Mail Theft ConspiracyRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ryan Pomerleau, 32, of Augusta, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to four years in prison and three years of supervised release for his role in a conspiracy to steal mail. He was also ordered to pay $87,752.22 in restitution. On January 14, 2015, Pomerleau pled guilty to conspiring to steal mail and theft of mail.
Court records reflect that in 2014, U.S. Postal Inspectors learned that Pomerleau had stolen mail, altered checks taken from that mail and enlisted others to cash the altered checks at banks in the Augusta area. Execution of a search warrant at a hotel room in Seabrook, New Hampshire resulted in the seizure of counterfeit checks, typewriters, tools used to alter checks and other evidence linked to Pomerleau. Pomerleau later admitted to Postal Inspectors that he possessed check writing software, check altering equipment and blank checks.
The investigation was conducted by the U.S. Postal Inspection Service and the Augusta, Portland, Saco and Scarborough Police Departments.
Armed Felon Who Led Police on Interstate Chase Sentenced to 96 MonthsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that James Marcus Lloyd, III, age 41, from Charleston, South Carolina was sentenced today by the Honorable Leslie J. Abrams, United States District Judge in Macon, Georgia. Mr. Lloyd was sentenced to 96 months in prison for being a felon in possession of a firearm. He was convicted by jury on March 4, 2015. This is his third federal conviction-he was previously convicted in federal court of cocaine distribution in 2000 and being a felon in possession of a firearm in 2005.
On June 24, 2013, Mr. Lloyd was stopped by a deputy with the Greene County Sheriff’s Office on Interstate 20 for several traffic violations. As the deputy stepped from his police car, Mr. Lloyd drove off, leading the police on a high-speed chase. During the chase, which reached speeds of 95 miles per hour, Mr. Lloyd passed numerous vehicles in the emergency lane, including semi-trailer tanker trucks. Eventually, Mr. Lloyd abandoned his car in the median of the Interstate and fled on foot before being caught and arrested by the police. In the path that Mr. Lloyd ran, a short distance from his car, the police found a loaded semi-automatic 9mm pistol.
“Mr. Lloyd seems determined to be armed, with this being his second federal conviction for this offense,” said U.S. Attorney Michael J. Moore. “He is also dangerous, putting in jeopardy the lives of himself, the officers trying to apprehend him, and anyone who had the misfortune to be on the road at the time of his latest arrest. He is precisely the sort of person this statute was passed to protect us against. It is good to know society will be free of the threat he poses for the next eight years.”
The case was investigated by the Greene County Sheriff’s Department and the Bureau of Alcohol, Tobacco, and Firearms (ATF). Assistant United States Attorneys Tamara Jarrett and Peter Leary prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
3 Involved in Inland Empire Loan Modification Scam That Targeted Financially Distressed Homeowners Guilty of Federal Fraud ChargesRead the Press Release
RIVERSIDE, California – A federal jury today convicted three defendants who worked at a Rancho Cucamonga business that offered bogus loan modification programs to thousands of financially distressed homeowners who lost more than $7 million when they paid for services, including loan modifications, that were never provided.
The three Southland residents found guilty today of federal fraud charges were associated with a telemarketing operation known under a series of names – including 21st Century Legal Services, Inc. – that bilked more than 4,000 homeowners across the nation, many of whom lost their homes to foreclosure.
The defendants found guilty today are:
Christopher Paul George, 45, Rancho Cucamonga, a co-owner of 21th Century, who was found guilty of one count of mail fraud affecting a financial institution, three counts of wire fraud, two counts of wire fraud affecting a financial institution, and one count of conspiracy to commit mail and wire fraud;
Crystal Taiwana Buck, 40, of Long Beach, a sales “closer,” who was convicted of three counts of mail fraud; and
Albert DiRoberto, 62, of Fullerton, who handled both sales and marketing – which included making a commercial for 21th Century and preparing talking points to respond to negative publicity – and who was found guilty of one count of mail fraud affecting a financial institution and two counts of wire fraud affecting a financial institution.
As a result of today’s guilty verdicts, George faces a statutory maximum sentence of 170 years in federal prison, Buck faces a statutory maximum sentence of 60 years in federal prison, and DiRoberto faces a statutory maximum sentence of 90 years in federal prison. All three defendants are scheduled to be sentenced on August 31 by United States District Judge Virginia A. Phillips.
With today’s guilty verdicts, a total of 11 defendants linked to 21st Century have been convicted of federal fraud charges as a result of an investigation conducted by the Federal Bureau of Investigation; IRS - Criminal Investigation; the United States Postal Inspection Service; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and the Federal Housing Finance Agency, Office of Inspector General.
During an 18-month period that began in the middle of 2008, a Rancho Cucamonga woman – Andrea Ramirez, 47, who previously pleaded guilty to conspiracy to commit mail fraud and wire fraud – operated 21st Century, which defrauded financially distressed homeowners by making false promises and guarantees regarding 21st Century’s ability to negotiate loan modifications for homeowners. Employees of 21st Century made numerous misrepresentations to victims during the course of the scheme, including falsely telling victims that 21st Century was operating a loan modification program sponsored by the United States government. Victims were generally instructed to stop communicating with their mortgage lenders and to cease making their mortgage payments.
George was a co-owner of 21st Century who acted as a sales manager for the company, and ran his own sales office there for several months. George instructed 21st Century employees to make misrepresentations to distressed homeowners, including guaranteeing that 21st Century would obtain loan modifications and telling homeowners that payments made to 21st Century would go towards homeowners’ mortgages. “Members of the conspiracy preyed upon homeowners who were in desperate financial straits by making promises they had no intention of keeping,” said Acting United States Attorney Stephanie Yonekura. “The impact on victim homeowners across the country was severe, and it’s gratifying to see justice served in this case.”
Ramirez, 21st Century co-owner George and the other 21st Century employees contacted distressed homeowners through cold calls, newspaper ads and mailings, and the company controlled websites that advertised loan modification services. Once they contacted the distressed homeowners, according to the evidence presented at trial, Ramirez and other 21st Century employees often falsely told clients that the company was operating through a federal government program, that they would be able to obtain new mortgages with specific interest rates and reduced payments, and that attorneys would negotiate loan modifications with their lenders. Ramirez and other 21st Century employees regularly instructed financially distressed homeowners to cease making mortgage payments to their lenders and to cut off all contact with their lenders because they were being represented by 21st Century. On some occasions, Ramirez and other 21st Century employees would tell homeowners that 21st Century was using the fees paid by the homeowner to make mortgage payments, when in fact Ramirez, George and their co-defendants simply were pocketing the homeowners’ money.
“George, the owner of 21st Century, and his co-conspirators were convicted today following a five-week jury trial for swindling more than 5,000 struggling homeowners out of approximately $7 million using deceit and lies to obtain money for loan modifications which were represented as being affiliated with federal housing aid programs,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “The defendants’ sole goal was getting money from homeowners, and they did and said whatever it took to make that happen. SIGTARP and our law enforcement partners will put an end to schemes that prey on struggling homeowners by falsely claiming to be associated with TARP’s housing programs, and perpetrators of such schemes will be brought to justice for their crimes.”
David Bowdich, Assistant Director in Charge of the FBI’s Los Angeles Field Office, commented: “Today’s conviction is a significant step in our effort to bring justice to victims of mortgage fraud. Mr. George and his co-conspirators were solely motivated by profit and preyed on financially distressed homeowners, in an effort to line their own pockets. This should serve as a reminder that no one is above the laws of this country, and the FBI and our law enforcement partners will continue to root out fraud wherever it is found.”
Erick Martinez, Special Agent in Charge of IRS - Criminal Investigation’s Los Angeles Field Office said, “Using the guise of a federally sponsored loan modification program, the defendants preyed on financially desperate homeowners struggling to keep a roof over their head. As today’s verdicts show, those who find ways to fraudulently benefit from government programs meant to help distressed homeowners keep their homes will be brought to justice.”
Robert Wemyss, Inspector in Charge of the U.S. Postal Inspection Service – Los Angeles Division, stated: “Fraudulent mortgage fraud schemes affect consumers at the most basic level, jeopardizing their ability to retain ownership of their homes. The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation's mail system from being used for illegal or dangerous purposes."
The jury that returned guilty verdicts today also acquitted George of four counts, and Buck and DiRoberto were found not guilty of eight counts.
In addition to Ramirez and the three found guilty today, seven other defendants previously pleaded guilty. They are:
Michael Bruce Bates, 64, of Moreno Valley;
Michael Lewis Parker, 37, of Pomona;
Catalina Deleon, 38, of Glendora;
Hamid Reza Shalviri, 53, of Montebello;
Yadira Garcia Padilla, 38, of Rancho Cucamonga;
Mindy Sue Holt, 55, of San Bernardino; and
Iris Melissa Pelayo, 45, of Upland.
Ramirez and the other defendants who previously pleaded guilty are scheduled to be sentenced by Judge Phillips over the coming months.
Release No. 15-057
Monday 8 June 2015
Wichita Man Pleads Guilty in Plot to Explode Car Bomb at AirportRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty to attempting to explode a car bomb at the airport in Wichita, Kan., U.S. Attorney Barry Grissom and John Carlin, Assistant Attorney General for National Security, announced today.
Terry Lee Loewen, 59, Wichita, Kan., pleaded guilty Monday to one count of attempting to use a weapon of mass destruction. Loewen was arrested in December 2013 when he tried to enter the grounds of the Wichita Mid Continent Airport for the purpose of exploding a bomb. (The airport recently was renamed Wichita Dwight D. Eisenhower National Airport).
“Protecting the American people from terrorism is our primary mission,” said U.S. Attorney Barry Grissom. “It is vital that we disrupt attacks against our homeland and bring terrorists to justice.”
“Terry Loewen utilized his privileged airport access to attempt a terrorist attack in Wichita,” said Assistant Attorney General Carlin. “Detecting, disrupting and holding accountable those who wish to harm Americans remains our highest priority.”
In his plea, Loewen admitted he came to the attention of the FBI late in May 2013 when he became a Facebook friend of a person who was posting comments advocating violent jihad. The FBI began communicating with Loewen through an undercover employee.
Loewen told the undercover employee he was waiting for what he called “the green light” from Allah to carry out a violent attack on a civilian target. He said he did not expect to live through any of the attacks he had in mind. He said he was inspired by the teachings of Osama bin Laden and Anwar Al Awlaki. He said he had downloaded thousands of pages of information on jihad.
In September 2013, Loewen sent photos of airplanes on the tarmac at the Wichita airport. He commented that he could have “walked over there, shot both pilots … slapped some C4 on both fuel trucks and set them off before anyone even called TSA.”
In October 2013, Loewen met with a second undercover FBI employee who Loewen believed was a “brother” and would help him blow up a plane. Loewen said he had scouted the airport to determine a time and place for an attack that would be sure to kill as many people as possible.
Loewen assisted the second FBI employee in the final assembly of an improvised explosive device. He was not aware that the explosive materials used in the device were inert. In the early hours of Dec. 13, 2013, the second FBI employee picked up Loewen at a Wichita hotel. They drove to where the bomb was stored and finished wiring the device. When they reached the airport, Loewen twice used his badge at a card reader to attempt to get onto the tarmac before he was arrested.
Sentencing will be sent for a later date. Both parties have agreed to recommend a sentence of 20 years in federal prison.
Grissom commended the Wichita FBI Joint Terrorism Task Force, which includes members from the FBI, Sedgwick County Sheriff’s Office and Kansas Highway Patrol. Assisting with the investigation were the FBI Kansas City Division, the Transportation Security Administration, the Wichita Airport Authority, the Wichita Police Department. Grissom also commended the prosecutors on the case: Assistant U.S. Attorney David Smith, Assistant U.S. Attorney Tony Mattivi, and Erin Creegan of the Justice Department’s National Security Division.
U.S. Attorney Announces ‘Be Here for Kids’ Event in PhoenixRead the Press Release
PHOENIX - The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the ‘Be Here for Kids’ event on Friday, June 12, 2015, at the Desert Ridge Marketplace in Phoenix. The event will take place from 10:00 a.m. to 1:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the ‘Be Here for Kids’ campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life. Families also are encouraged to take 25 minutes to talk to their children about abduction and safety prevention.
"The annual ‘Be Here for Kids’ national child safety campaign is particularly important this time of year, when children begin their summer breaks and have more time on their hands" said U.S. Attorney John S. Leonardo. "This event is designed to increase awareness among parents and children of the potential threats to child safety present in daily life, including the Internet."
This year’s event is being presented in partnership with the U.S. Marshal’s Service; Maricopa County Attorney’s Office; Phoenix Police Department; Bureau of Alcohol, Tobacco and Firearms; Department of Homeland Security; and the Arizona Attorney General’s Office. The Phoenix Police Department will be providing an armored vehicle from the bomb squad, guests from their K-9 unit, and education on bike safety, child restraints, and traffic. The U.S. Marshal’s Service will be introducing their new Marshal dog and digital child identification kits will be provided free of charge to those that attend.
For more information on NCMEC, visit www.missingkids.com. For more information about the Be Here for Kids campaign, visit www.missingkids.com/behereforkids. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2015-042_Be_Here_for_Kids_Phoenix
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Two Tennessee Men Plead Guilty to Killing Man During Home Invasion RobberyRead the Press Release
Two Tennessee men pleaded guilty to using a firearm to kill during a home invasion robbery they conducted on May 7, 2011, announced U.S. Attorney David Rivera of the Middle District of Tennessee and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Demario Winston, 27, of Clarksville, Tennessee, and Michael Massey, 26, of Lexington, Tennessee, pleaded guilty before Chief District Court Judge Kevin H. Sharp of the Middle District of Tennessee to conspiracy to commit Hobbs Act Robbery and use of a firearm in a crime of violence resulting in death. Massey also pleaded guilty to attempted Hobbs Act Robbery.
According to admissions reflected in the plea agreements, on May 7, 2011, Winston, Massey and others attempted to rob a home in Clarksville, Tenn. and Massey used a sledge hammer to gain entry. The conspirators had previously been told that a large amount of cocaine and cash was stored inside a safe in the basement of the home.
The defendants further admitted that, while inside the home, Winston, who was armed with a 9mm pistol, engaged in a gun fight with the homeowner on the first floor, while other conspirators attempted to force one of the occupants of the home, Raul Triana, to open the safe in the basement, pistol-whipping him in the process. Evidence introduced in the plea hearing indicated that in response to the shooting on the first floor, some of the conspirators fled the home, and Massey, who was armed with an assault rifle, fled through the basement where he encountered Triana and shot and killed him.
In addition, according to the statement of facts in support of Massey’s plea, on Oct. 21, 2011, he and a co-defendant robbed the owner of a Clarksville-based construction company at gunpoint.
This case was investigated by the Clarksville Police Department and the DEA. The case is being prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee and Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
Timber Lake Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Timber Lake, South Dakota, man charged with Larceny, pled guilty to and was sentenced on June 3, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Chapen Kraft, age 18, was sentenced to 18 months of probation and a special assessment of $25 to the Federal Crime Victims Fund.
The conviction stems from an incident between September 15, 2014, and October 11, 2014, when Kraft broke into a barn or storage shed and stole a two-ton jack, a 12-volt jumper box, a roll of air hose, an 8 foot roll of cable, and a used vehicle tire.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Agency. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Three Methamphetamine Dealers Sentenced in San JoseRead the Press Release
SAN JOSE – Jorge Alejandro Sanchez Jimenez, and Francisco Ortiz, were each sentenced today to ten years in prison, for conspiring to distribute methamphetamine, and Macario Jimenez-Corona was sentenced to seven years in prison for attempting to possess methamphetamine with the intent to distribute it, announced United States Attorney Melinda Haag, Homeland Security Investigations (HSI) Acting Special Agent in Charge Tatum King and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bruce Balzano.
According to the government’s sentencing memorandum filed with respect to Sanchez Jimenez, Sanchez Jimenez had previously worked as a “runner” for a major methamphetamine dealer (Ademar Becerril, a/k/a Fredi Becerril, who was separately prosecuted in Case No. 13-CR-00798-RMW), and then sometime in mid-2013 Sanchez Jimenez split off and formed his own small organization. On June 1, 2015, Becerril was sentenced to over 16 years in prison.
According to his plea agreement, Sanchez Jimenez, 24, distributed methamphetamine in 2012 and 2013 using another person to deliver the drugs and collect cash for him (a runner). As part of his operation, Sanchez Jimenez rented a room in an apartment in San Jose that was used as a location to prepare drugs for delivery. Pursuant to court orders, law enforcement officers intercepted Sanchez Jimenez’ telephone conversations and observed his runner at the apartment. In September 2013, HSI agents searched the rented room and discovered digital scales, plastic containers, packaging material, a scale, rubber bands, approximately $4500 in cash, and handwritten notes which were a form of homemade accounting to track amounts owed by customers, listing the customers and the amounts owed. HSI and DEA agents then intercepted telephone calls in which Sanchez Jimenez indicated he had lost two pounds of drugs. He also indicated where the drugs were hidden. The agents returned to the room, removed an electric heater mounted along the floor of one wall, and found a hole in the wall. Inside the hole, they found approximately 1.2 kilograms of methamphetamine. Sanchez Jimenez fled to Mexico in September 2013, according to the plea agreement. He returned to the Bay Area and was arrested on March 3, 2014. He has been in custody since that date.
According to his plea agreement, Ortiz, 25, delivered methamphetamine on behalf of Becerril in 2013. On December 1, 2013, Ortiz was delivering methamphetamine when one of the other delivery persons, Arturo Cuevas-Quezadaz, was arrested with approximately 7.9 kilograms of methamphetamine. The next day, Ortiz was arrested at a restaurant in San Jose. He has been in custody since then. The agents also seized over $26,000 that Ortiz had delivered to Becerril and a list of drug customers and quantities that they were to receive. (Arturo Cuevas-Quezadaz, who is charged in the same case, pleaded guilty and is set for sentencing in July 2015.)
According to the government’s plea agreement with Jimenez-Corona, 49, on December 1, 2013, Jimenez-Corona was waiting to receive approximately three kilograms of methamphetamine from Arturo Cuevas-Quezadaz. Jimenez-Corona was in a car parked next to the car driven by Arturo Cuevas-Quezadaz, in a parking lot in San Jose when police officers arrested Cuevas-Quezadaz and seized the approximately 7.9 kilograms of methamphetamine he was transporting. Jimenez-Corona was released after being questioned by the officers. He was arrested the next day and has been in custody since then.
The sentences imposed on Francisco Ortiz and Macario Jimenez-Corona were handed down by the Honorable Ronald M. Whyte, U.S. District Judge. Jorge Alejandro Sanchez Jimenez was sentenced by the Honorable Edward J. Davila, U.S. District Judge. Ortiz and Sanchez Jimenez were each sentenced to a 5 year period of supervised release in addition to their prison terms. Macario Jimenez-Corona was sentenced to a 3 year period of supervised release in addition to the term of prison.
These cases are the products of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Summer camps must reasonably accommodate children with disabilitiesRead the Press Release
SHREVEPORT/LAFAYETTE/MONROE/LAKE CHARLES/ALEXANDRIA, La. – Summer camps are required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Stephanie A. Finley announced today.
2015 Marks the 25th anniversary of the Americans with Disabilities Act (“ADA”). The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, state and local government services, public accommodations, commercial facilities, and transportation.
Summer is here and the U.S. Attorney’s Office wants to ensure that children with disabilities have the opportunity to experience the fun of summer camps. The U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Western District of Louisiana reminding them of their obligations under the ADA.
Summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer is always a special time for children,” Finley said. “Summer camps foster an environment where they can learn to work together, think creatively, and to be independent. Disabled children, whose needs can be reasonably accommodated, must be given the same opportunity as other children.”
Additional information about the ADA is available at www.ada.gov, or through the U.S. Attorney’s Office at (337) 262-6618.
Suburban Investment Advisor Arrested for Defrauding Clients of Approximately $1 MillionRead the Press Release
Chicago – A Wilmette man was arrested this morning by agents from the Federal Bureau of Investigation and detectives from the Norridge and Arlington Heights Police Departments and is facing federal wire fraud charges for defrauding his clients of at least $1 million of investment funds. Alan Gold, age 60, was arrested at his residence and charged by criminal complaint that was unsealed following his arrest. FBI agents also conducted a search pursuant to a search warrant of Gold’s residence this morning. Gold appeared before U.S. Magistrate Judge Jeffrey Gilbert earlier today and was released on a $10,000 recognizance bond and is due back in court for a status on June 15 at 9:00 a.m.
According to the complaint, Gold engaged in a scheme to defraud his clients for at least five years through false statements. Gold, who managed several million dollars of client funds through his company, Alan Gold & Associates, based in his residence, allegedly sent account statements to clients falsely representing that their assets were invested in certain stocks, real estate funds, futures contracts, and other investment products, when Gold had actually spent those client funds on his own personal expenses.
According to the complaint, Gold, as early as 2008, told his clients that he would make “alternative investments” on their behalf using funds that he would wire from their brokerage account to his bank account. Among the investments Gold listed on client account statements were real estate ventures and holdings in real estate ventures, gold and natural gas futures contracts, and the stocks of publicly traded companies. Gold did not purchase securities and futures contracts for his clients, but allegedly spent the funds on gambling expenses at area casinos and personal living expenses. Gold allegedly continued to wire transfer funds from client accounts for at least five years using the same false statements and representations to clients. The scheme was exposed when Gold stopped returning client phone calls and a client reported the matter to law enforcement.
If convicted of wire fraud, Gold could be sentenced to a maximum term of imprisonment of 20 years and a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation Chicago Office. The Chicago office of the U.S. Securities & Exchange Commission, the Arlington Heights Police Department, and the Norridge Police Department assisted with the investigation.
The government is being represented by Assistant United States Attorney Sunil R. Harjani.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilty beyond a reasonable doubt.
Complaint
St. Louis Man Sentenced for Role in 2001 Arson that Killed his 15-Year-Old SonRead the Press Release
St. Louis, MO - STEVEN HENRY KEMPER, Saint Louis County, was sentenced to 70 months in prison in connection with the November 16, 2001, arson of his family’s home in Florissant, Missouri. Kemper’s 15-year-old son, Zachariah Andrew Kemper, was trapped in the basement and killed during the fire. Kemper previously pled guilty to one-count of aiding and abetting the use of fire to commit mail fraud. He appeared today for sentencing before United States District Court Judge Audrey G. Fleissig.
The 2001 fire was originally the subject of state charges in which only Kemper’s wife, Sandra Bryant, was charged. During the ensuing trial, the judge declared a mistrial after ruling that certain polygraph evidence had mistakenly been shown to the jury. The Missouri Supreme Court ultimately held that because the mistrial was declared over the defense objection, state prosecutors were barred from retrying the defendant in state court because of the United States Constitution’s "double jeopardy" provision.
Sandra Kay Bryant, Saint Louis County, pled guilty to the same charge in March and awaits sentencing in July 2015.
This case was originally investigated by Saint Louis County Police Department. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives took up the investigation after the Missouri Supreme Court decision barring the retrial by state prosecutors. The St. Louis County Prosecutor’s Office also provided significant assistance.
Seattle Man Sentenced for International Parental KidnappingRead the Press Release
A Seattle man who was the subject of an international manhunt last fall, was sentenced today in U.S. District Court in Seattle to time served -- about seven months in prison -- for International Parental Kidnapping, announced U.S. Attorney Annette L. Hayes. JEFFREY FORD HANSON, 46, was taken into custody in late October 2014, on the South Pacific island of Niue, 1,500 miles northeast of New Zealand. HANSON had been sought by law enforcement since September 12, 2014, when he was charged with international parental kidnapping for leaving Seattle with his son in violation of a court approved parenting plan. At the sentencing hearing U.S. District Judge James L. Robart said, “This kind of behavior, international parental kidnapping, is surprisingly common and has provoked significant penalties.” Judge Robart ordered one year of supervised release for HANSON.
According to records filed in the case, on July 17, 2014, HANSON’s son arrived in Seattle with his mother’s permission to visit for the summer months. HANSON knew he was required to return the child to Hazelton, Pennsylvania prior to the start of school in early September 2014. On August 30, 2014, unbeknownst to the mother, HANSON departed the Seattle area aboard his sailboat, the Draco, with the child on board and set sail across the Pacific Ocean. When the boy failed to return to Pennsylvania before school started, the boy’s mother alerted law enforcement. The Coast Guard and law enforcement agencies throughout the Pacific Rim were then asked to be on the lookout for the boat and the child.
According to the FBI, the Niue Police arrested HANSON on October 29th, after HANSON docked his sailboat on Niue shores in violation of Niue immigration and customs laws. The Niue police knew of the warrant for Hanson's arrest because the FBI’s Legal Attaché office in Canberra, Australia, passed the missing person and wanted fliers to the Pacific Transnational Crime Coordination Center (PTCCC), a multi-national law enforcement network, of which the Niue Police Department is a member. Niue police publicized the search for Hanson in the country, and alert members of the public provided the crucial tip that led authorities to HANSON. The 9-year-old boy was safely returned to his mother in Pennsylvania.
The investigation was led jointly by the FBI’s Seattle Safe Streets Task Force (SSSTF), whose many Task Force Officers include members of the Seattle Police Department Major Crimes Task Force. The Hazleton Police Department, the FBI’s Philadelphia and Los Angeles field offices, the Port of Seattle Police Department, the U.S. Coast Guard, and the National Center for Missing and Exploited Children collaborated on the investigation from the beginning. The FBI also values the tremendous assistance of the New Zealand Police, New Zealand Customs Service, and Immigration New Zealand.
The case was prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.
San Diego Man Who Ran Investment Scam That Promised ‘Reverse Life Insurance’ Policies Sentenced to over 10 Years in Federal PrisonRead the Press Release
SANTA ANA, California – The founder and chief executive officer of a firm that solicited more than $5 million from victims who thought they were investing in “reverse life insurance” policies has been sentenced to 121 months in prison.
Daniel Christian Stanley Powell, 34, of San Diego, was sentenced on Friday by United States District Judge Josephine L. Staton. In addition to the prison term, Judge Staton ordered the defendant to pay $4,447,290 in restitution to 59 victims.
In imposing the sentence, Judge Staton cited the impact on the victims: “Many [victims] were devastated financially and emotionally, and robbed of their futures and their children’s futures.”
Following a three-week jury trial last November, Powell was convicted of five counts of mail fraud, five counts of wire fraud and three counts of obstruction of justice.
According to the evidence presented at trial, Powell, the founder and operator of the Los Angeles-based Christian Stanley, Inc., told investors that he would use their money to purchase life insurance policies from insured individuals, at which point the company would pay the monthly premiums and become the beneficiaries to the policies. Powell claimed that Christian Stanley would profit by collecting the death benefits when the insureds died or by selling the policies on the life settlement market.
Powell trademarked the phrase “reverse life insurance” and indicated he would take company public by filing documents with the Securities and Exchange Commission.
Powell claimed that investments with Christian Stanley were safe because his company already owned $1.9 billion in reverse life insurance policies in a mutual fund. Contrary to his promises, however, the evidence demonstrated that Christian Stanley did not own any life insurance policies and had earned only $31,250 in revenue since its inception.
As part of the scheme, Powell also told some victims that their money would be invested in gold mines, but Christian Stanley had no interest in any gold mines.
At the sentencing hearing, Powell apologized to his victims. “I did a lot of wrong to a lot of people,” Powell said. “What I am going through is what I deserve.”
In total, approximately 60 victims invested approximately $5.2 million with Christian Stanley. The victims, who were located throughout the United States, invested directly through Powell, other representatives of Christian Stanley, or their own financial advisors. Victims lost approximately $4.4 million as a result of the scheme, which included funds that had been invested through individual retirement accounts.
Powell used victims’ money to make Ponzi-scheme payments to some investors, to pay commissions to representatives who recruited investors, and to create promotional materials, which gave the appearance that Christian Stanley was a legitimate and successful business.
Powell also spent victims’ funds on a luxury apartment on the west side of Los Angeles, Ferrari and Porsche automobiles, and a $35,000 donation to Usher’s New Look foundation, which got him a photograph with former President Bill Clinton that was used as part of Christian Stanley’s promotional materials.
The U.S. Securities and Exchange Commission filed a civil complaint against Powell and his firm in 2011 (www.sec.gov/litigation/litreleases/2011/lr22082.htm). The evidence at the criminal trial showed that Powell knowingly drafted false affidavits to use in his defense to the SEC case and that he lied to the victims about his assets and promised to return their money if they signed the false affidavits. This criminal conduct led to the convictions on the obstruction of justice charges.
The case against Powell is the result of an investigation by the Federal Bureau of Investigation. The Los Angeles Regional Office of the U.S. Securities and Exchange Commission provided assistance in the investigation.
Release No. 15-057
Randolph County woman convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jessie Marie Fox, 22, of Mill Creek, West Virginia, was convicted of oxycodone trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Valley Drug and Violent Crime Task Force revealed that Fox participated in a drug distribution operation designed to transport heroin and prescription painkillers across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale.
Fox pled guilty today to one count of “Use of a Telephone to Facilitate the Distribution of Oxycodone.” She faces up to 4 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Providence Resident Sentenced to Federal Prison in Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Juan C. Maldonado, 31, of Providence, was sentenced on Friday, June 5, 2015, to 36 months in federal prison for participating in a conspiracy to trafficking cocaine, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Maldonado to serve three years supervised release upon completion of his prison term. Maldonado pleaded guilty on March 13, 2015, as charged in a federal indictment, to one count of conspiracy to distribute and possess with the intent to distribute cocaine, and one count of attempting to possess with the intent to distribute cocaine.
According to information presented to the court, on July 2, 2014, during an inbound inspection from the U.S. Virgin Islands, Customs and Border Protection agents in Puerto Rico discovered two packages which contained safes, each with 4 kilograms of cocaine inside, addressed to recipients in Providence. One was addressed to a house where the defendant, his girlfriend and his brother, Elix Javier, 24, were living. The second package was addressed to a residence where the defendant’s mother, sister and others were living.
On July 7, 2014, an undercover postal inspector delivered the first package to the address where Juan Maldonado was living. The postal inspector was greeted at the door by Mr. Maldonado, who called out for his brother who then signed for and accepted the package. Approximately twenty minutes later, Mr. Maldonado and another individual exited the house. Agents seized a black bag Maldonado was carrying. Inside the bag was the package containing the safe and cocaine delivered by the undercover postal inspector.
Following Maldonado’s arrest, a court authorized search of his residence resulted in the seizure of a shoebox with two digital scales, approximately 80 gross grams of ground up acetaminophen or Tylenol, baggies, and other cutting agents used in the packaging and sale of narcotics.
As agents entered the residence, Elix Javier fled through a back door. He remained a fugitive until his arrest on July 24, 2014, in Lynn, Massachusetts. Elix Javier was acquitted at trial by a jury on March 26, 2015, of one count of conspiracy to distribute and possess with the intent to distribute cocaine and one count of aiding and abetting.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by Homeland Security Investigations with the assistance of U.S. Postal Inspectors, R.I. State Police HIDTA Task Force, DEA and Warwick Police Department.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Private investigator Williamson pleads guilty to charges in bribery caseRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that private investigator Robert Williamson pleaded guilty to charges related to his role in a pay-for-plea scheme that garnered favorable treatment for defendants charged with various state crimes.
Prior to the start of trial that was scheduled to begin today, Williamson, 64, of Lafayette, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of conspiracy, one count of bribery, and one count of Social Security fraud.
According to the guilty plea, Williamson, who is not licensed to practice law, was part of a conspiracy from March 2008 to February 2012 to solicit thousands of dollars from individuals with pending criminal charges in the 15th Judicial District. Williamson promised favorable resolutions to pending felony and misdemeanor cases, the majority of which were OWI cases. Williamson paid bribes in cash and other things of value to former personnel within the District Attorney=s Office for the 15th Judicial District and employees with other organizations associated with the OWI program, including Acadiana Outreach. Williamson also obtained false and fraudulent certifications from Acadiana Outreach, which certified that his clients completed court-ordered community service, when in fact the individuals had not. Williamson would obtain fraudulent driver safety training certificates showing that Williamson=s Aclients@ completed court-mandated driver improvement programs when they had not. Some of those monies were for fines, penalties and other expenses. The total fraudulent amount will be determined at sentencing. During this time, Robert Williamson also received approximately $77,677.20 from the Social Security Administration that he was not entitled to receive.
williamson_robert_factual_basis_for_plea_06.08.15.pdf (1.42 MB)
“Today marks a successful conclusion of the corruption case involving this defendant and former employees of the Lafayette District Attorney’s Office,” said U.S. Attorney Stephanie Finley. “This is a win for the people of our community who no longer have to be concerned about drunk drivers subverting the criminal justice system. Mr. Williamson will now be held accountable for his role in this bribery scheme and for defrauding the Social Security Administration. I want to personally thank the investigators and prosecutors who worked so diligently on this case.”
Williamson faces a maximum penalty of five years in prison for the conspiracy count, 10 years in prison for the bribery count, and five years in prison for the Social Security fraud count. He also faces a $250,000 fine or both with up to three years of supervised release for each count. A sentencing date of September 25, 2015 was set.
The FBI and the Social Security Administration – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Robert C. Abendroth are prosecuting the case.
Oregon Woman Pleads Guilty for Conspiring to File Fraudulent Income Tax Returns Claiming More than $1 Million in RefundsRead the Press Release
A Portland, Oregon, woman pleaded guilty on Friday before U.S. District Court Judge Robert E. Jones in the District of Oregon for conspiring to file fraudulent federal income tax returns that claimed refunds of more than $1 million, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the plea agreement, Jasmine Mason admitted that she conspired with other individuals to prepare and file more than 227 fraudulent income tax returns for calendar year 2009 during the 2010 tax filing season. The false information on the tax returns included fictitious W-2 wage and withholding information and fraudulent refundable tax credits.
As part of the terms of the plea agreement, Mason has agreed to a sentencing recommendation of 32 months in prison for her crimes. She also faces financial penalties of fines and restitution to the Internal Revenue Service (IRS) of more than $330,000 at her Sept. 15 sentencing.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation in Portland, who investigated the case, and Trial Attorneys Lori Hendrickson and Ryan Raybould of the Tax Division, who are prosecuting the case. She also thanked the U.S. Attorney’s Office in Portland for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Omaha Man Sentenced for Manufacturing Counterfeit Identification DocumentsRead the Press Release
United States Attorney, Deborah R. Gilg, announced that Faustino Suastegui-Villalva, 49, was sentenced by United States District Court Judge Laurie Smith Camp to a total of 54 months in federal prison for his role in the production of counterfeit identification documents. Saustegui, a citizen of Mexico, was arrested on October 22, 2014, after a criminal complaint had been filed against him charging him with possessing five or more counterfeit Social Security cards with the intent to sell them. On November 18, 2014, Suastegui was charged in a superseding indictment with conspiring with Fernando Nevarez-Carreon to manufacture and sell counterfeit Social Security cards. Federal agents had purchased counterfeit Social Security cards and other identification documents on July 16, 2014, July 23, 2014, and September 11, 2014. The investigation of Nevarez-Carreon lead to the presence of Suastegui. Federal agents executed a search warrant at the residence of Suastegui and seized equipment used in the manufacturing operation including various computers on which images of counterfeit identification documents were located. The computer equipment contained over one-hundred fraudulent counterfeit identification documents.
Suastegui was sentenced to 30 months in prison upon his conviction on the conspiracy charge and for a charge of unlawfully transferring identification documents. Judge Smith Camp ordered that he serve an additional 24 months consecutive to the original 30 months for his conviction on the aggravated identity theft charge. After completing his 54 month combined prison sentence, Suastegui will be deported back to his home country of Mexico.
Nevarez-Carreon is scheduled to be sentenced for his role in the case on June 29, 2015.
The investigation was conducted by the Social Security Administration Office of Inspector General and by agents with the Department of Homeland Security.
Ohio man convicted of traveling to engage in unlawful sexual conduct with minor victimRead the Press Release
CLARKSBURG, WEST VIRGINIA – Patrick W. Ganim, 29, of, Chagrin Falls, Ohio, was convicted of traveling across state lines to engage in illicit sexual conduct with a minor female today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Ganim communicated with a minor female residing in the Northern District of West Virginia utilizing a variety of internet resources and online messaging tools. In October 2014, Ganim traveled across state lines from Ohio into West Virginia. He then engaged in illicit sexual conduct with the victim. Following their initial meeting, Ganim continued to utilize online messaging services to communicate with the minor victim, planning a subsequent meeting and sending explicit material to the victim.
Ganim pled guilty today to one count of “Travel with Intent to Engage in Illicit Sexual Conduct,” for which he faces up to 30 years in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Preston County Sheriff’s Office, the Bainbridge Township, Ohio Police Department, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge John S. Kaull presided.
Nineteen Face Federal Charges in Cumberland & Harnett Counties Cocaine and Crack Distribution RingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announces that a federal grand jury in Raleigh returned a 39 count indictment (attached) and the defendants were arrested for conspiring to manufacture and distribute cocaine and cocaine base (crack) in large quantities over a four plus years’ time frame.
The following people were indicted and arrested.
- Lemont Jerrone Webb, aka “L Dawg” and “Mont”, 41, of Godwin, NC
- Antoine Dewayne Myles aka “Twan”, 39, of Dunn, NC
- Farrah Michelle Harrell, 37, of Durham, NC
- Douglas Earl Register, 49, of Dunn, NC
- John Bernard Taylor, Jr., 45, of Fayetteville, NC
- Ronald Devon Pegues, 36, of Fuquay Varina, NC
- Major Lewis Clark, Jr., 31, of Dunn, NC
- Cleveland Myles, 49, of Dunn, NC
- Larry Donnell Pearsall, 40, of Godwin, NC
- Nathune Jamerson Myles, 39, of Godwin, NC
- Adriann Roshanda Currie, 38, of Burlington, NC
- Carlos Edward Carmelo, 36, of Fayetteville, NC
- Tiwana Jennelle Smith, 36, of Dunn, NC
- Christopher Lee Johnson, 45, of Fayetteville, NC
- Maurice Shaunt Blanks, 30, of Roseboro, NC
- Chapman Carroll, 31, of Godwin, NC
- Janice Marie Smith, 51 of Fayetteville, NC
- Harry Myles, Sr., 59, of Godwin, NC
- Sophia Latrice Eaddy Myles, 33, of Fayetteville, NC
Harry Myles, Sr. and Sophia Latrice Eaddy Myles were charged with Money Laundering. The others listed above were charged with a Drug Distribution Conspiracy to distribute cocaine and cocaine base (crack). Lemont Jerrone Webb and Antoine Dewayne Myles were also charged with both Drug Distribution and Money Laundering.
If convicted, the maximum penalties for the charged drug counts are life imprisonment, a $10 million fine, and a term of supervised release of not less than 5 years, following any term of imprisonment. The maximum penalties for the money laundering charges are not less than 20 years imprisonment, a $500,000 fine or twice the value of the property involved, whichever is greater, and up to 3 years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Drug Enforcement Administration (DEA), the Cumberland County Sheriff’s Office (CCSO), the Internal Revenue Service - Criminal Investigation (IRS-CI) and the United States Marshal’s Service (USMS).
New York Man Sentenced for Trafficking Unauthorized Access DevicesRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Bronx, New York, man convicted of Using or Trafficking in an Unauthorized Access Device and Aiding and Abetting was sentenced on June 2, 2015, by U.S. District Judge Roberto A. Lange.
Francis Frias, age 21, was sentenced to serve 2 years in federal prison, followed by 2 years of supervised release, $10,040.92 in restitution, joint and several with his co-defendants, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction arose from activities that occurred between June 23, 2014, and July 5, 2014, when Frias and two co-defendants used “account takeovers” — which is where the defendants posed as established AT&T customers who wanted to upgrade by adding new lines or phones to their existing cell plans. Frias and his co-defendants were provided confidential subscriber information while they were outside an AT&T store. Before Frias or one of his co-defendants went into an AT&T store, another person had already called into AT&T and added one of the three of them as an authorized user to the original AT&T customer’s account. Once the cell phones were purchased, Frias mailed them to addresses provided by another individual. Frias would be paid for each phone he purchased and shipped.
On July 5, 2014, a traffic stop was conducted on Interstate 90 in Jones County. The three individuals in the vehicle, including Frias, were from New York. The vehicle was a rental and was due back in Colorado on June 24, 2014. A probable cause search was conducted and a white plastic bag with 14 brand new, in-the-box Apple 5S iPhones were found in the trunk, along with receipts from an AT&T Store in Pierre, South Dakota. The names on the receipts did not match any of the three individuals in the vehicle.
This case was investigated by the Office of Attorney General, Division of Criminal Investigation, and the U.S. Department of Homeland Security, Secret Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Frias was immediately turned over to the custody of the U.S. Marshals Service.
Members and Associates of Various White Supremacist Organizations Get Hefty Sentences for Roles in Drug Trafficking ConspiracyRead the Press Release
DALLAS — Two individuals, who were arrested during a November 2014 law enforcement operation in which 37 individuals were charged with felony offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014, have been sentenced to lengthy federal prison sentences. John Parker, the Acting U.S. Attorney for the Northern District of Texas, made the announcement today.
Brandon Crow, 30, of Garland, Texas, was sentenced on Thursday to 240 months in federal prison and Rhonda Long, a/k/a “Queen Saltine,” 51, of Mesquite, Texas, was sentenced to 188 months in federal prison. Each pleaded guilty in January 2015 to one count of possession of a controlled substance (methamphetamine) with the intent to distribute that controlled substance.
The Texas Department of Public Safety Criminal Investigations Division (DPS-CID) led that November 2014 law enforcement operation in which the defendants were alleged to be members of, or associated with, various white supremacist organizations, including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures. The indictment alleged that since January 2013, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants used stash houses and other locations to store the quantities of methamphetamine. Each co-conspirator was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, over 16 pounds of methamphetamine and five firearms were seized.
To date, 34 of the 37 charged defendants have pleaded guilty and 12 of those have been sentenced. Other defendants, all Dallas residents, receiving long prison sentences for their roles include:
William McDowell, a/k/a “Scout,” 33, of Mesquite, Texas; 188 months
Christy McCellon, a/k/a “90,” 38; of Quitman, Texas, 222 months
Eliezer Jarillo Gonzalez, 22, of Dallas, 180 months
Javier Dominguez, 23, of Dallas, 120 months
Another defendant is scheduled to enter a guilty plea next week, one defendant remains set for trial, and one defendant remains a fugitive.
The investigation is being led by the DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit with assistance from the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigration and Customs Enforcement Homeland Security Investigations..
Assistant U.S. Attorney P. J. Meitl is prosecuting.
Law Firm Bookkeeper Sentenced to 24 Months Imprisonment forRead the Press Release
Abingdon, VIRGINIA – A former law firm bookkeeper, who previously pled guilty to embezzlement charges, was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon.
Patricia Ethel Chinault, 72, of Apopka, Florida, was sentenced last Friday to 24 months in federal prison. Chinault previously pled guilty to embezzling approximately $1 million from a Carroll County law firm. Chinault, who previously lived in Carroll County, worked as a bookkeeper for the law firm. After she moved to Florida in 2009, she continued to provide bookkeeping services for the firm.
Chinault, who had electronic access to the law firm’s accounts, used that access to fraudulently divert money to herself from 2010 to 2014. Using investigative means, federal law enforcement agents became aware of suspicious activity on one of Chinault’s credit card accounts. Further investigation revealed the extent of Ms. Chinault’s criminal activity.
Chinault spent most of the stolen money on internet gambling. The Court ordered Chinault to pay restitution of $960,809.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
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Kentucky Woman Sentenced to 30 Months for Embezzling from EmployerRead the Press Release
CINCINNATI – Michelle M. Clemons, 32, of Independence, Ky., was sentenced in U.S. District Court to 30 months in prison for three counts of wire fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, beginning in or about July 2005, Clemons worked as the controller for Art Woodworking and Manufacturing Co. located in Cincinnati. From at least 2006 until February 2013, Clemons used wire communications to embezzle funds from Art Woodworking. During that time, she electronically transferred more than $411,000 from the company for her own financial benefit.
“As controller, the defendant oversaw payroll for the company, had access to its financial information and was responsible for directing funds for the payment of company debts,” Assistant United States Attorney Jessica Knight told the court. “Clemons abused her position of trust at Art Woodworking and began diverting unauthorized payroll and reimbursements to her personal bank account.”
Clemons would issue herself unauthorized payroll checks using the direct deposit function or through manual payroll checks deposited into her personal bank account. She also issued reimbursements for business expenses she did not incur. Clemons often manipulated the accounting software to make the checks she wrote to herself appear as if they were used for a business purpose, when in fact, Clemons was cashing or depositing the checks into her personal bank account.
Furthermore, she used three business credit cards in the name of Art Woodworking for personal expenses such as to fund a Disney Vacation Club and subsequent trip in Florida, and to pay her personal real estate tax bill.
Clemons was also sentenced to three years supervised release and ordered to pay restitution of $231,671.42 to Art Woodworking and $100,000 to Selective Insurance.
Clemons pleaded guilty on August 14, 2014 to wire fraud.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Jessica Knight, who represented the United States in this case.
Kansas Man Pleads Guilty in Plot to Explode Car Bomb at AirportRead the Press Release
A Wichita, Kansas, man pleaded guilty to attempting to explode a car bomb at the airport in Wichita, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Barry R. Grissom of the District of Kansas.
Terry Lee Loewen, 59, of Wichita, pleaded guilty today to one count of attempting to use a weapon of mass destruction. Loewen was arrested in December 2013 when he tried to enter the grounds of the Wichita Mid-Continent Airport for the purpose of exploding a bomb. (The airport recently was renamed Wichita Dwight D. Eisenhower National Airport).
“Terry Loewen utilized his privileged airport access to attempt a terrorist attack in Wichita,” said Assistant Attorney General Carlin. “Detecting, disrupting and holding accountable those who wish to harm Americans remains our highest priority.”
“Protecting the American people from terrorism is our primary mission,” said U.S. Attorney Grissom. “It is vital that we disrupt attacks against our homeland and bring terrorists to justice.”
In his plea, Loewen admitted he came to the attention of the FBI late in May 2013 when he became a Facebook friend of a person who was posting comments advocating violent jihad. The FBI began communicating with Loewen through an undercover employee. After Loewen expressed his desire to engage in violent jihad, the undercover employee offered to introduce him to someone who could help him do it.
Loewen told the undercover employee he was waiting for what he called “the green light” from Allah to carry out a violent attack on a civilian target. He said he did not expect to live through any of the attacks he had in mind. He also said he was inspired by the teachings of Osama bin Laden and Anwar al-Awlaki, and that he had downloaded thousands of pages of information on jihad.
In September 2013, Loewen sent photos of airplanes on the tarmac at the Wichita airport. He commented that he could have “walked over there, shot both pilots … slapped some C4 on both fuel trucks and set them off before anyone even called TSA.”
In October 2013, Loewen met with a second undercover FBI employee who Loewen believed was a “brother” and would help him blow up a plane. Loewen said he had scouted the airport to determine a time and place for an attack that would be sure to kill as many people as possible.
Loewen assisted the second FBI employee in the final assembly of an improvised explosive device. He was not aware that the explosive materials used in the device were inert. In the early hours of Dec. 13, 2013, the second FBI employee picked up Loewen at a Wichita hotel. They drove to where the bomb was stored and finished wiring the device. When they reached the airport, Loewen twice used his airport badge at a card reader to attempt to get onto the tarmac before he was arrested.
Loewen’s sentencing will be scheduled at a later date. Both parties have agreed to recommend a sentence of 20 years in federal prison.
Assistant Attorney General Carlin and U.S. Attorney Grissom commended the FBI Wichita Joint Terrorism Task Force, which includes members from the FBI, Sedgwick County, Kansas, Sheriff’s Office and Kansas Highway Patrol. Assisting with the investigation were the FBI Kansas City Division, the Transportation Security Administration, the Wichita Airport Authority and the Wichita Police Department. Assistant Attorney General Carlin and U.S. Attorney Grissom also commended the prosecutors on the case, Assistant U.S. Attorneys David Smith and Tony Mattivi of the District of Kansas and Trial Attorney Erin Creegan of the Justice Department’s National Security Division.
Loewen Plea Agreement
Jenison Woman, Renata Nicole Annese, Sentenced for Wire Fraud SchemeRead the Press Release
Renata Nicole Annese stole over $800,000.00 in a credit card fraud scheme
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced that Renata Nicole Annese, 39, of Jenison, Michigan, received a sentence of imprisonment of 60 months in U.S. District Court for the Western District of Michigan today. Her sentence followed her guilty plea in January, 2015, to one count of wire fraud arising out of her role in a credit card fraud scheme. "Bringing fraudsters to justice and deterring fraudulent conduct through vigorous prosecution of those who take advantage of others remains an important priority of this office. Ms. Annese selfishly took advantage of her position of trust and now must pay the price," said U.S. Attorney Miles.
As part of her judgment of conviction, the court ordered Annese to pay restitution in the amount of $872,929.23. Annese was additionally ordered to forfeit her equity interest in her home in Jenison, Michigan, because she used the proceeds of her fraud to make her mortgage payments. Annese paid the victim $30,000.00, representing her equity interest, prior to sentencing. In issuing her sentence, U.S. District Court Judge Robert J. Jonker noted that her conduct "was not just an isolated fraud, but a long-term pattern."
From October 2006 until April 2013, Annese used interstate wires to defraud the former owner of the Sleep Inn hotel in Allendale, Michigan, of nearly a million dollars. Annese did so by regularly accessing the Internet so that she could edit data related to the hotel’s credit card sales. Annese then inserted her own personal credit card and bank debit card numbers on the payment side of many of those transactions. This caused the hotel customers’ cards to be charged, but directed the customers’ banks to send the payments to Annese’s credit and debit cards, instead of to the hotel’s bank account. Defendant concealed her fraud by pairing her credit or bank debit card numbers with names and charge amounts actually associated with real hotel customers. This made it appear as if those customers were receiving a credit back to their cards, when in reality Annese was receiving the payments. The former owner of Sleep Inn sold the hotel in 2013 because of its struggling financial performance and did not learn of Annese’s fraud until shortly after the sale.
"Defendant Annese repeatedly used the Internet to siphon funds intended for her employer and divert them illegally to her own bank accounts," stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "As reflected in this case, there are always very real victims on the other end of financial fraud crimes. The FBI remains committed to deterring this type of conduct and bringing justice to those who perpetrate fraudulent financial schemes in violation of federal law."
The Federal Bureau of Investigation conducted the investigation and Assistant United States Attorney Ronald M. Stella prosecuted the case.
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Investment Consultant Sentenced to 51 Months in Federal Prison for Running Ponzi SchemeRead the Press Release
FORT WORTH, Texas — A California man who pleaded guilty earlier this year to one count of wire fraud stemming from a Ponzi scheme he ran that defrauded investors in North Texas and throughout the country, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Piyush Bachubhai Patel, 54, most recently of Clovis, California, was sentenced to 51 months in federal prison and ordered to pay approximately $700,000 in restitution by U.S. District Judge Reed C. O’Connor. Judge O’Connor ordered that he surrender to the Bureau of Prisons on June 30, 2015.
According to documents filed in the case, from approximately January 1, 2008 through 2013, Patel, who represented himself as an investment consultant, d/b/a Elite Financial Services and 777 Consulting Services, devised and ran a scheme in which he solicited and obtained money from victim investors. As part of his scheme, he made false representations including how their money would be invested, how much of their money would be invested, and how much money they had in their accounts.
Patel told one particular investor that he had more than 50 investors in his stock investment plan and that his investments had realized annual returns of 89% over the last three years. Based on Patel’s representations, this investor decided to invest with Patel, and wired nearly $250,000 to Patel.
After Patel received this investor’s money, he did not invest it as he stated he would. Instead, Patel used a significant portion of the money to pay personal expenses, pay down loans, and obtain cash. Patel then proceeded to lose most of the money that he did invest.
Even though Patel used a large portion of this investor’s money for personal expenses and lost more than $100,000 of it by day-trading, Patel emailed account statements to this investor falsely representing that the investor’s account balance had appreciated to nearly $300,000. However, on the date of those statements, there was only approximately $40,000 in the investor’s account.
Based on false account statements, this victim investor decided to invest an additional $90,000 with Patel. Once again, Patel used a large portion of the money to pay personal expenses and debts, and lost most of the money that he did invest. By February 2011, the approximate balance in the investor’s account was only $10,000.
In the following months, Patel falsely told the investor that his account balance had grown to over $470,000. In May 2011, this investor contacted Patel and advised he wanted to make an immediate $20,000 withdrawal and schedule monthly $9,000 disbursements from the account. Patel agreed to send the money as requested but advised that he could not send it until June. When the investor did not receive the money in June, he again contacted Patel. In late July 2011, Patel deposited $20,000 into this investor’s bank account, but he never sent the investor monthly disbursements. Despite repeated attempts, the investor never received any additional funds from Patel.
During the course of his scheme, Patel also solicited and obtained money from other victim investors using tactics similar to those described above. Patel also deceived these victim investors about the amount of their money that was, or would be, invested, as well as the value of their accounts.
The FBI investigated the case.
Former State Fraud Enforcement Official Pleads Guilty to Federal Fraud ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 39, of East Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of mail fraud related to his submission of a fraudulent application for a personal mortgage modification.
According to court documents and statements made in court, from approximately October 2012 through May 2013, while he was employed as the Director of Investigations for the State of Connecticut Department of Social Services (DSS), Office of Quality Assurance, PATRICK applied for a mortgage modification through JP Morgan Chase under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates. The application requested assistance in connection with a property PATRICK owned in East Hartford.
During the application process, PATRICK represented that the East Hartford property was his primary residence and was owner occupied when, in fact, the property was not his primary residence and he did not occupy it. PATRICK also fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program. Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.
The investigation revealed that, in connection with the loan application, PATRICK faxed fraudulent documents to JP Morgan Chase from DSS offices and used a DSS fax coversheet.
In his capacity as the Director of Investigations, PATRICK was responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs. PATRICK’s salary was partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.
Judge Bolden scheduled sentencing for August 31, 2015, at which time PATRICK faces a maximum term of imprisonment of 20 years.
PATRICK has been released on a $150,000 bond since his arrest on May 6, 2015.
This matter is being investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).
Former Pittsburg State Official Sentenced for Wire Fraud, Money LaunderingRead the Press Release
WICHITA, KAN. – A former director of the masters of business administration program at Pittsburg State University was sentenced Monday to 18 months in federal prison for wire fraud and money laundering, U.S. Attorney Barry Grissom said. He was ordered to pay $148,430 in restitution.
Michael Muoghalu, 61, Pittsburg, Kan., pleaded guilty to one count of wire fraud and one count of money laundering. In his plea, he admitted the crimes occurred while he was responsible for managing the graduate student exchange program between Pittsburg State University and schools in Nigeria.
Muoghalu and an associate in Nigeria created fictitious documents and presented them to Pittsburg State representing that certain Nigerian students had completed undergraduate work and were eligible to take part in the university’s Nigerian exchange student program.
Pittsburg State required the Nigerian students to pay a deposit at the time they were initially accepted into the program. Later, the university would refund a portion of the student’s deposit. After the refund was authorized, Muoghalu falsely represented to Nigerian students that they must pay him or his associates a fee for representing them in the admission process.
Grissom commended IRS Criminal Investigation, the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Parochial Vicar Pleads Guilty to Child Exploitation ChargesRead the Press Release
PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, pleaded guilty today to all counts contained in a superseding information charging child exploitation. Haynes, a former parochial Vicar, pleaded guilty to using the Internet to entice a minor to engage in sexual conduct, transfer of obscene material to a minor, distribution of child pornography, possession of child pornography, and destruction or concealment of evidence. A sentencing hearing is scheduled for September 10, 2015. Haynes faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life, possible fines, and at least five years up to a lifetime of supervised release.
According to court documents, around 2010, Haynes posed as a 16-year old girl named “Katie” on a teen dating website. As “Katie,” Haynes would meet minor girls online and allegedly request that they take and send sexually explicit pictures. Haynes is also charged with distributing other images and videos of children being sexually assaulted over the Internet in 2014, again posing as “Katie.”
The case was investigated by the FBI in conjunction with the Chester County Criminal Investigative Division. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
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.
Former Bellevue Resident Whose Drug Manufacturing Sparked Explosion and Fire Sentenced to Nine Years in PrisonRead the Press Release
The man who touched off a devastating Bellevue apartment fire with his illegal hash oil manufacturing was sentenced today in U.S. District Court in Seattle to nine years in prison, announced U.S. Attorney Annette L. Hayes. DAVID RICHARD SCHULTZ, II, 33, was using highly explosive butane gas to make hash oil in the Hampton Greens Apartment complex on November 5, 2013. The gas exploded and numerous people in the apartment complex were injured fleeing the fire. One of them, a former Mayor of Bellevue, died following treatment for injuries sustained while trying to escape the building. SCHULTZ was arrested nine months later in a California motel, again with the explosive gas used to make hash oil. At sentencing U.S. District Judge James L. Robart said, “We need to educate the public that the legalization of marijuana in the State of Washington is not unlimited and it does not include the manufacturing of homemade hash oil.”
“In just the last year, we have charged a dozen people with the dangerous and illegal manufacture of butane hash oil (BHO),” said U.S. Attorney Annette L. Hayes. “This case tragically demonstrates why this conduct must be stopped. BHO extraction operations are like the meth labs we have worked so hard to eradicate from our communities. Among other things, they involve the unauthorized use of dangerous solvents, and especially when located in homes and apartment buildings, pose a serious risk of death and property damage as so disastrously happened in this case.”
According to records filed in the case, three people were charged in connection with the Bellevue explosion and fire on November 5, 2013. Former Bellevue Mayor Nan Campbell was hospitalized for a broken pelvis she suffered trying to escape the flames. She later died following complications after her hospitalization. Two other apartment residents suffered shattered bones as they had to jump from their upper level apartments. In all the fire caused $2 million in property damage.
In court today, one of Nan Campbell’s daughters, Anne Campbell Spangler told the court about the loss of her vibrant and involved mother because of a selfish and thoughtless act. Patty Campbell read a letter from another victim of the explosion who was unable to travel to attend the court hearing. The letter describes how the young middle school teacher had to jump from a third floor balcony to escape the flames, shattering her bones – leaving her legs “like Legos.” The young woman described her month in a nursing home, her ongoing pain, and how she will never be able to run or play soccer again. The fire destroyed her belongings including irreplaceable scrapbooks and childhood photos.
Prosecutors had asked for the maximum sentence allowed by law: ten years in prison.
Two other defendants, Daniel James Strycharske, 29, and Jesse D. Kaplan, 32, will be sentenced in July. The two men rented the apartment and allowed SCHULTZ to set up the BHO manufacturing equipment in their space. The men planned to sell the BHO for profit. All three men suffered injuries in the explosion.
This case was investigated by multiple local and federal agencies, including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, and the Bellevue Police and Fire Departments.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Former Banker in Great Bend Sentenced for Bank FraudRead the Press Release
WICHITA, KAN. - A former loan officer for a bank in Great Bend was sentenced Monday to six months in prison followed by six months home detention for bank fraud, U.S. Attorney Barry Grissom said. In addition, he was ordered to pay $124,000 in restitution and $50,000 in a personal forfeiture judgment.
Brian W. Harrison, 56, Great Bend, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted the crime occurred during the time from 2004 to 2012 when he was a loan officer for Farmer’s Bank and Trust in Great Bend.
His duties included reviewing, approving and disbursing loans. In furtherance of a scheme to defraud the bank, he made or caused to be made false statements to the bank to hide the poor performance of various loans he made. His false statements were intended to deflect questions from bank officers about problems with his loans. He falsified credit and loan applications, promissory notes and security agreements on behalf of a purported debtor without the debtor’s proper authority.
Grissom commended the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and Assistant U.S. Attorney Aaron Smith for their work on the case.
“Vigorous criminal law enforcement by SIGTARP and our partners leaves the banking industry safer than we found it,” said Christy Romero, Special Inspector General for TARP (SIGTARP).
Five Men Charged in Federal Court with Attempted Commercial Sex TraffickingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that five men have been charged with Attempted Commercial Sex Trafficking after responding to on-line advertisements. The U.S. Department of Homeland Security Investigations, along with the South Dakota Internet Crimes Against Children Task Force, conducted an on-line undercover operation to identify persons who attempt to purchase sex acts with children.
Jose Joaquin Oxlaj, age 26, of Guatamala, was indicted on May 5, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 11, 2015, and pled not guilty to the Indictment.
Nathanuel Walter Downs, age 27, of Sioux City, Iowa; Benjamin Lyle Iverson, age 25, of Sioux Falls; Lance Eugene Hunter, Jr., age 29, of Little Rock, Iowa; and Scott Robert Larson, age 29, of Sioux Falls, were indicted on June 2, 2015, and made their initial appearances before U.S. Magistrate Judge Veronica L. Duffy on June 3 and 4, 2015. Each of the men pled not guilty to the Indictment.
There is a mandatory minimum sentence of 10 years imprisonment, with a maximum sentence of life, a $250,000 fine, supervised release of not less than 5 years and up to life, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and each man is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the cases.
Oxlaj was remanded to the custody of the U.S. Marshals Service pending trial. Iverson was returned to the custody of Minnehaha County where he is facing state charges for assaulting a law enforcement officer. Downs, Larson and Hunter were released on bond. Trial dates have not been set.Federal Court Prohibits Florida Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court has barred a Tampa, Florida, man from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order, to which Octavio Cruz consented, was signed by U.S. District Judge Elizabeth A. Kovachevich of the Middle District of Florida. The order also bars the business Cruz was operating, Advantage Accounting Corp., from continuing to prepare tax returns.
In August 2014, the United States filed a complaint to enjoin Cruz and Advantage Accounting Corp. from preparing returns for others. According to the complaint, Cruz prepared returns that unlawfully understated income tax liabilities and overstated refunds by fabricating or exaggerating deductions and tax credits his customers were not eligible to take. Cruz’s practices included fabricating Schedule C (Profit or Loss From Business) losses for non-existent businesses and falsely claiming child care and residential energy credits for which the customers were not eligible and did not incur. The suit alleges that Cruz also prepared returns that falsely claimed American Opportunity Credits for taxpayers who did not incur qualified education expenses or go to college. Altogether, the government alleged that loss to the U.S. Treasury from Cruz’s activities may be in the millions of dollars.
The injunction requires Cruz to provide the government with a list of all customers for whom he has prepared federal tax returns or claims for refund since Jan. 1, 2012.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairbanks Priest Sentenced to 10 Years in Prison for Child Sex CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Clint Michael Landry, 58, of Fairbanks, Alaska, was sentenced on Friday, June 5, 2015, by Chief United States District Court Judge Ralph R. Beistline to 10 years in prison to be followed by a lifetime period of supervised release for Attempted Enticement of a Minor, in violation of 18 U.S.C. § 2422(b).
At the time of the offense, the defendant was employed as a priest with the Catholic Diocese in Fairbanks, Alaska. He had been in that position since June 2011.
According to the filed plea agreement and sentencing memoranda in the case, in May 2014, the defendant was caught using a work computer to receive images of child pornography through his Yahoo email account. A search of the computer found multiple sexually-explicit Instant Messages (IM) between the defendant and others believed to be located in the Philippines. In many of these IMs, the defendant is negotiating with a Filipino coconspirator about viewing sexually explicit conduct involving minors through webcams and Skype communications.
Between June 2013, and May 2014, the defendant engaged in negotiations with individuals in the Philippines for the purpose of viewing online sex shows. The defendant communicated with at least eight different Yahoo accounts for the purpose of viewing live videos through Skype or other streaming services of minors engaged in sexually explicit conduct. In at least three of these communications, the defendant sought access to sex shows involving children younger than 11 years old.
• On June 13, 2013, the defendant communicated with a coconspirator, asking “[c]an you show me young boys[?]” He went on to ask, “what handsome young boys do you have?” When told that the available “young boy” was 10 years old, the defendant’s response was “ok,” and he inquired “how much.” The defendant then attempted to offer 1600 Philippine pesos for online access to the child, or approximately $35.
• On July 26, 2013, the defendant initially resisted an offer to view an 11-year-old girl. However, when the only other option offered by the defendant’s coconspirator was an 18-year-old male, the defendant “ask[ed] for your young show,” and said that he would “send money tomorrow.”
• On August 7, 2013, the defendant wrote, “I like to see you boy or girl because they are cute. Only see on yahoo.” When told by his coconspirator that he had children available who were “10 and 8 yrs old,” the defendant replied, “I send you some western union tomorrow.”
In a message dated May 18, 2014, the defendant communicated directly with a person in the Philippines he believed to be a minor. During the chat, the individual said that it was his 16th birthday, and asked the defendant if he wanted to see a picture of the minor’s penis. The defendant replied, “yes.” The conversation continued with the defendant and the minor negotiating how much money the defendant would send to the minor in exchange for producing and transmitting through the Internet the live visual depiction of the minor engaged in sexually explicit conduct. The defendant ultimately drove to a Western Union branch in Fairbanks and wired $55 to the minor in order to entice him to perform the requested online sex show.
In addition, the defendant received images of child pornography through the Internet. On May 19, 2014, the defendant negotiated with a Yahoo user for child pornography. The defendant was told by the Yahoo user to send money for the images. The defendant requested from the Yahoo user “boy pics,” and wrote, “give me pics…boys and girls.” Soon after, the Yahoo user sent 12 emails with image and video files attached. The image and video files showed prepubescent girls and boys engaged in sexually explicit conduct, including sadistic and masochistic conduct.
At sentencing, Judge Beistline commented on the fact that child exploitation and pornography offenses like the defendant’s victimize children throughout the world, and the United States’ laws are a “desperate attempt” to put an end to the child pornography trade. “These children are pawns [who] have nothing else but to sell their bodies,” said Judge Beistline, and the victims “carry the burden [of their abuse] with them forever, for a lifetime.”
The defendant’s sentence, to include lifetime supervision that would include restrictions on his internet access, polygraph examinations, sex offender treatment, and lifetime sex offender registration, was driven by a desire to “deter” the defendant, to insure that he would never again hurt a child. “You are going to be watched forever,” said Judge Beistline, “you are never acting out again, never doing anything again to hurt children.” Judge Beistline was also troubled by the fact that the defendant “had a position of respect in the community” and that he violated the trust that his parish had placed in him.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Fairbanks Drug Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
Anchorage, Alaska — U.S. Attorney Karen K. Loeffler announced that Etienne Q. Devoe, 42, of Fairbanks, Alaska, was sentenced today by Chief United States District Judge Ralph R. Beistline to 126 months in prison to be followed by a five year term of supervised release for conspiring to distribute cocaine and heroin, and conspiring to launder the proceeds from the sale of those drugs.
According to the evidence at trial, Devoe was a drug dealer located in Fairbanks, Alaska. Between May 2, 2013, and June 13, 2013, law enforcement captured phone calls and text messages between Devoe and his co-conspirator, Steven N. Taylor. In those calls, Devoe and Taylor discussed their ongoing drug trafficking relationship. As part of that relationship, Taylor supplied cocaine and heroin to Devoe for distribution in and around the Fairbanks area. Devoe paid for those drugs by sending Taylor money through a checking account at a local bank.
On June 20, 2013, Fairbanks police responded to shooting at a rented house on Gillem Way. Devoe was found hiding in an upstairs bedroom closet at the residence, which he shared with his girlfriend. Also located in the residence were drug trafficking supplies, including packaging materials and an adulterant commonly used to cut cocaine prior to its resale.
This is Devoe’s second federal conviction for a drug trafficking offense. In February 2012, Devoe was found in possession of approximately six ounces of cocaine, along with packaging material. He was convicted of Possession of Cocaine with the Intent to Distribute and sentenced to 57 months imprisonment. The case number for that matter is 4:14-cr-00002-RRB.
At sentencing, Judge Beistline told the defendant it was “time to grow up,” commenting on the defendant’s long criminal history, which includes four convictions for domestic violence offenses, three convictions for driving-related offenses, two prior drug convictions, and a conviction for giving false statements to law enforcement. Judge Beistline also noted that the defendant has “no legitimate work history, and . . . eight children raised by other people.” There is “no indication [in your past] of a desire to obey the law or become a positive member of the community,” said Judge Beistline.
The sentence was also driven by the need to punish the defendant for the harm caused by his drug dealing. On several occasions, Judge Beistline commented on the fact that the defendant’s drug dealing “prey[ed] on others,” and “destroy[ed] the community.” The sentence of more than 10 years in federal prison was intended “to protect the public from drug dealers” like the defendant.
Devoe was indicted on June 16, 2014. Other defendants named in the Indictment include Taylor, James Brown, Sr., Leonard D. Charles, Shawn Cortez Cloyd, Timothy W. Northcutt, Joshua J. Haynes, Gabrielle P. Haynes, and Joseph E. Irving. Those defendants have been sentenced as follows:
Defendant
Crime of Conviction
Sentence
Joseph E. Irving
Pled guilty to money laundering conspiracy
21-months imprisonment, three years supervised release
Gabrielle P. Haynes
Pled guilty to drug conspiracy
18-months imprisonment, three years supervised release
Leonard D. Charles
Pled guilty to drug conspiracy
60-months imprisonment, five years supervised release
James Brown, Sr.
Pled guilty to drug conspiracy
56-months imprisonment, five years supervised release
Sean Cortez Cloyd
Pled guilty to drug conspiracy
36-months imprisonment, five years supervised release
Timothy W. Norcutt
Pled guilty to drug conspiracy and money laundering
72-months imprisonment, five years supervised release
Steven N. Taylor
Pled guilty to drug conspiracy and money laundering
Not yet sentenced
Joshua J. Haynes
Pled guilty to drug conspiracy
Not yet sentenced
“Drug trafficking is a harmful business,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigations. “Those who profit from the manufacturing and distribution of illicit substances will attract the vigilant watchful eye of IRS Special Agents who will use their unique financial investigative skills to dismantle criminal enterprises lurking in our communities.”
“It is time for Etienne Devoe to reap the legal consequences for his continued disregard for the law,” said DEA Acting Special Agent in Charge Douglas James. “As a result of his illegal actions, he has received over 10 years in prison, a fitting punishment for the crimes he has committed.”
The case was the product of an investigation by multiple law enforcement agencies, to include the Drug Enforcement Administration, the Internal Revenue Service, the FBI Safe Streets Task Force, Anchorage Police Department, Fairbanks Police Department, Alaska State Troopers, and the University of Alaska, Fairbanks Police. Assistant U.S. Attorneys Kelly Cavanaugh, Kyle Reardon, and Timothy Edmonds prosecuted the case.
Enbridge Must Restore Environment Injured by 2010 Pipeline Rupture and Oil Spill in Michigan’s Kalamazoo RiverRead the Press Release
The United States filed today a proposed consent decree that will resolve claims of federal, state and tribal resource trustees for natural resource damages (NRD) caused by the 2010 rupture of Enbridge’s Line 6B pipeline in Michigan that resulted in one of the largest inland oil spills in U.S. history. Under the proposed settlement, several Enbridge affiliates will be responsible for completing numerous natural resource restoration projects along the Kalamazoo River and will pay an additional sum of nearly $4 million to fund additional restoration projects, reimburse natural resource damage assessment costs of federal and tribal trustees and support ongoing restoration planning activities of natural resource trustees.
“This settlement will restore natural resources affected by the 2010 spill – one of the largest inland spills in our history – and compensates the public for natural resource losses resulting from the spill,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “By requiring restoration and monitoring, along with funding for the federal, state and tribal trustees, this settlement will go a long way toward correcting the injuries to injured natural resources along the Kalamazoo River.”
Trustees reached the NRD settlement in conjunction with a separate settlement that resolves related state law claims of the state of Michigan against Enbridge relating to the July 2010 spill. The state settlement was filed May 12 in the circuit court for Calhoun County, Michigan. The NRD settlement, which was filed in federal court today, provides funding to the federal, state and tribal trustees to conduct natural resource restoration, reimburses assessment costs spent by the federal and tribal trustees and incorporates requirements from the state settlement for Enbridge to conduct restoration and monitoring. More details on the NRD settlement can be found at www.fws.gov/midwest/es/ec/nrda/MichiganEnbridge/.
The state settlement provisions that will also be enforceable under the NRD settlement include commitments by Enbridge to perform work to restore or compensate for injuries to injured natural resources along the Kalamazoo River, at an estimated cost of at least $58 million. Thus, the two settlements combined result in estimated expenditures of at least $62 million to resolve natural resource damages. In addition, the state settlement required Enbridge to implement a number of measures pursuant to state response action authorities and to pay the state for its costs of oversight of cleanup and restoration. The state of Michigan settlement announcement and details can be found at www.michigan.gov/oilspill.
The NRD settlement addresses Enbridge’s liability for natural resource damages under the Oil Pollution Act (OPA) and Michigan’s Natural Resources and Environmental Protection Act. The NRD settlement provides for habitat improvement projects to address injuries to aquatic organisms, fish, reptile, mammals and birds, as well as for enhancements to public access and use of the Kalamazoo River for recreational, educational and cultural purposes. The trustees are proposing to implement the following projects with funding from the NRD settlement:
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Replace undersized culverts, remove existing obstacles to water flow and increase floodplain capacity in two tributaries to the Kalamazoo River;
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Control Eurasian water milfoil and otherinvasive species, within the Fort Custer State Recreation Area to provide improved habitat for warm water fisheries;
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Restore 175 acres of oak savanna uplands in Fort Custer State Recreation Area;
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Track and protect turtle reproduction in the impacted area of the Kalamazoo River;
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Restore wild rice beds in suitable areas along the Kalamazoo River;
- Document the historic use and knowledge of natural resources by members of the Match-E-Be-Nash-She-Wish Band of the Pottawatomi Indians (Gun Lake Tribe) and the Nottawaseppi Huron Band of the Potawatomi to guide restoration and stewardship.
The NRD settlement also incorporates certain requirements from the state’s settlement with Enbridge, including requirements to:
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Restore and monitor the 320 acres of wetlands affected by the spill and response activities;
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Permanently restore, create or otherwise protect at least 300 additional acres of wetland habitat in compensation for wetland losses;
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Evaluate stream function within the restored areas of Talmadge Creek and perform additional actions as needed;
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Conduct monitoring and restoration activities related to the removal of large woody debris during the spill response;
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Fund the state of Michigan to monitor fish contamination, fish populations and the health of stream bottom communities along Talmadge Creek and the Kalamazoo River.
Enbridge has already implemented additional projects that relate to losses of natural resources:
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Created the Kalamazoo River Community Recreational Foundation including a $2.5 million endowment to assure perpetual care of these projects
Removed the dam at Ceresco on the Kalamazoo River and restored over 2.5 miles of river channel that was previously impounded.
“Working together, the natural resource trustees are using the settlements in tandem to develop a big-picture, comprehensive plan to restore natural resources,” said Deputy Regional Director Charlie Wooley for the Midwest Region of the U.S. Fish and Wildlife Service. “This cooperative approach will enhance our ability to return to the public the natural resources lost due to the spill.”
The trustees are asking for public comment on a draft Damage Assessment and Restoration Plan/Environmental Assessment (DARP/EA) developed to inform the public about the harm caused by the pipeline rupture and the proposed restoration projects described above to address these injuries and losses. This draft DARP/EA is now available for public review and comment at www.fws.gov/midwest/es/ec/nrda/MichiganEnbridge/, along with the consent decree for the NRD settlement filed in federal court at www.justice.gov/enrd/consent-decrees.
Settlement of the state law claims and the natural resource damages claims do not affect or alter Enbridge’s other liabilities or obligations under OPA or the Clean Water Act (CWA).
Enbridge’s Lakehead Line 6B pipeline ruptured near Marshall, Michigan, on July 25, 2010, discharging oil into the environment. Enbridge discharged significant additional oil from Line 6B during two attempts to restart the ruptured pipeline on July 26, 2010. Oil discharged from Line 6B entered Talmadge Creek and ultimately extended approximately 38 miles down the Kalamazoo River. The oil impacted over 1,560 acres of stream and river habitat as well as floodplain and upland areas, injuring birds, mammals, reptiles and other wildlife. The river was immediately closed to the public and sections remained closed for several years, reducing recreational and tribal uses of the river.
For more information on the cleanup of the 2010 pipeline discharges, visit www.mi.gov/oilspill and www.epa.gov/enbridgespill.
The natural resource trustees in this case include the Michigan Department of Environmental Quality, the Michigan Department of Natural Resources, the Michigan Department of the Attorney General, the U.S. Fish and Wildlife Service, the National Oceanic and Atmospheric Administration, the Nottawaseppi Huron Band of the Potawatomi Tribe and the Match-E-Be-Nash-She-Wish Band of the Pottawatomi Indians (Gun Lake Tribe).
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District Man Pleads Guilty to Sexually Assaulting Woman in Early-Morning Attack Near Meridian Hill ParkRead the Press Release
WASHINGTON - Glen Green, 23, of Washington D.C., pled guilty today to a charge of first-degree sexual abuse for a recent sexual assault that took place near a park in Northwest Washington, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Green pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a 19-year prison sentence. Upon release, Green would be required to register as a sex offender for the remainder of his life. The Honorable Rhonda Reid Winston scheduled sentencing for Aug. 21, 2015.
According to the government’s evidence, the attack occurred just before 7 a.m. on April 21, 2015. That morning, the victim was jogging in Meridian Hill Park. When she finished, she began walking back home. She was wearing headphones and did not notice the defendant, who began following her from behind on foot. Green got steadily closer to the victim as she got closer to her home. As the victim turned into an alleyway near 14th and Chapin Streets NW, Green grabbed her from behind and began dragging her behind a dumpster.
The victim struggled to free herself, demanding repeatedly that the defendant let her go. Green, who is much larger than the victim, told her not to make this more difficult than it had to be. Then, as the victim continued to struggle, he punched her in the face. Green dragged the victim behind a dumpster in the alleyway, forced her to remove her pants and underwear, and sexually assaulted her. Afterwards, he demanded money from the victim. She handed over her iPod and the defendant fled the area, warning the victim not to move until he had left.
The victim returned home and called 911. After police responded, she was transported to Washington Hospital Center, where medical care providers documented numerous injuries on her body.
Detectives from the Metropolitan Police Department’s Sexual Assault Unit responded to the scene and immediately commenced an investigation. They canvassed the area and located witnesses who were nearby when the assault occurred and provided a description of the assailant. Moreover, they quickly identified and recovered surveillance video capturing Green fleeing the area. Portions of that video were disseminated to the public through news outlets and other media requesting the public’s assistance in identifying the suspect.
Soon thereafter, the police began receiving calls identifying the defendant as the individual seen fleeing in the surveillance video. Green was located and arrested on the evening of April 22, 2015, one day after the sexual assault occurred.
In announcing the plea, Acting U.S. Attorney Cohen and Chief Lanier commended the work performed by detectives from the Metropolitan Police Department’s Sexual Assault Unit. They acknowledged the work of the Forensic Services Division of the U.S. Secret Service, which assisted in processing the surveillance video. They also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist D’Yvonne Key, Criminal Investigator John Marsh, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, they commended the work of Assistant U.S. Attorney Jason Park, who is prosecuting the case.
Correctional Officer Sentenced to Prison for Identity Theft and Wire FraudRead the Press Release
Jacksonville, Florida – United States District Judge Timothy Corrigan today sentenced Harold Walbey, III to four years and three months in federal prison for identity theft and wire fraud. As part of his sentence, the Court also entered a money judgment in the amount of $110,756, the proceeds of the offenses. Walbey pleaded guilty on December 18, 2014.
According to court documents, beginning in 2010 and continuing through May 2012, Walbey, in his capacity as a correctional officer at the John E. Goode Pre-trial Detention Facility (PTDF), stole the personal identifying information of unknowing inmates that were housed at the facility. As a part of this scheme, Walbey maintained a notebook that contained 49 names, Social Security numbers, and dates of births of prisoners that were incarcerated at the PTDF. Once this information was stolen, fraudulent debit card accounts and W-2 forms were created in the inmates’ names, and fraudulent tax return were then electronically filed. From 2010 through 2012, Walbey filed tax returns in 38 different prisoners’ names, claiming more than $250,000 in fraudulent refunds. He received $110,756 in proceeds as a result of his involvement in this crime.
This case was investigated by the Jacksonville Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Malisa Chokshi.
Construction Service Company Owner Pleads Guilty to Fraud Conspiracy and Tax Violation Involving Contract with the New York Power AuthorityRead the Press Release
The owner of a Bardonia, New York, construction service company pleaded guilty to conspiring to defraud the New York Power Authority (NYPA) and filing a false tax return, the Department of Justice, the IRS and the New York State Inspector General announced today.
According to the two-count felony charge filed in U.S. District Court of the Southern District of New York in White Plains today, Thomas Delaney, owner of Over Rock Construction LLC, participated in a scheme to defraud NYPA. In October 2009, Over Rock was awarded a five-year, $3 million contract to perform landscaping, snow removal and masonry work at NYPA’s administrative facility in White Plains. To generate cash for those involved in the scheme, Delaney, with the assistance of his co-conspirators, submitted fraudulent certified payroll statements and invoices to NYPA for reimbursement for individuals who performed no services (“no show” employees) on behalf of Over Rock at NYPA. Between 2009 and 2012, the false and fraudulent overcharges paid by NYPA to Over Rock totaled more than $400,000. Delaney also pleaded guilty to filing a false and fraudulent tax return which substantially understated his income.
“The defendant cooked the books twice – first so he could defraud the New York Power Authority and then again to avoid paying taxes he owed,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The division will continue to work with our partners at the FBI, IRS and the New York Inspector General to bring to justice those who corrupt a public bidding process for their own personal gain.”
“Today we see yet another scheme involving fraudulent payroll statements and invoices that were used to pad the pockets of devious individuals,” said Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office. “Along with the announcement of this guilty plea comes a reminder that the FBI will continue to work with our partners in rooting out fraud to both public and private companies.”
“This contractor defrauded the State on multiple occasions, repeatedly billing the New York Power Authority for workers who never showed up and by paying significantly less taxes than he owed,” said New York State Inspector General Catherine Leahy Scott. “Today's guilty plea serves to reinforce my office's ongoing commitment to protect the integrity of the contracting process across all state agencies and authorities. I would like to thank our federal law enforcement partners in this matter and look forward to continuing our work with them to hold accountable any corrupt entities or individuals.”
“IRS Criminal Investigation is committed to ensuring that everyone pays their fair share of taxes,” said Special Agent in Charge Shantelle P. Kitchen of the IRS Criminal Investigation New York Field Office. “To that end, we will investigate individuals who willfully conceal income to reduce or eliminate their own tax obligations, effectively increasing the burden on honest taxpayers.”
Delaney pleaded guilty to a fraud conspiracy charge that carries a maximum penalty of 20 years in prison, three years of supervised release and a $250,000 fine. Delaney also pleaded guilty to subscribing to a false tax return, which carries a maximum penalty of three years in prison and a $100,000 fine. The maximum fines for each of these charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
These charges arose from an investigation initiated by the New York State Inspector General and is part of an ongoing joint federal and state investigation of bid rigging, fraud and tax-related offenses in the award of contracts at NYPA’s facility in White Plains. The investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FBI, the IRS Criminal Investigation and the New York State Office of the Inspector General. NYPA is cooperating with the investigation. Anyone with information on bid rigging or other anticompetitive conducted related to the award or performance of municipal and state contracts should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/contact/newcase.html.
Colorado Man Sentenced for Drug ConspiracyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Denver, Colorado, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 3, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Vincent Rios, age 32, was sentenced to 87 months in federal prison, followed by 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Rios pled guilty to the charge on December 17, 2014. The charge related to Rios conspiring with others to distribute 50 grams or more of methamphetamine in the District of South Dakota in 2014.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rapid City Police Department, the South Dakota Highway Patrol, the South Dakota Division of Criminal Investigation, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Rios was immediately turned over to the custody of the U.S. Marshals Service.
Cleveland man guilty of conspiracy, last of 60 convicted for bringing heroin to Cleveland from Atlanta and ChicagoRead the Press Release
A Cleveland man was convicted of conspiracy to possess with intent to distribute heroin and related charges following a week-long trial.
Keith Ricks, 33, is scheduled to be sentenced by U.S. District Judge Christopher Boyko on Sept. 14. He faces a potential sentence of life in prison.
Ricks is the last of 60 people to be found guilty in federal court for their roles in a conspiracy to bring heroin from Chicago and Atlanta and sell it throughout Greater Cleveland between 2011 and 2013.
Ricks and others obtained heroin from suppliers in Atlanta and transported the drugs to Cleveland by mail or car. Ricks and others also pooled their money to obtain heroin from Atlanta. Ricks then distributed the heroin to other traffickers in Cleveland, according to trial testimony and court documents.
Ricks, Maceo Moore, Leamon Shephard and others also planned and committed burglaries and robberies from other drug dealers, customers, and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs, and to collect drug debts, according to trial testimoney.
The men then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin. They identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. They sometimes used firearms or zipties to restrain victims, according to trial testimony and court documents.
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl, and Matthew B. Kall, following a multi-year investigation by the Northern Ohio Law Enforcement Task Force (NOLETF).
The NOLETF is a longstanding multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The investigation was assisted by the Hotel Interdiction Team, another HIDTA initiative composed of members of the FBI, Cuyahoga County Sheriff’s Office, Homeland Security Investigations, and police departments from Broadview Heights, Brooklyn, Brook Park, and Independence.
Cedar Rapids Woman Pleads Guilty to Stealing from the Government and Using Another’s Identity to File a Fraudulent Tax ReturnRead the Press Release
A woman who unlawfully used another person’s identity to file a fraudulent tax return and steal money from the government pled guilty today in federal court in Cedar Rapids.
Gwendolyn Murray, 35, from Cedar Rapids, Iowa, was convicted of one count of theft of government property and one count of aggravated identity theft.
At the plea hearing, Murray admitted she, without lawful authority, used another person’s name, social security number, and signature on a fraudulent tax return she filed in January 2012. Murray further admitted she then stole from the government by cashing the refund check, worth more than $6,000, issued in March 2012 as a result of the fraudulent tax return.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Murray remains free on conditions of release previously set. Murray faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of twelve years’ imprisonment, a $500,000 fine, $200 in special assessments, and four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-0015.
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Cedar Rapids Man Pleads Guilty to Distributing Heroin Resulting in Serious Bodily InjuryRead the Press Release
A man who distributed heroin to a user who nearly died from an overdose pled guilty today in federal court in Cedar Rapids.
Marcus DeJohn Wallace, age 19, from Cedar Rapids, Iowa, was convicted of distribution of heroin resulting in serious bodily injury.
At the plea hearing, Wallace admitted that on February 24, 2015, he distributed $50 worth of heroin to a person in the parking lot of a business on Edgewood Road. He also admitted that the person to whom he had sold the heroin took that heroin to a nearby vehicle, where another person was waiting in the driver’s seat. Both the driver and passenger used the heroin Wallace had sold, and both individuals immediately overdosed and lost consciousness after using the heroin. The driver’s head slumped forward to the point that the driver’s head hit the steering wheel, activating the horn. A passerby heard the horn honking, saw the two unconscious individuals inside the vehicle, and called 911. When paramedics arrived, the passenger was able to be revived without medical intervention. The driver’s head was down (chin to chest), skin was blue, and respirations were labored. The driver was totally unresponsive until paramedics repositioned the driver’s head to open the airway. Wallace admitted that without medical intervention by the paramedics, the driver was at a substantial risk of anoxic brain injury and death as a result of using the heroin Wallace distributed.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Wallace remains in custody of the United States Marshal pending sentencing. Wallace faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime term of supervised release following any imprisonment.
The case is being investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00025-LRR.
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Carrick Cocaine Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
PITTSBURGH – A Pittsburgh resident has been sentenced in federal court to 70 months’ incarceration, followed by five years of supervised release, on his conviction of violating of the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Antwon Lamar Richards, 29.
According to information presented to the court, from October 2013 to April 2014, in the Western District of Pennsylvania and elsewhere, Richards conspired with others to distribute and possess with the intent to distribute over two kilograms of cocaine. In addition, on Oct. 22, 2014, Richards possessed with intent to distribute a quantity of cocaine.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Richards.
California Man Sentenced for Credit Card Fraud for Installing Skimming Devices in Gas PumpsRead the Press Release
BOISE – Vachik Babayan, 42, of Tujunga, California, was sentenced today to 11months and 25 days in prison for access device fraud for possessing fifteen or more unauthorized credit card account numbers, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Babayan to pay a $10,500 fine, to pay restitution in the amount of $9,999, and to serve three months of home detention and three years of supervised release following his release from prison.
According to the plea agreement, Babayan travelled to Idaho on two separate occasions for the purpose of installing, and aiding and abetting the installation of, credit card account number skimmers in gas station pumps, in both Caldwell, Idaho, and Idaho Falls, Idaho. The skimmers diverted the electronic communication of credit card information from the normal course of wires and circuits within the pump, and recorded the credit card information, including name and account number, which Babayan later planned to retrieve.
On December 24, 2012, Babayan installed a credit card skimmer in a gas station in Caldwell, Idaho. Prior to its discovery by gas station employees, the skimmer collected the account information of approximately 91 account holders who swiped their cards at the targeted pump. The skimmer also captured Babayan’s own credit card information, as he used his card to test the installation. Babayan returned to the same gas station on January 8, 2013, intending to retrieve the skimmer and the captured account information. However, on December 28, 2012, the gas station discovered the skimmer and turned it over to the Secret Service.
On February 20, 2013, Babayan rented a U-Haul van in Idaho Falls, Idaho. Babayan used this van to block security cameras at gas stations in Idaho Falls while installing credit card skimmers in gas pumps at various Idaho Falls gas stations. On February 21, 2013, a total of seven skimmers were recovered at three gas stations in Idaho Falls. Babayan installed and aided and abetted in the installation of these skimmers. Prior to discovery, these skimmers captured names and account numbers from approximately 66 credit card transactions, including Babayan’s account information.
“This case demonstrates how vigilant cooperation between federal and local law enforcement, and local businesses, protects Idaho consumers from credit card fraud and other violations of financial security,” said Olson.
The case was investigated by the United States Secret Service, the Caldwell Police Department, the Boise Police Department, the Mountain Home Police Department, the Boise County Sheriff’s Office, the Idaho Falls Police Department, and the Glendale California Police Department as part of the Los Angeles Electronic Crimes Task Force.