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27 July 2015
Former Security Company Operator Sentenced to Prison for Employment Tax FraudRead the Press Release
A former Washington, D.C., businessman was sentenced today to serve three and one-half years in prison for employment tax fraud, announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.
Jeffrey Norman Jackson, who currently resides in Maryland, previously pleaded guilty to failing to file federal employment tax returns and failing to pay over approximately $600,000 in employment taxes. In addition to 42 months in prison, Jackson was sentenced to three years of supervised released, ordered to perform 360 hours of community service and ordered to pay $595,687.39 in restitution to the Internal Revenue Service (IRS).
“Business owners have a responsibility to their employees and the IRS to honestly collect, account for and pay over employment taxes to the IRS,” said Acting Deputy Assistant Attorney General Wszalek. “As evidenced by today’s sentencing, employers like Jeffrey Jackson, who willfully evade their employment tax obligations, will be prosecuted to the fullest extent and face lengthy terms of imprisonment and substantial financial penalties.”
According to court documents, Jackson operated Innovative Security Services LLC (Innovative) in the District of Columbia. From 2006 through 2010, Jackson controlled the company’s finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns (IRS Forms 941). He was also responsible for paying over to the IRS the federal income, social security and Medicare taxes, known as Federal Insurance Contributions Act (FICA) taxes, that were withheld from the wages of Innovative’s employees.
Instead of paying the taxes that were due and owing to the IRS over the four-year period, Jackson diverted money from the company for his personal use. He used company funds to pay rent and buy furniture for his personal residence, spent more than $21,000 at the men’s clothing store Everett Hall and made other personal expenditures at Nordstrom and Tiffany & Co. Jackson also paid more than $10,000 for his gym membership and personal training sessions and paid $10,000 to his childcare provider.
Jackson has a previous federal conviction related to the theft of employment taxes. In 2006, he pleaded guilty to bankruptcy fraud after he stole $373,429.57 from a bank account that was set up to pay the payroll taxes for Jackson’s former company, Unlimited Security Inc., while that company was proceeding through Chapter 11 bankruptcy. In that case, Jackson used the stolen funds to support a boxing promotion business that he controlled and to pay professional boxers.
Acting Deputy Assistant Attorney General Wszalek commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division, who prosecuted the case. He also thanked the U.S. Attorney’s Office of the District of Columbia for their substantial assistance.
Former Postal Carrier Pleads Guilty to Theft of MailRead the Press Release
NORFOLK, Va. – Raynard R. Heckstall, 26, of Norfolk, pleaded guilty today to theft of mail matter by a postal employee.
In a statement of facts filed with the plea agreement, Heckstall was employed by the U.S. Postal Service as a rural carrier assistant at the Princess Anne Station in Virginia Beach, Virginia. He began his employment on April 5, 2014. Between December 2014 and April 2015, the defendant stole mail intended to be delivered by him to customers on his assigned route. Items stolen included gift and greeting cards, cash and other items of personal property. As a result of complaints of missing and opened mail by customers on his route, the Postal Service initiated an investigation. Video surveillance set up by the Postal Service showed the defendant rifling through and opening mail in his postal vehicle while on his route. In addition, video surveillance footage taken at a department store showed the defendant and a friend redeeming a number of the gift cards he had stolen. In a voluntary interview on April 14, 2015, Heckstall admitted to law enforcement agents that he had stolen mail intended for delivery. He estimated that since January 2015 he had stolen as many as 10 greeting cards, three times per week. He also admitted to stealing $400 to $500 in cash. After the interview, Heckstall voluntarily turned over to agents a plastic bag containing 25 additional gift cards that he had stolen from the mail. These cards had a total value of over $1,000.
Heckstall was indicted by a federal grand jury on May 20, 2015. He faces a maximum penalty of five years in prison when he is sentenced on October 29, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Paul L. Bowman, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard.
This case was investigated by the Office of Inspector General of the U.S. Postal Service. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-65.
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Former Partner of Freehold, New Jersey, Office Equipment Leasing Company Sentenced to 30 Months in Prison for Stealing More Than $600,000 from His ClientsRead the Press Release
TRENTON, N.J. – A Yardley, Pennsylvania, man was sentenced today to 30 months in prison for using his position at a Freehold, New Jersey, office equipment leasing company to defraud clients out of more than $600,000, U.S. Attorney Paul J. Fishman announced.
Jason Lee Lum, 36, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Lee Lum was a partner at Company 1, which provided office equipment leasing services. Due to the high cost of leasing office equipment, Company 1 would obtain loans for its clients through a financing company. After a client agreed to lease office equipment, a Company 1 employee would submit the lease agreement paperwork to the financing company in order to obtain a loan for the client. If the financing company approved the loan, it would send the loan proceeds directly to Company 1’s bank account. The client would then receive the leased office equipment and would directly repay the loan to the financing company.
As a partner at Company 1, Lee Lum was responsible for Company 1’s finances and for submitting client loan documentation. From October 2011 through May 2012, Lee Lum forged signatures of existing company clients on loan documents and then submitted the documents to the financing company. The clients had neither approved nor consented to the loan documents being submitted, nor did they obtain office equipment in connection with the fraudulent loan applications. When the financing company approved the fraudulent loan applications, Lee Lum directed the proceeds to be sent to Company 1’s bank account, which he controlled. Lee Lum used the fraudulently obtained loan proceeds to pay personal expenses, company payroll (including his own salary) and to increase the company’s revenue for accounting purposes. Lee Lum sought to conceal his fraud by making payments on the fraudulently obtained loans. When Lee Lum began to fall behind on those payments, the financing company that issued the loans sought payment directly from the Company 1’s clients, whose names were on the fraudulent loans.
In addition to the prison term, Judge Thompson ordered Lee Lum to serve three years of supervised release and pay restitution of $692,797.15.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Frederick W. Klepp Esq., Cherry Hill, New Jersey
Former NIH Employee Indicted for Using Her Government Credit Card to Make Unauthorized PurchasesRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Francesca Daniele, age 48, of LaPlata, Maryland, today on wire fraud charges in connection with the misuse of her government credit card.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch
According to the three-count indictment and other court documents, Daniele was an employed as a program support assistant at the National Institutes of Health (NIH) from June 2013 to September 2014, when she was terminated. As part of her employment, Daniele was authorized to purchase equipment from vendors and to administer contracts on behalf of NIH. To perform her job, Daniele was issued a government credit card in her name, which was only to be used for official government purchases.
The indictment alleges that from July 12 through July 28, 2014, Daniele used her government credit card to make over $21,000 of personal purchases at retail stores and used her cell phone to contact the credit card’s customer service center to facilitate approval of those purchases. According to court documents, Daniele purchased gift cards, electronics, and other personal items such as food and clothing. The indictment further alleges that to conceal the scheme Daniele falsely reported that her credit card had been lost.
Daniele faces a maximum sentence of 20 years in prison for each of three counts of wire fraud. No court appearance has been scheduled. Daniele was arrested on June 30, 2015, in Las Vegas, Nevada on a related criminal complaint. She was transferred to Maryland and had an initial appearance on July 23, 2015 in U.S. District Court in Greenbelt. Daniele remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P Windom and Trial Attorney Justin D. Weitz of the Justice Department’s Public Integrity Section, who are prosecuting the case.
Former Letter Carrier Convicted of Drug Trafficking and BriberyRead the Press Release
Greenbelt, Maryland – A federal jury convicted former letter carrier Takisha Cole, age 33, of Washington, D.C. late on Friday, July 24, 2015 of possession with intent to distribute marijuana, use of a communications device to facilitate drug trafficking and bribery.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
From at least March 2011 through September 2014, Cole was employed by the U.S. Postal Service as a letter carrier, assigned to a route serving the Silver Spring, Maryland area. Cole was responsible for delivering packages sent through the U.S. Postal Service to the appropriate addresses on her route.
According to court documents and evidence presented at Cole’s five-day trial, from at least May 2013 through August 13, 2014, Michael Prandy paid Cole to use her position as a letter carrier to obtain and deliver packages containing marijuana to Prandy. The packages were sent from California and elsewhere and mailed via USPS to Prandy’s residence in Silver Spring. In August 2013, Prandy’s address was removed from Cole’s postal route. Even though Prandy’s address was no longer on her postal route, Cole continued to pick up his packages at the Silver Spring Postal Annex and deliver them to Prandy’s residence on McAlpine Road. According to trial testimony, in return for delivering the packages, Prandy paid Cole $50 to $100 per package, which he placed in an envelope and left in the mailbox at his residence for Cole to pick up.
The jury was unable to reach a verdict on the charge of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana.
Cole faces a maximum sentence of five years in prison for possession with intent to distribute marijuana; four years in prison for use of a communications device to facilitate drug trafficking; and 15 years in prison for bribery. U.S. District Judge Theodore D. Chuang has scheduled sentencing for October 19, 2015 at 2:00 p.m.
Michael Louis Prandy, age 39, of Silver Spring, Maryland previously pleaded guilty to his role in the conspiracy. Judge Chuang scheduled Prandy’s sentencing for August 4, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG, the U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Ray D. McKenzie, who are prosecuting the case.
Former Chief of Mount Pleasant Police Department Pleads Guilty in White Plains Federal Court to Possession of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BRIAN FANELLI, the former Chief of the Mount Pleasant, New York, Police Department, pled guilty today to one count of possession of child pornography. FANELLI, who was arrested in January 2014, entered his plea before United States District Judge Kenneth M. Karas.
Manhattan U.S. Attorney Preet Bharara stated: “By his guilty plea to downloading and possessing child pornography, Brian Fanelli, a former police chief who swore to protect and serve, admitted to a crime that victimizes and exploits some of the most vulnerable in our community.”
According to the Complaint and Indictment:
From at least as early as October 2013, through January 2014, FANELLI used a Peer-to-Peer File Sharing Program (“the “P2P Network”) to download more than 120 files containing images and videos believed to be child pornography; certain of those files were made available to other P2P Network users through FANELLI’s computer’s shared folder on the P2P Network program. On three occasions, agents with the Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), acting in an undercover capacity, used the P2P Network to download from FANELLI’s computer files containing images and videos believed to contain child pornography.
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FANELLI, 56, of Mahopac, New York, pled guilty to one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. The count also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The prosecution is being overseen by the Office’s White Plains Division and the Public Corruption Unit. Assistant United States Attorneys Anden F. Chow and Andrew D. Goldstein are in charge of the prosecution.
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Five Southern Illinois Residents Charged with Methamphetamine and Heroin OffensesRead the Press Release
Five southern Illinois residents were indicted on July 7, 2015, in a two-count superseding indictment, charging conspiracy to manufacture and distribute methamphetamine and conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Franklin S. Denault, a/k/a "Frankie D," 38, Steeleville, Michael F. Halliday, a/k/a "Micky," 33, of Elkville, and Nicholas C. Draege, 24, of DuQuoin, are charged with conspiracy to manufacture and distribute methamphetamine. The superseding indictment alleges that the methamphetamine offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Denault, along with Leah A. Bean, 33, and Jami L. Hoelscher, 36, both of Steeleville, are charged with conspiracy to distribute heroin. The superseding indictment alleges that the heroin offense occurred between 2013 and June 2015 in Perry and Randolph Counties.
Draege made his initial appearance in federal court on July 14, 2015. Denault, Halliday, Bean, and Hoelscher made their initial appearances in federal court on July 20, 2015. The co-defendants were ordered held without bond pending a September 14, 2015, jury trial. Seven co-defendants, who were charged in the original indictment, have previously made court appearances on these charges.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the methamphetamine and heroin offenses carry penalties of a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Final Defendants Head to Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
HOUSTON – A 35-year-old Spring resident and a Brooklyn, New York, man have been sentenced for their roles in a scheme to use stolen identities and file fraudulent federal tax returns, announced U.S. Attorney Kenneth Magidson. Jason Maclaskey, of Spring, and Omar Butt, 31, a resident of Brooklyn, New York, previously pleaded guilty to the respective charges.
Today, U.S. District Court Judge Kenneth M. Hoyt today sentenced Maclaskey to five years for conspiracy to defraud the United States. He had also been convicted of possession of a stolen firearm for which he received another five years. The 10-year-sentence will be immediately followed by three years of supervised release. Butt was ordered to serve 40 months in prison. A third defendant - Heather Dale, 25, a resident of Grant, Alabama – was previously sentenced to 24 months. The court also ordered them to pay restitution in the amount of $314,868.
The defendants – led by Maclaskey – unlawfully obtained the names, dates of birth and Social Security numbers from 371 taxpayers and used this information to file false tax returns in their names in 2009. The defendants used this information to also set up fraudulent bank accounts at Inter National Bank and through NetSpend debit cards in these taxpayers’ names where the tax refunds would be directed. The defendants then withdrew this money using the NetSpend debit card at ATMs and by making purchases at various retail stores. Through this conspiracy, the defendants claimed a total of more than $1.4 million in false tax refunds, succeeded in withdrawing approximately more than $300,000 before the scheme was uncovered.
In addition, Maclaskey admitted he possessed 10 firearms and 2,000 rounds of ammunition on Nov. 1, 2011, when law enforcement agents executed a search warrant on his home in Spring. As part of his guilty plea, Maclaskey also admitted he knew one of these weapons was stolen.
Butt was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Maclaskey will remain in custody.
The investigation leading to the charges was conducted by Internal Revenue Service – Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sharad S. Khandelwal is prosecuting the case.
Essex County, New Jersey, Man Sentenced to Two Years in Prison for His Role in $5 Million Mortgage Fraud SchemeRead the Press Release
NEWARK N.J. – A Nutley, New Jersey, man was sentenced today to 24 months in prison for his role in a massive mortgage fraud scheme involving multiple properties in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced.
Kenneth Sweetman, 34, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to commit wire fraud affecting a financial institution. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2011 through July 2012, Sweetman, Carmine Fusco, 47, of East Hanover, New Jersey, and others conspired to obtain mortgage loans through fraudulent means. For their roles in the scheme, Sweetman and Fusco formed shell limited liability companies with names similar to licensed title companies. They then opened bank accounts in the shell companies’ names to conceal their identity and control the receipt and distribution of fraudulently obtained mortgage loan proceeds. Sweetman and Fusco also conducted real estate closings even though they were neither licensed attorneys nor title agents. In addition, Sweetman, Fusco and other conspirators submitted false and fraudulent loan applications, supporting documents and closing documents to mortgage lenders. Among other things, these documents included and reflected fraudulent gift loans, false appraisals and documents that misrepresented the owner of properties and the intended disposition of loan proceeds.
Using these methods, Sweetman, Fusco, and others conducted 16 fraudulent real estate transactions, including 11 Elizabeth properties, and obtained more than $5 million in illegitimate proceeds.
In addition to the prison terms, Judge Wigenton ordered Sweetman to serve three years of supervised release and pay $2,233,131.55 in restitution.
Fusco previously pleaded guilty before Judge Wigenton to a separate information charging him with conspiring to commit wire fraud affecting a financial institution. He was sentenced on July 13, 2015 to 27 months in prison and ordered to pay $2,233,131.55 in restitution.
U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel:
Sweetman: Thomas R. Ashley Esq., Newark, New Jersey
Fusco: Vincent C. Scoca Esq., Union City, New Jersey
Eight Additional Individuals Charged in NFL-Related Securities Fraud Scheme Targeting the ElderlyRead the Press Release
Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, and Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office made the announcement.
David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Florida, Alan D. Messina, 54, of Sunrise, Florida, Michael T. Angeletti, 33, of Sunrise, Florida, Michael J. Calash 34, of Boca Raton, Florida, Stephen R. Reynolds, 38, of Pompano Beach, Florida, Gary X. Schultz, 55, of Miramar, Florida, Chazon Stein, 36, North Miami Beach, Florida, were charged with conspiracy to commit mail and wire fraud.
“Securities fraud schemes that target members of our community jeopardize our personal investments and security,” said U.S. Attorney Ferrer. “Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents. By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves.”
According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming. TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges that the IPO was not forthcoming as promised and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues and competitive online gaming. The Virgin Gaming scheme took one of two forms. In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock. The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO. However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed. On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not. The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO. Over the course of the scheme, the defendants caused approximately 35 individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales. Nearly all of the monies were misappropriated as undisclosed commissions and fees.
This indictment relates to a case filed a year ago, United States v. Kirschner. All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.
U.S. Attorney Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eight Additional Individuals Charged in NFL-Related Securities Fraud Scheme Targeting the ElderlyRead the Press Release
Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Alan D. Messina, 54, of Sunrise, Michael T. Angeletti, 33, of Sunrise, Michael J. Calash 34, of Boca Raton, Stephen R. Reynolds, 38, of Pompano Beach, Gary X. Schultz, 55, of Miramar, Chazon Stein, 36, North Miami Beach, were charged with conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343.
“Securities fraud schemes that target members of our community jeopardize our personal investments and security. Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents. By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves,” stated U.S. Attorney Wifredo A. Ferrer.
According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming. TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges, that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media, Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues, and competitive online gaming. The Virgin Gaming scheme took one of two forms. In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock. The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO. However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed. On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not. The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO. Over the course of the scheme, the defendants caused approximately thirty-five individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales. Nearly all of the monies were misappropriated as undisclosed commissions and fees.
This indictment relates to a case filed a year ago, United States v. Kirschner, et. al, 14-20514-CR-Gayles. All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Roger Cruz and Department of Justice, Antitrust Division, Trial Attorney, Kevin B. Hart.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dominican Man Sentenced for Illegally Reentering the United States After Previous Deportation and Misrepresentation of Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that Jose Rodriguez, of the Dominican Republic, was sentenced to forty two months in federal prison after pleading guilty to illegally reentered the United States after having been previously deported and to misrepresentation of a social security number.
Rodriguez was located at the New Hampshire State Prison in December 2012 under the name Pedro Luis Martinez-Ortiz. He was interviewed by Immigration and Customs Enforcement agents at the prison and he insisted that his name was Pedro Luis Martinez-Ortiz and that he was born in Puerto Rico. The defendant provided a social security number under the Martinez-Ortiz name. When examining the defendant’s hands, the agents notice that an attempt had been made to mutilate the finger tips. Nevertheless, the agents took fingerprint impressions from Rodriguez and submitted scanned images of the prints to the Department of Homeland Security’s fingerprint database and to the database used by the Federal Bureau of Investigation. The databases indicated that the defendant’s prints matched those of Jose Rodriguez, an individual from the Dominican Republic who had been deported from New York in 2002 and Miami in 2006. Interviews of the Martinez-Ortiz family in Puerto Rico revealed that Mr. Martinez-Ortiz had died in Puerto Rico in 2011.
Rodriguez pled guilty to the charges on April 9, 2015.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
District Man Sentenced to over 10 Years in Prison Following Drug Trafficking InvestigationRead the Press Release
WASHINGTON – Mustafah Muhammad, 29, formerly of Washington, D.C., has been sentenced to 10 years and 10 months in prison for his role in a drug trafficking ring that operated out of Washington, D.C., and extended into Maryland, Virginia, and Delaware, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
Muhammad pled guilty in April 2014, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to distribute and possess with intent to distribute crack cocaine, heroin, and marijuana. He was sentenced on July 22, 2015, by the Honorable Emmet G. Sullivan. Following his prison term, Muhammad will be placed on five years of supervised release. As part of his guilty plea, Muhammad agreed to the forfeiture of $57,000 as proceeds constituting or derived from his illegal drug trafficking activities.
Muhammad was among 16 people who were arrested and charged in November and December of 2012 with conspiracy and other related offenses; the others also pled guilty. The indictments followed an investigation by the FBI’s Washington Field Office, the Metropolitan Police Department (MPD), and the Prince George’s County, Md., Police Department into heroin, crack cocaine, and marijuana trafficking. The drug ring’s activities primarily occurred in and around the 1400 block of Euclid Street NW and the 700 block of Kenyon Street NW in Washington D.C., as well as in Arlington, Va., and Bethany Beach, Del.
In his guilty plea, Muhammad admitted that between February 2012 and November 2012 he engaged in the drug conspiracy. He also admitted that during the conspiracy he and other conspirators used a residence located in the 1600 block of Fuller Street NW to store or hide illegal drugs, including 31-gram and 62-gram quantities of crack cocaine, for redistribution to others. He further admitted that during the conspiracy he travelled from the District of Columbia to Delaware to take heroin and crack cocaine to customers living there.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the FBI’s Washington Field Office, MPD, and the Prince George’s County, Md., Police Department. He also expressed appreciation for the support of the Department of Justice’s Organized Crime Drug Enforcement Task Force. In addition, he cited the efforts of those who prosecuted and worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Kenneth Whitted and Philip A. Selden, of the Violent Crime and Narcotics Trafficking Section, and Assistant U.S. Attorneys Arvind Lal and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section. He also commended Paralegal Specialists Teesha Tobias, Catherine O’Neal, and Kim Hall, and Legal Assistant Diane Brashears and Candice Sisco for their assistance.
District Man Pleads Guilty to Burglary Charge for Theft at Georgetown University Student's ApartmentRead the Press Release
WASHINGTON - Antoine Gibson, 36, of Washington, D.C., pled guilty today to burglarizing an apartment on the Georgetown University campus while a student was asleep inside, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Gibson pled guilty in the Superior Court of the District of Columbia to first-degree burglary as well as a violation of the Bail Reform Act. He is to be sentenced on Sept. 23, 2015 by the Honorable Patricia A. Broderick. Gibson faces a minimum of five years in prison.
According to the government’s evidence, on Jan. 6, 2015, at about 8 p.m., Gibson entered the Henle Village apartment complex on the Georgetown University campus. He went to the fourth floor and entered the victims’ apartment, which was occupied at the time by a sleeping student. Gibson stole a laptop from the living room before heading to the upstairs bedrooms.
The sleeping student awoke to find Gibson, a stranger, standing in the hallway and confronted him. Gibson denied doing anything illegal and left. The student called the campus police, who found Gibson a short time later within blocks of the main campus gate with the laptop in his backpack. Gibson later failed to appear for the first status hearing in the case in Superior Court. He was later arrested on a bench warrant executed by the U.S. Marshals Service.
In announcing the guilty plea, Acting U.S. Attorney Cohen commended the work of the officers of the Georgetown University Department of Public Safety, as well as the crime scene officers and detectives and officers of the Metropolitan Police Department’s Second District. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including David Foster, La June Thames, and Katina Adams-Washington of the Victim/Witness Assistance Unit; Paralegal Specialist Tiffany Fogle, and Litigation Technology Assistant Aneela Bhatia. Finally, he praised the efforts of Assistant U.S. Attorney Katherine Earnest, who investigated and prosecuted the case.
District Man Found Guilty of First-Degree Murder While Armed for Killing Man in Northwest WashingtonRead the Press Release
WASHINGTON – Erik Postell, 26, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed and other charges for killing a man in 2013 in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
In addition to the murder charge, Postell was found guilty of three firearms offenses stemming from the slaying of Paul Danzo Tanoh. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 25, 2015. Postell faces a mandatory minimum term of 30 years in prison, and a maximum of more than 60 years of incarceration.
According to the government’s evidence, on March 21, 2013, at about 2:45 a.m., Postell fatally shot Mr. Tanoh, 24, as Mr. Tanoh sat in the driver's seat of his car, which was stopped in the 1000 block of 17th Street NW. The shooting followed a brief physical altercation between Postell and Mr. Tanoh that took place inside a nearby nightclub 15 minutes earlier.
Following the confrontation at the nightclub, Postell retrieved a .45 caliber handgun from a parked car and tracked down Mr. Tanoh. He then stood alongside Mr. Tanoh's driver's side window and fired at him nine times. Postell fled in a vehicle driven by another man, Michael Smith. Smith, 35, of Camp Springs, Md., previously pled guilty to multiple felonies for his role in the murder of Mr. Tanoh and is awaiting sentencing. Postell was taken into custody on Oct. 11, 2013, and had been held without bond ever since.
In announcing the verdict, Acting U.S. Attorney Cohen commended the work of the detectives, officers and others who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the U.S. Secret Service; the District of Columbia Department of Forensic Sciences; Bode Technologies; Assistant U.S. Attorney Kellen Dwyer of the U.S. Attorney’s Office for the Eastern District of Virginia; Trial Attorney Jessica N. Moran of the Department of Justice’s Tax Division, and Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office for the District of Columbia. In addition, he acknowledged the work of those who handled the murder case for the U.S. Attorney’s Office, including Paralegal Specialists Lynda Randolph, Donville Drummond, Sandra Lane, Alesha Matthews, and Kalisha Johnson-Clark; Litigation Technology Specialists Leif Hickling, Kimberly Smith, Thomas “Ron” Royal, Paul Howell, Aneela Bhatia, Anisha Bhatia, Claudia Gutierrez, Joshua Ellen, and Karen McColman; Intelligence Specialists Sharon Johnson, Zachary McMenamin, and William Hamann; Victim/Witness Advocate Marcia Rinker, and La June Thames, Katina Adams-Washington, and David Foster, all of the Victim/Witness Assistance Unit.
Finally, he commended the work of Assistant U.S. Attorneys Michael C. Liebman and Philip A. Selden, who investigated and prosecuted the case.
District Man Found Guilty by Federal Jury of Assaulting Deputy U.S. MarshalRead the Press Release
WASHINGTON - Jared Thompson, 45, of Washington, D.C., has been found guilty by a federal jury of forcibly assaulting a Deputy United States Marshal during an incident at a courthouse earlier this year, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Thompson was found guilty on July 23, 2015, following a trial in the U.S. District Court for the District of Columbia, of assaulting, resisting or impeding a federal law enforcement officer. The Honorable Senior Judge Gladys Kessler scheduled sentencing for Sept. 22, 2015. Thompson faces up to eight years in prison as well as potential financial penalties. The Court ordered that Thompson be held without bond pending his sentencing.
According to the government's evidence, on Jan. 8, 2015, Thompson was ordered by a Superior Court judge to be detained in a previous and unrelated criminal case; he was not in custody at this time. Thompson then was taken into custody by a Deputy U.S. Marshal. The deputy marshal escorted Thompson to the cellblock hall area at Superior Court and attempted to search and pat down the defendant’s clothing for possible contraband.
During this initial search, the deputy marshal found a pipe and a small container containing a green weed substance which was consistent with marijuana. While the search continued, Thompson asked the deputy marshal, “Did you find my weed yet?” The deputy marshal searched inside Thompson’s pants area, and then instructed Thompson to pull up his pants. Thompson refused, cursed, and stated, “You pulled them down, you pull them up.” He then began turning toward the deputy marshal in a threatening manner.
Thompson then balled his hand into a fist, tensed his arm, and began to turn to stand face-to-face with the deputy marshal. The deputy marshal attempted to re-apply the handcuffs on Thompson to gain control of the defendant and for the safety of the court, staff, and all others in the cellblock. Thompson cursed, kicked his feet towards the deputies, and bit the deputy marshal’s forearm. The bite broke the deputy marshal’s skin, caused his forearm to bleed, and caused great pain. Because of his injury and the possibility of infection, the deputy marshal was taken to a hospital for treatment of his injury.
In announcing the guilty verdict, Acting U.S. Attorney Cohen and Marshal Hughes commended the actions of the U.S. Marshals Service. They also commended those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Candace Battle. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole who investigated and prosecuted the case.
Director of Operations of Retail Clothing Business Heads to Federal Prison for Failing to Pay Federal Tax WithholdingsRead the Press Release
HOUSTON - William John Shoemaker has been ordered to prison following his conviction on one count of willfully failing to truthfully account for and to pay federal tax withholdings to the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (CI). Shoemaker pleaded guilty March 2, 2015.
Today, U.S. District Court Judge Kenneth Hoyt ordered Shoemaker to serve #41months in prison and pay $1,830,324.78 in restitution to the IRS.
According to the plea agreement filed in the public record of the case, Shoemaker failed to truthfully account for and to pay over the trust fund portion of the employment taxes owed by AA Concepts Inc., for the fourth quarter of 2012.
The plea agreement also states that at all times relevant to the case, Shoemaker conducted a retail clothing business through AA Concepts Inc., which operated its retail clothing business under various trade names. Shoemaker held the title of director of operations of AA Concepts and had the duty to truthfully account for and to pay over the federal income taxes and FICA withheld from the wages of the employees of the corporation, according to court records.
According the plea agreement, Shoemaker also willfully failed to pay approximately $2.198 million in federal income tax withholdings and FICA withholdings for 22 quarters, from the third quarter of 2007 through the fourth quarter of 2012. The plea agreement also indicates that Shoemaker agreed that the relevant conduct, the intended tax loss, for purposes of sentencing is between $2.5 million and $7 million.
Shoemaker was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Detroit-Area Home Health Care Agency Owners Convicted in $33 Million Medicare Fraud SchemeRead the Press Release
Two home health care agency owners were convicted today of various offenses based on their roles in a $33 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Zafar Mehmood, 49, of Ypsilanti, Michigan, was convicted of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of conspiracy to commit money laundering and two counts of money laundering. Mehmood also was convicted of two counts of obstruction of justice related to his theft of evidence from an HHS-OIG facility. Badar Ahmadani, 48, also of Ypsilanti, was convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks.
According to evidence presented at trial, from 2006 through 2011, Mehmood and Ahmadani participated in a scheme in which they obtained patients by paying cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with Mehmood’s companies: Access Care Home Care Inc., Patient Care Home Care Inc., Hands On Healing Home Care Inc. and All State Home Care Inc. The evidence also showed that the defendants paid kickbacks to physicians to refer patients to the defendants’ companies for unnecessary home health care services.
The evidence introduced at trial further established that the defendants and their co-conspirators falsified records to make it appear as if the patients qualified for and received the services for which Medicare was billed over $33 million during the course of the conspiracy. The evidence also showed that Mehmood used a co-conspirator to launder the proceeds of the fraud through shell companies under his control.
Trial evidence also demonstrated that, while visiting an HHS-OIG facility during pretrial release, Mehmood stole documents and materials that law enforcement authorities seized during the execution of search warrants at his companies. Law enforcement subsequently recovered the missing documents and materials during the execution of a search of Mehmood’s jail cell.
The investigation was conducted by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office of the Eastern District of Michigan and the Criminal Division’s Fraud Section. This case was prosecuted by Trial Attorneys Niall M. O’Donnell and A. Brendan Stewart, and Senior Trial Attorney Nathan Dimock, Assistant Chief Jennifer L. Saulino, Assistant Chief Catherine K. Dick and Deputy Chief Gejaa T. Gobena of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Davie Resident Pled Guilty for her Role in Identity Theft Tax Fraud SchemeRead the Press Release
Ashley Monique Leroy, 26, of Davie, pled guilty to one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Raymond Black, Chief, Miramar Police Department, made the announcement.
According to court documents, on September 17, 2012, police officers from the Miramar Police Department arrested Leroy for possession of marijuana and other traffic infractions. After her arrest, officers conducted an inventory search of her vehicle and recovered a blue notebook that contained hundreds of personal identifying information, such as names, Social Security numbers, and dates of birth. The notebook also contained information explaining how to file income tax returns.
As part of her plea agreement, Leroy agreed to pay restitution to the IRS of $191,678. This amount represents the monetary loss for the filing of fraudulent income taxes in the names of the individuals listed in the blue notebook found in Leroy’s possession.
Leroy is scheduled to be sentenced on September 21, 2015 at 9:00 a.m., before the Honorable Beth Bloom, United States District Judge. At sentencing, the defendant faces a mandatory term of two years’ imprisonment, consecutive to any other prison term.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Court Approves Updates to Seattle Police Department’s Use of Force PolicyRead the Press Release
U.S. District Judge James L. Robart today approved updates to the Seattle Police Department’s policies that address when officers may and may not use force and the reporting, investigation and review of uses of force. De-escalation provisions were already a critical part of the overall use of force policy, and the revisions now call those provisions out as a separate section to clarify that officers can be held accountable when they do not attempt to de-escalate tense situations, as their training instructs. The surgical revisions, submitted to the Court by Monitor Merrick Bobb with the support of SPD and the Department of Justice (DOJ), are the product of constructive feedback from officers and community members, including the Community Police Commission (CPC), as part of the annual review of new policies implemented after the DOJ civil rights investigation. As the Monitor indicated in submitting the revised policies to the Court last month, “the relatively limited changes to the policies are all evidence-based – informed by real-world experience, actual SPD trends, and objective data, not hypotheticals or unsubstantiated claims.”
“From the beginning, we have emphasized that reform wasn’t just about checking boxes and moving on. To take root, our collective reform efforts require constant feedback, critical review, and thoughtful revision,” said U.S. Attorney Annette L. Hayes. “Valuable insights from officers of all ranks and members of the community have made already excellent policies even stronger. By incorporating ongoing guidance about what’s working on the ground and in the review of force incidents, we enhance officer safety and protect constitutional rights. These revisions – and the built-in, self-correcting process to evaluate the core policies guiding reform at SPD – continue to build trust between the police department and the community.”
“Today’s announcement is an important step forward in our Seattle Police Department’s ongoing efforts to improve the quality of policing and restore public trust,” said Seattle Mayor Ed Murray. “As our nation grapples with the challenge of improving police accountability and transparency, the department’s reforms, such as our revised Use of Force policy, are helping us become a national model for urban policing.”
“Working collaboratively with the Monitoring Team and the Department of Justice, the Seattle Police Department is moving full speed ahead with reform,” said Seattle Police Chief Kathleen O’Toole. “Collectively, we have developed and refined policies, procedures and training, that are at the leading edge of policing.”
Among the changes are:
- Creating a stand-alone de-escalation policy (Section 8.100) to clarify that officers may be held accountable for failing to attempt to de-escalate where appropriate during an incident in the sequence of events leading to force being used.
- Tightening the core use of force policy (Section 8.200) to create an even clearer and shorter policy governing the application of force.
- Clarifying when the use of less-lethal tools may be prohibited (Section 8.300), including consideration of the physical condition of the subject and environmental or other situational circumstances.
- Revising the force review and investigation policies and process (Section 8.400) to reflect process-related lessons learned to ensure timely, objective investigation of force incidents.
- Clarifying that the Force Review Board has a duty to make determinations related to policy, tactics, or training issues as they arise and to refer matters to the Office of Professional Accountability as needed.
The Court initially approved SPD’s new use of force policy in December 2013, and it became effective on January 1, 2014. All officers began receiving training shortly thereafter, including electronic learning, an eight-hour in-class training, and a comprehensive, scenario-based, 24-hour training through 2014. Officers have been and will continue to receive additional force training throughout 2015. The training plan for 2015 may be found here: http://www.seattlemonitor.com/s/Third-Year-Monitoring-Plan.pdf.
Under the terms of the settlement agreement between the DOJ and the City of Seattle, the parties are required to engage in an annual review of all required policies, procedures and training curricula “180 days after it is implemented, and annually thereafter.” The changes accepted by the Court today are the result of the first comprehensive appraisal of the force-related policies. As the Monitor wrote when filing the updated policies, the revisions originate from:
- the analysis of hard data on use of force and its review;
- officer listening sessions and focus groups conducted by SPD Patrol;
- officer comments provided to SPD’s Audit, Policy & Research division;
- lessons learned by the Force Review Board and Force Investigations Team;
- separate officer and community input sessions by the CPC; and
- the ongoing observations of the Parties.
Background information about the originally-approved use of force policy is available here: http://www.justice.gov/usao-wdwa/pr/doj-hails-milestone-seattle-police-department-reform-efforts-court-s-approval-new-use .
Conspirator Sentenced to 30 Months in Prison for Conspiracies to Pass Counterfeit Money and Launder MoneyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jasonn A. Williams, age 36, of Jamaica, New York, today to 30 months in prison followed by three years of supervised release for conspiring to pass counterfeit $100 bills and conspiring to commit money laundering. Judge Messitte also entered an order that Williams pay restitution of $18,600 and forfeit $22,462.88.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office.
According to his plea agreement and court documents, from December 1, 2012 to April 29, 2013, Williams, Larry Barringer, Donte Barringer, Jamarr Little and others used counterfeit $100 bills to purchase inexpensive merchandise and receive change in genuine currency; to purchase money orders and prepaid money cards, including Greendot cards; and to purchase expensive merchandise, such as computers. The conspirators exchanged the merchandise purchased with the counterfeit $100 bills for genuine U.S. currency and used the money orders and money cards purchased with the counterfeit bills to conduct other financial transactions.
Judge Messitte found that in the conspiracy to pass counterfeit money and in the money laundering conspiracy, the loss attributable to Williams exceeded $30,000.
Larry L. Barringer, age 54, of Baltimore, previously pleaded guilty to the counterfeiting and money laundering conspiracy and was sentenced to five years in prison. Donte Barringer, age 37, and Jamarr Little, age 21, both of Washington, D.C., have also pleaded guilty to the counterfeiting conspiracy. Little was sentenced to a year and a day in prison and ordered to pay restitution of $10,900. Donte Barringer was sentenced to one year of probation and ordered to pay $18,600 in restitution.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office for its work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Columbus Man Sentenced to Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jose Valladolid, 45, of Columbus, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 51 months in prison followed by three years of supervised release for being a felon in possession of firearms.
Valladolid was arrested on Aug. 6, 2014, at the Columbus International Port of Entry (POE) in Luna County, N.M., for being a felon in possession of firearms, and attempting to export those firearms out of the United States. U.S. Customs and Border Protection Officers at the Columbus Port of Entry together with U.S. Border Patrol Agents assisting them with vehicle inspections arrested Valladolid after they found two semi-automatic rifles and ammunition in his vehicle. At the time, Valladolid was prohibited from possessing firearms because he previously had been convicted of a marijuana trafficking crime.
Valladolid was indicted in Nov. 2014, on a two-count indictment charging him with being a felon in possession of a firearm, and fraudulently attempting to smuggle two rifles out of the United States.
On Dec. 11, 2014, Valladolid pled guilty to Count 1 of the indictment and admitted possessing the two semi-automatic rifles and ammunition discovered in his vehicle on Aug. 6, 2014, which he was attempting to smuggle into Mexico in order to deliver to another person. He also admitted that he was prohibited from possessing the firearms because he was a convicted felon.
This case was investigated by the Deming office of HSI, U.S. Border Patrol, U.S. Customs and Border Protection, the Las Cruces office of the Bureau of Alcohol, Tobacco and Firearms and Explosives, and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock Taylor of the Las Cruces Branch Office of the U.S. Attorney’s Office prosecuted the case.
Cleveland Heights man sentenced to more than 11 years in prison for $1.1 million unemployment fraudRead the Press Release
A Cleveland Heights man was sentenced to more than 11 years in prison for conspiring to defraud states out of more than $1.1 million in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Juan Sanders, 35, was sentenced to 139 months in federal prison. He previously pleaded guilty to one count each of conspiracy to commit mail and wire fraud, wire fraud,aggravated identity theft and money laundering.
Co-conspirators Trina Grant, of Cleveland, Ashley Robinson, of Warrensville Heights, and Robert Barrett, of Cleveland, have also been found guilty of crimes and sentenced.
“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” Dettelbach said.
“This sentence illustrates the Office of Inspector General’s commitment to combating unemployment insurance fraud. Ensuring the accountability and integrity of the unemployment insurance program remains a high priority for the Office of Inspector General,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“Stealing innocent peoples’ identities to defraud safety net programs is detestable,” said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This defendant let greed be his guide and today’s sentence should send a strong warning that such acts will not be tolerated and when discovered, prosecuted to the fullest extent possible.”
The defendants conspired to defraud state unemployment offices in Ohio, California, North Carolina, Massachusetts and Illinois from about September 2011 to January 2014. Under this scheme, Sanders fraudulently obtained personal identifying information from unsuspecting individuals to submit fraudulent claims for unemployment insurance benefits, according to court documents.
Sanders also created state unemployment insurance accounts for multiple fictitious employers in Ohio, California, North Carolina, Massachusetts and Illinois. Sanders then filed claims from “employees” who had been purportedly laid off by the fictitious companies. Sanders caused benefit debit cards for the “employees” of these fictitious companies to be mailed to various addresses in Ohio, according to court documents.
Once the benefits were loaded or reloaded onto the debit cards, Sanders, Grant, Robinson and Barrett used the debit cards at various ATMs in Ohio and withdrew the fraudulently obtained money, according to court documents.
As a result of this scheme, approximately $1,174,767 in fraudulent unemployment benefits were paid from state agencies in North Carolina ($572,170), Ohio ($261,509), Illinois ($144,240), California ($129,600) and Massachusetts ($67,248).
Sanders used $16,900 in fraudulently obtained cash to pay off a car loan on his 2007 Jaguar XJ automobile as well as several months’ rent on a Cleveland Heights apartment, according to court documents.
The case was prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division.
Clay County Man Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
A Clay County man was sentenced to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
On July 23, 2015, Richard H. Barber, 49, of Louisville, Illinois, was sentenced to 151 months in federal prison, three years’ supervised release following his imprisonment, and fined $400. Barber had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from June 2014, until on or about October 28, 2014, in Clay County, and elsewhere within the Southern District of Illinois, Barber conspired with others known and unknown to the Grand Jury, to manufacture a mixture and substance containing methamphetamine. Count 2 charged that on October 28, 2014, in Clay County, Barber possessed equipment, chemicals, products, or materials which can be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force. The Clay County State’s Attorney’s Office also assisted in the investigation.
The case is being handled by Assistant United States Attorney George Norwood.
Civil Penalty Settlement Reached with CVS Pharmacy in CarverRead the Press Release
BOSTON – The United States has reached a civil settlement with CVS Health in connection with allegations that the CVS pharmacy in Carver violated federal regulations related to the sale of prescription drugs.
Twice in the spring of 2014 armed robbers stole large quantities of Schedule II prescription drugs from the CVS pharmacy in Carver. Federal law required CVS to report the thefts immediately to the Drug Enforcement Administration (DEA). CVS reported one of the thefts immediately but waited three weeks to report the other one.
After the robberies, DEA investigators visited the pharmacy to audit its controlled substances, using inventory, purchase, and sale records unaffected by the robberies. The investigators found recordkeeping discrepancies affecting hundreds of Schedule II pills. The government contended that CVS had failed to keep complete and accurate records of its controlled substances, in violation of the Controlled Substances Act.
“Prescription drugs handled by pharmacies are subject to strict requirements because of the potential for harm and abuse,” said U.S. Attorney Carmen M. Ortiz. “This office will continue to ensure that pharmacies meet federal recordkeeping requirements, which are the primary way that the government regulates controlled substances.”
U.S. Attorney Ortiz and Michael J. Ferguson, Special Agent in Charge of the DEA, New England Field Division, made the announcement today. The investigation was conducted by Diversion Investigators with the DEA’s New England Division. The case was handled by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division.
California Army National Guard Member Pleads Guilty to Charges of Recruiting FraudRead the Press Release
FRESNO, Calif. — Leonardo Pesta, 47, of Mountain View, pleaded guilty today to one count of wire fraud stemming from a fraud scheme involving recruiting bonuses, United States Attorney Benjamin B. Wagner announced.
According to court documents, the United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
Pesta served in the California National Guard as a recruiter. In that position, he had access to names of recruits who had not been referred by any Recruiting Assistant. Pesta pleaded guilty to taking part in a scheme to cause DOCUPAK to issue unearned recruiting compensation by falsely claiming that various enlistees had been referred to recruiting offices by the Recruiting Assistants that participated in the scheme with Pesta, when in fact they had not.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Pesta is scheduled to be sentenced by United States District Court Judge Lawrence J. O’Neill on October 19, 2015. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Six other National Guard members were also indicted in May 2014 in Fresno and Sacramento. Brian Kaps, 40, of Chico, pleaded guilty on November 21, 2014 to one count of wire fraud. Sarah Nattress, 27, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. The charges against the rest of the defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Calera Man Pleads Guilty to Theft by Officer or Employee of Gaming Establishment on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that STEVEN KYLE DUDLEY, age 21, of Calera, Oklahoma, pled guilty to THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both.
The Indictment alleged that on or about July 8, 2013 until July 21, 2013, in the Eastern District of Oklahoma, STEVEN KYLE DUDLEY, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain on bond pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Brooklyn Man Admits to Four Armed Commercial RobberiesRead the Press Release
Baltimore, Maryland – Phillip Thomas McGowans, age 27, of Brooklyn, Maryland, pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Marilyn Mosby; Interim Commissioner Kevin Davis of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on July 25, 2014, McGowans pointed a handgun at an employee at the Village Liquors store in Brooklyn, Maryland and demanded money. McGowans fled with $800 from the business. On August 11, 2014, McGowan again robbed the same liquor store, pointing a handgun at employees. McGowan fled with $1,149, a bottle of vodka and cigarettes.
McGowan also robbed the New York Fried Chicken store on East Patapsco in Baltimore on August 19 and 30, 2014. On both occasions, he pointed a weapon at an employee. He fled with $200 on the first occasion and an undetermined amount on the second robbery.
McGowans and the government have agreed that if the Court accepts the plea agreement, McGowans will be sentenced to between 10 and 13 years in prison. U.S. District Judge Richard D. Bennett scheduled sentencing for October 28, 2015, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore and Anne Arundel County Police Departments and Baltimore and Anne Arundel County City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Michael Hanlon, who are prosecuting the case.
Beggs Man Pleads Guilty to Firearms PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that BYRON WAYNE LADNER, age 51, of Beggs, Oklahoma, pled guilty to FELON IN POSSESSION OF A FIREARM, in violation of Title 18, United States Code, Section 922(g)(1).
The charge is a result of an investigation by the Okmulgee County Sheriff’s Department and the Federal Bureau of Investigation. The defendant was indicted in December, 2013.
The Indictment alleged that between in or about December, 2012, and November 19, 2013 within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered a presentence report to be completed. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Austin Doctor Heads to Prison for Health Care FraudRead the Press Release
HOUSTON – Dr. Dennis B. Barson Jr., 42, has been ordered to federal prison following his convictions related to a conspiracy to defraud Medicare of $2.1 million in less than two months, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Barson and his medical clinic administrator, Dario Juarez, 55, on Nov. 5, 2014, of all 20 counts charged. Co-defendant Edgar Shakbazyan entered a guilty plea to the 21-count indictment on Oct. 27, 2014.
Today, U.S. District Judge Melinda Harmon, who presided over the trial, handed Barson, of Austin, a total sentence of 120 months in prison to be immediately followed by three years of supervised release. He was further ordered to pay restitution of approximately $1.2 million.
Shakbazyan, of Glendale, California, was sentenced to 97 months in prison, while Juarez, of Beeville, received 130 months. Both will also serve three years of supervised release.
At trial, prosecutors proved the fraudulent billing was for rectal sensation tests and electromyogram (EMG) studies of the anal or urethral sphincter which were never performed. Barson, Juarez and Shakbazyan were convicted of health care fraud for filing false claims with Medicare for medical procedures which were never performed. Shakbazyan was additionally charged, and convicted, of conspiracy to pay kickbacks for payments made to recruiters and beneficiaries.
According to the testimony at trial, Barson was the only doctor affiliated with the medical clinic located at 8470 Gulf Freeway in Houston. It was Juarez, however, who represented himself to be a doctor and was the one who actually saw patients, according to the trial testimony. Barson, Juarez and Shakbazyan caused Medicare to be billed for procedures on 429 patients in just two months. The three men also billed Medicare for seeing more than 100 patients on 13 different days, including a high of 156 patients on July 13, 2009.
Barson’s defense attempted to convince the jury that he was a victim of identity theft and was not the perpetrator of the crimes. They did not believe his story and found him guilty as charged.
Barson and Shakbazyan were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Juarez remains in the custody of the U.S. Marshal on unrelated criminal charges.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, Department of Health and Human Services-Office of Inspector General and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. Assistant U.S. Attorneys Al Balboni and Adrienne Frazior prosecuted the case.
Alabama Man Convicted of Three Counts for His Role in Unlawful Guided Deer Hunts in IowaRead the Press Release
DES MOINES, IA - On July 23, 2015, a jury in the Southern District of Iowa convicted Kinsman Bruce Wolfe, age 63, of Montgomery, Alabama, of two counts of unlawful sale of wildlife, and one count of conspiracy to commit the unlawful sale of wildlife. Sentencing has been scheduled for October 21, 2015 before the Honorable John A. Jarvey.
From around October 2013 to December 2013, Wolfe assisted Robert Wilkins, age 53, of Semmes, Alabama, in guiding hunts for trophy white-tail buck deer in rural Lucas County, Iowa. Non-resident hunters were allowed to hunt on the property during the paid hunts, despite not having paid for Iowa hunting licenses, fees and transportation tags. The capes and antlers of illegally taken deer were then transported from Iowa to Alabama.
This investigation was conducted by the United State Fish and Wildlife Service, the Iowa Department of Natural Resources, and the Alabama Division of Game and Natural Resources, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
24 July 2015
Winnebago Man Sentenced to 37 Months for Abusive Sexual ContactRead the Press Release
Lawrence Merrick, Jr., 23, of Winnebago, Nebraska, was sentenced on July 24, 2015, in federal court in Omaha, Nebraska, for Abusive Sexual Contact with a Child. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Merrick to 37 months imprisonment. After his release from prison, Merrick will begin a five-year term of supervised release. As a result of his conviction, Merrick will be required to register as a sex offender.
Merrick is a member of the Omaha Tribe of Nebraska. He was staying at a residence within the Winnebago Reservation. On April 25, 2014, Merrick entered a bedroom where a nine-year-old girl was sleeping. He rubbed the buttocks of the child waking her up. She went to tell her mother and Merrick fled the home.
This case was investigated by the Federal Bureau of Investigation.
Wilson Man Pleads Guilty to Environmental ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kirk Canfield, 54, of Wilson, NY, pleaded guilty to violation of the Bald and Gold Eagle Protection Act before U.S. Magistrate Judge Hugh B. Scott. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant operated a produce farm in Wilson, NY. In August 2014, Canfield placed a meat pile that had been mixed with Golden Malrin fly bait at the edge of a cornfield on his farm in an attempt to kill coyotes. The fly bait contained Methomyl, which is an insecticide that is not to be used in a manner in which animals can eat it.
Three juvenile bald eagles died after eating the contaminated meat pile, and on August 22, 2014, the three dead bald eagles were found and photographed in the immediate vicinity of the contaminated meat pile by an individual riding an ATV. Subsequently, Canfield removed the three dead bald eagles from the field and removed the contaminated meat pile. By placing the contaminated meat pile on his field, the defendant acted with wanton disregard for the consequences of his act.
The plea is the result of an investigation by Special Agents of the U.S. Fish & Wildlife Service, under the direction of Special Agent in Charge Honora Gordon and Environmental Conservation Officers with the New York State Department of Environmental Conservation.Sentencing is scheduled for October 2, 2015 at 10:00 a.m. before Magistrate Judge Scott.
Waterbury Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on July 15, 2015, a federal grand jury in Hartford returned a six-count indictment charging MARCUS FOX, 41, of Waterbury, with filing false tax returns.
On July 23, 2015, FOX appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven, entered a plea of not guilty and was released on a $100,000 bond.
The indictment alleges that FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended. From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients. A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services.
The indictment further alleges that beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge. FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund. The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment. FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme.
The indictment charges FOX with six counts of filing a false tax return, an offense that carries a maximum term of imprisonment of three years and a fine of up to $250,000, on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is assigned to Senior U.S. District Judge Alfred V. Covello in Hartford.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
U.S. Service Member Charged with Illegal Retention of Photos Taken Inside Nuclear Sub, Obstructing JusticeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging KRISTIAN SAUCIER, 28, of Arlington, Vermont, with unlawfully retaining photos taken inside restricted areas of a nuclear attack submarine, and obstructing the investigation of this matter.
As alleged in court documents, from September 2007 to March 2012, SAUCIER served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Connecticut. On at least three separate dates in 2009, SAUCIER used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria. In March 2012, SAUCIER’s cellphone was found at a waste transfer station in Hampton, Connecticut. After SAUCIER was interviewed by the Federal Bureau of Investigation and Naval Criminal Investigative Service in July 2012, SAUCIER destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of SAUCIER’s family.
SAUCIER is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, New York.
SAUCIER was arrested on a criminal complaint on May 28, 2015, and is released on a $100,000 bond.
The indictment charges SAUCIER with one count of unauthorized retention of defense information, an offense that carries a maximum term of imprisonment of 10 years and a fine of up to $250,000, and one count of obstruction of justice, an offense that carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss, with the assistance of Justice Department’s National Security Division and the U.S. Attorney’s Office for the Northern District of New York.
Turner County Man Sentenced to Prison for Tax Fraud and Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Tomeka D. Wilburn, aged 32, of Ashburn, Georgia, was sentenced on July 23, 2015, before the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia as follows:
Mr. Wilburn was sentenced to 87 months in the Bureau of Prisons for one count of wire fraud and one count of aggravated identity theft. Mr. Wilburn was also ordered to make restitution in the total amount of $58,648 to the Internal Revenue Service.
On December 12, 2014, Mr. Wilburn entered a written plea agreement in which he pled guilty to two counts of the indictment. As set forth in the plea agreement, Wilburn admitted that he electronically filed approximately 74 fraudulent federal income tax returns in the names of third parties.
The investigation into Mr. Wilburn began on April 12, 2012, when the Ashburn Police Department executed a search warrant on Wilburn’s residence while investigating an unrelated burglary. The search revealed 15 pre-paid debit cards in the names of third parties and other documents indicating a resident of the house was engaged in fraudulent tax filing and identity theft. Mr. Wilburn admitted to an Ashburn Police Officer that he had been “doing Turbo Taxes.”
As the plea agreement further states, “while the investigation into Mr. Wilburn’s fraudulent tax filing was going on, he returned to criminal activity. On March 21, 2014, Ashburn Police Department executed a second search warrant at Wilburn’s residence which showed he had continued to be involved in fraud and identity theft.
The plea agreement stipulated that the intended or attempted loss to the government was greater than $120,000, but less than $200,000. Wilburn actually succeeded in obtaining $58,648 in fraudulent refunds from the I.R.S.
“Thanks to the great investigative work of the Ashburn Police Department what started as a burglary investigation resulted in thwarting an identity theft and tax fraud scheme,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “As the defendant in this case has learned, stealing from the American people will not be tolerated and you will be held accountable.”
“This is a great example of the benefits to be gained by local, state and federal agencies working together as a team. I am proud that my office was part of this team and helped bring Mr. Wilburn’s various criminal activities to an end,” said Michael J. Moore, United States Attorney for the Middle District of Georgia.
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Ashburn Police Department. Jim Crane prosecuted the case on behalf of the government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Tonawanda Man Indicted for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury returned a six-count indictment charging David Barraclough, 31, of the City of Tonawanda, with five counts of producing and attempting to produce child pornography, and one count of possessing child pornography. The charges carry a mandatory minimum sentence of 25 years in prison and a maximum of 50 years.Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment and a previously filed complaint, in November 2014, the defendant was arrested and detained on a local charge of endangering the welfare of a child. In February 2015, two individuals began cleaning out Barraclough’s apartment so that it could be rented to another tenant. One of the individuals discovered a thumb drive and electronic tablet and turned the items over to police. Subsequently, the Tonawanda Police Department obtained a search warrant for the digital media and the apartment.
A forensic analysis of the thumb drive and tablet revealed 238 images and five videos of child pornography. Also included on the tablet were numerous sexually explicit text conversations. One of the conversations was between Barraclough and a 14 year old girl in Virginia.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold III, and the of City Tonawanda Police Department, under the direction of Chief William Strassburg.
Three convicted of heroin, painkiller traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Three individuals were convicted today of heroin and prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Sandra Elizabeth Gibbins, 58, of Moorefield, West Virginia, Richard Dean Gibson, 31, of Petersburg, West Virginia, and Autumn Lyn Forbeck, 24, of Cumberland, Maryland, conspired to possess and sell heroin and prescription painkillers in Grant County, West Virginia throughout 2014 and 2015.
Gibbins and Gibson each pled guilty today to one count of “Aiding and Abetting Distribution of Heroin” and Forbeck pled guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Controlled Substances.” They each face up to 20 years in prison and a fine of up to $1,000,000. 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 defendants.
Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. The West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge John S. Kaull presided.
Three Men Face Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Ill. - A federal grand jury returned indictments this week charging three men in separate, unrelated cases with possession of a firearm by a felon in the Rock Island Division of the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances.
A three-count indictment against Kylea Dapri Cartwright, Jr., 18, of the 700 block of Sylvan Court, Davenport, Iowa, alleges that on June 4, 2015, Cartwright possessed a quantity of marijuana with the intent to distribute; possessed two handguns in furtherance of a drug trafficking crime; and that Cartwright possessed those handguns after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is life in prison and a fine of up to $750,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Rock Island Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bobby James McCaw, 34, of the 800 block of NW 2nd St, Aledo, Ill., is charged with unlawful possession of a handgun on June 13, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney Meredith DeCarlo, and the charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hasan Rahmon Stoner, 23, of the 16000 block of Glen Oak Dr., Country Club Hills, Ill., is charged with possession of a handgun on May 13, 2015, after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 23, 2015, the three defendants made their respective initial appearances in federal court in Rock Island before U.S. Magistrate Judge Stephen B. Jackson, Jr., and each was ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Syracuse Man Sentenced for Possession of Child PronographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Craig Dattmore, 61, of Syracuse, NY, who was convicted of possession of child pornography, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that in October 2011, the defendant was pulled over for a secondary inspection at the Lewiston Queenston Port of Entry. Dattmore indicated he was refused entry into Canada because of items on his laptop computer. A search of the vehicle the defendant was riding in recovered 17 electronic media storage devices such as hard drives, thumb drives and memory cards. A forensic analysis determined that these devices included a total of 3,942 images of child pornography and 88 videos.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Superseding Indictment Returned Against Former St. Bernard Deputy Sheriff and Second Individual for Drug Distribution and Obstruction ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRANDON LICCIARDI, age 29 of Meraux, Louisiana, and ERIK NUNEZ, age 28, formerly of New Orleans, were charged today in a seven-count second superseding indictment. LICCIARDI, a former St. Bernard Deputy, was charged with Conspiracy to Distribute MDMA (Ecstasy) Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape. LICCIARDI was also charged with two counts of Witness Tampering and one count of Impeding an Investigation. NUNEZ was charged with Conspiracy to Impede an Official Investigation. The maximum punishments for these offenses are as follows:
COUNT CHARGE DEFENDANT MAXIMUM PENALTIES1
18 U.S.C. 1512(b)(1); Tampering with a Witness
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
2
18 U.S.C. 1512(b)(1); Tampering with a Witness
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
3
18 U.S.C. 1512(c)(2); Impeding an Investigation
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
4
18 U.S.C. 1512(k), Conspiracy to Impede an Investigation
Erik Nunez
20 Years, $250,000 Fine, 3 Years Supervised Release.
5
21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance;
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
6
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
7
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
U.S. Attorney Polite indicated that DARREN SHARPER was not named in the current superseding indictment as a result of his prior pleas of guilty to federal drug charges. U.S. Attorney Polite reiterated that, at this time, the charges in the Second Superseding Indictment are merely allegations, and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.
Stockton Oncologist Pays $736,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — A Stockton oncologist has paid the United States $736,000 to settle allegations that he improperly billed Medicare, Medicaid, and Tricare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, United States Attorney Benjamin B. Wagner announced today.
The United States alleged that, over a two-year period ending in May 2011, Dr. Neelesh Bangalore billed and received reimbursement from Medicare, Medicaid, and Tricare for such drugs in violation of the federal False Claims Act. Bangalore purchased chemotherapy drugs from Warwick Healthcare Solutions Inc., also known as Richards Pharma (Warwick), a former United Kingdom-based drug distributer that did not have a license to distribute drugs in the United States. Bangalore administered certain of these medications to his patients, billing several federal healthcare programs, including Medicare. One medication he purchased from Warwick was Altuzan, a drug not approved by the FDA. In addition, the FDA tested a batch of Altuzan that Bangalore had purchased from Warwick and determined that it was counterfeit and lacked the active ingredient bevacizumab.
“Investigating healthcare related fraud allegations is one of our office’s top priorities,” said U.S. Attorney Wagner. “Particularly in cases where Medicare and Medicaid beneficiaries receive compromised care or ineffective medication, these investigations serve a dual purpose of protecting the public and recovering federal funds.”
“Patients—especially those battling cancer and other life-threatening illnesses—should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drug is safe and effective for patients to use,” said Lisa L. Malinowski, Special Agent in Charge of the FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the FDA’s Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Defense Health Agency. Assistant United States Attorneys Vincente A. Tennerelli and Kurt A. Didier represented the United States in this matter. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Springfield Woman Pleads Guilty to Leading Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to leading a fraudulent tax return preparation conspiracy that claimed nearly $340,000 in fraudulent income tax refunds.
Cherie Christine Dupuis, 43, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a March 31, 2015, federal indictment.
By pleading guilty today, Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012.
In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Conspirators recruited individuals to assist in filing fraudulent returns, and obtained their identifying information, including their names and Social Security numbers. They used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information to enable them to falsely claim dependents on their returns.
Dupuis utilized tax preparation software called Taxact.com to prepare these false federal income tax returns on her own laptop computer, public library computers and on a co-conspirator’s laptop computer. She used a co-conspirator’s mailing address on some false federal income tax returns.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators.
The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Under federal statutes, Dupuis is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Rome Credit Union Robber SentencedRead the Press Release
SYRACUSE, NEW YORK – Robert "Bobby" Hendricks, 56, of Utica, was sentenced yesterday to 360 months imprisonment followed by five years of supervised release and was ordered to pay a special assessment of $200 and restitution of $24,400 to Access Federal Credit Union, announced United States Attorney Richard S. Hartunian and FBI Special Agent in Charge Andrew Vale. Robert Hendricks was found guilty of Credit Union Robbery and using a firearm during the robbery of the Access Federal Credit Union in Rome, NY.
The evidence at trial showed that on August 19, 2013 Shakeal Hendricks entered the credit union using a cell phone to communicate with Robert "Bobby" Hendricks and Taiquan Howard. Shortly thereafter, Robert Hendricks and Taiquan Howard entered the credit union brandishing handguns and threatening bank tellers at gunpoint. Approximately $24,400 was taken during the robbery. The defendants were convicted following an investigation that included images from the credit union surveillance system being released through the news media to assist in their identification.
Shakeal Hendricks pled guilty to robbery and aiding and abetting the use of firearms and was sentenced to 99 months imprisonment, five years of supervised release and ordered to make restitution of $24,400. Taiquan Howard pled guilty to similar charges and was sentenced to 125 months imprisonment, five years supervised release and restitution of $24,400.
The case was investigated by the Federal Bureau of Investigation and the City of Rome Police Department. The case was prosecuted by Assistant United States Attorney Edward R. Broton.
Rochester Woman Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
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ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Iris Diaz, 27, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiring with others to possess with intent to distribute and to distribute 100 grams or more of heroin. The charge carries a maximum sentence of 40 years In prison, a fine of $5,000,000, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated in January of 2012, members of the Drug Enforcement Administration commenced an investigation into the narcotics trafficking activities of Diaz, Alberto Alfaro, Edwin Rosado, and others. On January 27, 2012, as part of this investigation, law enforcement purchased a gram of heroin from Alfaro during a pre-arranged deal involving a confidential informant. On February 13, 2012 and, again on April 26, 2012, members of law enforcement purchased additional heroin from the organization utilizing undercover police officers. On May 8, 2012, and on May 14, 2012, members of the Drug Enforcement Administration negotiated an additional purchase of heroin from Alfaro. During the negotiation, Alfaro and Diaz agreed that Diaz would be the contact person for the organization during subsequent negotiations for purchases of heroin. A subsequent contact between law enforcement and Diaz occurred on May 14, 2012, at which time Diaz agreed that Alfaro would sell additional heroin to the undercover law enforcement officers on May 15, 2012.
On May 15, 2012, members of the Drug Enforcement Administration met Alfaro in the parking lot of the Walmart retail store located at 1490 Hudson Avenue in the City of Rochester. While there, an undercover law enforcement officer met with Alfaro and told him that he had the agreed upon amount of money. Alfaro then placed a telephone call to another member of the organization. Shortly after, co-defendant Andrea Y. Marrero-Garcia approached Alfaro and the undercover law enforcement officer and provided a blue plastic bag containing two small cardboard boxes, in which officers found heroin. Alfaro and Marrero-Garcia were immediately taken into custody at the scene.
At nearly the same time, members of law enforcement executed court authorized search warrants at multiple locations in the City of Rochester which the investigation revealed were related to the organization. At one of the locations, 852 North Street, law enforcement located drug paraphernalia, including digital scales and packaging materials associated with heroin distribution. At that location, members of law enforcement located and arrested Diaz.
Defendants Rosado and Marrerro-Garcia have been convicted and are awaiting sentencing. Charges are pending against Alfaro. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for October 29, 2015 at 2:00 p.m. before Judge Wolford.
Palm Beach County Resident Charged for Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
A Palm Beach County resident was charged for her participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.
Starling Willis, 32, of West Palm Beach, was charged by information with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A and 2. If convicted, Willis faces a maximum of twenty years in prison for the conspiracy charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Willis is alleged to have participated in fraudulent activity with two defendants charged in a separate superseding indictment, Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County (Case No. 14-CR-80158).
According to the information and other publicly filed court documents, Verdell recruited and led her co-conspirators, including Willis and McIntosh, in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). This PII was used to file fraudulent income tax returns online, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
As part of the overall schemes to defraud the IRS, Willis allegedly allowed Verdell to use her personal bank accounts to receive payments of tax refunds from fraudulent income tax returns. Willis allegedly opened additional bank accounts, at various banks, expressly for the purpose of receiving some of the fraudulent tax refund payments. Willis would then withdraw the monies and share them with Verdell.
Court documents further allege that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Trial is scheduled for Verdell and McIntosh on October 5, 2015. The Court has not yet scheduled a trial date for Willis.
Mr. Ferrer commended the investigative efforts of the IRS-CI, and USDA-OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance in the lengthy investigation and ultimate arrests. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
An information or indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Detroit Home Health Care Companies Sentenced to 80 Months in Prison for Role in $12.6 Million Fraud SchemeRead the Press Release
A Michigan resident was sentenced to 80 months in prison late yesterday for his leading role in a $12.6 million Medicare fraud and tax fraud scheme. Eleven other individuals have been convicted in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service-Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Mohammed Sadiq, 67, of Oakland County, Michigan, pleaded guilty on March 13, 2015, to one count of health care fraud and one count of filing a false tax return. In addition to imposing the prison term, U.S. District Judge Denise Page Hood of the Eastern District of Michigan ordered Sadiq to pay $14.1 million in restitution and entered a forfeiture judgment for the same amount, which represents the proceeds traceable to his criminal conduct.
Sadiq owned and directed operations at two home health care companies in Detroit. In connection with his guilty plea, Sadiq admitted that, working with co-conspirators, he billed Medicare for home health services that were not provided. Sadiq also admitted to paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill Medicare for services that were not medically necessary or were not provided at all. Sadiq further admitted that he created fake patient files to fool a Medicare auditor by making it appear as if home health services were provided and medically necessary. Medicare paid $12.6 million for these services.
In connection with his guilty plea, Sadiq also admitted that he received proceeds of the fraud through bank accounts that he controlled, that he withdrew substantial sums for his personal use and that he failed to report these amounts on his individual federal income tax return in 2008. In total, Sadiq admitted that he owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.
This case was investigated by the FBI, HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. The case is being prosecuted by Trial Attorneys William Kanellis, Christopher Cestaro, Brooke Harper and Elizabeth Young of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Oregon Man Sentenced for Child PornographyRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on July 23, 2015, Steven Cude, 52, Portland, Oregon, was sentenced before U. S. District Judge Ralph R. Erickson to serve 17 ½ years for transportation and possession of child pornography. Judge Erickson also sentenced Cude to a lifetime of supervised release and a $300 special assessment, payable to the Crime Victims Fund. As a result of the conviction, Cude will be required to register as a sex offender following his release from incarceration.
This case came to the attention of law enforcement after a cyber agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force, discovered a computer geographically located in North Dakota that was sharing child pornography in a peer-to-peer (P2P) network.
Homeland Security Investigators eventually traced the computer to Cude’s residence in Dickinson, ND, where task force officers later seized various electronic media. A subsequent forensic examination of the electronic media devices revealed more than 336 images and 169 videos, totaling nearly 15 hours of child pornography. Also recovered from Cude’s devices were various materials reflecting a prurient sexual interest in children, including a tutorial on how to sexually offend children.
"The exploitation of children for sexual gratification is among the most heinous crimes anyone working in law enforcement can encounter," said HSI St. Paul’s Acting Special Agent in Charge, William M. Lowder. "HSI will continue working with our federal, state and local partners to aggressively pursue those criminals who trade in child pornography, and bring them to justice."
This case was investigated by Homeland Security Investigators ICE, Bureau of Criminal Investigations, and the Dickinson Police Department.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Opelousas tax preparer pleads guilty to tax evasion chargeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that the owner of an Opelousas tax preparation business pleaded guilty Wednesday to tax evasion and failing to pay more than $125,000 in taxes.
Lachala Guidry Joseph, 37, of Opelousas, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of tax evasion. According to the guilty plea, Joseph owned and operated Guidry’s Tax Service, also known as Dee’s Tax Service, in Opelousas from 2007 to 2014. Joseph deposited business income into accounts held by her sister, mother and aunt in order to disguise the amount she earned. She filed her 2010 federal tax return stating that she only received $13,858 in wages and claiming a $7,695 refund. She also did not file income tax returns for years 2011 to 2013. In total, she did not report more than $510,000 in income, which resulted in a tax loss to the IRS of $125,014.22. Joseph’s business also added false cash income information to its tax returns in amounts high enough to qualify them for the maximum earned income tax credit, which resulted in her clients receiving tax refunds they were not entitled to.
Joseph faces up to five years in prison, three years of supervised release, a $100,000 fine and restitution. A sentencing date was not set.
The IRS investigated the case. Assistant U.S. Attorneys David C. Joseph and Myers P. Namie are prosecuting the case.
One Distributor Admits Role in Conspiracy to Sell Heroin in New Jersey, Another Sentenced to 32 Months in PrisonRead the Press Release
TRENTON, N.J. – One individual pleaded guilty and another was sentenced today in connection with their roles in a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties, U.S. Attorney Paul J. Fishman announced.
Jason O’Neal, a/k/a “Born,” 42, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute heroin. Dawn Rosser, 35, of Lakewood, New Jersey, also appeared before Judge Sheridan today and was sentenced to 32 months in prison. Rosser pleaded guilty on April 21, 2015 to an information charging her with one count of conspiring to distribute heroin.
In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders, Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Of those 21 individuals, 17 have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, O’Neal conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. O’Neal admitted that he served as a supervisor and distributed between 100 and 400 grams of heroin in furtherance of the conspiracy. Rosser admitted that between February 2013 and March 2014, she also participated in the conspiracy and distributed between 100 and 400 grams of heroin.
The distribution conspiracy charge to which O’Neal pleaded guilty carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for Oct. 20, 2015.
In addition to the prison term, Judge Sheridan sentenced Rosser to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
O’Neal: Aidan P. O’Connor Esq., Hackensack, New Jersey
Rosser: Joseph Accardi Esq., Elizabeth, New Jersey