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23 July 2015
Southbridge Man Convicted of Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON - A Southbridge man was convicted of being a felon in possession of firearms and ammunition yesterday in United States District Court in Worcester.
Mark McForbes, aka “S-Dot,” 33, was convicted of being a felon in possession of firearms and ammunition after an eight-day jury trial. McForbes is scheduled to be sentenced on Oct. 14, 2015.
On Aug. 29, 2014, McForbes and a cooperating witness negotiated the sale of firearms and ammunition in Southbridge. Later that evening, McForbes sold two loaded 9mm firearms to the cooperating witness at a Worcester residence. The jury convicted the defendant of possession of the two firearms and the ammunition contained therein. The jury acquitted McForbes of possession of a firearm with an obliterated serial number. McForbes qualifies under federal law as an armed career criminal based upon prior criminal convictions.
The charging statute provides a sentence of up to life in prison, with a mandatory minimum sentence of 15 years. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Southbridge Police Chief Daniel Charette made the announcement today. The case was tried by Assistant United States Attorneys Greg A. Friedholm and Michelle L. Dineen Jerrett of United States Attorney Ortiz’s Worcester Branch Office. The investigation was initiated by the ATF and the Southbridge Police Department with assistance by the Federal Bureau of Investigation, the United States Marshals Service, and the Worcester Police Department.
Solon man charged in murder-for-hire plotRead the Press Release
A Solon man was charged for his role in murder-for-hire plot, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Dennis A. Totarella, 65, was charged via criminal information with one count of use of an interstate communication facility to commit murder for hire.
Totarella, working with James Martino, used cellular telephones and Internet websites as part of a plot to murder someone in exchange for $40,000. This took place between January and June 2013, according to the information.
Martino, 65, of Highland Heights, was indicted last month on one count of use of interstate commerce facilities in the commission of murder-for-hire and one count of financing extortionate extensions of credit. He has pleaded not guilty and his case is pending.
This case is being prosecuted by Assistant U.S. Attorneys Duncan Brown and M. Kendra Klump following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the dourt after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Roland City Employee Sentenced to 6 Months, $100,000 Restitution for Theft of Federal Program FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOETTA TYLER-HYDE, age 54, of Sallisaw, Oklahoma, was sentenced to 6 months imprisonment, followed by 6 months on home detention and 3 years of supervised release for Theft of Federal Program Funds, in violation of Title 18, United States Code, Section 666. The defendant was also ordered to pay $100,505.66 in restitution.
The charges arose from an investigation by the Oklahoma State Auditor and Inspector and the Federal Bureau of Investigation.
The Information alleged that from in or about July, 2009, through in or about January, 2013, within the Eastern District of Oklahoma, JOETTA TYLER-HYDE, the defendant herein, being an employee of the City of Roland, said organization receiving in any one year period from 2009 through 2013, benefits in excess of $10,000.00 from the United States, embezzled, stole, and intentionally misapplied property worth at least $5,000.00 which was under the care, custody and control of such organization.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The defendant was ordered to report to the Bureau of Prisons on September 15, 2015, where she will serve her nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Rochester Man Pleads Guilty to Firearms Possession ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jonathan Rivera, 34, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of a firearm and ammunition while being a convicted felon. The charge carries a maximum sentence of 10 years In prison, a fine of $250,000.00, or both.Assistant U.S. Attorney Charles E. Moynihan who is handling the case, stated on May 24, 2014, the Rochester Police Department received a 911 call regarding a man pointing a shotgun at someone through the window of a car he was driving in the area of Upper Falls Boulevard and North Clinton Avenue.
Officers responded and saw a car that matched the vehicle description they had been given speeding in the area of Oakman Street. The vehicle was pulled over in the parking lot of a restaurant located on Upper Falls Boulevard at North Clinton Avenue. Rivera jumped out of the car, put his hands in the air and was detained. Officers saw a Winchester 1300 Ranger slide action 12 gauge shotgun in the defendant’s car in between the driver’s seat and the driver’s side door, as well as four shotgun rounds in the cup holder in the center console.
In August of 2007, Rivera was convicted in Livingston County of Burglary in the Second Degree.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division and members of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for September 29, 2015 at 4:00 p.m. before Judge Wolford.
Richmond County Defendants Plead Guilty in Methamphetamine ConspiracyRead the Press Release
GREENSBORO, N.C. – Fifteen defendants from Richmond County pleaded guilty during July 2015 to methamphetamine-related offenses, announced Ripley Rand, United States Attorney for the Middle District of North Carolina. Between the dates of July 6, 2015, and July 13, 2015, these fifteen defendants entered guilty pleas related to their involvement in the manufacture, distribution, and use of methamphetamine in and around Richmond County between 2012 and March of 2015.
Phillip Allen McGee, Thomas Leslie Snead, Jr., Tommy Brantley Jenkins, II, and Christopher Jared Jenkins each pleaded guilty to conspiracy to manufacture methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. Each faces up to 20 years imprisonment, up to a $1 million fine, a supervised release term of at least three years, and a $100 special assessment.
Tracy Alan McDonald, Robert Allen Beck, Tristan Daniel Visingard, Jeffrey John Hodges, Christopher Scott Loftus, Jason Franklin Jacobs, Alex Baxter Odom, Jr., Nickolas Craig Smith, Nanci Brook Byrd, Cayce Leigh Honeycutt, and Taylor Dawn Loftus each pleaded guilty to conspiracy to possess pseudoephedrine with intent to manufacture methamphetamine, in violation of Title 21, United States Code, Section 841(c)(1). Each faces up to 20 years imprisonment, up to a $250,000 fine, a supervised release term of not more than three years, and a $100 special assessment.
Sentencing in these cases is scheduled for October 29, October 30, November 12, and November 19, 2015.
These cases were investigated by the North Carolina State Bureau of Investigation and the Richmond County Sheriff’s Office and are being prosecuted by Assistant United States Attorney Clifton T. Barrett.
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Quincy Man Convicted of Committing Two Bank RobberiesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Kenneth Lamar Ellington (46, Quincy) guilty of two counts of bank robbery. He faces a maximum penalty of 20 years in federal prison for each count. Sentencing has been set for October 19, 2015, before United States District Judge Marcia Morales Howard.
Ellington was charged by indictment on September 17, 2014.
According to the evidence presented at trial, on the morning of April 9, 2014, Ellington robbed a branch of TD Bank in Live Oak, Florida. Disguised with a fake beard and cap, he presented a teller with a note demanding money. When the teller failed to act fast enough, Ellington instructed her to hurry and gestured toward his waistband as if he were reaching for a firearm. The teller gave Ellington $935 that included a dye pack. Ellington then left the bank with the cash and dye pack grasped in a softcover book. Several bank employees witnessed the robbery, including one who identified Ellington at trial. As Ellington walked away from the TD Bank branch, the dye pack ignited, causing him to drop the money, demand note, and book. A Florida Department of Law Enforcement (FDLE) fingerprint analyst later located Ellington’s fingerprint on the recovered items.
Approximately three hours after the first robbery, Ellington entered the First Federal Bank of Florida, also in Live Oak, wearing the same disguise. He again presented a demand note to a teller, and stated “Hurry up and no one will get hurt.” Ellington escaped from the second bank with $4,105.
Bank security camera footage showed Ellington exiting the bank and walking toward a nearby business. Soon after, a witness in that business’s parking lot found a garbage bag containing Ellington’s disguise and the shirt that he had worn during both robberies. After this evidence was recovered, FDLE analysts located Ellington’s fingerprint on the garbage bag and his DNA on the disguise and shirt. In addition, a witness recalled seeing a black Dodge Charger parked at the location where the disguise for Ellington’s second robbery was recovered. When Ellington was arrested, on April 14, 2015, he was driving a black Dodge Charger.
This case was investigated by the Live Oak Police Department, the Suwanee County Sherriff’s Office, the Perry Police Department, the Florida Department of Law Enforcement, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Dale R. Campion and Michael J. Coolican.
Prisoner Who Escaped from Custody at Virginia Hospital Pleads Guilty to Firearms Charges in Connection with Assaults on GuardsRead the Press Release
Arlington man was in custody on bank robbery charges when he escaped
ALEXANDRIA, Va. – Wossen Assaye, 43, of Arlington, Virginia, pleaded guilty today to two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, with both counts based on his armed assaults of two security guards during his March 31, 2015, escape from Inova Fairfax Hospital.
In the statement of facts filed with the plea agreement, Assaye accepted responsibility for not only the firearms offenses, but also additional criminal conduct for which he was charged or suspected to be responsible. According to the statement of facts, beginning in October 2013 and continuing until March 2015, Assaye robbed various banks in Northern Virginia on 11 occasions, two of which were armed robberies. In another instance, Assaye entered a bank with the intent to commit bank robbery and larceny. After being arrested for his crimes, Assaye escaped from federal custody while at a Virginia hospital for treatment. During the course of his escape, Assaye assaulted a security guard, overpowered her, and took her firearm. He then pointed the firearm at a second guard before pulling the first guard down the hospital hallway at gunpoint and fleeing the hospital.
Assaye was indicted by a federal grand jury on May 28, 2015. He faces a mandatory minimum of 32 years in prison and a maximum penalty of life in prison when he is sentenced on Oct. 9, 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; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; Earl L. Cook, Alexandria Chief of Police; Michael L. Chapman, Loudoun County Sheriff; and Mary Gavin, Falls Church Chief of Police, made the announcement after the indictment was returned.
This case was investigated by the FBI’s Washington Field Office, Fairfax County Police Department, Alexandria City Police Department, Loudoun County Sheriff’s Office, and the Falls Church City Police Department. Also, during the course of the investigation assistance was received from U.S. Marshals Service, Virginia State Police, Arlington County Police Department, and Metropolitan Police Department of the District of Columbia. Assistant U.S. Attorneys Michael E. Rich and William M. Sloan, and Special Assistant U.S. Attorney William A. Glaser are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-115.
Previously Convicted Felon Sentenced to 17 Months in Federal Prison for Trafficking MarijuanaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBERT E. BRIDGES, 59, formerly of Greenwich and Redding, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 17 months of imprisonment, followed by three years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, on October 28, 2008, BRIDGES was sentenced in U.S. District Court in New Haven to 70 months of imprisonment, followed by three years of supervised release, for operating a scheme that defrauded investors of more than $5 million. BRIDGES was released from prison in November 2012 and began serving his three-year term of supervised release. In May 2014, BRIDGES filed a motion seeking early termination of his supervised release and stated “Defendant is a totally different person as a result of being incarcerated. The life-changing and life-improving process was used to make the most of every day.”
On June 18, 2014, BRIDGES’ motion for early termination of supervised release was granted.
In May 2014, BRIDGES applied for post office boxes at U.S. Post Offices in Georgetown, Riverside and Wilton, Connecticut. On December 11, 2014, the U.S. Postal Inspection Service identified three suspicious packages that were being mailed from Woodland, California to two of BRIDGES’ post office boxes. When BRIDGES arrived at the Georgetown Post Office later that day to retrieve his packages, he was interviewed by a U.S. Postal Inspector and gave written consent to search the packages. The first package contained 112 plastic vials that contained hashish, the second package contained nine vacuum-sealed plastic bags containing a total of approximately 4.5 kilograms of marijuana, and the third package contained 11 vacuum-sealed bags containing a total of approximately 5.5 kilograms of marijuana.
BRIDGES admitted to law enforcement that he had recently traveled to California, paid approximately $60,000 for the drugs and shipped the packages to himself.
BRIDGES has been detained since his arrest on December 18, 2014. On April 28, 2015, he pleaded guilty to one count of possessing with intent to distribute marijuana.
To date, Bridges has paid approximately $4,000 of the $5 million he owes in restitution related to his fraud conviction.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Rahul Kale.
Portland Married Couple Pleads Guilty to One Million Dollar Tax Fraud SchemeRead the Press Release
PORTLAND, Ore. - A Portland, Oregon married couple pleaded guilty before U.S. District Judge Robert E. Jones in the District of Oregon today for conspiring to file fraudulent federal income tax returns that claimed refunds of more than $1 million.
According to the plea agreement, spouses Shawntina Ware and Brandon Leath admitted to conspiring with each other and other individuals to prepare and file more than 227 fraudulent income tax returns for calendar year 2009 during the 2010 tax filing season. The false information on the tax returns included fictitious W-2 wage and withholding information and fraudulent refundable tax credits.
According to court documents, Leath has agreed to a sentencing recommendation of 24 months in prison for his crimes. Ware faces a statutory maximum sentence of 10 years in prison for the theft of government funds count, and a statutory maximum sentence of 5 years in prison for both the conspiracy count and the false claims count.
Ware and Leath agreed to pay restitution to the Internal Revenue Service with a combined total of more than $150,000, and will each be sentenced on November 3, 2015.
The special agents of Portland, Oregon IRS-Criminal Investigation investigated the case. Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division are prosecuting the case, with valuable assistance from the U.S. Attorney’s Office in Portland, Oregon.
Ponzi Scheme Operator Sentenced to More Than 6.5 Years on Securities Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – Claude Darrell McDougal, 56, formerly of Charlotte, was sentenced today to 78 months in prison for orchestrating a Ponzi scheme that defrauded his investor victims of over $2.5 million, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered McDougal to serve two years under court supervision after he is released from prison and to pay $2,020,078.26 as restitution to the victims of his fraud.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division join Acting U.S. Attorney Rose in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2006 to 2010 McDougal induced over 25 investors in Charlotte and elsewhere to invest more than $2.5 million, by promising his victims their money would be invested in securities, in the form of promissory notes offered by “US Financial Alliance Consultants, LLC” (Financial Alliance). McDougal created Charlotte-based Financial Alliance in 2005, a company that was never registered as a dealer of securities in North Carolina or elsewhere, according to court records. Also, according to court records, McDougal was not registered to sell securities in North Carolina or in any other state, following termination from his previous employer in August 2009. Court documents show that McDougal induced his victims to invest with Financial Alliance by falsely “guaranteeing” fixed rates of return between 6% and 15% annually.
McDougal collected over $2.5 million dollars from victim-investors, many of whom were elderly and invested most, if not all, of their life-savings with him. Instead of investing the victims’ money as promised, McDougal squandered it. According to court records, over the course of the three-year scheme, McDougal invested only $580,000 of the victims’ money and used approximately $450,000 to pay some victims supposed “payouts” from profits made on investments. However, these payments were not based on profits, but came from funds contributed by new investors, commonly referred to as “Ponzi” payments. Court records show that McDougal used approximately $1.19 million of the investors’ funds to support his own lifestyle, including to buy dinners, jewelry and electronics, and to pay for hotel stays, furniture and other business-related expenses. McDougal pleaded guilty to securities fraud in July 2014.
Following the sentencing hearing McDougal was released on bond. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by the North Carolina Secretary of State, Securities Division, with assistance from the FBI’s Charlotte Division.
Special Assistant U.S. Attorney Kevin M. Harrington prosecuted the case. Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position reflects the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
The charges were brought in connection with the President’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. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
Physician and Office Manager Indicted on Alien Smuggling and Drug Conspiracy ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Dr. Fred Joseph Turner (57, Sarasota) and Rosetta Valerie Cannata (58, Osprey) with conspiracy to unlawfully bring an alien into the United States, conspiracy to distribute and dispense hydromorphone and OxyContin not in the usual course of professional practice, and distributing and dispensing hydromorphone and OxyContin not in the usual course of professional practice. If convicted, they each face a maximum penalty of 10 years in federal prison on the alien charge and up to 20 years in federal prison on each of the other charges. The indictment also notifies Turner that the United States intends to forfeit his license to practice medicine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Largo Police Department, the Charlotte County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Tampa Police Department, and the Florida Department of Health. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Palm Beach County Resident Convicted for Being a Felon in Possession of a FirearmRead the Press Release
A Riviera Beach resident was convicted by a jury for being a felon in possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Stephen J. Stepp, Chief, Palm Beach Gardens Police Department (PBGPD) and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
Joseph McDonald, 36, of Riviera Beach was convicted following a three-day jury trial before U.S. District Judge Donald M. Middlebrooks on two counts of being a felon in possession of a firearm. McDonald was previously convicted in state court for being a felon in possession. McDonald faces a maximum sentence of up to 20 years in federal prison for the crimes of conviction. McDonald is scheduled to be sentenced on September 30, 2015, at 10:30 a.m.
According to evidence presented at trial, McDonald fled from the police during two separate stolen vehicle investigations. On July 28, 2013, McDonald dropped a fully loaded Smith & Wesson 9 mm semi-automatic pistol during his flight from members of the Palm Beach Gardens Police Department. On December 17, 2013, Palm Beach County Sheriff’s Deputies recovered a fully loaded Ingram Mac 10 semi-automatic pistol from McDonald’s path of flight.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF, PBGPD and PBSO. The case is being prosecuted by Assistant U.S. Attorneys Brandy Galler and Daniel Funk.
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 Employee Leasing Company Sentenced for Immigration and Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Kim Meas, 60, a native of Cambodia, was sentenced today to 30 months in prison for schemes to defraud the United States. Meas was the managing director of LS Services Corporation (“LS”), an employee leasing company in South Philadelphia. He pleaded guilty on November 24, 2014 to two counts of conspiracy to commit an offense against the United States, two counts of transporting illegal aliens and two counts of failure to collect and pay federal income and employment taxes. In addition to the prison term, U.S. District Court Judge Jan E. Dubois ordered restitution to the IRS in the amount of $1.7 million during three years of supervised release, a $600 special assessment, and $23 million in forfeiture.
As the principal corporate officer at LS, Meas negotiated labor leasing contracts with various companies throughout the greater Delaware Valley that leased temporary workers from LS. Meas also established approximately 14 shell companies to create the illusion that the workers that LS leased to other companies were employees of the shell corporations. As such, the shell corporations, and not LS, would be responsible for collecting and paying employment and income taxes for the employees. Meas attempted make it impossible for the IRS to determine the identity of the employer of the illegal aliens, as well as the amount of employment and income taxes that the employer of the illegal aliens was required to pay to the federal treasury. LS also transported the illegal aliens, free of charge, to various work locations in company vehicles. The companies, that leased employees from LS, did not withhold federal income taxes on the wages paid to the employees, nor did these companies collect and pay to the Internal Revenue Service, employment taxes on the income earned by the workers. Meas had two co-conspirators, Ken Sem and Vivi Fnu, who previously pleaded guilty.
This case was investigated by Homeland Security Investigations and Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Floyd J. Miller.
On the 25th Anniversary of the ADA, the Justice Department Signs Agreement to Bring the Promise of the ADA to Lumpkin County, GeorgiaRead the Press Release
The Department of Justice announced an agreement today under its Project Civic Access (PCA) initiative with Lumpkin County, Georgia, to address accessibility issues in the county’s services, programs, activities and facilities under Title II of the Americans with Disabilities Act (ADA). The department’s celebration of the 25th anniversary of the ADA – ADA 25: Advancing Equal Access – culminates today in a convening of ADA pioneers, advocates, persons with disabilities and dignitaries to commemorate the enactment of this historic civil rights law.
PCA was initiated to ensure that persons with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. As part of the PCA initiative, Justice Department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with ADA requirements.
Today’s agreement will allow people with disabilities to participate in and benefit from the services provided in Lumpkin County’s facilities including the Justice Center, Mental Health Center, Law Enforcement Center, Senior Center, Community Pavilion, the Health Department, the Administration Building, the Animal Shelter and library. Lumpkin County will renovate and remediate everything from entrances, service areas, counters, restrooms and parking so that people with disabilities can get into county buildings and use the services and programs offered by the county in each of its buildings.
“The Americans with Disabilities Act was signed into law on July 26th 1990,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Today, as we gather to remember, honor, and celebrate the ADA’s 25th Anniversary, it is fitting that we sign this agreement. It reminds us that when it comes to the civil rights of persons with disabilities, the work never stops. I congratulate Lumpkin County, who has worked cooperatively with the department to come to this agreement and has demonstrated its commitment to serve its citizens with disabilities.”
In addition, Lumpkin County will take several important steps to improve access for individuals with disabilities, including:
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Ensuring that all of its webpages comply with the Web Content Accessibility Guidelines version 2.0;
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Officially recognizing Georgia telephone relay service as a key means of communicating with individuals who are deaf, are hard-of-hearing or have speech impairments and training staff in using the relay service for telephone communications;
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Surveying other facilities and programs and making modifications under the supervision of an Independent Licensed Architect to achieve full compliance with ADA requirements;
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Ensuring that buildings and outdoor facilities that will be built or altered by or on behalf of the county comply with the ADA’s architectural requirements; and
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Providing information for interested persons with disabilities concerning the existence and location of the county’s accessible services, activities and programs.
For more information about the ADA, today’s agreement or the PCA, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
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Ohio County woman sentenced for heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Tracy McWhorter, 35, of Triadelphia, West Virginia, was sentenced in federal court today for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
McWhorter pled guilty in June 2015 to a criminal Information charging her with one count of “Possession with Intent to Distribute Heroin.” At that time, she further admitted to violations during a period of supervised release stemming from a previous conviction. She was sentenced today to 12 months in prison for the heroin trafficking charge and 12 months in prison for the supervised release violation, for a total of 24 months in prison.
Special Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government. The Wheeling Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Officials Take Down Gang-affiliated Drug Traffickers; Take Dozens of Guns Off the StreetRead the Press Release
Crystal Palace II
Unsealed Indictments
CHIEN VAN NGUYEN Indictment
CU VAN HUYNH Indictment
DAT MINH TO Indictment
DUNG VAN NGUYEN Indictment
KHAMSOUK INTHAVONG Indictment
MARIO ALBERTO MIRANDA-VERDUGO Indictment
VINH VAN PHAN Indictment
VINCENT RUBIO Indictment
ISRAEL SOTO Indictment
TAM MINH TA Indictment
Search Warrant
Search Warrant-2943 Reynard.pdf
Video Footage
Click HereNew Haven Man Pleads Guilty to Robbing ATF InformantRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SHAQUIL GARY, 22, of New Haven, pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to a federal robbery offense.
According to court documents and statements made in court, on August 14, 2014, GARY arranged to meet an ATF informant near the intersection of Lamberton and Button Streets in New Haven to sell the informant approximately seven grams of crack cocaine. Instead, when the two met at the location, GARY pulled out a firearm, took $150 in cash and a cell phone from the informant and fled. Law enforcement officers apprehended GARY later that day at a residence on Winthrop Avenue. By that time, he was no longer in possession of the firearm he used to commit the robbery.
GARY pleaded guilty to one count of armed robbery of a person in lawful control of property of the United States, a charge that carries a maximum term of imprisonment of 25 years.
Sentencing is scheduled for October 14, 2015.
GARY has been detained since his arrest.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert Spector.
National Crime Victims’ Rights Week 2015 Engaging Communities | Empowering VictimsRead the Press Release
San Diego, CA - April 19-25, 2015 is National Crime Victims’ Rights Week – a time for law enforcement, prosecutorial agencies, victim advocates and community members to come together and support victims of crime.Enforcing victims’ rights protects victims, enhances public safety and fosters public confidence in our criminal justice system. Agencies that partake in this Tribute and those who attend will acknowledge and honor crime victims nationwide.
The Victim Assistance Coordinating Council (VACC) and the United States Attorney’s Office in San Diego invite you to attend the 26th annual Candlelight Tribute for Crime Survivors on Monday, April 20, 2015 at 5:30 p.m. The Tribute will be held at the San Diego Police Officers’ Association Hall, 8388 Vickers St., San Diego, CA 92111. The keynote speaker will be San Diego Police Chief Shelley Zimmerman. The Tribute is a time to memorialize victims and to hear inspirational words from local law enforcement agencies, victim advocates and personal stories from the victims themselves.
The Tribute is sponsored by the Victim Assistance Coordinating Council (VACC). VACC is comprised of the following agencies: Alliance for Community Empowerment, the Crime and Trauma Recovery Program, the District Attorney’s Victim Assistance Program, the Drug Enforcement Administration (DEA) Victim Witness Program, the Federal Bureau of Investigation (FBI) Victim Assistance Program, First Avenue Counseling Centre, the Jenna Druck Center, Mothers Against Drunk Driving (MADD), Parents of Murdered Children, San Diego Police Department Crisis Intervention, San Diego County Sherriff’s Department, the San Diego Police Officers Association, Therapy Changes, the United States Attorney’s Office Victim/Witness Program, the U.S. Postal Inspection Service, and other victim advocates.
By providing a single, uniform message from these agencies and service providers, we can help increase awareness and improve the assistance provided to all crime victims.
To receive further information about National Crime Victims’ Rights Week, and ideas on how to serve victims in your community please visit www.ovc.gov or www.sdvacc.com.
###Nassau County Man Sentenced to Five Years on Drug and Firearm ChargesRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Shavon Tavin Anderson (22, Nassau County) to five years in federal prison for distributing cocaine and possessing a firearm as a convicted felon. He pleaded guilty on April 15, 2015.
According to court documents, on February 6, 2015, Anderson met with an undercover (UC) Nassau County Sheriff’s Office detective. The UC was part of a DEA Drug Task Force operation. During the meeting, Anderson sold the UC cocaine and marijuana. During a follow-up meeting the next week, Anderson again sold cocaine to the UC.
On March 5, 2015, Anderson met with the UC for a prearranged drug sale. Anderson was supposed to provide the UC with half a kilogram of powder cocaine in exchange for $24,000. At the meeting, Anderson provided the UC with a smaller amount of powder than was previously discussed, but the UC agreed to purchase it anyway. The powder was later determined to be fake cocaine. When agents moved to arrest Anderson, he exited the UC’s vehicle and began running. As he fled, agents observed that Anderson had his hand on a firearm (Hi-Point pistol) that was tucked in his waistband. Anderson was apprehended and the loaded firearm was recovered. At the time of his arrest, Anderson had multiple prior felony convictions and was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Nassau County Sheriff’s Office and the DEA Drug Task Force. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Moiliili Resident Sentenced to 25 Years in Prison for Distributing Methamphetamine and CocaineRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Charles H. Foster, age 33, to 304 months in prison on July 21 (Tuesday) for conspiring to possess with intent to distribute methamphetamine and cocaine from approximately September 2012 to February 2013. A jury had convicted Foster and codefendant John Garcia on February 19, 2015, after a five-day trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, Foster was the leader of a drug trafficking ring in Honolulu that was found to be accountable for distributing over 1,300 grams of "Ice", over 2,700 grams of generic methamphetamine and over 2,200 grams of cocaine. In February 2013, the Honolulu Police Department executed a search warrant and recovered from Foster’s Waiola Street apartment approximately three pounds of "Ice," over $33,000, and an assault rifle with three magazines loaded with ammunition Foster also had a prior state felony drug conviction in Hawaii in 2007 for distributing cocaine.
The drug trafficking ring also included Foster’s half brother, codefendant Chrystyan Burke, who was sentenced to 50 months imprisonment in March 2015. Garcia’s sentencing is set for September 17, 2015.
This case was investigated by the Honolulu Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Chris A. Thomas prosecuted the case.
Middlebury Fire Chief Convicted of Embezzling FundsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a federal jury in New Haven today found PAUL PERROTTI, 47, of Middlebury, guilty of embezzling funds while serving as the Fire Chief of the Town of Middlebury. The trial before U.S. District Judge Jeffrey Alker Meyer began on July 9, 2015.
“The U.S. Attorney's Office, FBI and our federal law enforcement partners are committed to investigating corruption at all levels of government, and public officials who misappropriate public funds will be prosecuted,” stated U.S. Attorney Daly. “We thank the members of the jury for their thoughtful consideration of the evidence.”
According to the evidence at trial, PERROTTI served as the Fire Chief of the Middlebury Volunteer Fire Department, Inc. (“MVFD”) from 1997 until 2014. PERROTTI also is a licensed electrical contractor and, since approximately 2010, has operated Paul Perrotti Electric, LLC (“PPE”). In 2012 and 2013, PERROTTI used Town funds to pay for unauthorized personal expenses and for expenses associated with PPE. These payments included checks made directly payable to employees of PPE, checks made to various vendors of PPE for PPE-related supplies, and checks made to pay third parties, who ultimately passed on the payments to PERROTTI. PERROTTI also submitted invoices to the Town of Middlebury for expenses that he falsely claimed were incurred by MVFD but, in fact, were expenses related to the business of PPE, including bills for various vendors of PPE.
In total, the government believes that PERROTTI embezzled more than $70,000 from the Town and the MVFD.
On November 5, 2014, PERROTTI was charged by indictment with three counts of theft concerning programs receiving federal funds. The jury found PERROTTI guilty of Count Two and Count Three of the indictment, but could not reach a verdict on Count One.
The charge of theft concerning programs receiving federal funds carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for October 29, 2015.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Heather Cherry.
Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.8 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner pleaded guilty today for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Evelio Fernandez Penaranda, 47, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida to one count of health care fraud. Sentencing has been scheduled for Oct. 8, 2015.
Penaranda owned Naranja Pharmacy Inc. In connection with his guilty plea, Penaranda admitted that, between May 2013 and March 2014, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. According to admissions made in connection with Penaranda’s guilty plea, Naranja Pharmacy submitted these false claims by obtaining and using the unique identifying information of Medicare beneficiaries and doctors without their consent.
Penaranda admitted that he controlled Naranja Pharmacy’s bank accounts, and that he transferred the payments received from Medicare to himself and his accomplices. According to admissions made in connection with Penaranda’s plea, during the course of the scheme, Naranja Pharmacy submitted to Medicare over $1.8 million in false claims for prescription drugs, and Medicare paid 100 percent of the claims.
The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case is being prosecuted by Trial Attorney Nicholas E. Surmacz 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 the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Fernandez Penaranda Plea Agreement
Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.8 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner pleaded guilty today for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Evelio Fernandez Penaranda, 47, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida to one count of health care fraud. Sentencing has been scheduled for Oct. 8, 2015.
Penaranda owned Naranja Pharmacy Inc. In connection with his guilty plea, Penaranda admitted that, between May 2013 and March 2014, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. According to admissions made in connection with Penaranda’s guilty plea, Naranja Pharmacy submitted these false claims by obtaining and using the unique identifying information of Medicare beneficiaries and doctors without their consent.
Penaranda admitted that he controlled Naranja Pharmacy’s bank accounts, and that he transferred the payments received from Medicare to himself and his accomplices. According to admissions made in connection with Penaranda’s plea, during the course of the scheme, Naranja Pharmacy submitted to Medicare over $1.8 million in false claims for prescription drugs, and Medicare paid 100 percent of the claims.
The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case is being prosecuted by Trial Attorney Nicholas E. Surmacz 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 the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
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Mexican National Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Nora Asusena Amador-Beltran, 38, a Mexican national illegally in the United States, pleaded guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Amador-Beltran was arrested on March 11, 2015, at the Greyhound Bus Station in Albuquerque after DEA agents found approximately 2.64 pounds of heroin concealed in her jacket during a consensual search. Amador-Beltran was indicted on March 24, 2015, and charged with possession of heroin with intent to distribute.
During today’s proceedings, Amador-Beltran pled guilty to a felony information charging her with possession of heroin with intent to distribute, and admitted that she was in possession of a kilogram of heroin on March 11, 2015. She further admitted that DEA agents found the heroin while the Greyhound Bus on which she was traveling made a stop in Albuquerque. Although Amador-Beltran was traveling under a false name, the DEA found identification documents in her true name and $6,400.00 cash in her belongings.
At sentencing, Amador-Beltran faces a statutory maximum penalty of 20 years in prison. She will be deported after completing her prison sentence. Amador-Beltran remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Shana B. Long is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Mexican National Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Rosa Esmeralda Balderrama-Mendivil, 39, a Mexican national residing in Nogales, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge.
Balderrama-Mendivil and her co-defendant Jesus Francisco Javier Morales-Rivas, 30, of Sinaloa, Mexico, were arrested on March 31, 2015, at the Greyhound Bus Station in Albuquerque after DEA agents found approximately 2.75 pounds of heroin in Balderrama-Mendivil’s baggage during a consensual search. On April 14, 2015, Balderrama-Mendivil and Morales-Rivas were charged in a two-count indictment with participating in a heroin trafficking conspiracy and possession of heroin with intent to distribute. The indictment alleged that both offenses were committed on March 31, 2015, in Bernalillo County, N.M.
During today’s proceedings, Balderrama-Mendivil pled guilty to a felony information charging her with conspiracy to possess heroin with intent to distribute. In entering the guilty plea, Balderrama-Mendivil admitted that she was in possession of heroin on March 31, 2015, and that she intended to deliver the heroin to another person upon her arrival in Albuquerque.
At sentencing, Balderrama-Mendivil faces a statutory maximum penalty of 20 years in prison. She will be deported after completing her prison sentence. Balderrama-Mendivil remains in custody pending a sentencing hearing which has yet to be scheduled.
Morales-Rivas has entered a not guilty plea to the complaint and indictment and remains in custody pending trial which has yet to be scheduled. Charges in criminal complaints and indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Mclean Man Pleads Guilty to Gold Investment Fraud SchemeRead the Press Release
Involved multiple investors and up to $1 million in investor deposits
ALEXANDRIA, Va. – On the third day of trial, after prosecutors had presented 10 witnesses and entered over 200 exhibits into evidence, Philip Barnard, Jr., 54, of McLean, Virginia, pleaded guilty yesterday to one count of wire fraud and three counts of money laundering for his role in a gold investment fraud scheme involving multiple investors and up to $1 million in investor deposits.
In a statement of facts filed with the plea agreement, Barnard owned and operated various companies that purportedly were in the business of coordinating gold transactions. Barnard claimed to have a global clientele including foreign governments, the world’s richest private investors, foreign private banks, and major purchasers of precious metals. Barnard solicited funds from investors through false and misleading representations regarding the use of funds, the amount of return on the investments, and the risk associated with investment of the funds. He also misrepresented that investors would receive minimum and/or guaranteed profits. For example, Barnard told one victim, “This opportunity involves no risk of losing your investment due to the nature of how we take possession of the bullion we work with ... And, remember, I would never allow you to lose one dime.” Barnard guaranteed short term returns as high as 1,500 percent.
According to court documents, Barnard sent charts, graphs, and certificates related to the purported investment designed to lull investors into a false sense of profitability. Unknown to investors, Barnard spent investment funds on personal expenses including private school tuition, personal vehicles, jewelry, and travel. After the investments failed to yield any profit, Barnard lied to investors about the security of their funds. For example, although he had already spent their funds on personal use, Barnard told one investor, “Your investment is in good hands. All of the assurances that I made to you are real. You can rely on my statements.” When some investors contemplated contacting law enforcement authorities, Barnard coerced them into signing agreements that claimed to immunize him from any civil or criminal liability. Ultimately, investors suffered losses up to $1 million.
Barnard was indicted by a federal grand jury on Feb. 26, 2015. He faces a maximum penalty of 20 years in prison on the wire fraud count, and a maximum penalty of 10 years in prison on each money laundering count. Barnard is scheduled to be sentenced on Oct. 9, 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; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Uzo Asonye and Christopher Catizone are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-60.
Massachusetts Man Charged in Connection with Plot to Engage in Terrorism PlotRead the Press Release
An Adams, Massachusetts, man has been charged in an indictment in connection with a plot to engage in terrorism on behalf of ISIL. The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Agent in Charge Vincent Lisi of the FBI’s Boston Division.
Alexander Ciccolo, aka Ali Al Amriki, 23, was charged by a grand jury in U.S. District Court in Springfield, Massachusetts, with one count of being a convicted felon in possession of firearms and one count of assault with a deadly weapon and causing bodily injury to a person assisting an officer of the United States in the performance of official duties. The latter charge stems from Ciccolo’s alleged attack of a nurse during a jail intake process after his arrest.
According to evidence presented at a previous detention hearing, on July 4, 2015, Ciccolo took delivery of four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about Ciccolo’s plans to engage in a terrorist act. Ciccolo was arrested immediately after taking delivery of the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 rifle, a Glock 17-9 mm pistol and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
The government alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Ciccolo had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, such as college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
During a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
Shortly after his arrest, while he was being processed at the Franklin County Correctional Center, Ciccolo stabbed a nurse with a pen, leaving a bloody gash on the top of the nurse’s head.
Based on these alleged facts and evidence presented at Ciccolo’s detention hearing on July 14, 2015, Magistrate Judge Katherine A. Robertson of the District of Massachusetts ordered that Ciccolo be detained until trial.
The charge of being a felon in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of assault with a dangerous weapon causing bodily injury provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the Western Massachusetts Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Deepika Shukla of the District of Massachusetts and the National Security Division’s Counterterrorism Section.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ciccolo Indictment
Man to Serve 15 Years for Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Richard J. Watkins, Jr., 50, of Phoenix, NY was sentenced to serve 15 years imprisonment to be followed by 15 years supervised release in connection with his knowingly receiving and possessing child pornography obtained from the Internet, announced United States Attorney Richard S. Hartunian. Watkins was also ordered to register as a sex offender and pay $5,000 in restitution to one of the victims portrayed in the images he downloaded from the Internet.
Watkins’ sentence was the result of an investigation by the New York State Police that included a search of his Phoenix, NY residence where he possessed more than 400 video files depicting the sexual exploitation of children as young as 4, 5, and 8 years old.
Watkins’ federal arrest is the result of a cooperative effort between the New York State Police, the Oswego County District Attorney’s Office, the United States Secret Service and the United States Attorney’s Office as a part of Project Safe Childhood, a nationwide initiative to protect children from online exploitation and abuse. Led by United States Attorney’s Offices, Project Safe Childhood joins federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. The case was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on July 23, 2015, Brent William Littrell, 31, of Lincoln, was sentenced to seven years (84 months) in prison for his role in a conspiracy to distribute 50 grams or more of methamphetamine between March of 2012 and October of 2014. Information provided to law enforcement indicated that, during that time, Littrell was responsible for the distribution of at least 350 grams (approximately 12 ½ ounces) of methamphetamine in the Lincoln area. Following the prison term, Littrell will serve four years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lancaster County Man and His Three Sons Are Sentenced for Tax FraudRead the Press Release
PHILADELPHIA – Chester A. Bitterman Jr., 81, and his sons, Craig L. Bitterman, 55, C. Grant Bitterman, 53, and Curtis L. Bitterman, 61, were sentenced for conspiracy to defraud the United States. At sentencing hearings held on July 15, 17 and 22, U.S. District Court Judge James Knoll Gardner imposed the following sentences:
- Craig L. Bitterman, of Strasburg, PA, was sentenced to serve three years in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $10,000 fine;
- C. Grant Bitterman, of Willow Street, PA, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine;
- Curtis L. Bitterman, of Lacaster, PA, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine;
- Chester A. Bitterman Jr., of Willow Street, PA, was sentenced to serve three years’ probation to include six months of home confinement, due in part to his age and ailing spouse confined to hospice care, and was ordered to pay a $5,000 fine.
Each defendant was convicted following a three-week jury trial in October 2010. Craig Bitterman was additionally convicted of obstruction of justice. Prior to sentencing, the defendants paid $437,000 in restitution to the Internal Revenue Service (IRS).
According to the evidence at trial, from 1996 to 2005, the Bittermans owned and operated the Bitterman Scale Company, which now operates as Bitterman Scales LLC. To conceal their income and assets from the IRS, the Bittermans used aliases, offshore bank accounts and a complex series of sham paper transactions to disguise the income. The defendants transferred their personal and business assets to sham trusts purchased from the Commonwealth Trust Company, a tax protester organization that marketed trust products to clients for the purpose of avoiding federal income tax payment. The trusts were used to make it appear as though the defendants had little or no assets or income. In reality, the defendants retained complete access and control over their funds. In January 2008, the principal owners of the Commonwealth Trust Company were convicted at trial in the Eastern District of Pennsylvania of tax crimes for causing losses of over $17 million and were sentenced to prison.
The defendants paid themselves in cash and arranged bogus payments between the numerous trusts that they had created. These bogus payments were purported to be leases, management fees and fiduciary fees. The defendants submitted trust tax returns for their business and took fraudulent deductions for these payments to create the appearance of minimal or no taxable business income. After the IRS levied the business bank account and receivables, the defendants instructed their customers to pay another trust to thwart IRS collection efforts. The defendants also placed bogus liens and mortgages on their assets to make it appear to the IRS that the defendants had no assets that could be levied or seized as part of the tax collection process. Some of the defendants used aliases and bank accounts in the names of trusts to make school tuition payments for their children appear as if they were scholarships from third parties. In addition, to further conceal their assets from the IRS, at least one defendant used offshore bank accounts in the British Virgin Islands and three of the defendants arranged for sham transfers of real estate to their children.
During the investigation, after Craig Bitterman was served with federal grand jury subpoenas requiring the production of trust records, he failed to produce the records to the grand jury and instead shipped those trust records to Texas and New Mexico in an attempt to conceal them.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant U.S. Attorney Vineet Gauri and Trial Attorney Michael C. Vasiliadis of the Tax Division.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with West Virginia DeveloperRead the Press Release
The Justice Department announced today that developer Biafora’s Inc. (Biafora) and several affiliated companies have agreed to pay $205,000 and make substantial retrofits to remove accessibility barriers at multifamily apartment complexes. This agreement resolves the United States’ claims that Biafora violated the Fair Housing Act and the Americans with Disabilities Act by building 23 apartment complexes in West Virginia and Pennsylvania with a variety of features that made them inaccessible to persons with disabilities.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of West Virginia, Biafora and the other defendants must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, widening doorways and reducing door threshold heights. The settlement also requires the defendants to construct a new apartment complex in Morgantown, West Virginia, with 100 accessible units. The defendants will pay $180,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $25,000 as a civil penalty.
“The Justice Department will use every means at its disposal under the Fair Housing Act and the Americans with Disabilities Act to ensure persons with disabilities can have an equal opportunity to enjoy housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This comprehensive settlement will enable persons with disabilities to have equal access to housing in Morgantown and surrounding communities through the removal of accessibility barriers at existing multifamily housing properties and the creation of new accessible housing. The agreement will also compensate persons injured by the defendants’ failure to provide accessible housing.”
“Accessible housing is a fundamental protection afforded by the Fair Housing Act,” said U.S. Attorney William J. Ihlenfeld, II of the Northern District of West Virginia. "The U.S. Attorney's office will continue to work hard to ensure that the housing choices available to West Virginians with disabilities comply with federal laws. If landlords in Morgantown or other parts of West Virginia fail to meet these standards then they will be held accountable."
The agreement also requires certain employees and agents of the defendants will participate in educational training about requirements of the Fair Housing Act and Americans with Disabilities Act. The defendants will make information about fair housing and about this settlement available to the public and will report periodically to the Justice Department. The United States’ lawsuit also named Biafora’s affiliates Falconcrest LLC, Five Star Holdings LLC, Metro Rentals LLC, Metro Rentals II LLC, RDR Properties LLC, RDR Properties II LLC, The Gables LLC, the Woodlands LLC, 3BT LLC and CMC Company LLC.
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Notices of the settlement and a list of subject properties will be published in the Dominion Post (Morgantown) and Exponent Telegram (Clarksburg, West Virginia). Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 998 or e-mail the Justice Department at [email protected]
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected]. Such persons may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Reaches Settlements with Atlantic City, New Jersey, Hotels on Access for People with Mobility ImpairmentsRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and U.S. Department of Justice today announced the results of a four-and-a-half year review of several hotels and casinos in Atlantic City, New Jersey, to determine whether they are being operated in compliance with the Americans with Disabilities Act of 1990 (ADA).
The announcement comes as the Department marks the 25th anniversary of the ADA. The Justice Department, including the nation’s U.S. Attorneys and the Civil Rights Division, play a critical role in enforcing the ADA, ensuring equal opportunity and full participation for persons with disabilities.
Title III of the ADA prohibits discrimination on the basis of disability by private entities that own or operate places of public accommodation. These prohibitions require, among other things, that a public accommodation ensure that its facilities are readily accessible so that people with disabilities have access to its goods and services.
Settlement agreements were reached with five hotel/casinos that were not in compliance with the ADA: Resorts Casino Hotel, Tropicana Casino and Resort, Sheraton Atlantic City Convention Center Hotel, The Rainforest Café at the former Trump Plaza, and Trump Taj Mahal. The agreements require the hotels and casinos to remedy any violations, enabling people with mobility impairments to fully access these facilities. These include ensuring that they may reserve an accessible guest room through the Internet, that parking is accessible (including by providing van-accessible spaces) and that guest rooms and services, such as buffets, restaurants and bars and public restrooms, are ADA compliant. The agreements require each hotel and casino to implement and/or amend its ADA disability rights policies and to provide training to its staff regarding the ADA’s provisions.
Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation within the District of New Jersey is not accessible to persons with disabilities may use the Civil Rights Complaint Form available on the U.S. Attorney’s Office, District of New Jersey website at www.justice.gov/usao/nj. Those interested in finding out more about the ADA in general may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Reaches Agreement with Carnival Corp. over ADA Violations by Carnival Cruise Line, Holland America Line and Princess CruisesRead the Press Release
The Justice Department and Carnival Corp. today announced a comprehensive, landmark settlement agreement under the Americans with Disabilities Act (ADA) to advance equal access for individuals with disabilities who travel on cruise ships.
Carnival Corp. is one of the largest cruise companies in the world, owning and operating several cruise lines. Today’s settlement agreement addresses accessibility on 62 ships among the Carnival Cruise Line, Holland America Line and Princess Cruises brands and implements accessibility standards and policies to provide greater access on cruises that embark and disembark from U.S. waters or those of its territories.
“The ADA guarantees people with disabilities equal access to public accommodations,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Cruise ships are ‘floating cities’ and provide a wide range of facilities and activities subject to the requirements of the ADA, such as lodging, dining, entertainment, recreation, and medical facilities. People with disabilities who travel must be able to count on getting the accessible cabin they reserve, and the cruise lines must provide equal access to the choice of amenities and attractions that passengers expect from a major cruise company like Carnival Corporation.”
“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of cabins and services that previously were unavailable while vacationing on cruise ships,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
The settlement agreement is the result of an investigation of complaints by the Justice Department. Carnival officials cooperated with the department throughout the process. Among the complaints were allegations that the company failed to: properly provide and reserve accessible cabins for individuals with mobility disabilities; reasonably modify policies, practices and procedures to accommodate individuals with disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including embarkation and disembarkation; and provide effective communication during muster and emergency drills.
Under the agreement:
- 42 existing ships, and 7 ships in various stages of design and construction, will be surveyed and remediated to comply with the ADA regulations. Accessible cabins will be dispersed among the various classes of accommodations and will provide a range of accessible features, including features for guests with hearing impairments;
- Three percent of the cabins on 49 ships will be accessible according to three levels of accessibility: fully accessible cabins, fully accessible cabins with a single side approach to the bed, and ambulatory accessible cabins. The remaining 13 ships will be subject to possible remediation if they continue to be in service in U.S. ports four years after the agreement is entered.
- Carnival Corp. has created brand standards that address an array of accessibility issues and policies to implement them;
- Carnival Corp. will provide specific ADA training to employees and managers;
- Reservations systems will allow individuals with disabilities to reserve accessible cabins and suites with specific available options and amenities, and to guarantee reservations for accessible cabins;
- The accessibility of Carnival Corp. websites and mobile applications will comply with WCAG 2.0 Level A and AA;
- Carnival Corp. will appoint an ADA compliance officer at the executive level, two ADA responsibility officers – one for Carnival Cruises and one for Holland America Group, which includes Holland America Line and Princess Cruises, and ADA shipboard officers for each ship who are responsible for resolving ADA-related issues that arise at sea; and
- Carnival Corp. will pay a civil penalty of $55,000 to the United States and $350,000 in damages to individuals harmed by past discrimination.
Today’s settlement represents the first time the Department of Justice has required a cruise company to provide a minimum number of accessible cabins, to conduct a survey of its ships and to develop a remediation plan to comply with the ADA. It is also the first time that an agreement under the ADA has specifically identified three types of accessible cabins on cruise ships – fully accessible cabins, fully accessible cabins-single side approach and ambulatory accessible cabins – that will be available to individuals with disabilities.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Justice Department Reaches Agreement with Carnival Corp. over ADA Violations by Carnival Cruise Line, Holland America Line and Princess CruisesRead the Press Release
The Justice Department and Carnival Corp. today announced a comprehensive, landmark settlement agreement under the Americans with Disabilities Act (ADA) to advance equal access for individuals with disabilities who travel on cruise ships.
Carnival Corp. is one of the largest cruise companies in the world, owning and operating several cruise lines. Today’s settlement agreement addresses accessibility on 62 ships among the Carnival Cruise Line, Holland America Line and Princess Cruises brands and implements accessibility standards and policies to provide greater access on cruises that embark and disembark from U.S. waters or those of its territories.
“The ADA guarantees people with disabilities equal access to public accommodations,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Cruise ships are ‘floating cities’ and provide a wide range of facilities and activities subject to the requirements of the ADA, such as lodging, dining, entertainment, recreation, and medical facilities. People with disabilities who travel must be able to count on getting the accessible cabin they reserve, and the cruise lines must provide equal access to the choice of amenities and attractions that passengers expect from a major cruise company like Carnival Corporation.”
“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of cabins and services that previously were unavailable while vacationing on cruise ships,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
The settlement agreement is the result of an investigation of complaints by the Justice Department. Carnival officials cooperated with the department throughout the process. Among the complaints were allegations that the company failed to: properly provide and reserve accessible cabins for individuals with mobility disabilities; reasonably modify policies, practices and procedures to accommodate individuals with disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including embarkation and disembarkation; and provide effective communication during muster and emergency drills.
Under the agreement:
- 42 existing ships, and 7 ships in various stages of design and construction, will be surveyed and remediated to comply with the ADA regulations. Accessible cabins will be dispersed among the various classes of accommodations and will provide a range of accessible features, including features for guests with hearing impairments;
- Three percent of the cabins on 49 ships will be accessible according to three levels of accessibility: fully accessible cabins, fully accessible cabins with a single side approach to the bed, and ambulatory accessible cabins. The remaining 13 ships will be subject to possible remediation if they continue to be in service in U.S. ports four years after the agreement is entered.
- Carnival Corp. has created brand standards that address an array of accessibility issues and policies to implement them;
- Carnival Corp. will provide specific ADA training to employees and managers;
- Reservations systems will allow individuals with disabilities to reserve accessible cabins and suites with specific available options and amenities, and to guarantee reservations for accessible cabins;
- The accessibility of Carnival Corp. websites and mobile applications will comply with WCAG 2.0 Level A and AA;
- Carnival Corp. will appoint an ADA compliance officer at the executive level, two ADA responsibility officers – one for Carnival Cruises and one for Holland America Group, which includes Holland America Line and Princess Cruises, and ADA shipboard officers for each ship who are responsible for resolving ADA-related issues that arise at sea; and
- Carnival Corp. will pay a civil penalty of $55,000 to the United States and $350,000 in damages to individuals harmed by past discrimination.
Today’s settlement represents the first time the Department of Justice has required a cruise company to provide a minimum number of accessible cabins, to conduct a survey of its ships and to develop a remediation plan to comply with the ADA. It is also the first time that an agreement under the ADA has specifically identified three types of accessible cabins on cruise ships – fully accessible cabins, fully accessible cabins-single side approach and ambulatory accessible cabins – that will be available to individuals with disabilities.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Justice Department Announces Swiss Bank Program Resolutions with Two More BanksRead the Press Release
The Department of Justice announced today that SB Saanen Bank AG and Privatbank Bellerive AG have reached resolutions under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
SB Saanen Bank AG is headquartered in Saanen, Switzerland. It was founded in 1874 and has branches in the neighboring villages of Gstaad, Gsteig and Lauenen, as well as a retail office in Schönried.
Prior to Aug. 1, 2008, and thereafter, SB Saanen accepted accounts from U.S. taxpayers, some of whom had undeclared accounts and wished to take advantage of Swiss bank secrecy laws. SB Saanen offered a variety of traditional Swiss banking services which could and did assist U.S. clients in concealing assets and income from the Internal Revenue Service (IRS), including numbered or pseudonym accounts and holding mail at the bank. These services helped U.S. clients to eliminate the presence of documents in the United States that associated the U.S. taxpayer’s name with the undeclared assets and income they held at SB Saanen in Switzerland. In some instances, SB Saanen permitted accounts to be closed with large cash withdrawals, precious metals or transfers of funds to accounts held by non-U.S. persons. SB Saanen had reason to believe that such an accountholder was taking that action to avoid detection by U.S. tax authorities.
In December 2008, SB Saanen’s board of directors decided that it should continue to manage U.S. clients and open new accounts for U.S. clients on the condition that they had a “link to our region or one of our relationship managers.” As a result, SB Saanen opened accounts for some U.S. taxpayers who transferred accounts from other Swiss institutions that were closing such accounts. SB Saanen knew, or had reason to know, that two of those accounts were undeclared. SB Saanen continued to service U.S. taxpayers even though it had reason to believe that some of them were evading U.S. taxes.
An SB Saanen procedural manual, dated November 2009 and related to the directive, warned its employees to minimize U.S-related contacts with undeclared U.S. clients. The manual required relationship managers to obtain an IRS Form W-9 for new U.S. clients and stated, with respect to existing U.S. clients, that “clients who do not want disclosure to the IRS (American tax authority) may not be contacted at all in the U.S.A. and/or other countries! Contact is only permissible within [Switzerland].”
In 2009, SB Saanen implemented a policy with respect to foreign travel by its relationship managers. Pursuant to that policy, travel was permitted to the United States to meet with U.S. clients so long as it was approved in advance by SB Saanen’s chief executive officer and subject to restrictions. For example, under the policy, SB Saanen declared that “No files may be taken abroad,” relationship managers must “complete a training course,” relationship managers “may not actively acquire” new customers, there was to be “no signing of business documents” or “accepting of orders” or providing “investment advice,” and bank employees were prohibited from “handing over cash, securities, or objects.” In 2010 and 2011, SB Saanen’s then-head of private banking, who is no longer employed by the bank, traveled to the United States to entertain U.S. clients at the U.S. Open tennis championship in Flushing Meadows, New York.
Since Aug. 1, 2008, SB Saanen maintained three U.S.-related accounts for individual U.S. taxpayers who opened the account in the name of a non-U.S. entity, such as offshore corporations or trusts. Those three accounts comprised an aggregate value of approximately $5 million. SB Saanen was not involved in creating these entities, but it was aware that some U.S. clients created and used such non-U.S. entities to hold Swiss bank accounts to avoid their disclosure to, or otherwise be concealed from, U.S. tax authorities.
The undeclared U.S.-related accounts maintained at SB Saanen include one instance in 2011 where SB Saanen assisted a U.S. taxpayer-client in the transfer of securities from his undeclared account to that of a Jersey company with a non-U.S. person as its beneficial owner. SB Saanen allowed the transfer of funds even though the Jersey corporation had not completed all required bank documents. In January and March 2012, the U.S. accountholder closed his account and transferred an additional $4.3 million to an account at SB Saanen held in the name of his wife, who was not a U.S. citizen.
Since Aug. 1, 2008, SB Saanen maintained 110 U.S.-related accounts with a maximum aggregate value of approximately $62 million. SB Saanen will pay a penalty of $1.365 million.
Privatbank Bellerive AG was founded in 1988, and its sole office is in Zurich. Bellerive was aware that U.S. taxpayers had a legal duty to report to the IRS and pay taxes on all of their income, including income earned in accounts that these U.S. taxpayers maintained at the bank. Bellerive knew that it was likely that some of its U.S. customers who maintained accounts at the bank were not complying with their tax and reporting obligations under U.S. law. In two instances, U.S. accountholders, with the assistance of their external asset managers, created Panamanian corporations and paid a fee to third parties to act as directors. The companies’ directors were two trust companies based in Panama. Those third parties, at the direction of the U.S. accountholder, opened a bank account at Bellerive in the name of the entity. Bellerive made no effort to determine whether such an entity was valid for U.S. tax purposes. In those circumstances involving a non-U.S. entity, Bellerive was aware that a U.S. person was the true beneficial owner of the account.
Prior to Nov. 1, 2000, Bellerive required individuals subject to federal income tax under the U.S. Internal Revenue Code and who were beneficial owners of accounts to sign a “Form 1,” titled “W-9 Custodian Waiver.” The “Form 1” contained two statements from which the beneficial owner could choose one option. The first of the two options stated: “I would like to avoid disclosure of my identity to the U.S. tax authorities under the new tax regulations. To this end, I declare that I expressly agree that my account shall be frozen for all new investments in U.S. securities as from November 1, 2000.” Bellerive knew or had reason to know that the four U.S. accountholders who signed this option were engaged in tax evasion.
An internal Bellerive memorandum dated Sept. 16, 2008, from the then-head of Legal Compliance and Risk, stated that “all Swiss banks have set up the following rules for dealing with U.S. clients:
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Absolutely no contact as long as the client is on U.S. territory, even if the contact has been initiated by the client, including phone calls, e-mails, etc.;
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The client may only take up contact with the bank, if he is not in the United States;
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Assets may only be managed via a discretionary mandate, or not at all (cash on current account); and
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No mail correspondence allowed, hold mail agreements however are permitted.”
Bellerive had hold-mail agreements with its 20 U.S.-related accountholders both before and after the date of the memorandum.
Since Aug. 1, 2008, Bellerive maintained 20 U.S.-related accounts, comprising a total of $68.9 million in assets under management. Bellerive will pay a penalty of $57,000.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked Thomas J. Sawyer and Michael N. Wilcove, who served as counsel on these matters, as well as Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Finds Ellis County Man Guilty on Federal Drug, Gun ChargesRead the Press Release
WICHITA, KAN. – A federal jury Thursday found an Ellis County man guilty on drug and gun charges, U.S. Attorney Barry Grissom said.
Joseph Anthony Ransom, 30, Ellis, Kan., was convicted on count of growing marijuana plants, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm following a felony conviction.
During trial, the prosecution presented evidence that on Sept. 25, 2014, officers with the Ellis Police Department executed a search warrant at Ransom’s residence in Ellis. They found that Ransom was growing 181 marijuana plants inside his home and that he possessed a Zastava PAP M92 PV AK47 pistol and a .223 caliber rifle. Because of prior felony convictions, Ransom was prohibited from possessing a firearm.
Sentencing is set for Oct. 8. He faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on each of the marijuana charges; a penalty of not less than five years for possessing a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years for possessing a firearm following a felony conviction. Grissom commended the Ellis Police Department, the Ellis County Sheriff’s Office, the Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney David Lind for their work on the case.
Jury Convicts Synthetic Cannabinoid DistributorRead the Press Release
Ronen Nahmani, 41, of Aventura, Florida was convicted by a jury of conspiracy to possess with intent to distribute controlled substances and controlled substance analogues, namely, synthetic cannabinoids, in violation of Title 21, United States Code, Section 846. Nahmani is scheduled to be sentenced before Chief Judge Michael Moore on October 8, 2015 at 2:00 p.m.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Like all other illegal drugs, synthetic cannabinoids, also commonly known as “Spice” or “K2,” pose a nationwide health concern as they are not tested for safety. Clandestine manufacturing of these products increase the likelihood of overdose as users do not know what they are ingesting into their bodies. Synthetic cannabinoids are addictive, are extremely dangerous, and their effects can be life threatening. Since the beginning of 2015, synthetic cannabinoids accounted for thousands of reported exposures to poison at control centers nationwide. Because of their appeal to young adults and children, and their street costs, synthetic cannabinoids pose a growing risk to the public’s health and a hazard to public safety.
Nahmani’s conviction is the product of a long-term federal investigation into the importation and trafficking of synthetic cannabinoids. The investigation revealed that Nahmani purchased vast quantities of illegal chemicals from China and distributed those chemicals in Florida and across the country. The powdery chemicals shipped from China were turned into both leafy and liquid synthetic cannabinoid products that can be ingested by users.
In July 2014, Nahmani was found in possession of multi-kilogram quantities of synthetic cannabinoids, including AB-FUBINACA, PB-22, XLR-11, THJ-2201, 5-Cl-UR-144 and 5-Br-UR-144, as well as the equipment necessary to manufacture the synthetic products and packaging with labels such as “Scooby Snax,” “Diablo” “Platinum” and “Fire.” Spice and K2 are commonly sold in such packaging and often contain deceptive labeling that the product is “incense” and “not for human consumption” to thwart law enforcement detection. Some of the chemicals were not specifically listed under the Controlled Substances Act at the time of the offense conduct, but the government proved that they were controlled substance analogues intended for human consumption under the Controlled Substance Analogue Enforcement Act. The defendant is pending sentencing.
Mr. Ferrer commends the investigative efforts of DEA, working in conjunction with the Broward County Sheriff’s Office, Coconut Creek Police Department (PD), Coral Springs PD, Davie PD, Hollywood PD, North Miami Beach PD, and Miami-Dade PD, and the support from DEA Office of Diversion Control Drug & Chemical Evaluation Section and DEA Office of Chief Counsel.
The case was prosecuted by Assistant U.S. Attorneys Marton Gyires and Jonathan Kobrinski.
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.
Judge Sentences Heroin Dealer to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 120 months (10 years) imprisonment followed by five years of supervised after entering a plea of guilty to violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Eugene Allen Morgan, 45, of Pittsburgh, Pa.
According to information presented to the court, on Sept. 12, 2013, and again on Sept. 19, 2013, Morgan distributed and possessed with intent to distribute a quantity of heroin, a Schedule I controlled substance. Morgan acknowledged that he was responsible for the distribution of more than 100 grams of heroin.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Drug Enforcement Administration, the Pennsylvania State Police, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Morgan.
Indictment Returned for Marijuana Cultivation on Chowchilla MountainRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Juan Pedro Jimenez, 39, of Ensenada, Mexico, charging him with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in a national forest, United States Attorney Benjamin B. Wagner announced. Jimenez was also charged with damaging public land and natural resources as a result of the marijuana cultivation activities.
According to court documents, on July 8, 2015, Jimenez was found at the cultivation site on Chowchilla Mountain in the Sierra National Forest in Mariposa County. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, propane tanks, and other harmful material. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants.
This case is the product of an investigation by the U.S. Forest Service and Mariposa County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Jimenez was ordered detained pretrial and is scheduled for arraignment on the indictment on July 24, 2015, in federal court in Fresno. If convicted of the drug offenses, he faces a mandatory minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine for each count. If convicted of the environmental crime, Jimenez faces a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Hong Kong Entertainment (Overseas) Investments, Ltd, D/B/A Tinian Dynasty Hotel & Casino Enters into Agreement with the United States to Resolve Bank Secrecy Act LiabilityRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the Office of the United States Attorney for the Northern Mariana Islands (Office) and Defendant, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO (“TDHC”), entered into a Non Prosecution Agreement (Agreement) which requires TDHC to forfeit $3,036,969.12 — the largest forfeiture ever collected by the United States in the Commonwealth of the Northern Mariana Islands. The Agreement also obligates TDHC to fully cooperate with the United States in ongoing criminal investigations and to comply with federal reporting and other regulatory requirements. The United States — in its sole discretion — can rescind the Agreement and initiate criminal proceedings should the Government determine that TDHC has failed to comply with any provision of the Agreement.
The Agreement further requires TDHC to implement new policies and procedures to ensure stringent compliance with federal law. This will assist the IRS and the Gaming Commission on better identifying all taxable revenue.
The United States will closely monitor TDHC to ensure compliance with their reporting requirements under federal law as well as under the terms of the Agreement. “Casino reporting requirements under the Bank Secrecy Act are an important means of preventing abuse of our financial system by those seeking to conceal ill-gotten gains or evade their tax obligations,” said Teri L. Alexander, Special Agent in Charge of IRS Criminal Investigation in Seattle, Washington. “The requirement of this agreement that the Tinian Dynasty Casino fully cooperate with IRS CI is an important step in ensuring that those who may be trying to evade reporting requirements are detected.”
Federal law known as the Bank Secrecy Act (BSA) requires that financial institutions and certain businesses, including casinos with annual gaming revenue in excess of $1 million, be vigilant in detecting and reporting activity that may indicate that money laundering, or other financial crimes, are being committed, and that the casino implement and maintain an effective anti-money laundering program. The BSA requires casinos to file a “Currency Transaction Report for Casinos” (CTR-C) for transactions that involve more than $10,000 in cash. Cash includes the coins and currency of the United States and foreign countries. The law requires that casinos and businesses report transactions when customers use cash in a single transaction or a related transaction occurring within a 24-hour period.
On November 20, 2014, a federal grand jury returned a Second Superseding Indictment that charged TDHC with one count of conspiracy to fail to file CTRs in violation of 18 U.S.C. § 371 and 31 U.S.C. §§ 5313(a), 5322(b) and 5324(a)(1) and (d)(2); 155 counts of failure to file CTRs in violation of 31 U.S.C. §§ 5313(a) and 5322(b); one count of failure to file a SAR in violation of 31 U.S.C. §§ 5313(a), and 5322(b); and one count of failure to maintain an effective anti-money laundering program in violation of 31 U.S.C. §§ 5318(h) and 5322(b).
According to filings with the court, TDHC did not fully identify and disclose all individuals whose gambling activities should have legally triggered a BSA report. From October 1, 2009 through April 25, 2013, TDHC failed to document over $138 million in reportable cash transactions. It is estimated that TDHC failed to report 3,640 separate cash transactions during this same time period.
Documents filed with the court show that during May 2012 and September 2012, TDHC VIP Services Manager George Que spoke to an undercover IRS agent and assured him that he could gamble at TDHC with large amounts of currency, and that no paperwork would be filed by the casino to report their transactions to the United States. Moreover, between February 28, 2013 and March 4, 2013, two undercover IRS agents posed as casino players at the TDHC and conducted currency transactions totaling more than $450,000. The undercover agents made repeated requests to TDHC employees Tim Blyth and Que to not file a CTR on their activity. A CTR was prepared but ultimately never filed with the government.
U.S. Attorney Alicia A.G. Limtiaco stated, “Under the BSA and its implementing regulations, financial institutions that fail to adequately know its customers and screen their transactions for suspicious activities can be exploited by criminals. Financial institutions that do not comply with the BSA also gain an unfair competitive advantage within the industry. The IRS CI, the U.S. Attorney’s Office, and the Department of Justice will continue to partner together to ensure casinos, financial institutions, and businesses comply with the requirements of the BSA and other regulations. This case was investigated by and we acknowledge and commend the hard work and diligent investigative efforts of the IRS CI.”
The case was handled and prosecuted by Assistant United States Attorneys Marivic P. David, Russell H. Lorfing, and Ross K. Naughton.
Guyanese Native Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today a federal grand jury has returned a two count indictment charging Khamraj Lall, of New Jersey, with possession with intent to distribute, and to distribute, five kilograms or more of cocaine and importation of five kilograms or more of cocaine into the United States. The charges carry a minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the indictment, between December 2013 and February 10, 2015, the defendant conspired to possess and import from Guyana into the United States, five kilograms or more of cocaine. Lall is a pilot and is accused of transporting the cocaine on his flights from Guyana to the United States.Lall was arrested on July 22, 2015 in New Jersey. He made an initial appearance in federal court in the District of New Jersey and is being detained. The defendant will be returned to the Western District of New York at a later date.
Lall’s arrest is connected to the arrest of nine other defendants in February 2015. Edward Mighty, Seymour Brown, Andre Taylor, Ricardo Bailey, Robert Wilson, Kenneth Harper, Desmond Bice, and Christopher, all of Rochester, NY, were charged by criminal complaint with conspiracy to possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, use of a telephone to facilitate drug trafficking distribute marijuana. Defendants Mighty, Brown, Taylor, Wilson, Harper, Bice, and Samuels were also charged with possession of a firearm in furtherance of a drug trafficking crime and conspiracy to possess firearms in furtherance of drug trafficking. In addition, Winifredo Gonzales, of Brooklyn, NY, was charged with conspiracy to possess with intent to distribute five kilograms or more of cocaine and possession of firearms in furtherance of a drug trafficking crime.
According to the complaint, Edward Mighty is one of the leaders of a Rochester-based drug trafficking organization and would obtain kilogram quantities of cocaine from Winifredo Gonzales. The cocaine was transported to Rochester and processed, re-packaged, and distributed in various quantities of both powder and crack cocaine through multiple sellers in the Rochester area.
On February 10, 2015, officers executed a search warrant and arrested Winifredo Gonzales at a residence in Brooklyn. Officers recovered 17 kilograms of cocaine and two handguns, including an UZI 9mm pistol. Officers also seized approximately $70,000 in U.S. currency.
Lall’s indictment is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.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.
Four Pennsylvania Family Members and Businessmen Sentenced for Tax FraudRead the Press Release
Four Lancaster County, Pennsylvania, family members and businessmen were sentenced in U.S. District Court for the Eastern District of Pennsylvania in Allentown, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania.
In October 2010, following a three-week jury trial, Chester A. Bitterman Jr. and his sons, Craig L. Bitterman, C. Grant Bitterman and Curtis L. Bitterman, were convicted of conspiracy to defraud the United States. Craig Bitterman was additionally convicted of obstruction of justice. Prior to sentencing, the defendants paid $437,000 in restitution to the Internal Revenue Service (IRS).
At sentencing hearings held on July 15, 17 and 22, U.S. District Court Judge James Knoll Gardner imposed the following sentences and stated that the offense was serious and the conspiracy was a long-term, complex and concerted effort by a family to avoid taxation:
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Chester A. Bitterman Jr., 81, was sentenced to serve three years’ probation to include six months of home confinement, due in part to his age and ailing spouse confined to hospice care, and was ordered to pay a $5,000 fine;
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Craig L. Bitterman, 55, was sentenced to serve three years in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $10,000 fine;
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C. Grant Bitterman, 53, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine; and
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Curtis L. Bitterman, 61, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine.
According to the evidence at trial, from 1996 to 2005, the Bittermans owned and operated the Bitterman Scale Company, which now operates as Bitterman Scales LLC. To conceal their income and assets from the IRS, the Bittermans used aliases, offshore bank accounts and a complex series of sham paper transactions to disguise the income. The defendants transferred their personal and business assets to sham trusts purchased from the Commonwealth Trust Company, a tax protester organization that marketed trust products to clients for the purpose of avoiding federal income tax payment. The trusts were used to make it appear as though the defendants had little or no assets or income. In reality, the defendants retained complete access and control over their funds. In January 2008, the principal owners of the Commonwealth Trust Company were convicted at trial in the Eastern District of Pennsylvania of tax crimes for causing losses of over $17 million and were sentenced to prison.
The defendants paid themselves in cash and arranged bogus payments between the numerous trusts that they had created. These bogus payments were purported to be leases, management fees and fiduciary fees. The defendants submitted trust tax returns for their business and took fraudulent deductions for these payments to create the appearance of minimal or no taxable business income. After the IRS levied the business bank account and receivables, the defendants instructed their customers to pay another trust to thwart IRS collection efforts. The defendants also placed bogus liens and mortgages on their assets to make it appear to the IRS that the defendants had no assets that could be levied or seized as part of the tax collection process. Some of the defendants used aliases and bank accounts in the names of trusts to make school tuition payments for their children appear as if they were scholarships from third parties. In addition, to further conceal their assets from the IRS, at least one defendant used offshore bank accounts in the British Virgin Islands and three of the defendants arranged for sham transfers of real estate to their children.
During the investigation, after Craig Bitterman was served with federal grand jury subpoenas requiring the production of trust records, he failed to produce the records to the grand jury and instead shipped those trust records to Texas and New Mexico in an attempt to conceal them.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Memeger commended special agents of IRS–Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Vineet Gauri of the Eastern District of Pennsylvania and Trial Attorney Michael C. Vasiliadis of the Tax Division, who prosecuted the case.
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Former Owner of Title Agency Charged with Defrauding LendersRead the Press Release
PHILADELPHIA - Richard C. Roney, Jr., 46, of Laurel Springs, New Jersey, was charged today by information with four counts of wire fraud related to an alleged scheme that cost lenders more than $750,000, announced United States Attorney Zane David Memeger.
Roney was the owner of a title company called Park Avenue Abstract, Inc., based in Somerdale, New Jersey, which served as the title company on home mortgage transactions. According to the information, between June 2009 and April 2013, Roney unlawfully withdrew money from his company’s escrow accounts for his personal use and to pay for Park Avenue Abstract’s operating expenses, instead of using that money to close the mortgage transactions.
It is further alleged that while Roney returned much of the money, his misuse of Park Avenue Abstract escrow account funds prevented Park Avenue Abstract from timely satisfying outstanding first mortgages, which ultimately caused lenders to sustain actual losses of over $750,000.
Roney faces a likely advisory sentencing guideline sentence of 27-33 months, as well as a $4,000,000 fine, a $400 special assessment, and full restitution of as much as $751,750.
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Mount Juliet Police Sergeant Pleads Guilty to Federal Program Fraud and Wire FraudRead the Press Release
Jason Ezell, 40, of Lebanon, Tenn., pleaded guilty today before Chief U.S. District Judge Kevin H. Sharp, to federal program fraud and wire fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Ezell was charged on July 10, 2015, with fraudulently preparing time cards and submitting fraudulent overtime logs, falsely claiming that he worked more than 500 hours of overtime in support of and assisting in federal Organized Crime Drug Enforcement Task Force (OCDETF) investigations during the period of January 2013 through April 2015. During that time, Ezell was a sergeant with the Mount Juliet Police Department and supervised the Crime Suppression Unit.
According to the terms of the plea agreement, the Government will seek a prison term of between 8-14 months and restitution in the amount of $13,100 when he returns for sentencing on November 9, 2015.
This case was investigated by the Tennessee Bureau of Investigation; the FBI; the District Attorney’s Office for the 19th Judicial District; and the DOJ-Office of Inspector General. Assistant U.S. Attorney Thomas J. Jaworski is prosecuting the case.
Former Emory University Employee Sentenced for Embezzling Funds from EmoryRead the Press Release
ATLANTA - Brenda Michael, a former Emory University administrative assistant, has been sentenced to one year, six months in federal prison for stealing more than $300,000 in student tuition payments from the university.
“Michael used her position at Emory to steal hundreds of thousands of dollars in just over a year and a half,” said Acting U.S. Attorney John Horn. “Students trusted that this university employee was there to facilitate their enrollment. Had the defendant not been exposed by Emory, her deception could have caused even greater damage.”
“Those Emory University students had every right to trust in Ms. Michael, who was assigned by the University to assist those students. Unfortunately, Ms. Michael chose to betray that trust and use her position for personal gain. The FBI is pleased with its role in ensuring that Ms. Michael be held fully accountable for her criminal conduct, which today’s sentencing certainly does,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Emory University is satisfied with the outcome of this case and with the excellent work of the United States Attorney’s Office in prosecuting Ms. Michael for her crime. We take the security of our students’ financial information and thefts by employees very seriously and are pleased that we could work cooperatively with the United States Attorney’s Office in bringing the investigation to a successful conclusion,” said Nancy Seideman, Associate Vice President, Media Relations, Emory University.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Brenda Michael was employed as an administrative assistant with the Wound Ostomy Center, part of the School of Nursing at Emory University. As part of her job, the defendant assisted Emory students with enrolling in various programs and classes.
Beginning in August 2012, while assisting students with their enrollment in Emory programs, Michael began directing the students to pay their tuition and fees via PayPal to an account that the students believed was an authorized Emory University account. In fact, it was Michael’s personal PayPal account. The defendant misdirected student payments for more than a year, diverting a total of more than $317,000 in payments due to Emory and spending them for her personal benefit.
Brenda Michael, 53, of Atlanta, Georgia, has been sentenced by U.S. District Judge Willis B. Hunt to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $317,923.33 to Emory University. Michael was convicted on these charges on April 30, 2015, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, with the assistance of Emory University.
Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former East Longmeadow Woman Pleads Guilty to Fraud on Retirement Community and Tax ChargesRead the Press Release
BOSTON – A former East Longmeadow woman pleaded guilty yesterday in District Court in Springfield to wire fraud, money laundering and tax charges.
Alice Lacroix, 53, pleaded guilty to eight counts of wire fraud, eight counts of money laundering and two counts of filing false tax returns. Lacroix, who was charged in November 2014, is scheduled to be sentenced on October 27, 2015.
In a fraud scheme that lasted from 2011 through February 2013, Lacroix embezzled funds from her employer, Bluebird Estates which is a retirement living community in East Longmeadow. Lacroix, as manager of Bluebird Estates, took rent checks paid by tenants as well as other checks and property belonging to her employer. Additionally, Lacroix established a bank account without authorization in the name of Bluebird Estates into which she deposited the embezzled funds. During the course of the scheme, Lacroix deposited $325,000 into this fake Bluebird Estates bank account and engaged in financial transactions designed to disguise the proceeds of the fraudulent scheme. Lacroix would deceive her employer through emails that provided false information about the rent payments she took. Lacroix also submitted false income tax returns for the years 2011 and 2012.
The maximum sentence under the statute for each count of wire fraud is 20 years in prison to be followed by three years of supervised release and a $250,000 fine. The maximum sentence for each count of money laundering is 20 years in prison to be followed by three years of supervised release and a $500,000 fine. The maximum sentence under the statute for each count of filing false tax returns is three years in prison to be followed by one year of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and East Longmeadow Police Chief Douglas Mellis made the announcement today. The case is being prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Unit.
Former Credit Union Employee Sentenced to Prison for Federal Bank Fraud ConvictionRead the Press Release
ALBUQUERQUE – Louisa Gabaldon, 44, of Belen, N.M., was sentenced today in federal court in Albuquerque, N.M., to six months in prison followed by six months of home confinement with radio frequency monitoring for her bank fraud conviction. Thereafter, Gabaldon will be on supervised release for five years. Gabaldon also was ordered to pay $118,376.56 in restitution to the victims of her criminal conduct.
Gabaldon was indicted on Aug. 7, 2013, and charged with 12 counts of bank fraud. The indictment alleged that from Jan. 2004 through July 2010, Gabaldon engaged in an illegal scheme to defraud her employer, the Belen Railroad Employees Credit Union (Credit Union) by making fraudulent withdrawal of funds from accounts belonging to the Credit Union’s customers.
On Oct. 21, 2014, Gabaldon pled guilty to Count 5 of the indictment charging her with fraudulently withdrawing $31,000.00 from a customer’s account on July 31, 2006. The plea agreement, however, required that Gabaldon to pay $118,376.56 in restitution to the Credit Union to cover the losses associated with all 12 counts in the indictment as well as related losses suffered by the Credit Union.
In entering her guilty plea, Gabaldon admitted that, while employed by the Credit Union, she had loan approval which permitted her – when authorized by customers – to make withdrawals from customers’ accounts, transfer funds among their accounts, increase the amount of their loan accounts and open new loans in their names. Gabaldon admitted that, without the knowledge or permission of Credit Union customers, she added amounts to customers’ existing loan accounts and opened new loans in their names and used the funds to pay for her own debts and to make a partial payment for the purchase of a home. In order to conceal her fraudulent activity, Gabaldon moved funds among customers’ accounts to make it appear as if loans had been repaid or funds were replaced.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Former Chief Financial Officer Indicted for Stealing over $1.6 Million from Three EmployersRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Christopher C. Camut, age 52, of Baltimore, Maryland, on charges arising from a scheme to fraudulently obtain over $1.6 million from three companies at which he was employed as the chief financial officer. The indictment was returned on June 15, 2015, and unsealed today at his initial appearance in federal court in Greenbelt. Camut was released under the supervision of U.S. Pretrial Services.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Company A, which is headquartered in Silver Spring, Maryland, is a non-profit organization dedicated to developing microbicides that can provide women in developing countries with protection against HIV infection. Company B manufactures products for the medical industry. Company C develops medical countermeasures against biological and chemical threats, and has an office in Annapolis, Maryland.
According to the 16 count indictment, Camut was the chief financial officer for: Company A between August 2012 and August 2014; Company B between May 2010 and September 2011; and Company C between January 2007 and April 2010. From January 2008 to May 2014, Camut created engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies. He caused the companies to issue checks payable to financial institutions, which Camut then deposited into his personal bank accounts.
The indictment further alleges that Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession. Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies. Camut and Jones shared the proceeds received from the companies.
The indictment seeks forfeiture of at least $1,618,951, the amount of money Camut allegedly stole from the companies.
Camut faces a maximum sentence of 20 years in prison for conspiring to commit wire fraud and on each of 13 counts of wire fraud; and a mandatory minimum of two years in prison on each of two counts for aggravated identity theft consecutive to any other sentence imposed.
Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and awaits sentencing.
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 FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who are prosecuting the case.
Final Defendant in Federal Courthouse Bombing SentencedRead the Press Release
San Diego, CA - Donny Love, Sr., 44, was sentenced today to serve 55 years in federal prison and pay $325,000 in restitution to the General Services Administration, based on his conviction for the use of a weapon of mass destruction and other charges, arising from the bombing of the Edward J. Schwartz Federal Courthouse in San Diego on May 4, 2008, United States Attorney Laura E. Duffy announced. Love was found guilty by a federal jury on June 6, 2011, following a two-week trial before the Honorable M. Margaret McKeown.
U.S. Attorney Duffy praised the perseverance and coordinated effort of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and other federal, state, and local law enforcement agencies that participated in the Joint Terrorism Task Force in the investigation and prosecution of this case.
U.S. Attorney Duffy also expressed satisfaction as to the sentence imposed by the court. “Over twenty-one months ago, a federal jury held defendant Donny Love, Sr., accountable for masterminding the May 4, 2008 bombing of the Edward J. Schwartz Federal Courthouse. The sentence imposed by the Court today recognizes the extreme act of violence committed by Love. It is only by blind luck that no one, including Love’s coconspirator, Rachelle Carlock, was killed or injured by Love’s actions. The device detonated at the doors of the federal courthouse in the early morning hours of May 4, 2008, contained over two pounds of explosive powder jammed into three galvanized steel pipes with end caps, along with over 100 roofing nails. The subsequent explosion not only blew out the doors to the federal courthouse, causing substantial property damage, but also sent shrapnel and nails flying in all directions – over a block away and at least six stories into the air. Defendant’s actions showed a callous disregard for the lives of those individuals who were still working in the federal courthouse in those early morning hours, as well as the lives of pedestrians passing by. Today’s sentence ensures that the defendant will never again be able to endanger the lives of the citizens of our community.”
According to evidence presented at trial, Love was the person who instructed Rachelle Lynette Carlock and Ella Louise Sanders to purchase explosive powder and to steal bombmaking materials. Love and others constructed pipe bombs at Love's residence in Menifee, California, and then Love directed others to test pipe bombs by detonating them at various locations leading up to the courthouse bombing. According to testimony presented at trial, on the night of the courthouse bombing, Carlock and Eric Reginald Robinson drove from Love's residence to San Diego with a backpack containing three pipe bombs, and Carlock then detonated the bombs at the front doors of the federal courthouse.
The evidence further showed that Love was the mastermind and driving force behind the federal courthouse bombing. At the time of the bombing, he was in dire financial straits and faced significant jail time arising from two pending California state criminal cases. The evidence showed that he directed the May 4, 2008, bombing for the purpose of obtaining reward money and consideration on his state charges by providing information about the bombing to law enforcement. The success of this fraudulent scheme required that he provide false and misleading information about the bombing and induce others to do the same in order to conceal his own involvement.
Judge McKeown previously sentenced co-defendants Carlock and Sanders to serve ten years, and Robinson to serve eleven years, in federal prison for their roles in the bombing.
This investigation was coordinated by special agents from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Joint Terrorism Task Force and prosecuted in the Southern District of California by Assistant U.S. Attorneys Shane P. Harrigan and Fred A. Sheppard.
Federal Correctional Officer and Wife Plead Guilty to Accepting BribesRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that Joshua Austin and Latoya Austin, a husband and wife, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon for conduct related to the accepting of bribes in exchange for introducing prohibited objects into a federal prison.
Joshua Austin, 24, of North Tazewell, Virginia, pled guilty today to a one count Information charging him with accepting a bribe as a public official. Latoya Austin, 22, also of North Tazewell, Virginia, pled guilty today to a one count Information charging her with aiding and abetting the introduction of a prohibited object into a federal prison.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, Austin was employed as a correctional officer for the United States Bureau of Prisons at Federal Correctional Institution McDowell located in Welch, West Virginia. Between January 1, 2015 and July 2, 2015, Austin received multiple monetary payments, totaling at least $10,000, from family members and associates of an inmate at the prison in return for Austin smuggling tobacco products into the prison. These items were then provided to the inmate in violation of Bureau of Prisons regulations. Many of the monetary payments were mailed to a post office box located in Bluefield, Virginia, which had been opened by Latoya Austin. Additionally, Joshua Austin met with a family member of an inmate in Russell County, Virginia in order to receive one of the bribe payments.
Joshua Austin faces a potential maximum sentence of fifteen years imprisonment and a fine of $250,000. He has also agreed to forfeit $10,700. Latoya Austin faces a potential maximum sentence of six months imprisonment and a $5,000 fine.
Both sentencing hearings are scheduled for October 14, 2015, at 10:30 a.m.
The investigation of this case was conducted by the Federal Bureau of Investigation, United States Bureau of Prisons Special Investigative Service at Federal Correctional Institution McDowell, United States Postal Inspection Service, and the United States Department of Justice Office of the Inspector General. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.