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Thursday 4 June 2015
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the June 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Arthur Lafrance Davis. Possession of Cocaine Base (“Crack”) with Intent to Distribute. Davis, 50, of Tulsa, is charged with possession with intent to distribute cocaine base (“crack”). If convicted, the statutory maximum penalty is 20 years in prison and a fine of $1,000,000. The Bureau of Indian Affairs is the investigating agency.
Joel De Luna Munoz. Alien in the United States After Deportation. De Luna Munoz, 30, was arrested and is charged with having returned to the United States unlawfully after being deported in November 2012 from Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Bobby Lee Harjo. Theft of Mail. Harjo, 52, of Glenpool, a United States Postal Service employee, is charged with stealing mail on October 3, 2014 and December 11, 2014. If convicted, the statutory maximum penalty for each count is five years in prison and a fine of $250,000. The United States Postal Service-Office of Inspector General is the investigating agency.
Kyshawn Deyawn Hicks. Theft of Mail. Hicks, 25, of Tulsa, a United States Postal Service employee, is charged with stealing mail from January to March 2015. If convicted, the statutory maximum penalty is five years in prison and a fine of $250,000. The United States Postal Service-Office of Inspector General is the investigating agency.
Levi J. Lively. Theft of Mail. Lively, 27, of Broken Arrow, a United States Postal Service employee, is charged with stealing mail on February 20, 2015. If convicted, the statutory maximum penalty is five years in prison and a fine of $250,000. The United States Postal Service-Office of Inspector General is the investigating agency.
Charles Brandon Lunsford. Felon in Possession of a Firearm. Lunsford, 38, of Claremore, is charged with possessing a .223/556 caliber rifle after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
James Cody Porter. Possession of Methamphetamine with Intent to Distribute. Porter, 26, of Tulsa, is charged with possession with intent to distribute methamphetamine. If convicted, the statutory maximum penalty is 20 years in prison and a fine of $1,000,000. The Bureau of Indian Affairs is the investigating agency.
Dubuque Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Joshua Leute, age 28, of Dubuque, Iowa, has been charged with one count of receipt of child pornography and two counts of possession of child pornography. The charges are contained in an Indictment unsealed on May 27, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2011 and 2012, Leute received and possessed child pornography.
If convicted, Leute faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of forty years’ imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Leute appeared for a detention hearing on June 3, 2015, in federal court in Cedar Rapids and was released on bond. Leute’s next appearance for trial is set for July 27, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clinton County Sheriff’s Office, the Davenport Police Department, the Dubuque Police Department, and the Dubuque County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-1012.
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Dominican Man Sentenced for Illegally Reentering the United States After Previous Deportation, False Representation of A Social Security Number, and Aggravated Identity TheftRead the Press Release
CONCORD, NEW HAMPSHIRE – Raul Fernando Lora, of the Dominican Republic, was sentenced to fifty-four months in prison and three years of supervised for illegally reentered the United States after having been previously deported, false representation of a social security number, and aggravated identity theft, announced Acting United States Attorney Donald Feith. Lora pled guilty to the charges on January 29, 2015.
Documents filed with the United States District Court established that Lora was deported from the United States on July 2, 2013. On May 9, 2014, Lora was stopped by a New Hampshire State Trooper for motor vehicle violations. Lora produced a Massachusetts driver’s license in the name of Junior Currasco. A records check revealed that the driver’s license was suspended and Lora was placed under arrest. A fingerprint comparison revealed that the fingerprints matched the 2012 deportation records for Lora. A criminal records check revealed that Lora had been convicted in previously convicted in federal court in Massachusetts for stealing the Currasco identity.
The case was investigated by the New Hampshire State Police and agents of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Department of Justice Announces Investigation of the Jefferson County Jail in Birmingham, AlabamaRead the Press Release
WASHINGTON – The Justice Department announced today that it has opened an investigation of the Jefferson County Jail in Birmingham, Alabama, focusing on the treatment of juveniles. The investigation will assess whether juveniles are detained at the jail in conditions that pose a serious risk of harm to their physical and psychological well-being.
The department has received allegations that juveniles at the jail are regularly housed with adult detainees, have been victims of sexual abuse and have been approached by adult detainees for sexual activity and favors. Additionally, juveniles, including those with diagnosed mental illnesses and intellectual disabilities, allegedly are routinely placed in solitary confinement or lockdown—sometimes for months at a time—with little or no access to the law library, telephone, commissary, educational opportunities and other services.
“Isolation—particularly the prolonged and restrictive lockdown alleged in Jefferson County—can lead to paranoia, anxiety, depression and suicide, and exacerbate pre-existing psychological harms,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Indeed, the 2012 Report of the Attorney General’s National Task Force on Children Exposed to Violence concluded that ‘[n]owhere is the damaging impact of incarceration on vulnerable children more obvious than when it involves solitary confinement.’”
“Our commitment to finding solutions to problems in Alabama’s troubled jails and prisons is ongoing,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “Where possible, the best solution is always a collaborative approach that encourages the state and counties to correct conditions that are constitutionally inadequate. However, we have not hesitated to file suit where necessary.”
The department will conduct the investigation using its authority under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Under CRIPA, the Attorney General has the authority to investigate violations of the constitutional rights of prisoners in “institutions,” including county jails, where such violations are “pursuant to a pattern or practice of resistance to the full enjoyment of such rights.” The Violent Crime Control and Law Enforcement Act authorizes the Attorney General to bring suit against any governmental entity that has engaged in “a pattern or practice” of depriving juveniles of their rights secured by the Constitution or federal statute. The department has conducted similar investigations in other jurisdictions, including of the Leflore County Juvenile Detention Center in Mississippi, the jails on Rikers Island in New York, the Terrebonne Parish Juvenile Detention Center in Louisiana and the Scioto and Marion Juvenile Correctional Facilities in Ohio.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at (855) 258-1432.
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Defendants Charged with Conspiracy to Engage in Wire Fraud, Identity Theft, and Misuse of Automated Export SystemRead the Press Release
First Assistant United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that defendant Mao Peng (age 25) of Kenosha, Wisconsin has been charged in a three-count criminal information with conspiring to engage in wire fraud, identity theft, and misuse of the United States’ Automated Export System to further criminal activity. Mr. Peng has also entered into a written plea agreement by which he has agreed to plead guilty to those charges.
According to the information and a plea agreement, Peng conspired to defraud the State of Wisconsin of state and local sales tax revenue in connection with the purchase of luxury vehicles, which Peng and his company Longen Trading intended to export to China, by fraudulently using Native American straw buyers to make those purchases in a tax-exempt manner. Specifically, Peng and Longen Trading used Native American straw buyers in connection with the purchase of approximately 154 luxury vehicle purchase transactions, having a total purchase price of approximately $9,132,106.94, and thereby evaded Longen Trading’s payment of a total of approximately $515,964.04 in state and local sales taxes that Longen Trading was legally obligated to pay in connection with the purchase of those vehicles.
According to the information and a plea agreement, Peng and Longen Trading also conspired to cause luxury vehicles to be purchased for export, via identity theft, that is, by using means of identification that belonged to a past or prospective straw buyer, without that person’s permission to purchase the vehicle using his or her identity. Specifically, between on or about June 2012 and June 2014, Peng and Longen Trading conspired with others to purchase approximately 71 luxury vehicles, having a total purchase price of approximately $4,212,945.06, using a means of identification belonging to another person, without that person’s knowledge or permission.
According to the information and plea agreement, between approximately June 2012 and June 2014, Peng and Longen Trading also conspired with others to use the Department of Commerce’s Automated Export System (“AES”) to further these illegal activities, in violation of 13 U.S.C. § 305(a)(2).
Under the plea agreement, Mr. Peng has agreed to plead to all three counts of the information, to join the government in recommending that the sentencing court impose a sentence of 27 months’ imprisonment, to pay restitution of $515,964.04 to the Wisconsin Department of Revenue, and to stipulate to the civil forfeiture of approximately $1.2 million in funds seized from various bank accounts he controlled as well as 29 new luxury vehicles, including new Porsche, Mercedes Benz, and BMW vehicles.
In announcing the filing of the information and plea agreement, First Assistant United States Attorney Gregory J. Haanstad stated: “As this case reflects, the United States Attorney’s Office and the United States Department of Justice are committed to aggressively combatting both identity theft and tax evasion. We are also committed to taking the profit out of crime and to obtaining just financial outcomes in our criminal cases through the judicious use of both asset forfeiture and restitution remedies.”
Haanstad commended the investigative work that the United States Secret Service and United States Department of Commerce, Bureau of Industry & Security, Office of Export Enforcement conducted in this matter, along with the investigative assistance provided by the following state and local law enforcement agencies: the Wisconsin Department of Criminal Investigations, the Wisconsin Department of Transportation Investigations, the Milwaukee Police Department, the Oneida Police Department, the Menomonee Police Department, the Stockbridge-Munsee Police Department, the Kenosha Police Department, the Wauwatosa Police Department, the Waukesha Police Department, the Glendale Police Department, the Green Bay Police Department, the Milwaukee Secret Service Financial Crimes Task Force, and the Native American Drug and Gun Initiative Task Force.
“The quality and overall success of this investigation is a direct reflection of the contributing agencies’ efforts, resources, and teamwork,” stated a spokesperson for the United States Secret Service’s Milwaukee Office.
"OEE will continue to work diligently with our law enforcement partners to identify and disrupt criminal export activity," stated David R. Nardella, Acting Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry & Security, Office of Export Enforcement, Chicago Field Office.
This case is being prosecuted by Assistant United States Attorney Scott Campbell.
An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.
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Dallas Man Who Robbed Five Banks in One Month is Sentenced to 71 months in Federal PrisonRead the Press Release
DALLAS — A Dallas man who admitted robbing five banks in the DFW metroplex in September 2014 was sentenced this afternoon, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Michael Bennett Smith, 44, was sentenced to 71 months in federal prison by U.S. District Judge Jane J. Boyle. He has been in custody since his arrest shortly after committing his last bank robbery.
Smith pleaded guilty to five counts of bank robbery, admitting committing the following bank robberies:
September 2, 2014 - Commercial Bank of Texas, 721 South Central Expressway, Allen, Texas
September 6, 2014 - BBVA Compass Bank, 484 East Round Grove Road, Lewisville, Texas
September 8, 2014 - Wells Fargo Bank, 4771 Saturn Road, Garland, Texas
September 11, 2014 - Wells Fargo Bank, 4703 State Highway 121, The Colony, Texas
September 18, 2014 - Wells Fargo Bank, 1727 South Loop 288, Denton, Texas
The FBI Dallas Violent Crimes Task Force investigated, with assistance from Allen, The Colony, Denton, Garland and Lewisville Police Departments. Assistant U.S. Attorney Keith Robinson prosecuted.
Contractor Charged in $6.9 Million Con Ed Bribery and Kickback SchemeRead the Press Release
Rodolfo Quiambao, the President and Chief Executive Officer of the engineering and design firm Rudell & Associates, Inc. (Rudell), was arrested this morning on charges of providing over $6.9 million in bribes and kickbacks to supervisors of Consolidated Edison of New York (Con Ed) in exchange for receiving lucrative contracts from the public utility services provider. The defendant’s initial appearance is scheduled later today before United States Magistrate Judge Marilyn D. Go, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges and arrest were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Raymond R. Parmer, Jr., Special Agent-in-Charge of U.S. Immigration and Custom Enforcement (ICE), Homeland Security Investigations (HSI), in New York; Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York; and Michael Nestor, Inspector General, The Port Authority of New York and New Jersey, Office of the Inspector General.
Quiambao’s arrest is the latest part of the government’s continuing investigation of bribery and kickback schemes involving employees of Con Ed. In January 2009, ten Con Ed supervisors and one employee were charged with collectively receiving more than $1 million in kickbacks from contractors; all eleven later pled guilty to federal offenses.
As alleged in the criminal complaint unsealed today, for over a decade beginning in as early as 2000, Quiambao, whose company specializes in electrical design, surreptitiously and regularly provided three Con Ed supervisors with over $6.9 million in cash and checks in exchange for securing contracting work for his company.
From at least 2007 to 2011, Quiambao – acting through his company, Rudell – allegedly provided over $6.5 million in checks to a company owned by a Con Ed Section Manager who oversaw various projects within Con Ed’s Electrical/Controls Systems Design section. In 2007 and 2008, Rudell issued approximately 120 checks to the Section Manager’s company, totaling approximately $2.7 million. Beginning in January 2009 – after the announcement of the arrests of Con Ed supervisors for taking kickbacks – Quiambao is alleged to have attempted to conceal his illegal payments, instead issuing checks from Rudell to Rudicon Power Corp. (Rudicon), another company that Quiambao owned and which did no work for Con Ed, and then issuing checks from Rudicon to the Section Manager’s company in the same amount as the checks from Rudell to Rudicon. Throughout 2009 and 2010, Rudicon paid the Section Manager’s company approximately $3.7 million in some 146 checks. The memo lines of the Rudell to Rudicon checks, and the corresponding Rudicon to the Section Manager’s company checks, often listed the same Con Ed project.
Throughout the same years, the Section Manager steered Con Ed work to Rudell, supported the awarding of lucrative Con Ed contracts to Rudell, and reviewed and authorized payments to Rudell under those contracts. During this time period, Rudell received approximately $30 million in payments from Con Ed that were approved by the Section Manager.
The complaint also alleges that, from approximately 2003 to 2010, Quiambao provided approximately $200,000 in cash kickbacks to a Con Ed Section Manager in the Construction Public Improvement (CPI) unit. The CPI Section Manager oversaw engineering construction projects and had influence over the awarding of contracts to outside contractors like Rudell. Approximately once per month or every two months, Quiambao provided the CPI Section Manager with an envelope of cash. In exchange, the CPI Section Manager reviewed, edited, and provided advice regarding Rudell’s bid proposals before Rudell submitted them to Con Ed. The CPI Section Manager also steered Con Ed work to Rudell and supported the awarding of “sole source” contracts to Rudell.
The complaint further alleges that, from approximately 2000 to 2010, Quiambao provided at least $240,000 in kickbacks to a Con Ed Engineering Supervisor in the Mapping Department. During that time period, Rudell was awarded numerous Mapping Department contracts in the amount of approximately $6.9 million. Approximately once per month, Quiambao gave the Engineering Supervisor checks from Rudell – and, after the January 2009 arrests, from Rudicon, which had received the same amounts from Rudell – made out to a company owned by the Engineering Supervisor and which Quiambao had suggested and assisted in setting up to facilitate the illegal payments. Consistent with the defendant’s modus operandi, the memo lines of the Rudell to Rudicon checks, and the corresponding Rudicon to the Engineering Supervisor’s company checks, often listed the same Con Ed projects, projects which were supervised by the Engineering Supervisor. The Engineering Supervisor steered Con Ed projects to Rudell, supported the awarding of sole source contracts to Rudell, and recommended Rudell to other Con Ed employees.
“For more than a decade, Rodolfo Quiambao allegedly played dirty to make sure he received the contracts, and millions of dollars, that he wanted. And, ordinary New Yorkers, who rely on Con Ed for electricity, gas, and steam, bore the costs,” stated Acting United States Attorney Currie.
“Today’s arrest is one more domino to fall in a long line of Con Ed employees and contractors involved in systematic corruption that has left the consumer to foot the bill through higher rates,” said HSI New York Special Agent-in-Charge Parmer. “HSI remains committed to working with our law enforcement partners to investigate and expose money laundering activities regardless of the scheme.”
“Like any other purchaser of goods or services, Con Ed customers expect to pay fair rates for their utilities. Customers ultimately pay for corrupt bidding practices in the form of higher prices, or in the case of utilities, higher rates. Just as IRS Criminal Investigation is committed to ensuring that everyone pays their fair share of taxes, we will work with our law enforcement partners on bribery and kickback scheme investigations, sharing our financial investigative expertise to ensure that businesses play fairly and that customers get what they pay for,” stated Special Agent-in-Charge Kitchen of IRS-CI.
“The conduct charged against Quiambao, the subject in today’s announcement, is egregious in its nature, duration, and its scope. Further, the conduct was particularly brazen in that he allegedly took steps to hide his scheme, and yet continue the scheme, even while others were arrested in this investigation. The Port Authority Inspector General will continue to work cooperatively with its law enforcement partners to root out systematic corruption in the construction industry,” stated Inspector General Nestor of The Port Authority.
If convicted, Quiambao faces a maximum sentence of ten years’ imprisonment and a $250,000 fine.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Lan Nguyen and Tali Farhadian are in charge of the prosecution.
The Defendant:
RODOLFO QUIAMBAO
Age: 71
Queens, New York
E.D.N.Y. Docket No. 15 M 475
Cleveland, OH man convicted of selling heroin near WV playgroundRead the Press Release
WHEELING, WEST VIRGINIA – Shannon Jerome Hinton, 25, of Cleveland, Ohio, was convicted of selling heroin near a Hancock County, West Virginia playground in federal court, United States Attorney William J. Ihlenfeld, II, announced.An investigation by the Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Hinton sold heroin in August 2014 near Clark Field Playground in Hancock County, West Virginia.
Hinton pled guilty to one count of “Aiding and Abetting in the Distribution of Heroin within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Columbiana County, Ohio Drug Task Force and Drug Enforcement Administration Youngstown, Ohio Field Office assisted in the investigation.
Senior U.S. District Judge Frederick P. Stamp presided.Clay County Man Sentenced for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Gregory Michael McCarty (46, Green Cove Springs) to five years in federal prison for receiving child pornography over the Internet. He was also ordered to serve a 10-year term of supervision following his release from prison, and to register as a sex offender. At the conclusion of the sentencing hearing, McCarty was remanded to the custody of the U.S. Marshals Service to await designation to a federal facility.
According to court documents, an agent with the Florida Department of Law Enforcement in Jacksonville began an undercover investigation to identify individuals in that area that had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in the northeast Florida area was hosting images of child pornography using a peer-to-peer file sharing program. The agent was able to download several files from this computer. Further investigation traced the computer to McCarty’s residence in Green Cove Springs.
Law enforcement officers subsequently executed a federal search warrant at McCarty's residence and seized several computers and other electronic media. During an interview with agents, McCarty acknowledged that he had been receiving child pornography for about two years, stating that he had some on his external drives “for a long time.” He stated, “I fell into it and never got rid of it and never quit.” McCarty further stated, “I know it was wrong, I just didn’t get rid of it and didn’t, didn’t stop doing whatever I was doing.” The forensic analyses of the seized equipment revealed that McCarty’s computer media contained at least 18 images and at least 20 videos depicting the sexual abuse of children.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Christopher Anthony Burkett Arrested on Federal Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn. - Christopher Anthony Burkett, 41, was arrested in Knoxville on June 3, 2015, by members of the Knoxville Police Department’s Internet Crimes Against Children Task Force (ICAC).
The arrest stems from a five-count indictment charging Burkett in two counts with knowingly using, enticing, and coercing minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, having reason to know that it would be transported in interstate and foreign commerce. Burkett is also charged in three separate counts with knowingly receiving, distributing, and possessing child pornography. The indictment alleges that the illegal conduct took place in 2014 and 2015.
Following the arrest, an initial appearance was held in U.S. District Court in Knoxville before the Honorable C. Clifford Shirley, Jr., U.S. Magistrate Judge, at which the indictment was unsealed and Burkett was apprised of the charges. He pleaded not guilty to the charges and was held in federal custody pending a detention hearing set for 9:00 a.m., Tuesday, June 9, 2015.
The details of the charges are outlined in the indictment which is filed as a public record in the U.S. District Court for the Eastern District of Tennessee at Knoxville.
This investigation was conducted by the Knoxville Police Department ICAC. Assistant U.S. Attorney Matthew Morris represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Chiropractor Pleads Guilty to Obstructing Investigation of Health Care Fraud Involving D.C. Medicaid ProgramRead the Press Release
WASHINGTON – Rehman Mirza, 42, a chiropractor who practiced in Suitland, Md., has pled guilty to a federal charge of obstructing a criminal health care fraud investigation for trying to cover up his role in a scheme involving fraudulent claims submitted to the District of Columbia Medicaid program for personal care aide services.
The guilty plea was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
Mirza, of Woodbridge, Va., pled guilty on May 29, 2015, in the U.S. District Court for the District of Columbia. The Honorable Ketanji Brown Jackson scheduled a status hearing for Sept. 24, 2015. The charge carries a statutory maximum of five years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that Mirza faces a likely range of 10 to 18 months in prison and a potential fine of $3,000 to $30,000. He also has agreed to pay $48,450 in restitution to the D.C. Medicaid program.
The plea agreement calls for Mirza to cooperate in an investigation involving fraud, kickbacks, and false billings in the field of home care services for D.C. Medicaid patients.
The underlying fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. Personal care aides, also known as PCAs, are supposed to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for home care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” dictate the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, which also must be signed by the physician.
In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid would pay between $16,952 and $23,732 for personal care services provided to one beneficiary.
Mirza is licensed as a chiropractor in Maryland and Virginia, but is not licensed as a chiropractor in the District of Columbia, and is not licensed as a physician. He worked at Capital Health LLC, d/b/a Capitol Health Chiropractic in Suitland, Md. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.
“This chiropractor pocketed tens of thousands of dollars by generating bogus documents used to defraud D.C. Medicaid,” said Acting U.S. Attorney Cohen. “When the FBI began to zero in on him, he obstructed justice by coaching his office assistant about what to say to the authorities. This guilty plea is one more step in our efforts to clean up the rampant fraud and corruption in the home health care industry in the District of Columbia.”
“By illegally writing prescriptions for services he was not qualified to provide in exchange for monetary kickbacks from home health care agencies, Mr. Mirza took advantage of D.C.’s Medicaid program and then lied to the FBI about his role in the scheme,” said Assistant Director in Charge McCabe. “This fraud steals from government programs designed to assist deserving patients and the FBI will continue to identify, arrest and prosecute anyone who participates in defrauding government programs.”
The scheme: According to a statement of offense, signed by the government as well as the defendant, Mirza and others carried out a scheme to defraud the D.C. Medicaid program from approximately November 2012 through at least June 2013. Personal care aides, working for at least seven home care agencies, brought numerous D.C. Medicaid beneficiaries to Mirza, and after brief examinations, Mirza wrote prescriptions and plans of care, listing himself and signing as the “ordering physician” even though he was not a physician and was not legally or medically qualified and could not determine whether the services were medically necessary.
Seeing D.C. Medicaid beneficiaries and signing their intakes and plans of care became Mirza’s primary source of income. Mirza initially was paid $125 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $200. Mirza’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months. The personal care aides would insist that Mirza write the name of the PCA on the intake before it was sent to the home care agency; it was understood this was so the personal care aides would receive their kickback from the home care agency for each D.C. Medicaid beneficiary the PCA brought to Mirza and then to the home care agency.
During the course of the fraud scheme, Mirza signed hundreds of prescriptions and plans of care, and in exchange collected at least $48,450 in cash payments from personal care aides. Home care agencies used Mirza’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.
The obstruction: When Mirza was approached by the FBI in his office and questioned about his role, he denied he had any involvement with Medicaid. After the agents served Mirza with a subpoena for his patient files and other documents, the agents told Mirza they planned to interview his office assistant. After the agents left, Mirza offered to drive his assistant home. During that car ride, Mirza attempted to obstruct the government’s investigation, by attempting to influence his assistant’s statements to the FBI, telling the assistant not to use certain words, encouraging and suggesting that she not be fully truthful, and ensuring that their stories would match so that Mirza would not be “implicated” by his assistant. For example, Mirza tried to convince his assistant they had nothing to do with Medicaid and instructed the assistant not to say the word “Medicaid” at least ten times during the course of their 45-minute conversation.
This investigation was conducted by the FBI’s Washington Field Office.
This case is being prosecuted by Assistant U.S. Attorney Ted Radway, and was investigated by Assistant U.S. Attorney Radway and former Special Assistant U.S. Attorney Dangkhoa Nguyen. Assistance was provided by Paralegal Specialist Corinne Kleinman.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
Numerous agencies are participating in the broader investigation into Medicaid fraud, including the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Social Security Administration, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.
Carroll County, Iowa Man to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 3, 2015, to more than five years in federal prison.
Christopher Julin, 29, from Manning, Iowa, received the prison term after a January 21, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Julin admitted that from 2013 through July 2014, he was involved in a conspiracy that distributed at least five pounds of mixed methamphetamine which contained at least 1500 grams of actual (pure) methamphetamine. Julin obtained methamphetamine in 2-4 ounce quantities from Mark Weller and sold it in ¼ to one ounce quantities. Julin also admitted to trading an SKS rifle to Mark Weller in exchange for ½ ounce of methamphetamine.
Julin was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Julin was sentenced to 66 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Julin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division of Narcotics Enforcement; Iowa Division of Criminal Investigations; Denison, Iowa Police Department; and Carroll County, Iowa Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4059.
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Carmen Johnson Sentenced for Two Separate Residential Mortgage Fraud SchemesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George Jerrod Hazel sentenced Carmen Johnson, age 48, of Gambrills, Maryland, late yesterday to 57 months in prison followed by five years of supervised release for conspiracy, wire fraud and making a false statement on a loan application, arising from two residential mortgage fraud schemes. Judge Hazel also entered an order that Johnson pay $2,315,660.94 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Acting Special Agent in Charge James Murray of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to the evidence presented at her seven day trial, in the first scheme, which operated from March 2007 to November 2008, Johnson conspired with real estate agent Edgar Tibakweitira and others to fraudulently obtain residential mortgage loans by making false statements during the loan application and approval process. In the second scheme, witnesses testified that between April and July 2008 Johnson conspired with real estate agent Nsane Phanuel Ligate and others in a similar mortgage fraud scheme involving two properties in Baltimore.
Johnson owned and operated CJ Lending and its predecessor Able Estate & Company, which provided credit repair services. Witnesses testified that in both schemes Carmen Johnson reported to credit bureaus and provided her fellow co-conspirators with false credit histories showing backdated lines of credit that were used to convince lenders to give mortgage loans. As part of both schemes, Johnson’s co-conspirators used stolen or false identity information, false documents – including W-2 forms, earnings and banks statements – and false credit information to induce lenders to provide mortgage loans to straw purchasers. Johnson’s co-conspirators also inflated the sales prices of the properties by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
As a result of both schemes, losses to financial institutions totaled $2,309,646.
Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, Flavia Makundi, age 42, of Severn Park, Maryland, Ayoub Luziga, age 35, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, have pleaded guilty to their roles in the first scheme. Tibakweitira was sentenced to 57 months in prison and ordered to pay restitution of $2,482,856.05. Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726. Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution. Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution. Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial and sentenced to 27 months in prison and ordered to pay restitution of $511,147. Makundi was sentenced to time served.
Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, Cane Mwihava, age 43, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland have also pleaded guilty to their roles in the second mortgage fraud scheme. Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091. Silaa and Mwhihava were each sentenced to six months home detention, and Ligate was sentenced to five months home detention.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of the efforts undertaken 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.
United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin Di Gregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Career Criminal from Albuquerque Sentenced to 272 Months for Brandishing a Firearm During Bank Robbery in February 2014Read the Press Release
ALBUQUERQUE – A career offender who was prosecuted under the federal “worst of the worst” anti-violence initiative was sentenced this afternoon in federal court for his conviction on bank robbery and firearms charges arising out of the Feb. 19, 2014, armed robbery of the First Financial Credit Union (the bank) located at 2929 Coors Blvd in Albuquerque, N.M.
Devin Jasperse, 31, of Albuquerque, N.M., was sentenced to 188 months in federal prison for the bank robbery conviction and an additional seven years in prison for brandishing a firearm during the robbery. Because the seven-year sentence on the firearms charge must be served consecutive to the 188 month sentence on the bank robbery charge, Jasperse will serve 272 months in prison followed by five years of supervised release. Jasperse was also ordered to pay restitution to the bank that was the victim of his crime.
U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department noted that Jasperse was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Jasperse was arrested on March 27, 2014, on a criminal complaint charging him with the armed robbery of the bank on Feb. 19, 2014, and with brandishing a firearm during a crime of violence. Jasperse subsequently was indicted on the same charges in a two-count indictment on April 23, 2014.
On March 5, 2015, Jasperse pled guilty to both counts of the indictment and admitted robbing the bank at gunpoint. Jasperse admitted climbing over the teller counter, and yelling that he was committing a bank robbery and that he had a gun. After three bank tellers complied with his demands for cash, Jasperse climbed back over the teller counter and ran out of the bank with the cash. In entering his guilty plea, Jasperse also admitted that he disposed of the gun he used in the armed bank robbery and that he had stashed another firearm at an apartment which was later seized by law enforcement.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Lynn Wei-Yu Wang is prosecuting this case.
Career Criminal Sentenced to 262 Months for Drug Trafficking and Possession of A FirearmRead the Press Release
United States Attorney Andrew M. Luger announced on Wednesday the sentence of ALBERT TERRELL ELLIS, 38, a/k/a, “Alvin Ellis,” to 262 months in prison for possession of a firearm, possession with intent to distribute heroin and use of a firearm during and in relation to a drug trafficking crime. The Defendant was sentenced on June 4, 2015 before U.S. District Court Judge Ann Montgomery.
As proven at trial and according to documents filed in court, on October 10, 2012, ELLIS and his girlfriend, A.G., got into a fight with A.G.’s roommate, J.C. The Duluth Police Department responded to a 911 call from J.C.’s mother informing the police department that her daughter felt she was in danger. During a subsequent search of the apartment and ELLIS’s car, police dogs discovered heroin and crack. ELLIS had hidden the drugs, packaged for distribution, in the gas cap of his car. He also hid a loaded Smith and Wesson .45 Caliber pistol in the engine block of his vehicle. ELLIS was later arrested with more than $6,000 in illegal drug proceeds.
According to documents filed in court, ELLIS is a career criminal with a violent history. He was first convicted of battery when he was 14-years-old. His criminal history includes two convictions for drug trafficking, and convictions for attempted murder and attempted armed robbery, each of which is a felony. When ELLIS was let out of prison for attempted armed robbery in 2009, he was arrested four times between then and 2012. Three times for battery and once for theft.
“This defendant is an armed career criminal and a career offender with a violent criminal history,” said Assistant United States Attorney Tom Calhoun-Lopez. “This sentence will ensure that society is protected from his further crimes.”
This case was prosecuted by Assistant United States Attorney Tom Calhoun-Lopez.
Defendant information:
ALBERT TERRELL ELLIS, 38
Duluth, Minn.
Convicted:
- Possession of a firearm as an armed career criminal, 1 count
- Possession with intent to distribute heroin, 1 count
- Use of a firearm during and in relation to a drug trafficking crime, 1 count
Sentenced:
- 262 months in prison
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
California Man Sentenced to 13 Months in Prison for Credit Card FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jervis A. Hillaire, 25, of Menifee, California was sentenced in U.S. District Court by Judge D. Brock Hornby to 13 months in prison and three years of supervised release for conspiracy to commit access device fraud. He was also ordered to pay $17,987.56 in restitution. Hillaire pleaded guilty on January 29, 2015.According to court documents, on about September 4, 2013, Hillaire, Gyadeen Ramdihall and a third person travelled from New York to Maine with 38 credit, debit and gift cards that were counterfeit or fraudulently altered. In Maine, the three individuals used cards to purchase gift cards and electronic devices from vendors including, among others, Best Buy, Apple, Target and Walmart. On October 10, 2013, an Ohio State Trooper stopped Ramdihall for speeding. Hillaire was his passenger. A total of 17 fraudulent access device cards in Hillaire’s name were found in the trunk of the vehicle under the spare tire. On January 24, 2014, the Biddeford Police stopped Ramdihall near the Walmart store in Biddeford. Hillaire was again his passenger. Ramdihall was arrested for driving with a suspended license; Hillaire was arrested for providing a false identity. Police discovered eight fraudulent access device cards in Hillaire’s boot.
In pronouncing sentence, Judge Hornby observed that Mr. Hillaire was a smart and capable person, but that he was messing up his life. He urged Hillaire to use this experience as a life changer, but said that the sentence was necessary to send a message to the public and to the defendant that this kind of activity will not be tolerated.
The investigation was conducted by the United States Secret Service, the Kittery and Biddeford Police Departments and the Ohio State Police.California Man Pleads Guilty to Federal Narcotics Trafficking and Firearms Charges in New MexicoRead the Press Release
ALBUQUERQUE – Marcos Anthony Correa, 30, of San Bernardino, Calif., entered a guilty plea today in federal court in Albuquerque, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Correa will be sentenced within the range of 180 to 300 months followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Pete N. Kassetas of the New Mexico State Police.
Correa was charged in a four-count indictment filed on Aug. 12, 2014, with (1) possession of methamphetamine with intent to distribute, (2) possession of heroin with intent to distribute, (3) possession of a firearm in relation to a drug trafficking crime, and (4) being a felon in possession of a firearm. The indictment was subsequently superseded on Sept. 9, 2014, to reflect an increase of the quantity of methamphetamine involved in Count 4.
According to the superseding indictment, Correa committed the offenses on May 30, 2014, in Colfax County, N.M. At the time, Correa was prohibited from possessing firearms or ammunition because he previously had been convicted of multiple felony offenses, including evading a peace officer, possession of a controlled substance for sale, transporting a controlled substance with a participation in a criminal street gang enhancement and possession of heroin, resisting an officer.
Court records reflect that Correa was arrested on May 30, 2015, on related-state charges filed in the 8th Judicial District Court for the State of New Mexico (Colfax County, N.M.). The state charges were dismissed after the federal charges were filed.
Today, Correa pled guilty to Counts 1 and 3 of the superseding indictment, which charged him with possession of methamphetamine with intent to distribute and possession of a firearm in relation to a drug trafficking crime. In entering the guilty plea, Correa admitted that on May 30, 2014, he possessed 87.3 grams of 100% pure methamphetamine that he intended to deliver to another person. He further admitted possessing a semiautomatic pistol and ammunition in order to protect himself and his drugs in the event someone tried to rob him.
Correa has been in custody since his arrest and will remain detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police, with assistance from the 8th Judicial District Attorney’s Office.
Assistant U.S. Attorney Samuel A. Hurtado is prosecuting this case pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Collinsville Woman Sentenced to Federal Prison for Theft of Federal FundsRead the Press Release
Gulfport, Miss. – Ukisha Lashay Carter, 34, of Collinsville, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to a term of nine months in federal prison followed by three years of supervised release for theft of federal funds, U.S. Attorney Gregory K. Davis announced. Carter was also ordered to make restitution to the Internal Revenue Service in the amount of $25,947.00 and pay a $2,500 fine.
Carter pled guilty on February 13, 2015 to theft of federal funds. From 2008 to 2009, she was involved in a scheme to utilize stolen personal identifiers, including names and social security numbers, for the preparation and submission of false income tax claims based upon fraudulent income tax returns. As a result of her stolen identity refund fraud scheme, Carter received the federal tax refunds in bank accounts under her control, including accounts at a federal credit union in Mississippi.
This case was investigated by IRS - Criminal Investigation and prosecuted by Assistant U.S. Attorney Andrea Jones.
Butte Man Sentenced to 7 Years for Distributing Child Porn and Illegal Gun PossessionRead the Press Release
MISSOULA – Robert White, 51, of Butte, was sentenced today in federal court to seven years in prison for distributing child pornography and possessing a firearm that was not registered to him in the national registry. He received seven years for each count, to run concurrent. Chief U.S. District Court Judge Dana Christensen also sentenced White to 10 years supervised release, $4,000 in restitution, and ordered him to forfeit his laptop computer and the firearm.
White’s crime was discovered when an agent with the Internet Crimes Against Children Task Force found that White was writing sexually explicit phrases regarding prepubescent children within an Internet relay channels (IRC) and posting links to files of child pornography within IRC. The agent also determined White was utilizing a peer-to-peer (P2P) client to receive video and image files of children engaged in sexually explicit conduct. White also distributed child pornography on more than a dozen occasions.
The agent determined the IP address for all of these distributions was assigned to White at his residence in Butte, Montana. Agents obtained a search warrant for White’s residence in Butte. Agents executed the warrant and White’s laptop was seized. The laptop was examined and a forensic examined located image and video files depicting child pornography and confirmed his previous distribution of child pornography.
In relation to the firearm crime, a 2014 investigation determined that White was also in possession of a 12 gauge shotgun with a length of approximately 19 inches and a barrel length approximately 13.5 inches. The firearm was illegal unless registered to him in the Nation Firearms Registration and Transfer record. White had not registered the firearm.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Internet Crimes Against Children Task Force.
Burlington, New Jersey, Woman Admits to Stealing More Than $150,000 in Social Security Benefits for Her Deceased MotherRead the Press Release
CAMDEN, N.J. - A Burlington, New Jersey, woman admitted today to stealing more than $150,000 in Social Security benefits that were paid to an account in her deceased mother’s name, U.S. Attorney Paul J. Fishman announced.
Jean Marshall, 69, pleaded guilty before Senior U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging her with one count of theft of government funds.
According to documents filed in this case and statements made in court.
Marshall’s mother was entitled to Survivor’s Benefits from the Social Security Administration (SSA). Her mother’s benefits were paid by direct deposit into her bank account, which she held jointly with Marshall.
Marshall admitted that she failed to notify the SSA of her mother’s death in May 2003. As a result, SSA continued to make payments into their joint account. From May 2003 through May 2013, Marshall accessed her deceased mother’s bank account in order to make personal use of the Social Security funds. Altogether, Marshall obtained $151, 789 in benefits to which she was not entitled.
The charge to which Marshall pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2015.
U.S. Attorney Fishman credited special agents of the Social Security Administration, Office of Inspector General, under the direction of Inspector General Patrick P. O’Carroll Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Building Owner Pleads Guilty to BriberyRead the Press Release
Dvir Derhy, 46, of Miami-Dade County, Florida, the owner of the Miami Office Center, which leases office space and manages property at a location known as the Flagler Building Downtown, entered a plea of guilty yesterday to one count of bribery.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
According to the factual proffer in support of his plea of guilty, Derhy owned and operated The Miami Office Center, which leased office space and managed property at, among others, the Flagler Building Downtown located at 223 East Flagler Street in Miami. The Flagler Building had been cited by the City of Miami Fire Department for violations because it had obstructed means of egress (some of its exits were blocked).
In June 2014, Derhy offered to pay a City of Miami fire inspector and building planner in order to remove the violation citations. On one such occasion, Derhy attempted to slip money into the fire inspector’s shirt pocket and stated that it was for a “donation to the City.”
On July 18, 2014, law enforcement agents conducted a recorded undercover operation at the Flagler Building in which one of them assumed the identity of a fire inspector and met with Derhy. A City of Miami fire inspector, as well as the undercover agent, met with Derhy to discuss the egress violations which stemmed from obstructed exit doors at the Flagler Building. During the meeting, Derhy offered a bribe payment to the fire inspector and the undercover officer by giving them an envelope that contained $10,000. In exchange for the money, the fire inspectors were supposed to “clear” (remove) the exit door violations from the property record without Derhy in fact fixing the problems cited in his violation notice. Additionally, Derhy would not be required to submit an approved plan and permit to modify and bring the Flagler Building up to code. The fire inspector and the undercover agent accepted Derhy’s offer and the envelope containing the $10,000.
On July 21, 2014, the undercover agent placed a call to Derhy, and told him that he had put together a plan of action for the violations at the Flagler Building. The undercover agent also stated that he could take care of the Certificate of Use that would be needed be for the property. The undercover agent told Derhy that they needed a work permit, and stated that he “could fix that on [his] end.” The undercover agent also indicated that there was a second issue that would require backdating paperwork.
Later that afternoon, the undercover agent and Derhy met at a pre-determined location and were recorded. During the meeting, Derhy paid the undercover agent an additional $3,000 in U.S. currency to “clear everything.” The undercover agent stated that he would “start making things happen, such as the prior approval, work permits, sketchings for fire, and a certificate of use.”
Yesterday, U.S. District Judge Marcia G. Cooke scheduled Derhy’s sentencing hearing for August 26, 2015. Derhy is subject to a maximum sentence of ten years in prison, followed by three years of supervised release. Derhy is also subject to a $250,000 fine and forfeiture in the amount of $13,000.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and City of Miami Police Department Internal Affairs Section. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.
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.
Broward Resident Sentenced for his Role in Identity Theft Fraud Scheme Involving Stolen Credit Card NumbersRead the Press Release
A Broward resident was sentenced to 34 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $45,711.10, for his involvement in an identity theft fraud scheme where he obtained and used stolen credit card numbers of individuals without their authorization.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Jaqwayn Henry, 25, of Lauderhill, previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A(a)(1).
Co-defendants Andrew Ware, 27, Alex Dontfred, 29, David Tilus, 27, Sherika Rowe, 20, Fritznel Etienne, 24, and Latonya Ware, 27, all of Lauderhill, were previously sentenced. Andrew Ware was sentenced on April 18, 2014 to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay $182,246.10 in restitution. Dontfred was sentenced on March 18, 2014 to 46 months in prison, to be followed by three years of supervised release, and was ordered to forfeit $49,561.88 and pay restitution in the amount of $45,711.10. Tilus was sentenced on March 10, 2014 to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay $188,322 in restitution. Rowe was sentenced on March 13, 2014 to 45 months in prison, to be followed by three years of supervised release, and was ordered to pay a money judgment of $136,538 and restitution in the amount of $136,535. Etienne was sentenced on March 14, 2014 to 34 months in prison, to be followed by two years of supervised release, and was ordered to pay a money judgment of $11,204 and restitution in the amount of $3,844.81. Latonya Ware was sentenced on March 10, 2014 to 34 months in prison, to be followed by three years of supervised release, and was ordered to pay a money judgment of $136,535 and restitution in the amount of $136,535.
Andrew Ware previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Dontfred previously pled guilty to one count each of conspiracy to commit access device fraud and access device fraud, in violation of Title 18, United States Code, Sections 1029(b)(2) and 1029(a)(2), respectively. Tilus previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Rowe previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349, 1343 and 1028A(a)(1), respectively. Etienne previously pled guilty to one count each of access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A(a)(1), respectively. Latonya Ware previously pled guilty to one count each of conspiracy to commit wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349 and 1028A(a)(1), respectively.
According to court documents, Andrew Ware, David Tilus, Latonya Ware and Sherika Rowe obtained the personal identifying information (PII) of numerous identity theft victims, including their names, dates of birth, and social security numbers. Latonya Ware stole patients' names and social security numbers from a medical office where she worked, and gave the PII to Tilus and her cousin, Andrew Ware. Rowe electronically filed fraudulent tax returns utilizing the victims’ names and social security numbers, and the fraudulent refunds from these returns were loaded onto prepaid debit cards that Tilus and Andrew Ware used to purchase gift cards and other merchandise from retail stores. The fraudulent refunds that Andrew Ware, Tilus, Latonya Ware and Rowe claimed using stolen identities totaled returns in the amount of approximately $137,132 dollars.
Court documents indicate that Henry, Andrew Ware, Tilus, Dontfred and Etienne utilized victims’ access devices without their authorization, to purchase merchandise totaling at least $1,000 in a single year. These defendants obtained credit card numbers from various victims and used these stolen access devices to purchase merchandise, gift cards and prepaid debit cards for later use. The total amount of fraudulent charges made or attempted to be made by Henry, Andrew Ware, Tilus, and Dontfred utilizing the stolen credit cards is $49,561.88. From approximately January 20, 2012 through January 22, 2012, the total amount of fraudulent charges made or attempted to be made by Etienne utilizing a stolen credit card number was $11,942.23.
The indictment was dismissed against Latanya Ware.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and BSO. The case is being prosecuted by Assistant U.S. Attorneys Alicia Shick and Harry Wallace.
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.
Brothers from Crownpoint Sentenced to Federal Prison for Assault ConvictionsRead the Press Release
ALBUQUERQUE – Two brothers, enrolled members of the Navajo Nation who reside in Crownpoint, N.M., were sentenced yesterday in federal court in Albuquerque, N.M., for their convictions on assault charges arising out of the brutal attack on another Navajo man in Sept. 2014. Gabriel Largo, 28, was sentenced to 37 months in federal prison followed by three years of supervised release. His brother, Joshua Largo, 21, was sentenced to 24 months followed by a year of supervised release.
The Largo brothers and their co-defendant Michael Benally, 31, a Navajo man who resides in Littlewater, N.M., were arrested on Sept. 17, 2014, on a criminal complaint charging them with assaulting a 43-year-old Navajo man with a sledgehammer and a rock and causing the victim to suffer serious bodily injuries. According to the complaint, the assault took place in the Crownpoint Chapter of the Navajo Nation in McKinley County, N.M., on Sept. 5, 2014.
The three defendants subsequently were indicted on Oct. 7, 2014, in a four-count indictment. Count 1 charged Benally with assaulting the victim and causing him serious bodily injury on July 30, 2014. Count 2 charged Benally, Gabriel Largo and Joshua Largo with conspiring to assault the victim by chasing the victim, throwing rocks at him, kicking him, and striking him with a sledgehammer on Sept. 5, 2014. Counts 3 and 4 charged the three defendants with assault resulting in serious bodily injury and assault with a dangerous weapon.
On March 5, 2015, Gabriel Largo pled guilty to a felony information charging him with assault. In entering his guilty plea, he admitted that on Sept. 5, 2014, he and his co-defendants assaulted the victim. When the victim ran away from them, Gabriel Largo and his co-defendants chased the victim, threw rocks at him and knocked him down. In his plea agreement, Gabriel Largo admitted obtaining a sledgehammer from Benally and using it to strike the victim.
Joshua Largo also pled guilty to a felony information on March 5, 2015, and admitted his participation in a conspiracy to assault the victim. Joshua Largo admitted joining his co-defendants in chasing the victim, throwing rocks at him and knocking him down, and hitting and kicking the victim.
Benally pled guilty on March 27, 2015, to a felony information charging him with conspiracy to commit assault resulting in bodily injury and assault with a dangerous weapon. In entering his guilty plea, Benally admitted that on Sept. 5, 2014, he and his co-defendants approached the victim who was selling firewood. When the victim ran away from them, the three defendants chased the victim, threw rocks at him and knocked him down. The three men then hit and kicked the victim. Benally admitted taking a sledgehammer from his truck and striking the victim in the legs with it with the intention of injuring and harming him. At some point Benally handed the sledgehammer to Gabriel Largo who used it to strike the victim.
Benally remains in federal custody pending his sentencing hearing which is scheduled for on June 29, 2015. At sentencing, Benally faces a maximum statutory penalty of ten years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Linda Mott.
Baltimore Man Sentenced to over 12 Years in Prison for Conspiracy to Rob Three Cell Phone StoresRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Johnny Devon Snow, age 20, today to 150 months in prison, followed by three years of supervised release, for his role in the armed robberies of three cell phone stores.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.
According his plea agreement, from May 1, 2014 through June 24, 2014, Johnny Snow, his brother Justin Snow, their cousin Taylor Snow and Arkeene Redditt-Abrams conspired to rob three cell phone stores. The defendants planned to steal cash, cell phones and other electronic communications devices, and tablet computers; and that they planned to sell the stolen merchandise. As part of the plan, the defendants determined which firearms were used in the commission of the robberies; conducted surveillance of the targeted stores; wore face masks, hooded jackets and gloves to conceal their identities; and used plastic trash bags to carry the stolen items from the stores.
Specifically, on June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown. Taylor Snow entered the store to to find out how many people were in the store and whether there were any security cameras. She was talking on ta cell phone as she entered. Less than a minute later Johnny and Justin Snow entered the store, and Justin Snow brandished a firearm in an attempt to rob an employee of the store. Johnny Snow stood near the door and Redditt-Abrams remained in the car, which was parked outside. The defendants realized the store had cameras, left the store and fled in the waiting car.
A few hours later the defendants drove the rented car to an AT&T store in Ellicott City, Maryland. Redditt-Abrams entered the store to “case” it. After he left the Snows entered the store, with Justin Snow again brandishing a gun. They stole cash, cell phones and tablet computers worth more than $18,000. Surveillance video at an adjoining gas station captured images of Taylor Snow’s car at the gas pumps and while it was parked in front of the AT&T store. The video showed Redditt-Abrams entering and leaving the store, then shows three people exiting the car and entering the store. A short time later three people run from the store and get back into the car.
Further, after Johnny Snow’s arrest on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where they used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.
Justin Jose Snow, a/k/a “J.O.,” age 22; Taylor Yvonne Snow, age 22; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, previously pleaded guilty to their roles in the robberies. Taylor Snow was sentenced to nine years in prison. Justin Snow is scheduled to be sentenced on June 30, 2015 and Redditt-Abrams is scheduled to be sentenced on August 15, 2015. They remain detained.
United States Attorney Rod J. Rosenstein praised the FBI, and Howard County Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.
Augusta Resident Receives 10 Years in Prison for Possessing A Firearm as A FelonRead the Press Release
Augusta, GA: Marco Charles Gilbert, 29, of Augusta, Georgia, was sentenced last week by United States District Court Judge J. Randal Hall to 10 years in prison for possessing a firearm as a felon. There is no parole in the federal system. Gilbert pled guilty to Possession of a Firearm by a Felon in March 2015.
Evidence presented during Gilbert’s guilty plea and sentencing hearings revealed that on July 8, 2014, Richmond County Sheriff’s Office (RCSO) received information about drug activity at the Ridgewood Apartments on Wheeler Road. When officers responded they found Gilbert seated in his car, and observed items in the car indicative of drug sales. After a K9 unit alerted to Gilbert’s car, officers searched the car and found marijuana, scales, over $1,800 in cash, and a loaded firearm. Gilbert had a number of prior drug-related convictions.
Gilbert’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, the local District Attorney’s office and local and state law enforcement agencies. United States Attorney Edward J. Tarver stated that “the purpose of Project Ceasefire is to federally prosecute certain persons in possession of a gun. A person can be federally prosecuted for possessing a gun if they are a convicted felon, a drug dealer, an illegal alien, a fugitive, someone under indictment or someone who has committed a federal crime of violence.” Mr. Tarver commends the cooperative effort between federal, state and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms.
Gilbert’s case was investigated by the RCSO and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.
Attorney General Recognizes Two Eastern District of New York EmployeesRead the Press Release
WASHINGTON – Assistant United States Attorneys James McGovern and Celia Cohen of the U.S. Attorney’s Office for the Eastern District of New York were two of 160 members of the Department of Justice recognized by Attorney General Loretta E. Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington D.C.
The Eastern District of New York was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Attorney General Lynch told the awardees, “Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers. These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause.”
Assistant Unites States Attorneys McGovern and Cohen were honored for securing a death sentence, for a second time, against Ronell Wilson, a high-ranking member of the violent Bloods gang, who committed the execution-style murders of New York City Police Department Detectives James V. Nemorin and Rodney “Jay” Andrews during an undercover weapons transaction in Staten Island, New York, on March 10, 2003. After the Second Circuit Court of Appeals reversed Wilson’s 2007 death sentence, the prosecutors undertook what many believed to be the insurmountable task of convincing a New York jury to impose the death penalty, again. Proving that will, skill, and commitment can overcome most obstacles, the prosecutors worked tirelessly and masterfully to defeat a newly contrived intellectual disability claim and to build a case for the death penalty, vastly different from that offered in the 2007 proceeding. As a result of their efforts, Wilson was returned to death row in September 2013.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Former District EmployeeRead the Press Release
WASHINGTON – Fred Alverson, former Law Enforcement Coordinator and Public Information Officer of the U.S. Attorney’s Office in the Southern District of Ohio, was one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington D.C.
The Southern District of Ohio was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
"Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers," said Attorney General Lynch. "These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause."
Alverson, a Hilliard, Ohio resident, was awarded for Superior Performance in Public Affairs. Prior to his retirement in August 2014, he served the U.S. Attorney’s Office Southern District of Ohio for nearly 20 years.
“Fred had an outstanding grasp of the priorities of the Department and the District, and was pivotal in promoting the mission of keeping our communities safe,” said U.S. Attorney Carter Stewart. “The District’s message, as delivered by Fred, was always clear, concise, direct and helpful.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Employees of the United States Attorney's OfficeRead the Press Release
Eight lawyers and two paralegals of the U.S. Attorney's Office for the Eastern District of Michigan were recognized by the Department of Justice today at the 31st Director's Awards Ceremony in Washington D.C. The ceremony honored 160 members of the Department of Justice. They were recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates and Executive Office for U.S. Attorneys Director Monty Wilkinson. The Eastern District of Michigan was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. In her prepared remarks, Attorney General Lynch said that the awardees "have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause." United States Attorney Barbara L. McQuade said, "I am very grateful that these public servants have devoted their talents and careers to serving the people of the Eastern District of Michigan. Every one of them could be earning higher salaries in the private sector, but they choose public service to make a positive impact on our community." Assistant U.S. Attorney Julie Beck was recognized for her outstanding management of the Forfeiture and Financial Litigation Unit ("FFLU) for the Eastern District of Michigan. Beck, an Assistant U.S. Attorney for 11 years, has served as chief of the unit for five years. Under her leadership, the work of the FFLU has grown in quantity and complexity, while fostering ever greater cooperation between civil and criminal lawyers, expanding training and re-engineering operations to increase collections. Assistant U.S. Attorney Leslie Wizner was recognized for her work on a case with the Civil Division at the Department of Justice and the U.S. Attorney's Office for the Northern District of Ohio. Wizner and her team obtained a $200 million settlement to resolve allegations that U.S. Bank violated the False Claims Act by originating and underwriting government-backed loans for residential mortgages without complying with legal requirements. When many of the borrowers were unable to repay the loans, the federal government became responsible for the loss and the homes went into foreclosure. Wizner and her team recovered these funds for taxpayers and the home loan program. The team that investigated and prosecuted former Detroit Mayor Kwame Kilpatrick was recognized for outstanding work by a litigation team. The team included Assistant U.S. Attorneys Mark Chutkow, Michael Bullotta, Linda Aouate, Jennifer Blackwell, Eric Doeh and Andrew Goetz. Also recognized were paralegals Ana Bruni and Anna Facchini, and special agents Bob Beeckman of the Federal Bureau of Investigation, Carol Paszkiewicz of the Environmental Protection Agency Office of Inspector General and Ronald Sauer and Rowena Schuch of the Internal a Revenue Service Criminal Investigations. The team was recognized for its investigation and prosecution of Kilpatrick and members of his administration. The prosecution team uncovered and dismantled a wide-ranging "pay to play" network of corruption within the highest levels of city government, convicting 35 public and business officials of felony offenses, including the former mayor of Detroit, his chief administrative officer, the deputy mayor, business people and consultants. EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys' offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usaoAttorney General Recognizes District EmployeeRead the Press Release
SACRAMENTO, Calif. – Jacquelyn C. Strong, Administrative Officer of the U.S. Attorney’s Office in the Eastern District of California, was one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington, D.C.
The Eastern District of California was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
"Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers," said Attorney General Lynch. "These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause."
Jacquelyn C. Strong is recognized for her outstanding leadership of the Administrative Division over a particularly challenging year. During the 16-day government shutdown, Ms. Strong worked tirelessly to meet the needs of the attorneys who were still on duty while regularly communicating with the support staff, many of whom were furloughed, and maintaining their morale. When our long-time employee Joyce Dorsey unexpectedly died of the flu, Ms. Strong communicated the news with sensitivity, addressing the staff’s health concerns and attending to grieving employees and family. During the same year, Ms. Strong oversaw a major remodeling project in the Sacramento office, ensuring it did not disrupt office operations, worked to establish the new Bakersfield office, and hosted visits to the district by the Executive Office’s evaluation staff. Ms. Strong, who has served as Administrative Officer for 17 of her 34 years in the office, earned the highest marks during our recent office evaluation, which praised her staff’s “top notch customer service.”
United States Attorney Benjamin B. Wagner stated: “Jackie Strong has provided outstanding service to the Department of Justice for many years. She has deftly guided this office in budgetary, personnel and administrative matters through good times and bad, and has loaned her expertise to other districts. I am pleased that her leadership is being recognized nationally.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Loretta Lynch Recognizes Middle District of Florida EmployeesRead the Press Release
WASHINGTON – Assistant United States Attorney Ralph E. Hopkins and Legal Administrative Assistant Tyline Medina of the U.S. Attorney’s Office for the Middle District of Florida (MDFL) were two of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington D.C.
The MDFL was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Attorney General Lynch told the awardees, “Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers. These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause."
Hopkins and Medina received one of the Department of Justice’s highest honors, the Director’s Award for Superior Performance by a Litigative Team, in recognition of their tremendous effort in litigating the Government’s claims in the civil health care fraud case styled United States ex rel. Baklid-Kunz v. Halifax Hospital Medical Ctr., et al., and for negotiating a landmark settlement in that case. The settlement -- reached on the morning of trial -- paid the United States $85 million to resolve claims that the defendant violated the Stark Act through illegal relationships with physician practice groups.
United States Attorney A. Lee Bentley, III, who attended today’s ceremony, said, “It was my honor to nominate and witness Ralph, Tyline, and the litigation team receive this prestigious award today. I am thankful for their countless hours of hard work, and I know that future enforcement efforts will be greatly assisted by the achievements of this trial team.”
In addition to Hopkins and Medina, six other members of the litigation team were recognized today. Trial Attorneys Adam J. Schwartz and Kavitha J. Babu, Paralegal Specialist Jackeline M. Rosero, and Financial Analyst Eileen Zimmer from the DOJ Civil Division’s Fraud Section, Assistant United States Attorney Patricia M. Fitzgerald from the Northern District of Ohio, and Special Agent Robert W. Murphy from the U.S. Department of Health and Human Services - Office of Investigations in Jacksonville each received the Director’s Award for Superior Performance by a Litigative Team for their roles in this case.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Amherst Doctor Indicted on Charges of Distributing Controlled Substances, Obtaining Prescriptions by Fraud and Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a 10-count indictment charging Dr. Albert R. Cowie, 37, of Amherst, NY, with unlawful distribution of a controlled substance, possession of a controlled substance by fraud, conspiracy to commit a drug felony and health care fraud. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine or both.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the indictment and a complaint filed earlier, between January 2010 and March 22, 2014, the defendant, a practicing radiologist, wrote 280 illegal prescriptions for controlled substances such as Oxycodone, Percocet, and Hydrocodone. The prescriptions were distributed to three individuals who then went to local pharmacies and had the scripts filled. The individuals retained some of the controlled substances for personal use but returned the remainder of the narcotics to Cowie for his own use.
The defendant also established a relationship with a prostitute he met at an area strip club. As the relationship continued, Cowie provided $200 a day to the prostitute to support a heroin addiction. The defendant allegedly also injected the prostitute with heroin on one occasion. Subsequently, the defendant gave the prostitute prescriptions for Xanax and Percocet.
During a meeting between Cowie and a confidential witness, the defendant advised the witness to lie to insurance investigators about his alleged prescription fraud. The witness is quoted as saying to the defendant “okay so just say they were written for me even though they were written for you…is what you’re saying? Cowie replied “right.”
The 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 Federal Bureau of Investigation, the New York State Bureau of Narcotic Enforcement, under the direction of NYS Health Commissioner Howard Zucker, and the Amherst Police Department, under the direction of Chief John Askey.
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.
Alabama man pleads guilty to transporting child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a man from Alabama pleaded guilty to transporting sexually explicit pictures of a minor.
Mario Duran, 49, of Jemison, Ala., pleaded guilty before U.S. District Judge Richard T. Haik to one count of transporting child pornography. According to evidence presented at the guilty plea, Acadia Parish Sheriff’s Deputies, while investigating another case, made contact with Duran in April of 2014 while he was parked in his truck in the Crowley, La., Wal-Mart parking lot. Present with Duran were two minor females. The minors said they did not know Duran, and that he had picked them up in Alabama and was transporting them to Texas to meet their father. The vehicle was searched, and three cell phones were found. Upon further investigation, law enforcement agents found sexually explicit pictures of a minor on one of the phones. The images on the phone were not of the minors Duran was transporting.
Duran faces five to 20 years in prison, five years to life of supervised release, a $250,000 fine and registration as a sex offender. A sentencing date was not set.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog and Myers P. Namie are prosecuting the case.
*UPDATED* Registered sexoffeder charged with traveling to engage in illicit sexual conduct with minor victimsRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging convicted sex offender Kevin Wick, 42, of Wheeling, with traveling across state lines to engage in illicit sexual conduct with multiple minor victims, United States Attorney William J. Ihlenfeld, II, announced.
Wick is alleged to have repeatedly traveled across state lines from Wheeling, West Virginia to Martins Ferry, Ohio throughout late 2014 and early 2015 for the purpose of engaging in unlawful sexual conduct with multiple minor victims. Three of the victims are brothers, ranging in age from eight to eleven years old. On at least one occasion, Wick allegedly transported minor victims across states lines from Ohio to an apartment in Wheeling where he engaged in illicit sexual conduct with the victims.
Wick is charged with five counts of “Aggravated Sexual Abuse – With Children.” He faces between 30 years and life in prison on each count. He is further charged with five counts of “Travel with Intent to Engage in Illicit Sexual Conduct.” He faces up to 30 years in prison on each count. Additionally, he is charged with five counts of “Transportation of a Minor with Intent to Engage in Criminal Sexual Activity.” He faces between ten years and life in prison on each count.
In June 2008, Wick was convicted of “Attempted Involuntary Deviate Sexual Intercourse” and “Indecent Assault” in the Court of Common Pleas of Westmoreland County, Pennsylvania. As a result of that conviction, Wick is required to register as a sex offender and is listed as a “Sexually Violent Predator.”
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Wheeling Police Department, the Federal Bureau of Investigation, and the Northern District of West Virginia Crimes Against Children Task Force are leading the investigation.U.S. Attorney Ihlenfeld commended the efforts of the agents involved for the expeditious manner in which they investigated the case. The allegations regarding Wick came to the attention of West Virginia authorities less than two weeks ago.
Pursuant to a motion filed by the government, Wick will be detained pending trial.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wednesday 3 June 2015
Youngstown-area men indicted for sale of $275,000 worth of counterfeit goodsRead the Press Release
A federal grand jury sitting returned a seven-count indictment charging four Youngstown-area men with trafficking in counterfeit goods, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Ashraf Mishmish, 49, of Boardman; Raed Khatib, 52, of Boardman; Wesam Mishmish, 20, of Austintown; and Khaled Wakhyan, 30, of Boardman.
The indictment alleges that in or about December 2013 through July 2014, Ashraf Mishmish, Raed Khatib, Wesam Mishmish, and Khaled Wakhyan conspired and agreed to intentionally traffic in counterfeit goods, specifically perfume, cologne, purses, headphones, jackets and boots. It was a part of the conspiracy that the defendants obtained perfume, cologne, boots, purses and headphones bearing counterfeit marks. The defendants then sold the counterfeit goods at a price below the manufacturer’s suggested retail price for the authentic goods.
According to the indictment, the defendants committed the following acts in furtherance of the conspiracy:
On or about December 15, 2013, Khaled Wakhyan offered for sale 93 jackets, 104 bottles of perfume/cologne, 25 sets of headphones, and 32 pairs of boots bearing counterfeit marks.
On or about June 21, 2014, Raed Khatib offered for sale 249 bottles of perfume/cologne, and 34 sets of headphones bearing counterfeit marks.
On or about June 21, 2014, Wesam Mishmish offered for sale 268 bottles of perfume/cologne and 42 sets of headphones bearing counterfeit marks.
On or about July 25, 2014, Wesam Mishmish offered for sale 212 bottles of perfume/cologne and 97 sets of headphones bearing counterfeit marks.
On or about July 25, 2014, Ashraf Mishmish offered for sale 332 bottles of perfume/cologne, 80 sets of headphones, and five purses, bearing counterfeit marks.
On or about July 25, 2014, Raed Khatib offer for sale 197 bottles of perfume/cologne and 70 sets of headphones bearing counterfeit marks.
On or about July 25, 2014, Ashraf Mishmish possessed 635 bottles of perfume/cologne, 115 sets of headphones, and 39 pairs of boots, bearing counterfeit marks.
In total, the defendants possessed and offered for sale counterfeit items with a domestic value of approximately $95,854 and with the manufacturer’s suggested retail price of $273,872.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Homeland Security, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment 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.
Worley Women Sentenced for Theft from the Coeur d'Alene TribeRead the Press Release
COEUR D'ALENE - Camille Desautel, 45, of Worley, Idaho, was sentenced today to four years of probation for theft from a tribal organization, the Benawah Market, U. S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Desautel to pay $22,665.04 restitution. She pleaded guilty on February 3, 2015.
According to the plea agreement, Desautel admitted that on August 21, 2014, she, along with two others entered the closed market and stole cash and checks totaling approximately $22,650.
Co-defendant, Twilla Marie St. Pierre, 37, of Worley, Idaho, was sentenced on April 28, 2015, to five years of probation for theft from a tribal organization. U.S. District Judge William Fremming Nielsen, from the Eastern District of Washington, also ordered St. Pierre to pay restitution in the amount of $2,978.54 to the Coeur d’Alene Tribe, and $19,686.50 to Travelers Claims Hartford.
Co-defendant, Adam Lee SiJohn, 26, of Worley, Idaho, was sentenced on March 3, 2015, to six months in prison for theft from a tribal organization. U.S. District Judge Edward J. Lodge also ordered SiJohn to serve three years of supervised release following his release from prison.
The case was investigated by Coeur d’Alene Tribal Police and Federal Bureau of Investigation (FBI).
Winsted Man Charged with Federal Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned a two-count indictment charging JAMES CAVE, 44, of Winsted, with federal firearm offenses. The indictment was returned on May 20, 2015, and CAVE appeared yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.
According to allegations contained in a previously-filed criminal complaint, on April 7, 2015, CAVE met an undercover ATF agent at a location in Torrington and sold him a Webley, model Mark IV .455 caliber revolver in exchange for $700 in cash. Investigators subsequently determined that the revolver had been stolen from a home in Connecticut.
It is alleged that CAVE sustained a felony conviction in Connecticut state court in October 2003.
The indictment charges CAVE with one count of possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of dealing firearms without a license, an offense that carries a maximum term of imprisonment of five years.
CAVE was arrested on a criminal complaint on April 30, 2015, and is released on a $100,000 bond.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Torrington Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Winnebago Man Sentenced for Being A Felon in Possession of a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced today that Kyle Bigbear, age 24, of Winnebago, Nebraska, was sentenced on June 1, 2015 upon his conviction for being a felon in passion of a firearm. Chief United States District Court Judge Laurie Smith Camp sentenced Bigbear to 10 years imprisonment to be followed by a term of supervised release of 3 years.
On September 5, 2014, Bigbear was driving on the Winnebago Indian Reservation while in possession of a rifle. When Bigbear came across a Winnebago resident he had a disagreement with, Bigbear stopped his vehicle and pointed the rifle at the resident. At the time of this incident, Bigbear was prohibited from possession of firearms because he had previously been convicted in Iowa in 2013 for possession with intent to deliver methamphetamine.
This case was investigated by the Bureau of Indian Affairs.
Winnebago Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Deborah R. Gilg announced today that Thomas White, Jr., age 31, of Winnebago, Nebraska was sentenced on June 1, 2015 upon his conviction for assaulting a federal officer. Chief United States District Court Judge Laurie Smith Camp sentenced Thomas to 33 months imprisonment to be followed by a term of supervised release of 2 years.
On October 17, 2014, a Winnebago police officer was on duty at the Winnebago school as school was letting out for the day. White was present on the school grounds as well even though he had been asked to leave the school earlier that day. When the officer approached White, he detected the odor of alcohol. As the officer attempted to detain White, White charged at the officer and struck him on the side of his face. White continued to strike the officer about his head, arms and side until the officer was finally able to gain control of White and place him in handcuffs.
The Winnebago officer is a federal employee who is employed by the Bureau of Indian Affairs Office of Justice Services.
This case was investigated by the Bureau of Indian Affairs.
Westlake convenience store owner faces tax chargeRead the Press Release
A criminal information was filed today charging Hessam B. Lahoud, 54, of Westlake, with subscribing to a false federal income tax return, said United States Attorney Steven M. Dettelbach.
The information alleges that Lahoud signed a false individual income tax return for calendar year 2008. Lahoud was the manager of the Airport Convenience Mart, a convenience store located near Hopkins International Airport. During 2008, Lahoud cashed checks at the store, and in many cases, deposited the checks into personal accounts. He failed to report the checks diverted to his personal accounts in total income for 2008, according to the information.
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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this 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.
The case is being prosecuted by Assistant U.S. Attorney James V. Moroney, following investigation by agents of the Internal Revenue Service, Criminal Division.
Waseca Accountant Sentenced to More Than Four Years in Prison and Ordered to Pay $1.6 Million to VictimsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ROGER HERMAN GOETZ, JR., 59, to 54 months in federal prison for defrauding his clients of nearly $1.6 million. GOETZ, JR., who pleaded guilty on January 20, 2015, to two counts of wire fraud, was sentenced today in U.S. District Court in St. Paul, Minn., by U.S. District Judge Richard H. Kyle.
“This defendant used his position as a certified public accountant to exploit his most vulnerable clients,” said U.S. Attorney Luger. “Minnesotans trust financial professionals to protect us from unexpected loss. Roger Goetz, Jr., abused that trust for his own financial gain.”
According to his guilty plea and documents filed in court, GOETZ has been a certified public accountant since 1980. He was previously licensed in the State of Minnesota. From at least December 2009 until at least February 2013, the defendant repeatedly lied to his tax preparation clients to steal their money.
According to his guilty plea and documents filed in court, in 2009, GOETZ was hired to file estate taxes for R.W.’s deceased parents. R.W. wired $115,000 to the defendant to pay the estimated state tax. GOETZ instead stole the money, a fact that R.W. didn’t discover for two years. When confronted by R.W., GOETZ provided him with fraudulent documents in an attempt to cover up the fact that GOETZ failed to pay the taxes on behalf of R.W. The victim ultimately was forced to use his daughter’s college fund to pay the outstanding taxes and penalties.
According to his guilty plea and documents filed in court, in January 2012, about one month after R.W. confronted GOETZ about the unpaid taxes, GOETZ stole another $170,000 from a different tax preparation client. T.B. hired GOETZ to prepare estate tax returns for his deceased parents and GOETZ again stole the funds. When T.B. confronted GOETZ about one-year later, GOETZ gave T.B. a check to cover the penalties, but the check bounced.
According to his guilty plea and documents filed in court, GOETZ repeatedly used stolen money from his clients for his own business, Core Wafer Systems (CWS). In addition to the money from R.W. and T.B., Goetz lied to at least nine investors about purported investments in CWS and in an assisted living facility in New Ulm, Minn. Instead of using their purported investments for CWS or the assisted living facility, GOETZ transferred money to accounts not connected either purported investment and used it for unrelated purposes, such as paying overdue bills.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Waseca Police Department.
Assistant U.S. Attorney Kimberly A. Svendsen prosecuted the case.
Defendant Information:
ROGER HERMAN GOETZ, JR., 59
Waseca, Minn.Convicted:
- Wire Fraud, 2 counts
Sentenced:
- 54 months in prison
- Three years supervised release
- $1,599,857.77 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Women Indicted in Murder-For-Hire PlotRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury returned an indictment charging Debra Arno, 56, formerly of Amherst, NY, and Lauren Frye, 55, of Kenmore, NY, with conspiracy to commit murder for hire. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that according to the indictment and a complaint filed earlier, Arno was going to pay Frye a total of $20,000 to murder Arno’s ex-husband, his current wife and their daughter.
Arno was arraigned this morning before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being detained. Frey will be arraigned at a later date.
The criminal complaint is the result of an investigation by the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer, the East Aurora Police Department, under the direction of Chief Ronald Krowka, and the Federal Bureau of Investigation Safe Streets Task Force which includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
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.
Two Palm Beach County Residents Indicted for Their Participation in Stolen Identity Tax Fraud SchemeRead the Press Release
Two Palm Beach County residents were indicted on charges stemming from their participation in an extensive stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.
Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County, were charged by superseding indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343; theft of government funds, in violation of Title 18, United States Code, Section 641; and aggravated identity theft, in violation of Title 18, United States Code, section 1028A(a)(1). In addition, Verdell was all charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, section 922(g)(1); possession of more than fifteen unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government funds, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001. Yesterday, both Verdell and McIntosh were arraigned on the superseding indictment before U.S. Magistrate Judge Dave Lee Brannon. Verdell had previously been indicted alone for the sole count of unlawful gun possession.
According to allegations contained in the superseding indictment and the court record, Verdell recruited and led her co-conspirators, including McIntosh, in a widespread stolen identity refund fraud scheme involving more than 800 stolen identities and personal identification information (PII). This PII was used to file fraudulent income tax returns online, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and others, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
The indictment further alleges that evidence of the stolen PII was found in Verdell’s home during the execution of a federal search warrant. Also found in Verdell’s home during the search warrant was a stolen .38 caliber pistol.
The investigation further revealed, according to allegations in the indictment, that while Verdell was collecting hundreds of thousands of dollars from the fraudulent tax refunds, she was applying for and receiving federal welfare assistance program benefits, from the U.S. Department of Housing and Urban Development, the U.S. Department of Agriculture (USDA), and other governmental entities. One of those assistance programs was USDA’s Supplemental Nutrition Assistance Program (SNAP), formerly referred to as food stamps. During the application process, Verdell falsely represented her monthly income in order to receive SNAP benefits.
Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG and USDA-OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance in the lengthy investigation and ultimate arrests. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two More Banks Reach Resolutions Under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that two banks, Rothschild Bank AG and Banca Credinvest SA, have reached resolutions under the department’s Swiss Bank Program.
“The days of safely hiding behind shell corporations and numbered bank accounts are over,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “As each additional bank signs up under the Swiss Bank Program, more and more information is flowing to the IRS agents and Justice Department prosecutors going after illegally concealed offshore accounts and the financial professionals who help U.S. taxpayers hide assets abroad.”
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.
Rothschild Bank AG (Rothschild) was founded in 1968 and is headquartered in Zurich, Switzerland. Rothschild offered services that it knew could and did assist U.S. taxpayers in concealing assets and income from the Internal Revenue Service (IRS), including code-named accounts, numbered accounts and hold mail service, where Rothschild would hold all mail correspondence for a particular client at the bank. These services allowed certain U.S. taxpayers to minimize the paper trail associated with the undeclared assets and income they held at Rothschild in Switzerland. For a number of years, including after Swiss bank UBS AG announced in 2008 that it was under criminal investigation, and following instructions from certain U.S. taxpayers, Rothschild serviced certain U.S. customers without disclosing their identities to the IRS. Some of Rothschild’s U.S. clients had accounts that were nominally structured in the names of non-U.S. entities. In some such cases, Rothschild knew that a U.S. client was the true beneficial owner of the account but nonetheless obtained a form or document that falsely declared that the beneficial owner was not a U.S. taxpayer. Since Aug. 1, 2008, Rothschild had 66 U.S.-related accounts held by entities created in Panama, Liechtenstein, the British Virgin Islands, the Cayman Islands or other foreign countries with U.S. beneficial owners. At least 21 of these accounts had false IRS Forms W-8BEN in the file, which are used to identify the beneficial owner of an account. Rothschild knew it was highly probable that such U.S. clients were engaging in this scheme to avoid U.S. taxes but permitted these accounts to trade in U.S. securities without reporting account earnings or transmitting any withholding taxes to the IRS, as Rothschild was required to do. Rothschild also opened accounts for U.S. taxpayers who had left other Swiss banks that the Department of Justice was investigating, including UBS. Since Aug. 1, 2008, Rothschild had 332 U.S.-related accounts with an aggregate maximum balance of approximately $1.5 billion. Of these 332 accounts, 191 accounts had U.S. beneficial owners and an aggregate maximum balance of approximately $836 million. Rothschild will pay a penalty of $11.51 million.
Located in Lugano, Switzerland, Banca Credinvest SA (Credinvest) started operations as a fully licensed bank in 2005. Credinvest offered a variety of services that it knew could assist, and that did assist, U.S. clients in concealing assets and income from the IRS, including hold mail service and numbered accounts. Credinvest did not set up any formalized internal reporting regarding U.S. clients and did not adopt any procedures to ascertain or monitor the compliance of its U.S. clients with their U.S. tax obligations. In late 2008, an external asset manager referred 11 accounts to Credinvest, all of which were for U.S. clients who had left UBS. The bank delegated to that external asset manager the primary management of those accounts and failed to ascertain the compliance of those clients with their U.S. tax obligations. The bank thus aided and assisted those clients in concealing their accounts from U.S. authorities. Since Aug. 1, 2008, Credinvest had 31 U.S.-related accounts with just over $24 million in assets. Credinvest will pay a penalty of $3.022 million.
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.
“These resolutions with Credinvest and Rothschild are further examples of the commitment by the IRS and the Department of Justice to ensure that U.S. taxpayers report foreign bank accounts and pay taxes on all income earned from those accounts,” said Deputy Commissioner Douglas O'Donnell of the IRS Large Business and International Division. “We are encouraged by today’s progress and our ongoing work with the other Swiss banks that have entered the DOJ Swiss Bank Program.”
“The bank agreements announced today continue to change the landscape in the offshore banking world,” said Chief Richard Weber of IRS-Criminal Investigation. “With each additional agreement, the world where criminals can hide their money is becoming smaller and smaller. Those who circumvent offshore disclosure laws have little room to hide.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance, as well as John E. Sullivan, Mark W. Kotila, Sean P. Beaty and Gregory S. Seador, who served as counsel on these matters, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Credinvest executed NPA and SOF.pdf (506.47 KB)
Rothschild excecuted NPA and SOF.pdf (444.58 KB)
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Two Memphians Plead Guilty to Defrauding Federal Government of an Estimated $3 MillionRead the Press Release
Memphis, TN – Two Memphians have pled guilty to partaking in a federal benefit fraud scheme that cost the government an estimated $3 million.
Remark Chism, 35, and Erica Pitchford, 36, both face prison time for their roles in defrauding two public assistance programs: Supplemental Nutrition Assistance Program (SNAP) benefits and Child Care Certificate Program.
From October 2011 to December 2013, Chism, with occasional assistance from Pitchford, recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. The two subsequently redeemed the benefits through Maxi Foods, a grocery store owned by Chism, for full monetary value. More than $1.9 million in SNAP benefits were unlawfully redeemed for cash over the two-year period.
SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.
Chism also masterminded a scheme to defraud the Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance at his daycare center, K.A.R.E. 3 Enrichment Center, and receive reimbursement for care.
The loss to the Certificate Program through K.A.R.E. is estimated at more than $986,000 over the two-year period.
Chism pled guilty today to one count of conspiracy to commit SNAP benefit fraud, one count of conspiracy to commit child care benefit fraud, and one count of false statements. He faces a maximum sentence of 15 years and a maximum fine of $750,000.
Pitchford pled guilty to one count of conspiracy to commit SNAP benefit fraud. She faces a maximum sentence of five years and a maximum fine of $250,000.
Chism is scheduled to be sentenced on September 24 at 1:30 p.m. by Judge Samuel H. Mays.
Pitchford is scheduled to be sentenced September 25 at 9 a.m. by Judge Samuel H. Mays.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department Organized Crime Unit; and the Tennessee Department of Human Services. This case is being prosecuted for the government by Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland.
Three Sentenced in Methamphetamine ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – John Matthew Love, 36, and Bryant Anthony Kreis, 32, of the Panama City area, and Carmen Theresa Silva, 40, of Atlanta, Georgia, were sentenced today by United States District Judge Robert L. Hinkle for conspiracy to distribute more than 50 grams of methamphetamine. Love was sentenced to 84 months in prison, Kreis to 48 months in prison, and Silva to 42 months in prison. Love was also sentenced to a consecutive term of 24 months in prison for possessing a firearm in furtherance of a drug-trafficking crime. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Co-defendants Mabrye Joseph Bettinger, 41, and Dusti Nicole Broxson, 26, both of the Panama City area, were previously sentenced on February 4, 2015, to 94 months and 151 months in prison respectively. Co-defendant Anastacio Mendoza, 37, of Atlanta, Georgia, is scheduled to be sentenced on August 5th at 9:30 a.m.
In September 2014, law enforcement officers arrested Love outside a Panama City Beach apartment building carrying a handgun and five plastic containers filled with methamphetamine. The total weight of the containers and methamphetamine was approximately 4 kilograms. Love admitted to transporting approximately two to four kilograms of methamphetamine from Atlanta to Panama City Beach on approximately 10 separate occasions during the summer and fall of 2014. Love then sold the methamphetamine to mid-level dealers, including Bettinger, Kreis, and Broxson.
Later on the day of Love’s arrest, Bettinger, Kreis, and Broxson showed up at Love’s apartment carrying cash in amounts ranging from approximately $4,000 to $13,900, for the purchase of methamphetamine from Love. Kreis and Bettinger admitted that they had purchased methamphetamine from Love on at least five different occasions. Several days after Love’s arrest, Mendoza and Silva were arrested while transporting an additional 4.8 kilograms of methamphetamine, intended for Love, from Atlanta, Georgia.
The case was investigated by the Drug Enforcement Administration in Panama City, Florida, and Montgomery, Alabama, the Florida Department of Law Enforcement, the Panama City Police Department, the Walton County Sheriff’s Office, the Bay County Sheriff’s Office, the Okaloosa County Sheriff’s Office, and the Houston County Sheriff’s Office. Assistant United States Attorneys Kathryn Risinger and Edwin Knight prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Three Sentenced in Methampetamine ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – John Matthew Love, 36, and Bryant Anthony Kreis, 32, of the Panama City area, and Carmen Theresa Silva, 40, of Atlanta, Georgia, were sentenced today by United States District Judge Robert L. Hinkle for conspiracy to distribute more than 50 grams of methamphetamine. Love was sentenced to 84 months in prison, Kreis to 48 months in prison, and Silva to 42 months in prison. Love was also sentenced to a consecutive term of 24 months in prison for possessing a firearm in furtherance of a drug-trafficking crime. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Co-defendants Mabrye Joseph Bettinger, 41, and Dusti Nicole Broxson, 26, both of the Panama City area, were previously sentenced on February 4, 2015, to 94 months and 151 months in prison respectively. Co-defendant Anastacio Mendoza, 37, of Atlanta, Georgia, is scheduled to be sentenced on August 5th at 9:30 a.m.
In September 2014, law enforcement officers arrested Love outside a Panama City Beach apartment building carrying a handgun and five plastic containers filled with methamphetamine. The total weight of the containers and methamphetamine was approximately 4 kilograms. Love admitted to transporting approximately two to four kilograms of methamphetamine from Atlanta to Panama City Beach on approximately 10 separate occasions during the summer and fall of 2014. Love then sold the methamphetamine to mid-level dealers, including Bettinger, Kreis, and Broxson.
Later on the day of Love’s arrest, Bettinger, Kreis, and Broxson showed up at Love’s apartment carrying cash in amounts ranging from approximately $4,000 to $13,900, for the purchase of methamphetamine from Love. Kreis and Bettinger admitted that they had purchased methamphetamine from Love on at least five different occasions. Several days after Love’s arrest, Mendoza and Silva were arrested while transporting an additional 4.8 kilograms of methamphetamine, intended for Love, from Atlanta, Georgia.
The case was investigated by the Drug Enforcement Administration in Panama City, Florida, and Montgomery, Alabama, the Florida Department of Law Enforcement, the Panama City Police Department, the Walton County Sheriff’s Office, the Bay County Sheriff’s Office, the Okaloosa County Sheriff’s Office, and the Houston County Sheriff’s Office. Assistant United States Attorneys Kathryn Risinger and Edwin Knight prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Texas Man Pleads Guilty to Federal Involuntary Manslaughter and Assault Charges in New MexicoRead the Press Release
ALBUQUERQUE – Alcario DeLuna, 58, a non-Indian man from Hondo, Texas, pled guilty today in federal court in Albuquerque, N.M., to an indictment charging him with involuntary manslaughter and assault resulting in serious bodily injury. The victims of DeLuna’s crimes were two Navajo men, one of whom died, and a Navajo woman.
DeLuna was indicted on June 26, 2013, and charged with killing an Indian man and assaulting an Indian man and woman and causing them to suffer serious bodily injuries. According to the indictment, DeLuna committed these crimes while driving recklessly on May 21, 2011, in the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, DeLuna pled guilty to the indictment under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, DeLuna admitted that on May 21, 2011, he killed a male victim and caused another male victim and a female victim to suffer serious bodily injuries by driving a semi-tractor and trailer in excess of the speed posted for a construction zone and failing to pay attention to the stopped traffic in front of him and causing a collision.
At sentencing, DeLuna faces a statutory maximum penalty of ten years in prison followed by up to three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Taos Pueblo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE—Keith E. Lucero, 27, a member and resident of Taos Pueblo, N.M., pled guilty this morning to an indictment charging him with involuntary manslaughter and assault resulting in serious bodily injury. The guilty plea was entered in federal court in Albuquerque, N.M., without the benefit of a plea agreement.
Lucero was arrested on July 28, 2014, on an indictment charging him with killing an Indian man and assaulting another Indian man, causing him to suffer serious bodily injury on March 2, 2014. The indictment alleged that Lucero committed these crimes while driving under the influence of alcohol in Indian Country in Taos County, N.M.
According to court filings, Lucero killed a Taos Pueblo man who was in Lucero’s vehicle during a crash in El Prado, N.M., while Lucero was under the influence of alcohol. Another Taos Pueblo man who was also a passenger in the vehicle sustained serious bodily injuries as a result of the crash.
During today’s change of plea hearing, Lucero pled guilty to the indictment. At sentencing, Lucero faces a statutory maximum penalty of ten years in federal prison. Maximum potential sentences are prescribed by Congress and are provided for information purposes only. The sentence on Lucero will be determined by the court. Lucero has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Department of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Spring Man Charged with Using Stolen Debit and Card InformationRead the Press Release
HOUSTON – A three-count federal indictment has been returned against Darnell Wayne Menard, 28, of Spring, alleging he used or possessed more than 900 stolen debit and credit card numbers, announced U.S. Attorney Kenneth Magidson.
Menard was arrested yesterday and is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
The indictment charges Menard with one count of trafficking in unauthorized “access devices” (stolen credit and debit card numbers), one count of possessing unauthorized access devices and one count of conspiracy.
Menard and others allegedly purchased, via the Internet, information about stolen debit and credit cards issued by credit unions and banks in various countries, including the United States, Columbia, Sweden and Canada. The indictment alleges he used that information to purchase gift cards and money orders at various merchants in the Houston area. Menard then cashed out those fraudulently obtained items and used the proceeds for his own benefit, according to the charges.
If convicted, Menard faces up to 10 years in federal prison on each of the two access device charges and a maximum of five years on the underlying conspiracy.
The charges are the result of an investigation conducted by the U.S. Secret Service. Assistant U.S. Attorney John Lewis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Six Portage, Pa., Residents Charged in Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - On June 2, 2015, six residents of Portage, Pa., were indicted by a federal grand jury in Johnstown on a charge of conspiring to commit money laundering, United States Attorney David J. Hickton announced today.
The one-count indictment named Tonia Vaughn, 39; Gary E. Vaughn, 41; Melissa R. Seymore, 39; Jason A. Seymore, 39; Brandon Hill, 19; and Brittany Garrett, 21.
According to the indictment presented to the court, from Jan. 1, 2012, to Jan. 22, 2014, the named defendants conspired with one another, and with others, to commit certain offenses against the United States, that is, to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, which involved property representing the proceeds of a specified unlawful activity, that is, mail fraud, in violation Title 18, United States Code, Section 1341, with the intent to promote the carrying on of the specified unlawful activity, and that while conducting and attempting to conduct such financial transaction knew that that property involved in the financial transaction represented the proceeds of some form of unlawful activity in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i).
It was part of the conspiracy that the direction of and business decisions at Gary’s Steals and Deals were made by TONIA VAUGHN and/or GARY E. VAUGHN. It was further part of the conspiracy that, on a daily basis, customers would bring stolen new merchandise [a/k/a “new in package (NIP)” or “new in box (NIB)”] to Gary’s Steals and Deals for purchase by Gary’s Steals and Deals. It was further part of the conspiracy that, on a daily basis, employees of Gary’s Steals and Deals would purchase the stolen new merchandise, knowing it had been stolen. It was further part of the conspiracy that employees at Gary’s Steals and Deals would tender a monetary percentage of the retail value of the stolen new merchandise back to the customer. It was further part of the conspiracy that on frequent occasions, the same customer(s) would bring numerous identical stolen new items of merchandise to Gary’s Steals and Deals (including but not limited to razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets), which were repetitively purchased from the customer(s) by employees at Gary’s Steals and Deals. It was further part of the conspiracy that the stolen merchandise that had been purchased from the customers by Gary’s Steals and Deals was thereafter sold by Gary’s Steals and Deals over the Internet on websites such as Ebay and Amazon. It was further part of the conspiracy that Gary’s Steals and Deals utilized the mail to deliver the stolen merchandise to persons who had purchased such merchandise over the Internet. It was further part of the conspiracy that Gary’s Steals and Deals would receive monetary payments for the stolen merchandise that had been sold over the Internet. It was further part of the conspiracy that, in connection with the above-described offense (mail fraud, in violation of Title 18, United States Code, Section 1341) the named defendants obtained proceeds of such conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each of the defendants.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.