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22 July 2015
Justice Department Settles Disability Discrimination Lawsuit Against University of MichiganRead the Press Release
The Justice Department, along with the U.S. Attorney’s Office of the Eastern District of Michigan, announced today that it has reached an agreement with the University of Michigan under the Americans with Disabilities Act (ADA). The agreement, filed as a consent decree along with a complaint in the U.S. District Court for the Eastern District of Michigan, resolves allegations that the university violated the ADA by failing to accommodate a maintenance employee with degenerative back disease. Specifically, the Justice Department alleged that the university failed to offer the employee, and another employee with a disability, reassignment to available vacant positions for which they were qualified; rather, the employees were required to compete for available positions along with all other applicants. The complaint also alleges that the university engaged in a pattern or practice of disability discrimination by applying a policy that denies reassignment as a reasonable accommodation in violation of the ADA.
Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment. These prohibitions include failing to provide reasonable accommodations, including reassignment, where such an accommodation does not pose an undue hardship.
“It is contrary to the letter and the spirit of the ADA to require disabled employees who need a reassignment as a reasonable accommodation to compete for that assignment,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “As we celebrate the 25th anniversary of the ADA, we recognize its critical impact in the American workplace breaking down barriers for individuals with disabilities. We commend the university for working cooperatively with the department to promptly resolve this matter and affect necessary changes.”
The consent decree, which must be approved by the court, requires the university to pay the employees a total of approximately $215,000 for monetary and compensatory damages, revise the university’s policies on reassignments and transfers, provide training to university staff on Title I of the ADA and file periodic reports with the department.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Jefferson County woman convicted of failure to pay payroll taxesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Patricia Marie Sanderson, 49, of Harpers Ferry, West Virginia, was convicted today of failure to pay payroll taxes, United States Attorney William J. Ihlenfeld, II, announced.
While acting as a manager of Potomac Consulting Services, LLC, a construction planning and consulting firm in Harpers Ferry, Sanderson approved all payments by the company and controlled the company’s bank accounts. Sanderson and the company failed to pay to the Internal Revenue Service nearly $30,000 in payroll taxes withheld from corporate employees.
Sanderson pled guilty today to a criminal Information charging her with one count of “Failure to Pay Tax.” She faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigations led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Internet Prescription Drug Company Guilty of Dispensing Medication Without PrescriptionsRead the Press Release
Agrees to forfeit $450,000 from illegal sale of prescription drugs
LOUISVILLE, Ky. – An internet prescription drug company has pleaded guilty in U.S. District Court this week to charges of dispensing prescription drugs without a valid prescription and has agreed to forfeit $450,000 from the illegal sale of the prescription drugs, announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Aracoma Drug Company operated a traditional and internet pharmacy located in West Virginia, which provided customers in Kentucky and other states with prescription drugs.
During the period between June 2009, through April 2012, Aracoma electronically received invalid prescriptions from NationalRXRPartners for prescription drugs to be dispensed from prescriptions that were issued from questionnaires completed over the internet. These prescriptions were not issued following the examination of patients by a qualified medical provider, as defined in each respective state.
Aracoma accepted these invalid prescriptions, filled these prescriptions, and then dispensed and shipped these prescription drugs to customers in Kentucky and other states throughout the United States and received payment in return.
At the time, Aracoma was aware that a valid prescription was needed prior to dispensing “prescription only” drugs to customers in Kentucky, West Virginia, and other states.
According to the plea agreement, Aracoma has agreed to pay $100,000 on the date of sentencing, and thereafter, make five payments of $70,000, for the next five years.
This case is scheduled for sentencing before U.S. Magistrate Judge Dave Whalin on November 20, 2015, at 1:30pm in Louisville.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations; the Kentucky State Police; and the West Virginia State Police.
Honolulu Woman Pleads Guilty to Fraud SchemeRead the Press Release
HONOLULU – Jennifer McTigue, age 48, of Honolulu, today pled guilty to conspiring to commit wire fraud, mail fraud, and money laundering, as well as committing wire fraud, mail fraud and money laundering. McTigue pled guilty in federal district court before Senior District Judge Consuelo B. Marshall a day after jury selection for her trial was to have commenced.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, McTigue and codefendants Marc Melton and Sakara Blackwell operated a scheme to defraud lending institutions, buyers of real property and title insurance companies through a process of filing fraudulent mortgage release documents with the Hawaii Bureau of Conveyances. Once the Bureau of Conveyances accepted and filed the defendants’ fraudulent "satisfaction of mortgage" forms, McTigue, Melton and Blackwell were able to market and sell properties at substantial profit, since the lending institution holding the mortgage was never paid its outstanding debt. The scheme resulted in the defrauding of not only mortgage lenders, but also innocent buyers who unwittingly bought properties that appeared to be free and clear but were still subject to the existing mortgages. Documents filed in court allege that the defendants defrauded others of over $3.1 million through the operation of their scheme.
McTigue faces up to five years imprisonment as to one conspiracy and up to ten years imprisonment as to the other; up to 20 years imprisonment for wire fraud and mail fraud charges, and up to to ten years imprisonment on the money laundering charge. McTigue will be sentenced by Judge Marshall on October 26, 2015. Melton and Blackwell previously pled guilty and are to be sentenced by Senior District Judge Charles R. Breyer on September 29, 2015.
The investigation resulting in this prosecution was conducted by the Federal Bureau of Investigation. John A. Michelich, Senior Litigation Counsel of the Fraud Section of the Criminal Division of the Department of Justice, and Assistant U.S. Attorneys Marc A. Wallenstein and Kenneth M. Sorenson handled the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OSCAR EDUARDO PENA-TABORA, age 39, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Indictment, on or about March 8, 2015, PENA-TABORA was found in the United States after having been officially deported and removed on or about August 2, 2002.
PENA-TABORA faces a maximum term of imprisonment of two years, followed by one year of supervised release, a fine of $250,000, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Fugitive Arrested in Multi-Million Dollar Investment Fraud SchemeRead the Press Release
BOSTON – A Brazilian national charged with defrauding investors in Massachusetts and elsewhere of more than $12 million was arrested yesterday in Boca Raton, Florida, after evading arrest for more than two weeks.
Daniel Fernandes Rojo Filho, 58, of Orlando, Fla., was charged in a criminal complaint with one count of wire fraud on June 30, 2015. Filho, who did business in Massachusetts and Florida, was arrested coming out of a restaurant in Boca Raton. He had his initial appearance today in U.S. District Court in the Southern District of Florida, and is scheduled to appear again for a bail hearing on July 24.
As alleged in court documents, Filho owns a company called DFRF Enterprises, LLC, which is incorporated in Massachusetts and Florida. Beginning in 2014, Filho and others acting at his direction allegedly began offering people the chance to invest in, and therefore become “members” of DFRF. In solicitations posted in Internet videos, as well as pitches made in person, including a meeting aboard a boat in Boston Harbor, Filho is alleged to have falsely told potential investors that DFRF was engaged in a lucrative, international gold-mining business. Additionally, it is alleged that he misrepresented DFRF’s ties to a consulting company in Brazil and a private bank in Switzerland. It is further alleged that he told potential investors that their principal investments would be 100% insured against losses by a company based in the United Kingdom and Barbados – all of which was untrue.
As further alleged, relying on Filho’s alleged misrepresentations, investors gave Filho and DFRF more than $12 million. Instead of investing the money as promised, however, Filho allegedly took more than $3.5 million himself, spending it on travel, restaurants, and consumer goods -- including approximately $2 million spent on multiple Lamborghinis, a Rolls Royce, a Mercedes, and multiple Cadillacs.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the fraud, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which recently filed a separate civil action against Filho in federal court. The United States Attorney’s Office for the Middle District of Florida also assisted in the investigation.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Myers Man Sentenced to More Than Five Years for Possession of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Kevin Charles Kaszynski to 5 years and 10 months in federal prison for possession of child pornography. He pleaded guilty on January 27, 2015.
According to court documents, from at least April 2009, through on or about July 8, 2013, Kaszynski knowingly possessed child pornography. On September 5, 2013, agents obtained a search warrant for his external hard drive and a subsequent forensic analysis of the drive revealed over 7,000 images and over 400 videos of child pornography. The images were sent to the National Center for Missing and Exploited Children, where it was determined that this external hard drive contained many images of real children, and that the images had been produced throughout the United States and other countries.
Furthermore, on January 27, 2014, agents obtained a search warrant for Kaszynski’s E-Machine computer. A subsequent forensic examination of that computer revealed approximately 300 images and 15 videos depicting child pornography.
“HSI will continue investigating child exploitation cases in all its forms,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Our special agents will continue to identify, apprehend and prosecute those who think they can abuse our children and get away with it.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Fort Myers Police Department. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former Telemarketing Manager Pleads Guilty to Conspiracy ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Tammie Lynn Cline (33, Leominster, MA) has pleaded guilty to conspiracy to commit mail fraud and wire fraud for her role in the operation of a boiler room. She faces up to 20 years in federal prison. Sentencing has been set for October 9, 2015.
Cline and Mark Gardner (28, Osteen, Florida) were indicted on January 28, 2015.
According to court documents, Gardner and Cline operated a boiler room in Central Florida. Along with the telemarketers who worked at their call center, they would make unsolicited calls to owners of timeshare properties located throughout the United States. During those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon, that UTSA had a purchaser who was interested in buying a timeshare, and that the timeshare owner just needed to pay a fee between $1,600 and $2,200 for the sale to proceed.
In order to convince timeshare owners to pay the fee, Gardner, Cline, and their telemarketers would sometimes claim that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and members of the conspiracy would deny or ignore requests for refunds, and would dispute chargebacks with the credit card companies.
In total, victims lost approximately $1.6 million due to the operation of the telemarketing call center.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court. In June 2014, the district court entered a permanent injunction against them related to certain telemarketing practices.
Gardner is set for trial in September 2015. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Representative of Insurance and Investment Company Admits Stealing More Than $650,000 from the Company’s ClientsRead the Press Release
NEWARK, N.J. – A former registered representative of a broker-dealer offering investment products and services, including variable life insurance and annuities, today admitted using his position to steal more than $650,000 from the company’s clients, U.S. Attorney Paul J. Fishman announced.
Kwen Y. Chun, 58, of Midland Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of mail fraud.
According to documents filed in this case and statements made in court:
From September 1998 through June 2014, Chun was employed by the company as a registered agent, with authority to assist clients with withdrawing funds from annuities, applying for deferred annuities, and processing loan requests. Chun diverted funds that belonged to at least eight clients to bank accounts under his control and converted those funds to his own use.
Chun opened a bank account in the name of one client, using the client’s identification without the client’s knowledge or permission. Based upon false representations to the company that the client was requesting withdrawals and loans, Chun caused the company to wire monies from the client’s insurance policies and annuity accounts into the phony account. Chun also admitted that he caused the company to mail numerous checks to his Midland Park residence based upon false representations to the company that at least three other clients had requested to take loans on their insurance policies, which he then deposited into accounts under his control.
Chun admitted to causing other clients to obtain loans from company insurance policies, or to provide him with checks and cash, which Chun falsely advised he would use to open investment accounts on behalf of those clients. Instead, Chun deposited those loan proceeds into bank accounts under his control. He admitted that he provided one of the company’s clients with fabricated statements that purported to show the interest and balance in the client’s fictitious investment account. Chun also provided two other clients with paperwork that purported to illustrate the benefits that they would receive for their alleged annuity investment.
The mail fraud charge to which Chun pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Nov. 2, 2015.
U.S. Attorney Fishman praised inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; criminal investigators with the U.S. Attorney’s Office in Newark; the N.J. Bureau of Securities, Office of the N.J. Attorney General, under the direction of Acting Attorney General John J. Hoffman; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, for the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Joshua P. Cohn Esq., Saddle Brook, New Jersey
Former Postal Inspector Pleads Guilty to Possession of Stolen Mail and Marijuana TraffickingRead the Press Release
SAN JOSE, Calif. — A supervisory postal inspector working at the San Jose Processing and Distribution Center pleaded guilty today to possession of stolen U.S. mail and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Quan Pham Howard, 53, of Saratoga, California, was arrested and charged with theft of mail.
According to his plea agreement, Howard admitted that between late 2010 and June 25, 2014, he unlawfully opened and stole United States mail containing , among other things, quantities of prescription drugs. Further, he admitted possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard is also charged with possessing over eight kilograms of marijuana with the intent to distribute. During this period, to conceal his theft and trafficking, Howard falsified postal records and disabled a surveillance camera at the distribution center.
Howard also admitted that he attempted to obstruct justice when he became aware of the investigation. On July 2, 2014, Howard contacted a former USPS employee whom he had supervised and attempted to influence the employee’s testimony with instructions regarding what to remember about Howard's prior supervision. In addition, Howard repeatedly contacted one of his former supervisors at the San Jose Postal Inspection Service Office, attempting to get her to support his false explanation for his possession of stolen property.
U.S. Attorney Wagner stated: “When those who are supposed to enforce the law exploit it, they go beyond merely violating the law and damage the trust between law enforcement and the communities we are sworn to protect. We will continue our efforts to nurture that trust by working with our law enforcement partners to vigorously investigate and prosecute such cases.”
U.S. Postal Service Office of Inspector General, Special Inquiries Division, Area Special Agent in Charge Curtis Lembke stated: “This criminal behavior within the Postal Service is not tolerated. The overwhelming majority of Postal Service employees who serve the public are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior.”
This case is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez, of the Eastern District of California, is prosecuting the case. Because his role as a postal inspector involved Howard in the investigation of cases in the Northern District of California, the U.S. Attorney’s office for the Northern District was recused from this case, which is proceeding in the United States District Court in San Jose.
Howard is scheduled to be sentenced on November 18, 2015, by United States District Judge Lucy H. Koh. Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Insurance Company President Sentenced to Prison for EmbezzlementRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Deborah Perry, Regional Director of the United States Department of Labor, Employee Benefits Security Administration; announced today that United States District Judge Susan Webber Wright sentenced John Mathis “Matt” Lile, III, age 56, of Little Rock, to one year and one day in federal prison for embezzling more than $100,000 while president of a local insurance company.
Lile was President of the now defunct Cosmopolitan Life Insurance Company, based in Little Rock, which funded and managed self-insurance healthcare plans for small businesses around the State. On September 19, 2014, Lile pleaded guilty to embezzling Cosmopolitan funds. Specifically, Lile admitted that he abused his position by using a company-issued American Express credit card to pay for thousands of dollars in personal expenses over a three-year period, including family vacations to Las Vegas, Florida, and Italy, restaurant supplies, luxury cruises, visits to tanning salons, Hannah Montana concert tickets, and outlet mall shopping sprees.
In addition to the prison sentence, Judge Wright ordered Lile to pay $118,500 in restitution to Cosmopolitan (now in receivership with Arkansas Insurance Department) and to serve three years of supervised release upon the conclusion of his prison term.
“We all need healthcare sooner or later. When the time comes, we rely upon insurance providers to help bear the costs,” said U.S. Attorney Thyer. “We trust that those who run such companies will act in the best interest of their insureds. When they do not, the consequences are far reaching. Matt Lile treated Cosmopolitan like his own personal piggy bank. The United States Attorney’s Office will aggressively pursue anyone who, like Lile, abuses our trust.”
“While Lile held a position of trust and responsibility, he inappropriately took thousands of dollars to finance his own lifestyle, and today’s sentencing makes a strong statement that this type of behavior will not be tolerated,” stated Special Agent in Charge Resch. “We appreciate the efforts made by the United States Attorney’s Office and the United States Department of Labor, and together we will remain vigilant in investigating healthcare fraud.”
“I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector health and pension plans,” said Director Perry.
The FBI and the United States Department of Labor led the investigation. First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Alexander D. Morgan prosecuted the case for the United States.
Former Habersham County Deputy Sheriff Charged for her Role in Flash Bang Grenade IncidentRead the Press Release
ATLANTA – Nikki Autry, a former Habersham County deputy sheriff and special agent of the Mountain Judicial Circuit Criminal Investigation and Suppression Team (“NCIS”), has been indicted by a federal grand jury on charges of providing false information in a search warrant affidavit and providing the same false information to obtain an arrest warrant. Providing false evidence to a judge to obtain a warrant is a federal civil rights violation.
“Our criminal justice system depends upon our police officers’ sworn duty to present facts truthfully and accurately – there is no arrest that is worth selling out the integrity of our law enforcement officers,” said Acting U.S. Attorney John Horn. “In this case, Autry is charged with making false statements to a judge in order to obtain search and arrest warrants. Without her false statements, there was no probable cause to search the premises for drugs or to make the arrest. And in this case, the consequences of the unlawful search were tragic.”
“Integrity is an absolute cornerstone for those who serve in law enforcement and today’s federal indictment of former Deputy Sheriff Autry, sadly, clearly illustrates the results when there is a departure from that ever important core value. The FBI will continue to provide investigative assets and resources toward investigating and presenting for prosecution allegations of law enforcement misconduct as seen here,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“As a result of this investigation, the GBI has partnered with law enforcement and prosecution officials in Habersham County and northeast Georgia to revamp drug enforcement operations in order to prevent incidents such as this in the future.” said Vernon M. Keenan, Director, Georgia Bureau of Investigation.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: Autry worked for the Habersham County, Georgia, Sheriff’s Office from 2004 to 2014. On the night of May 27, 2014, Autry and other members of the NCIS team were attempting undercover narcotics buys from various subjects in Habersham County.
Eventually, a brand new NCIS informant and two of his associates – his wife and a roommate – went to a residence located in Cornelia, Georgia. The informant’s roommate, who was not officially working with NCIS, approached the residence and allegedly purchased a small quantity of methamphetamine from an individual unknown to him who was standing outside the residence. There was no police surveillance to verify the purchase. Shortly afterwards, Autry presented an affidavit to a Habersham County magistrate judge falsely swearing that the NCIS informant made the purchase and that the NCIS informant was “a true and reliable informant who has provided information in the past that has led to criminal charges on individuals selling narcotics in Habersham County.”
The federal indictment alleges that Autry knew the NCIS informant had not purchased any methamphetamine from anyone at the residence and the NCIS informant had not proven himself to be reliable in the past. Additionally, the indictment alleges that Autry had not confirmed that there was heavy traffic in and out of the residence. Based on this false information, the magistrate judge issued a “no-knock” search warrant for the residence and an arrest warrant for W. T., who allegedly sold the methamphetamine. The warrant obtained by Autry was executed approximately two hours later, during the early morning hours of May 28, 2014.
During the execution of the search warrant, a Habersham County deputy sheriff tossed a “flash and noise distractionary device,” also known as a flash bang grenade, into a side door of the residence. The flash bang grenade was thrown directly into the room where an 18-month-old toddler was sleeping. The grenade landed inside the toddler’s playpen and critically injured him. The toddler and his family had been staying at the residence for approximately six weeks prior to the search. They are relatives of the lawful occupants of the residence. W. T. was arrested shortly after the flash bang incident at a nearby residence.
Nikki Autry, 29, of Clarkesville, Georgia, will be arraigned by a U.S. Magistrate Judge later this week. The indictment charges Autry with four counts of civil rights violations for willfully depriving the occupants of the residence of their right to be free from unreasonable searches and seizures by a police officer and for knowingly depriving W. T. of his right to be free from arrest without probable cause.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Georgia Bureau of Investigation, and the District Attorney’s Office of the Mountain Judicial Circuit.
Assistant United States Attorneys William McKinnon, Brent Alan Gray and Mary Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former FCI Danbury Employee Sentenced to Prison for Participating in Bribery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KISHA PERKINS, 43, of Waterbury, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by one year of supervised release, for participating in a bribe scheme at the Federal Correctional Institution in Danbury (FCI Danbury) where she was employed as a case manager.
According to court documents and statements made in court, in June 2013, PERKINS approached another FCI Danbury employee about an opportunity to participate in a scheme to solicit a cash bribe from an inmate at FCI Danbury in exchange for the inmate’s early release to a halfway house. At that time, PERKINS held the job title of “Unit Counselor” at FCI Danbury and did not have administrative authority to recommend inmates for early release. PERKINS explained that her co-worker was needed to complete the scheme because the co-worker had the administrative ability to recommend inmates for early release.
PERKINS’ co-worker declined to participate in the scheme, reported the incident to law enforcement and agreed to cooperate in the investigation, which included the use of numerous consensually recorded conversations.
In July 2013, under the direction of law enforcement, PERKINS’ co-worker told PERKINS that he/she had changed his/her mind and wanted to participate in the scheme. PERKINS informed her co-worker that a scheme involving the inmate who had been previously identified was no longer feasible. In February 2014, as part of an undercover scenario, PERKINS’ co-worker identified a second inmate as a possible candidate for the bribe scheme. PERKINS agreed to participate and, after extensive planning, on March 8, 2014, PERKINS and her co-worker traveled to a commuter lot off of Exit 28 on Interstate 84 to pick up a partial bribe payment of $5,000 in cash in a fast food bag that, as PERKINS believed, was to be dropped off by an acquaintance of the inmate.
PERKINS was arrested on March 14, 2014.
On April 27, 2015, PERKINS pleaded guilty to one count of acceptance of a bribe by a public official. In pleading guilty, PERKINS specifically admitted that she participated in the scheme and, in February 2014, agreed to accept a pair of shoes or a Louis Vuitton pocketbook in return for counseling the employee regarding the bribe scheme and failing to report the bribe scheme to prison officials.
This matter was investigated by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Susan Wines.
Former Branch Manager of Bank Who Cashed over $400,000 in Fraudulently Obtained Tax Refund Checks Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN MEJIA was sentenced today in Manhattan federal court to 44 months in prison for his participation in a scheme to cash more than $400,000 in fraudulently obtained federal tax refund checks issued in other people’s names. MEJIA pled guilty to one count of theft of public funds and one count of aggravated identity theft in December 2014 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
According to the allegations in the Complaint and Information filed in this case, and statements made at related court proceedings:
Until March 2014, MEJIA worked at branches of a bank (“Bank-1”) in Yonkers and Manhattan. MEJIA initially was a banker and later became the branch manager of multiple branches of Bank-1. From 2010 through 2013, MEJIA participated in a scheme to fraudulently obtain and cash tax refund checks issued by the United States Treasury. The fraudulent refund checks were generated by the filing of false and fraudulent tax returns in the names of other people (the “Purported Filers”), and the checks were made payable to the Purported Filers. As part of this scheme, MEJIA helped facilitate the cashing of the fraudulent refund checks.
In particular, MEJIA obtained personal identification information for the Purported Filers, including their Social Security numbers and dates of birth. MEJIA then cashed the fraudulent checks himself or by paying a co-conspirator to do so. When cashing a fraudulent check himself, MEJIA presented the refund check, along with the corresponding Social Security number and date of birth of the Purported Filer, to a complicit bank employee. Other times, MEJIA paid a co-conspirator to open bank accounts in the names of the Purported Filers and cash the checks. As part of the scheme, MEJIA cashed, or caused others to cash, more than $400,000 in fraudulent Treasury checks.
In imposing the sentence, Judge Engelmayer told MEJIA: “You played a central role in a fraud that cost the IRS more than $442,000. That was money that the IRS uses to pay for the public good; it pays for first responders, it pays for teachers, it pays for other government employees, it goes to clean our streets, it goes to clean our parks, it goes to fund our military. Tax fraud is a very serious matter. It should be taken every bit as seriously as fraud directed to individual victims.”
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In addition to the term of prison, MEJIA, 31, was sentenced to three years of supervised release and was ordered to pay $442,642.58 in forfeiture and $442,642.58 in restitution.
Mr. Bharara praised the outstanding efforts of the Internal Revenue Service Criminal Investigation Division and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jonathan Cohen is in charge of the prosecution.
Federal Grand Jury Charges Three Others with Aiding San Antonio Businessman in a Scheme to Defraud Personal Injury ClientsRead the Press Release
Today, a federal grand jury returned a superseding indictment against 46-year-old San Antonio businessman Elpidio Gongora (aka “Pete Gongora”) and three other individuals for their roles in a scheme to defraud personal injury clients. Gongora also faces charges relating to evading payment of more than $1 million in taxes and attempting to hide substantial assets from the Bankruptcy Trustee. That announcement was made United States Attorney Richard L. Durbin, Jr.; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; William Cotter, Internal Revenue Service (IRS) Criminal Investigation Acting Special Agent in Charge; and, Judy A. Robbins, U.S. Trustee for the Southern and Western Districts of Texas.
The 17-count superseding indictment charges Gongora; his 48-year-old bookkeeper Rosa Ramirez of San Antonio; 47-year-old Juan Rodriguez of San Antonio; and, 53-year-old Ronald Higgins, former San Antonio attorney and current Sugarland, TX resident, with one count of conspiracy to commit mail fraud. Gongora is also charged with five counts of mail fraud, five counts of bankruptcy fraud, one count of tax evasion and five counts of aggravated identity theft. Ramirez is also charged with five counts of mail fraud and five counts of aggravated identity theft.
According to the indictment, from 2009 through 2014, Gongora, aided and abetted by Ramirez and Rodriguez, operated the law offices of several personal injury attorneys, including the Law Office of Ronald Higgins, in the city of San Antonio and elsewhere in Texas, Arkansas and New Mexico. The indictment alleges that Gongora and Ramirez stole money from these attorneys and their clients by failing to pay monies owed to clients under settlement agreements or to pay obligations for medical treatment and physical therapy after committing to do so. To carry out this scheme, the indictment alleges that Gongora and Ramirez fraudulently endorsed personal injury settlement checks and would hide from the attorneys their failure to pay clients settlement proceeds to which they were entitled. The indictment further alleges that Rodriguez paid money to individuals with insurance and tow truck companies for information pertaining to accident victims. The indictment also alleges that Higgins accepted money in return for allowing Gongora and Ramirez to essentially utilize his law license with impunity and exercised a complete and total lack of oversight.
In 2013, Gongora and his wife filed for Chapter 7 Bankruptcy in the Western District of Texas. The indictment alleges that, in relation to that filing, Gongora failed to disclose to the Bankruptcy Trustee that he owned personal assets that included a 33-foot Chris Craft cabin cruiser; a 29-foot 2005 Seaswirl boat; a 2005 Ford F-150 truck; real property located on Elm Valley in San Antonio; and, a residence located in Aransas Pass, TX.
The indictment further alleges that Gongora willfully attempted to evade paying over $1 million in taxes owed to the Internal Revenue Service for calendar years 2003 through 2005 and 2007 through 2013.
Gongora remains in federal custody after being arrested in April at the San Antonio International Airport. Court summonses will be issued for the other defendants. Upon conviction, conspiracy to commit mail fraud and mail fraud are punishable by imprisonment up to 20 years; bankruptcy fraud, up to five years; tax evasion, up to five years; and, aggravated identity theft, a term of two years.
These charges resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Trustee’s Office. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Elkins man sentenced for unlawful possession of firearmRead the Press Release
ELKINS, WEST VIRGINIA – Johnny Lee Green Jr., 56, of Elkins, was sentenced today to 33 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In 1978, Green was convicted of the felony offenses of “First Degree Murder” and “Using a Weapon in Commission of a Felony.” As a result of those convictions, he is prohibited from possessing firearms. He was discovered in July 2014 in unlawful possession of a 9mm pistol.
Green pled guilty in April 2015 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Eastside gang dismantled in gun and drug arrestsRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler announced today that an Eastside gang has been dismantled as 20 of its members were arrested by federal, state and local law enforcement this morning. Over 525 agents, troopers, officers and support personnel served search and arrest warrants today in early morning raids in some of Indianapolis’ most challenged neighborhoods.
“Protecting our neighborhoods is a shared responsibility of all law enforcement agencies in Marion County,” said Minkler. “Preventing violent crime and holding those accountable who choose to terrorize our community remains one of this office’s top priorities.”
In late 2014, the FBI and IMPD began an investigation into a gang operating on the eastside of Indianapolis known as Block Burners. The gang of approximately 90 members operated in the area of East 42nd Street and North Post Road, which was in the heart of one of the Indianapolis Department of Public Safety’s focus areas. According to law enforcement officials, the Block Burner gang was one of the most violent operating in Indianapolis.
Through various investigative techniques, law enforcement quickly learned that the majority of the gang members were engaged in violence and were distributing pound-quantities of heroin, cocaine, marijuana and prescription pain pills. It was further learned that the gang members would routinely possess illegal weapons to carry out their illegal activities.
Today’s enforcement action included approximately 525 law enforcement personnel, 19 partner agencies and 19 SWAT teams from all around the state of Indiana and the Midwest. Search and arrest teams served 22 federal and state warrants at 32 different locations in two waves. Warrants today produced 21 firearms, multiple quantities of heroin, cocaine, marijuana and prescription pain pills as well as over $53,000 in cash.
Arrested for federal conspiracy to distribute heroin or cocaine include:
- David Williams, 36
- Fred Davidson, 32
- Damon Smith, 19, a/k/a Dumm
- Dustin Murry, 28, , a/k/a D-Rock
- Scott Foor, 34. A/k/a White Boy
- Mark Nelson, 29
- Donte York, 23
- Darrell Stennis, 26
- Aaron Garrett, 22, a/k/a Nanny
- Anthony Burgess, 22
- Brandon Jordan, 27, a/k/a B
- William Davenport, 25
Garrett, Jordan and Murry also face federal charges of possession of a firearm in furtherance of drug trafficking activity.
- Kevin D. Kyner, 32, a/k/a Kevin Leslie, faces federal narcotic and weapons charges.
Arrested for state narcotic and firearms charges include:
- Tremaine Tatum, 22
- William Patterson, 39
- Kevin Johnson, 27
- Dominque Burton, 27
- Khadijah Walker, 34
- Craig Cooper, 18
- Marcus Baxter, 26
- Tommie Jackson, 35
“The FBI recognizes the hard work and dedication of our close partners on the Safe Streets Task Force, to include the Indianapolis Metropolitan Police Department, the Indiana State Police, the United States Attorney’s Office, Fishers Police Department, Carmel Police Department and the Marion County Prosecutor’s Office,” said W. Jay Abbott, Special Agent in Charge of the FBI, Indianapolis. “Together, we conducted an extensive investigation, dedicated significant resources, and utilized a myriad of investigative techniques to disrupt the violent crimes perpetrated by this long standing gang. With today's enforcement action, the leadership, hierarchy, members and support network of this violent gang have been decimated. The citizens of Indianapolis can be assured the streets are safer and the FBI remains vigilant to combat violent crime wherever it may be.”
“We’ve identified key persons and areas entrenched in violence and drug activity within Indianapolis, said IMPD Chief Rick Hite. “Today is a shining example of the collaboration with our Federal, State and local partners while listening to the concerns within our community. These arrests serve as a reminder to those who wreak havoc on our community; that you will be investigated, and you will be arrested.”
“Strategic investigations such as this are key to dismantling the criminal enterprises which contribute to violent crime and illegal drug distribution in our community,” Marion County Prosecutor Terry Curry added. “We appreciate the cooperation of the law enforcement agencies, agents, troopers, officers and prosecutors involved in this investigation.”
Indiana State Police Supt. Doug Carter said, “To successfully conclude an investigation of this magnitude takes an incredible amount of manpower and coordination to ensure the safety of the community at large as well as the police officers executing the warrants.”
According to Michelle Brady who is prosecuting this case for the government, all defendants could spend decades in prison if convicted of all crimes.
A criminal complaint is only a charge and all defendants are considered innocent until proven otherwise in court.
Doctor Sentenced to 21 Months in Prison for Taking Bribes as Part of Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Middlesex County doctor with practices in Jersey City, New Jersey, was sentenced today to 21 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DelPiano, 55, of Monmouth Junction, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including DelPiano, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $11 million through forfeiture.
According to documents filed in this and related cases and statements made in court:
DelPiano admitted that from October 2005 through March 2013, he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $2,300 per month. In return for a total of $189,175 in bribes, DelPiano’s referrals generated at least $1,752,603.24 in lab business for BLS.
In addition to the prison term, Judge Chesler sentenced DelPiano to one year of supervised release and fined him $10,000. DelPiano must also forfeit $207,500 as part of his plea agreement.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Wick Sollers Esq., Washington, D.C.
District Men Plead Guilty to Charges in 2013 Killing, Admit Shooting Victim in Southeast WashingtonRead the Press Release
WASHINGTON – Carlos Parks, 19, and Troy Robinson, 20, both of Washington, D.C., pled guilty today to charges stemming from the shooting death of a man in June 2013 in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Parks pled guilty in the Superior Court of the District of Columbia to second-degree murder while armed for the death of Tywayne Thompson. The plea, which is contingent on the Court’s approval, calls for 12 to 24 years of incarceration. Robinson pled guilty in the same court to the charge of voluntary manslaughter while armed for the same murder. His plea, also contingent on the Court’s approval, is for 10 to 15 years of incarceration. Both defendants are to be sentenced on Nov. 6, 2015, by the Honorable Jennifer Anderson.
According to the government’s evidence, on June 24, 2013, at approximately 1:20 a.m., Parks and Robinson were outside in the Potomac Gardens Housing Complex in the 700 block of 12th Street SE. At that time, Parks and Robinson were each armed with semi-automatic pistols. A few minutes later, they approached Mr. Thompson, 25, who was also outside in the Potomac Gardens Housing Complex. They began to speak with him.
Robinson then began shooting at Mr. Thompson. At least one bullet from Robinson’s gun hit the victim. Parks then also began shooting at Mr. Thompson, and at least one bullet from Parks’s gun hit Mr. Thompson in his buttocks and exited through his abdomen. Mr. Thompson was taken by ambulance to a local hospital, where he died as a result of the wound from shot fired by Parks through his buttocks and abdomen. Mr. Thompson was unarmed, and neither defendant was acting in self-defense.
In announcing the guilty pleas, Acting U.S. Attorney Cohen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the First Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, La June Thames, M. Laverne Forrest, David Foster, and Michael Hailey of the Victim/Witness Unit; former Paralegal Specialist Mia Beamon; Paralegal Specialist Sandra Lane; and Litigation Technology Specialist Leif Hickling. Finally, he praised the efforts of former Assistant U.S. Attorney Jonathan Kravis, who investigated and indicted the case, and Assistant U.S. Attorneys Michael Liebman and Christopher Bruckmann, who prosecuted the case.
Denver Man Pleads Guilty to Flying A Plane Loaded with Marijuana to KansasRead the Press Release
WICHITA, KAN. – A Denver man has pleaded guilty to flying a plane loaded with marijuana into an airport in Iola, Kan., U.S. Attorney Barry Grissom said.
Kenneth E. Weaver, 59, Denver, Colo., pleaded guilty Tuesday to one count of possession with intent to distribute marijuana. In his plea, he admitted that on July 11, 2014, he flew his plane into the Iola airport carrying 207 pounds of medical grade marijuana.
The Drug Enforcement Administration has administratively forfeited his plane – a 1979 Israel Aircraft Industries Model 1124 jet – and $457,580 in cash.
Sentencing is set for Oct. 5. Both parties have agreed to recommend a sentence of 12 months. Grissom commended the Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Defendant Sentenced to 30 Months on Gun ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Derrick Dewayne Cooks, 31, of Mobile, Alabama was sentenced today by United States District Chief Judge William H. Steele to 30 months imprisonment for possession of a firearm by a felon. The judge ordered that Cooks undergo 3 years of supervised release upon completing his term of imprisonment, receive drug abuse testing and substance abuse treatment, and that he pay a $100 mandatory special assessment. Cooks was indicted by a federal grand jury in October 2014 for possessing a pistol as a convicted felon in January 2014. He pled guilty to the offense in April 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.
Crestview Man Sentenced for Attempted Enticement of a Minor and Federal Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA – William M. Goode, 48, of Crestview, Florida, was sentenced today to 10.5 years in prison, followed by a lifetime of supervision, for attempting to entice a minor for sex and for receipt of child pornography. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his guilty plea on April 1, 2015, Goode admitted to posting an online advertisement to solicit sex with a minor, which an undercover law enforcement officer answered in November 2014. Goode’s online communications with the undercover officer were an attempt to entice sexual activity with the undercover officer’s purported 12-year-old daughter. Goode arranged to meet the undercover officer in Pensacola but was taken into custody after traveling more than 50 miles for the sexual encounter. A subsequent forensic review of Goode’s digital media revealed several dozen images of child pornography and numerous online communications with people who offered to allow Goode to engage in sexual acts with minors.
United States Attorney Marsh praised the work of the U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
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 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.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Convicted Former Chief Financial Officer Indicted on Additional Fraud-Related ChargesRead the Press Release
SAN FRANCISCO- A federal grand jury issued a new indictment yesterday against Henry Lo, the former Chief Financial Officer of San Francisco-based Absolutely New, Inc., announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The indictment alleges Lo committed numerous acts of fraud even as he was being prosecuted for other crimes.
Lo, 51, of San Francisco, pleaded guilty on November 20, 2014, to two counts of wire fraud and one count of mail fraud. He was sentenced on April 9, 2015, to 70 months in prison. Yesterday’s indictment alleges both before and after he was charged and pleaded guilty in 2014, Lo committed additional crimes. Specifically, Lo allegedly committed bank fraud by altering and misappropriating checks of Character SF, LLC, a company for which he was serving as a contract CFO. Further, according to the indictment, Lo committed aggravated identity theft by forging the signature of one of the owners of Character, and money laundering by engaging in transactions of more than $10,000 of funds that he had stolen from Character.
Lo also violated an order of federal Magistrate Judge Jacqueline Scott Corley who had directed Lo not to dispose of real property, according to the indictment. This order was issued by Judge Corley in a federal civil case. The order notwithstanding, Lo allegedly transferred real property, consisting of his $3.1 million home in San Francisco, to his wife so that she could own it as her sole property in her own name.
In sum, Lo was charged with two counts of contempt of court, in violation of 18 U.S.C. 401(3); eight counts of bank fraud, in violation of 18 U.S.C. 1344(2); one count of aggravated identity theft, in violation of 18 U.S.C. 1028(a)(1); and two counts of engaging in monetary transactions in property derived from unlawful activity, in violation of 18 U.S.C. 1957.
Lo already is in custody as a result of the charges for which he pleaded guilty in 2014. If convicted on these additional charges, there is no maximum prescribed prison term, fine or term of supervised release for contempt of court. The maximum penalty for each count of bank fraud is 30 years' imprisonment, $1,000,000 (or twice the gross gain or loss), and five years' supervised release. The maximum penalty for aggravated identity theft is a two year mandatory minimum consecutive imprisonment, a $250,000 fine (or twice the gross gain or loss), and a year of supervised release. The maximum penalty for money laundering is 10 years’ imprisonment, a $250,000 fine (or twice the amount of criminal derived property from the transaction), and three years of supervised release. Lo may be subject to additional fines, assessments, and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentience, 18 U.S.C. s 3553.
Assistant U.S. Attorney Kyle Waldinger is prosecution the case with the assistance of Jessica Meegan, Mary Mallory, and Allen Williams. The prosecution is a result of an investigation by the Federal Bureau of Investigation.
Connecticut Man Charged with Area Bank RobberiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury sitting in Scranton, Pennsylvania, has returned an Indictment late yesterday, charging David Sandy Lee Parks, age 59, of Connecticut, with committing two bank robberies.
According to United States Attorney Peter Smith, the two-count Indictment alleges that Parks committed the following robberies:
- the armed robbery of the Peoples Security Bank, Duryea, Pennsylvania, on July 3, 2015; and
- the armed robbery of the Wells Fargo Bank, Plymouth, Pennsylvania, on July 10, 2015.
Police officers from the Upper Macungie Police Department arrested Parks on July 17, 2015, and charged him with a robbery of the First Niagara Bank, Trexlertown, PA, that occurred earlier that day. He is presently being held at the Lehigh County Jail in Allentown, Pennsylvania.
The case was jointly investigated by special agents of the Federal Bureau of Investigation, Pennsylvania State Police, the Duryea Police Department, the Plymouth Township Police Department, the Upper Macungie Police Department, Luzerne County District Attorney’s Office, Pittston Police Department, Wilkes-Barre and Wilkes-Barre Township Police Department, Plains Township Police Department, Jenkins Township Police Department, West Pittston Police Department, Edwardsville Police Department, and Hanover and Kingston Police Departments. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 25 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Connecticut Insulation Contractor Sentenced to 57 Months in Federal Prison for Operating Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWARD PETRUCCI, 58, of Orange, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 57 months of imprisonment, followed by three years of supervised release, for operating a scheme that defrauded a company of more than $2.5 million and forced it to go out of business.
According to court documents and statements made in court, PETRUCCI operated Womco Insulation, Inc., Incor Group, Inc., D & N Insulation Company, and Petco Insulation Company, all of which were West Haven-based companies that performed construction services, mechanical insulation and asbestos removal in large-scale building projects in Connecticut, New York, Massachusetts and Florida.
In 2006, PETRUCCI, who had just been released from federal prison, was unable to secure funding from a bank so he started doing business with Platinum Funding Services, LLC, a New York factoring company that provided funding to client companies. A factoring company typically purchases a company’s receivables at a discount, providing the company with liquid assets at a discounted rate while purchasing the right to collect on the purchased receivables at a later date.
In the beginning of their relationship, Platinum regularly purchased PETRUCCI’s invoices from legitimate insulation jobs throughout Connecticut and collected on those invoices without any serious problems. However, from approximately December 2007 to April 2009, PETRUCCI defrauded Platinum by causing his companies to sell invoices to Platinum that PETRUCCI knew were fake, and which were for work that his companies had not performed and, in many cases, would not perform in the future.
Through this scheme, PETRUCCI’s companies received more than $2.5 million in payments from Platinum that were based on the fraudulent invoices, and on invoices that he double collected without forwarding the money to Platinum.
PETRUCCI’s scheme forced Platinum out of business and approximately 40 Platinum employees lost their jobs.
Judge Covello ordered PETRUCCI to pay restitution in the amount of $2,979,972.53.
On November 7, 2013, PETRUCCI pleaded guilty to one count of wire fraud and one count of mail fraud.
PETRUCCI has a prior federal conviction. In May 2005, PETRUCCI was sentenced to two months in prison for filing false corporate and personal tax returns and evading the payment of more than $1 million in federal income taxes. He was serving a three-year term of federal supervised release when he began the scheme against Platinum.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Robert M. Spector.
Charleston husband and wife sentenced for illegal firearm possessionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Carl Taylor, 64, and Patsy Taylor, 52, of Charleston were each sentenced yesterday to federal prison for illegal firearm possession. On January 4, 2013, Carl Taylor received a package of 100 oxycodone pills. Just weeks earlier Carl and Patsy Taylor had received a package of 90 oxycodone pills. During a search of the Taylor residence, a loaded .40 caliber Smith & Wesson handgun was discovered. The Taylors admitted that at the time they jointly possessed the firearm, they were unlawful and habitual users of oxycodone. United States District Judge Thomas E. Johnston sentenced Patsy Taylor to 12 months and one day imprisonment, and Carl Taylor to five months imprisonment to be followed by five months of home confinement. Both Patsy and Carl Taylor must also complete a three year term of supervised release following their prison sentences.
The investigation was conducted by the U.S. Postal Inspection Service and the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Haley Bunn was responsible for the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
California Woman Pleads Guilty to Federal Heroin and Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Graciela Meraz, 38, of Chula Vista, Calif., pleaded guilty this morning in federal court in Albuquerque, N.M., to heroin and methamphetamine trafficking charges.
Meraz was arrested on Feb. 4, 2015, and was charged in a criminal complaint with possession of heroin and methamphetamine with intent to distribute. According to court documents, Meraz was arrested by DEA agents at the Greyhound Bus Station in Albuquerque after a consensual search of her baggage revealed that she was carrying more than a kilogram of heroin and more than four kilograms of methamphetamine. Meraz was subsequently indicted on those same charges on Feb. 25, 2015.
During today’s proceedings, Meraz pled guilty to a two-count felony information charging her with possession of methamphetamine and heroin with intent to distribute. In entering the guilty plea, Meraz admitted that on Feb. 4, 2015, she was paid by an individual to transport approximately 9.24 pounds of methamphetamine and 2.53 pounds of heroin from Los Angeles, Calif. to Oklahoma City, Okla., when she was arrested by DEA agents.
At sentencing, Meraz faces a statutory minimum of five years and a maximum of 40 years in prison followed by not less than four years of supervised release. Meraz remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Nicholas J. Ganjei is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Buffalo Man Sentenced on Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Michael Woods, 26, of Buffalo, NY, who was convicted of possession of a firearm in furtherance of drug trafficking and being a felon in possession of a firearm, was sentenced to 84 months in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated on March 19, 2012, Woods was riding in a vehicle that Buffalo Police attempted to pull over. Rather than comply with the police request, the vehicle led the officers were on a pursuit. The defendant eventually got out of the vehicle and threw a .45 caliber gun to the ground while attempting to flee the scene. A search of the vehicle uncovered crack cocaine in the back seat of the vehicle where the defendant had been sitting before he fled from the vehicle. As part of his plea, Woods admitted that he possessed the firearm in furtherance of his crack cocaine business.
On May 27, 2013, Buffalo Police again stopped a vehicle Woods was riding in. The defendant got out, threw 9mm gun to the ground and four vials of marijuana while running away from police. He was later apprehended by police officers after a foot chase.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation.Buffalo Man Arrested, Charged with Possession of Child PornogrphyRead 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 Daniel Sasiadek, 61, of Buffalo, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that according to the complaint, on July 16, 2015, a search warrant was executed at the defendant’s residence. Law enforcement officers seized a desk-top computer and other forms of digital media including recordable DVD’s and CD’s.The complaint states that during an interview with law enforcement, Sasiadek admitted to occasionally viewing and saving child pornography on his desk-top computer. The defendant also stated that officers might find some old child pornography on the computer and that he deleted a lot of child pornography from the computer many years ago.
A review of one of 536 file folders located on just one of the DVD’s revealed 46 images of child pornography. The graphic images included prepubescent children.
Sasiadek made an initial appearance this afternoon before U.S. Magistrate Judge Hugh B. Scott and is being detained.
If anyone has additional information regarding Sasiadek and the investigation, please call the Federal Bureau of Investigation at 716-856-7800.
The complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Child Exploitation Task Force which includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
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.
Baton Rouge Woman Sentenced to 38 Months for Embezzling $465,000 from Former EmployerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORI S. FRY, age 47, of Baton Rouge was sentenced by Chief U.S. District Judge Brian A. Jackson to 38 months in federal prison, following her convictions of nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343. FRY was also ordered to make restitution to her victims totaling approximately $465,444, and she will be required to forfeit the proceeds of her criminal scheme. Following her release from prison, FRY will be required to serve a term of supervised release.
FRY began working at inoLECT, an engineering firm in Baton Rouge, in 2006. From April of 2009 through August of 2012, while employed as a manager and bookkeeper at the firm, FRY diverted over 100 separate payments from the company’s bank account either to her own personal bank accounts or to pay her credit cards. FRY created false entries in the company’s internal records to advance and conceal her scheme. In total, FRY embezzled approximately $465,000 from the company’s bank account.
U.S. Attorney Walt Green stated, “My office will continue to make fraud and embezzlement prosecutions a high priority, as we work to hold corrupt insiders such as this defendant accountable for their crime. The defendant’s actions in the case were especially egregious in that she not only betrayed the trust placed in her by her employer, but that this was her second conviction for embezzlement. Criminal conduct like this undermines the financial health of honest businesses and can threaten jobs held by honest employees. The fact that the Court ordered the defendant immediately remanded into federal custody following today’s sentencing speaks to the serious nature of this offense. I appreciate the thorough investigation performed in this case by the Federal Bureau of Investigation.”
This matter was investigated by the Baton Rouge office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr. and Special Assistant United States Attorney J. Brad Casey.
Attorney General Lynch Statement Following the Federal Grand Jury Indictment Against Dylann Storm RoofRead the Press Release
Attorney General Lynch released the following statement after the federal grand jury released its indictment against Dylann Storm Roof:
“Good afternoon and thank you for coming.
“I am joined here today by Vanita Gupta, the head of the department’s Civil Rights Division and Mark Giuliano, Deputy Director of the FBI.
“We are here today to announce that a federal grand jury in South Carolina has returned a 33-count indictment against Dylann Storm Roof, charging him with federal hate crimes and firearms charges for killing and attempting to kill African-American parishioners at Emanuel African Methodist Episcopal Church in Charleston, South Carolina, because of their race and in order to interfere with their exercise of their religion.
“As set forth in the indictment, several months prior to the tragic events of June 17, Roof conceived of his goal of increasing racial tensions throughout the nation and seeking retribution for perceived wrongs he believed African Americans had committed against white people.
“To carry out these twin goals of fanning racial flames and exacting revenge, Roof further decided to seek out and murder African Americans because of their race. An essential element of his plan, however, was to find his victims inside of a church, specifically an African-American church, to ensure the greatest notoriety and attention to his actions.
“As alleged, Roof set forth the evening of June 17, 2015 to carry out this plan and drove to the Emanuel African Methodist Episcopal Church in Charleston, South Carolina, known as “Mother Emanuel.” Mother Emanuel was his destination specifically because it was a historically African-American church of significance to the people of Charleston, of South Carolina and the nation.
“On that summer evening, Dylann Roof found his targets, African Americans engaged in worship. Met with welcome by the ministers of the church and its parishioners, he joined them in their bible study group. The parishioners had bibles. Dylann Roof had his 45 caliber glock pistol and eight magazines loaded with hollow point bullets. And as set forth in the indictment, while the parishioners of Mother Emanuel were engaged in religious worship and bible study, Dylann Roof drew his pistol and opened fire on them, ultimately killing nine church members.
“As you know, the state of South Carolina is also prosecuting Roof for the murders, attempted murders and firearms offenses he is alleged to have committed. We commend the state authorities for their tremendous work and quick response. It is important to note, however, that South Carolina does not have a hate crimes statute and as a result, the state charges do not reflect the alleged hate crime offenses presented in the federal indictment returned today.
“The federal indictment returned today charges Roof with nine murders and three attempted murders under the Matthew Shepard and James Byrd Hate Crimes Prevention Act. This federal hate crimes law prohibits using a dangerous weapon to cause bodily injury, or attempting to do so, on the basis of race or color. The Shepard Byrd Act was enacted specifically to vindicate the unique harms caused by racially motivated violence.
“Roof is also charged with nine murders and three attempted murders under a second federal hate crimes statute that prohibits the use or threat of force to obstruct any person’s free exercise of their religious beliefs.
“Finally, Roof has been charged with multiple counts of using a firearm in the commission of these racially motivated murders and attempted murders.
“For these crimes, Roof faces penalties of up to life imprisonment or the death penalty. No decision has been made on whether to seek the death penalty in this case. The department will follow our usual rigorous protocol to thoroughly consider all factual and legal issues relevant to that decision, which will necessarily involve counsel for the defendant Roof. In addition, consultation with the victims’ families is an important part of this decision making process and no decision will be made before conferring with them.
“The family members of those killed at Emanuel AME and the survivors were informed of these federal charges earlier today.
“I also note that this indictment contains allegations and is not evidence of the defendant’s guilt.
“This federal grand jury indictment follows an announcement I made on June 18, 2015, that the Department of Justice was conducting a hate crime investigation into the shooting incident at Emanuel AME. Immediately following the shooting, experienced prosecutors from the U.S. Attorney’s Office in South Carolina and the Civil Rights Division began working closely with the FBI, ATF and state and local law enforcement officials including the South Carolina Law Enforcement Division – or SLED – Charleston Police and the Solicitor’s Office for the Ninth Circuit of South Carolina, in thoroughly investigating these crimes. I would like to the many state and federal law enforcement officials for their dedication and hard work to ensure that this investigation was conducted thoroughly and expeditiously. I would also like to thank South Carolina U.S. Attorney Bill Nettles for his and his office’s tremendous efforts on this case, as well as the dedicated attorneys from the Civil Rights Division.
“In particular, I would like to thank Charleston Solicitor Scarlett Wilson for being such a cooperative and effective partner in this matter. We have a strong working relationship with Solicitor Wilson and her office and we look forward to our continued collaboration as these parallel state and federal prosecutions work their way through their respective court systems.”
"Questions?”
Attorney General Lynch Statement Following the Federal Grand Jury Indictment Against Dylann Storm RoofRead the Press Release
Contact: (202) 514-2007
Washington - Attorney General Lynch released the following statement after the federal grand jury released its indictment against Dylann Storm Roof:
“Good afternoon and thank you for coming.
“I am joined here today by Vanita Gupta, the head of the department’s Civil Rights Division and Mark Giuliano, Deputy Director of the FBI.
“We are here today to announce that a federal grand jury in South Carolina has returned a 33-count indictment against Dylann Storm Roof, charging him with federal hate crimes and firearms charges for killing and attempting to kill African-American parishioners at Emanuel African Methodist Episcopal Church in Charleston, South Carolina, because of their race and in order to interfere with their exercise of their religion.
“As set forth in the indictment, several months prior to the tragic events of June 17, Roof conceived of his goal of increasing racial tensions throughout the nation and seeking retribution for perceived wrongs he believed African Americans had committed against white people.
“To carry out these twin goals of fanning racial flames and exacting revenge, Roof further decided to seek out and murder African Americans because of their race. An essential element of his plan, however, was to find his victims inside of a church, specifically an African-American church, to ensure the greatest notoriety and attention to his actions.
“As alleged, Roof set forth the evening of June 17, 2015 to carry out this plan and drove to the Emanuel African Methodist Episcopal Church in Charleston, South Carolina, known as “Mother Emanuel.” Mother Emanuel was his destination specifically because it was a historically African-American church of significance to the people of Charleston, of South Carolina and the nation.
“On that summer evening, Dylann Roof found his targets, African Americans engaged in worship. Met with welcome by the ministers of the church and its parishioners, he joined them in their bible study group. The parishioners had bibles. Dylann Roof had his 45 caliber glock pistol and eight magazines loaded with hollow point bullets. And as set forth in the indictment, while the parishioners of Mother Emanuel were engaged in religious worship and bible study, Dylann Roof drew his pistol and opened fire on them, ultimately killing nine church members.
“As you know, the state of South Carolina is also prosecuting Roof for the murders, attempted murders and firearms offenses he is alleged to have committed. We commend the state authorities for their tremendous work and quick response. It is important to note, however, that South Carolina does not have a hate crimes statute and as a result, the state charges do not reflect the alleged hate crime offenses presented in the federal indictment returned today.
“The federal indictment returned today charges Roof with nine murders and three attempted murders under the Matthew Shepard and James Byrd Hate Crimes Prevention Act. This federal hate crimes law prohibits using a dangerous weapon to cause bodily injury, or attempting to do so, on the basis of race or color. The Shepard Byrd Act was enacted specifically to vindicate the unique harms caused by racially motivated violence.
“Roof is also charged with nine murders and three attempted murders under a second federal hate crimes statute that prohibits the use or threat of force to obstruct any person’s free exercise of their religious beliefs.
“Finally, Roof has been charged with multiple counts of using a firearm in the commission of these racially motivated murders and attempted murders.
“For these crimes, Roof faces penalties of up to life imprisonment or the death penalty. No decision has been made on whether to seek the death penalty in this case. The department will follow our usual rigorous protocol to thoroughly consider all factual and legal issues relevant to that decision, which will necessarily involve counsel for the defendant Roof. In addition, consultation with the victims’ families is an important part of this decision making process and no decision will be made before conferring with them.
“The family members of those killed at Emanuel AME and the survivors were informed of these federal charges earlier today.
“I also note that this indictment contains allegations and is not evidence of the defendant’s guilt.
“This federal grand jury indictment follows an announcement I made on June 18, 2015, that the Department of Justice was conducting a hate crime investigation into the shooting incident at Emanuel AME. Immediately following the shooting, experienced prosecutors from the U.S. Attorney’s Office in South Carolina and the Civil Rights Division began working closely with the FBI, ATF and state and local law enforcement officials including the South Carolina Law Enforcement Division – or SLED – Charleston Police and the Solicitor’s Office for the Ninth Circuit of South Carolina, in thoroughly investigating these crimes. I would like to the many state and federal law enforcement officials for their dedication and hard work to ensure that this investigation was conducted thoroughly and expeditiously. I would also like to thank South Carolina U.S. Attorney Bill Nettles for his and his office’s tremendous efforts on this case, as well as the dedicated attorneys from the Civil Rights Division.
“In particular, I would like to thank Charleston Solicitor Scarlett Wilson for being such a cooperative and effective partner in this matter. We have a strong working relationship with Solicitor Wilson and her office and we look forward to our continued collaboration as these parallel state and federal prosecutions work their way through their respective court systems.”
Questions?”
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Armed Career Criminal Pleads Guilty and is DetainedRead the Press Release
Robert M. Hertz, age 51, of 2418 Catskill Street SW, Cedar Rapids, Iowa, pleaded guilty today to one count of possessing a firearm and ammunition as a felon.
In an indictment filed June 11, 2015, Hertz was charged with possessing a .40 caliber rifle and 237 rounds of ammunition on May 12, 2015, after he had previously been convicted of three violent felonies or serious drug offenses, namely, Arson, Second Degree Burglary, and Manufacturing Methamphetamine.
Today, Hertz pled guilty to the charge in United States District Court in Cedar Rapids. Hertz admitted he had been previously convicted of the three felonies identified in the indictment. Hertz thus faces a mandatory minimum sentence of fifteen years’ imprisonment, plus a fine of up to $250,000, and a term of supervised release of up to five years.
After Hertz pleaded guilty, he was ordered detained without bond. Chief Magistrate Judge Jon Scoles found there was evidence Hertz had attempted to obstruct justice while on pretrial release.
A sentencing date has not been set.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations; Alcohol, Tobacco and Firearms; and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00053.
Follow us on Twitter @USAO_NDIA.
Anchorage School Teacher Charged with Defrauding Elderly WomanRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an Anchorage woman has been charged with three counts of fraud and one count of identity theft.
Susanna Difranco, 52, of Anchorage, is charged in a four-count indictment with a scheme to defraud victim R.R. and steal her identity
According to Assistant U.S. Attorney Aunnie Steward who presented the case to the grand jury, the Indictment charges that for approximately one month, from March 2015 to April 2015, Difranco wrote checks and made transfers and withdrawals from R.R.’s bank account for Difranco’s personal benefit for a total of over $70,000. Difranco paid her personal credit card bill and her daughter’s college tuition, among other things, with R.R.’s money. R.R. is 77 years old and was not aware that Difranco had gained access to her bank account and was stealing her money. Difranco falsely told bank officials and others that she was helping to protect R.R.’s money from others who might steal it by moving it into a safety deposit box, when in fact she was stealing R.R.’s money and spending it for her personal benefit. F
The law provides for a maximum sentence of 20 years’ incarceration and a $250,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Anchorage Police Department together with the State of Alaska Office of Elder Fraud and Assistance conducted the investigation leading to the indictment in the case.
An indictment 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 guilt beyond a reasonable doubt.
Albuquerque Man Sentenced to Prison for Federal Mail Fraud and Identity TheftRead the Press Release
ALBUQUERQUE – Jeremy Boucher, 28, of Albuquerque, N.M., was sentenced this morning to 39 months in federal prison followed by three years of supervised release for his mail fraud and identity theft convictions. Boucher was also ordered to pay restitution to the victims of his crimes.
Boucher was arrested on Nov. 25, 2014, on a criminal complaint charging him with mail theft and possession of stolen mail from Dec. 2013 through Oct. 2014, in Bernalillo County, N.M. The complaint alleged that on Nov. 14, 2014, U.S. Postal Inspectors and the Albuquerque Police Department executed a search warrant on Boucher’s residence where they uncovered large amounts of stolen mail, including financial documents, dating back to Dec. 2013.
Boucher was subsequently charged in a four-count indictment on Jan. 8, 2015. Counts 1 and 2 charged Boucher with mail theft from Nov. 2013 through Oct. 2014. Count 3 charged Boucher with an attempt to execute a scheme to obtain money by false pretenses through the use of another person’s bank accounts, and Count 4 charged Boucher with identity theft. All offenses charged occurred in Bernalillo County.
On March 27, 2015, Boucher pled guilty to the four-count indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Postal Inspection Service and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
After Nearly 20 Years, International Fugitive in Multi-Million Dollar Fraud Scheme Apprehended in Greece and Extradited to United States to Serve Prison SentenceRead the Press Release
WASHINGTON – A former New York businessman, who disappeared the same day a federal jury sitting in the U.S. District Court in Newark, New Jersey, began deliberating in his tax evasion and fraud trial, was caught while in Greece more than 18 years after his conviction, and appeared in federal court in the District of New Jersey on Friday, July 17, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Gideon Misulovin, 58, whose last known address was in New York City, was extradited from Greece to the United States to serve his 10-year prison sentence. He has been incarcerated in the United States since his return on July 16.
On March 7, 1996, a jury convicted Misulovin of conspiracy to impede and impair the Internal Revenue Service (IRS) in the ascertainment and collection of more than $6.5 million in federal motor fuel excise taxes, wire fraud and money laundering stemming from a scheme to conceal the unpaid diesel fuel excise taxes from state and federal tax authorities.
During trial, Misulovin was free on $500,000 bail and attended each day of the trial. He failed to appear in court March 4, 1996, for the parties’ closing arguments. U.S. Senior District Judge Dickinson R. Debevoise of the District of New Jersey in Newark issued a warrant for his arrest. On June 25, 1997, Judge Debevoise sentenced Misulovin in absentia to serve 10 years in prison and a three-year term of supervised release, and to pay a $150,000 fine. The court also ordered Misulovin to pay restitution in the amount of $200,000 to the United States and $100,000 to the state of New Jersey.
The evidence at trial established that from 1988 through Jan. 31, 1993, Misulovin and his co-conspirators sold untaxed diesel fuel in a series of paper transactions using wholesale companies. Some of the companies were shams and called “burn” or “butterfly” companies. As part of the scheme, the sham company would assume the federal and state tax liability and then vanish, allowing the conspirators to keep the excise taxes they collected from truck stops and service stations.
The case, part of a then-nationwide motor fuel excise tax enforcement effort, was investigated jointly by the Motor Fuel Task Force and the U.S. Attorney’s Office of the District of New Jersey. In an effort to infiltrate the bootleg gasoline industry, task force agents set up an undercover business called RLJ Management that competed directly with the defendants’ operation.
At the conclusion of the undercover operation, in November 1992, federal agents seized Misulovin’s assets, including approximately $70,000 in cash from his residence and $277,000 from his business bank account.
Misulovin’s co-defendant and co-conspirator, Arnold Zeidenfeld, of Brooklyn, New York, pleaded guilty prior to trial and testified for the government. Gurmit Singh and Manbir Singh, of Matawan, New Jersey, who operated truck stops in southern New Jersey, also pleaded guilty for their roles in the scheme.
In August 2014, based on an Interpol Red Notice, Misulovin was detained in a Greek airport using an alias and traveling with an Israeli passport. He was subsequently arrested pursuant to a U.S. request for a provisional arrest, and after contested extradition proceedings, was found extraditable in 2015.
The task force included attorneys from the Tax Division and agents from the IRS Criminal Investigation and Examination Divisions, the FBI, the U.S. Department of Transportation and the New Jersey State Department of Taxation and Finance. Seth D. Uram, formerly a Trial Attorney in the Tax Division and now an Assistant U.S. Attorney in Portland, Oregon, and Trial Attorney Charles A. O’Reilly of the Tax Division prosecuted the case.
Acting Assistant Attorney General Ciraolo thanked the Department of Justice’s Office of International Affairs, the FBI’s New Jersey Field Office and the Greek Ministry of Justice for their assistance in apprehending and extraditing Misulovin. Ciraolo also thanked the U.S. Attorney’s Office of the District of New Jersey for their substantial assistance.
105 Individuals Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
A nine count federal indictment was unsealed today in the District of Puerto Rico charging 105 defendants with racketeering, drug trafficking, drive-by shooting murders and related firearm offenses, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD)-San Juan and Carolina Strike Forces were in charge of the investigation, with the assistance of PRPD’s Major Crimes Unit.
The indictment alleges that the defendants are part of a criminal organization known as La Rompe ONU. Through its criminal activities “La Rompe ONU” enriched its members and maintained and increased the power of the organization. Members of La Rompe ONU would sell crack, cocaine, heroin and marihuana in public housing projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, Monte Park and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, Trujillo Alto and Carolina, PR. Moreover, members of the organization used violence and intimidation, including murder, to increase the power, territory and profits of La Rompe ONU.
Members of La Rompe ONU had different roles in order to further the goals of the enterprise. As alleged in the indictment, 35 leaders/drug point owners/drug point administrators, who directed and supervised the organization’s criminal activities; 25 enforcers; eight suppliers; 11 runners; 25 sellers; and one drug processor.
According to the indictment, as part of the racketeering conspiracy, the organization committed 12 murders, including three massacres. Enforcers of La Rompe ONU carried out the murders of the following individuals:
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On Feb. 8, 2011, enforcers shot and killed David González-Reyes, aka “Chispa.”
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On May 10, 2011, enforcers shot and killed Ricco Luis Dávila-Díaz.
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On June 25, 2011, during a drive-by shooting, enforcers shot and killed Edwin Díaz-Cruz, Hervin Valcarcel-Martínez aka “Prieto,” Javier Catala-Bermúdez, and Orlando Meléndez-Villegas. This massacre is known as the Tortuguero Massacre.
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On July 20, 2011, during a drive-by shooting, enforcers shot and killed Santos Díaz-Camacho aka “Joel Bazooka,” Juan Rosario-Mercado aka “Toñito,” and Kevin Soto-Román aka “El Gordo.” This massacre is known as the Paseos Massacre.
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On Aug. 28, 2012, during a drive-by shooting, enforcers shot and killed Luis Ojeda-Andino aka “Pollo,” Luis Velázquez-Aquino aka “Urraca” and José Ayala-García. This massacre is known as the Jardines de Cupey Massacre.
According to the indictment, 69 of the 105 defendants are charged with using and carrying firearms during and in relation to a drug trafficking crime. Thirty-two firearms were seized from the defendants during the investigation, and they face a forfeiture allegation of $82 million.
“The historic indictment unsealed today shows our continued efforts to dismantle dangerous criminal organizations operating in our communities,” said U.S. Attorney Rodríguez-Vélez. “We remain undeterred in our commitment to ensure safety and seek justice for victims of violent crimes in Puerto Rico. ‘La Rompe ONU’ will no longer terrorize law abiding citizens in Puerto Rico. We will continue to use all the tools at our disposal to build solid cases against these individuals, and bring them to justice.”
“Today’s arrests demonstrate law enforcement’s commitment to dismantle violent drug trafficking gangs that are affecting the quality of life of our law abiding citizens in the community,” said Special Agent in Charge Hugo Barrera for ATF’s Miami Field Division. “The key to this fight is bringing the resources of all levels of government to empower law enforcement to target organized groups of violent criminals with enhanced punishment and criminal penalties through the utilization of federal statutes, such as, the Violent Crime in Aiding and Abetting Racketeering statute. This sends a clear message that our community will not tolerate the heinous activity perpetrated by gangs like ‘La Rompe ONU’ and evidences our commitment to work together to dismantle violent street gangs.”
The defendants are: Josué Vázquez-Carrasquillo aka “Mayito/Mayo/El Father,” Pedro Vigio-Aponte aka “Pedrito/Pedrito He-Man/Pello/Pedrito Trauma,” Frankie Rosa-Calderón aka “Anky/El Negro/Frank,” Luis F. Alicea-Colón aka “Trenza/Enano/Luis Trenza,” Miguel Vázquez-Martínez aka “Miguelo/Radio/Miclo/Bj,” Rubén Cotto-Andino aka “Rubén El Negro,” Ernesto Morales-Castro aka “Nestor/Los Gorditos,” Christian Morales-Castro aka “Bimbo/Los Gorditos,” Reyfrank Quiñones-Carrión aka “Pelotero,” Kelvin D. Morales-Cintrón, Ismael Méndez-Arroyo aka “Bolillo,” Michael Muñiz-Sánchez, Jonathan Pérez-Rodríguez aka “Perra/Perreke,” José L. Ortiz-Aguirre aka “Cheo/Cheo Cedeño,” Reinaldo Rodríguez-Martínez aka “Pitbull,” William Ortiz-Aguirre aka “Playa/Play,” Kidanny Figueroa-Osorio aka “Sony/Sonata,” José L. Soto-Rivera aka “Luisito/Scary,” José E. Mojica-Robles aka “Papito Mojica,” Victor M. Rodríguez-Torres aka “Cuca/Cucaracha/Papotin,” Rafael Andino-Ojeda aka “Rafa/Rafa Colgate/Boca Chula,” Myles J. Román-Adorno, Guillermo Sánchez-Mora aka “Guillo,” Emanuel Zabala-Pérez aka “Punky/Dalmata,” Alexander Rivera-Carrión aka “Lechon,” David E. Rodríguez-Castro, Rafael Hiraldo-Alejandro aka “Bolillo,” Alexis Cartagena-Gerena aka “Pollo,” Ángel L. Soto-Ramos aka “Huesito,” Oscar A. Calviño-Acevedo aka “Alex,” Jesús De-Jesús-Colón aka “Romulo,” José L. Méndez-De-Jesús aka “Sonso/Nariz,” William Zambrana-Sierra aka “W/Willito,” Edgar González-Rivera aka “Eggy,” Arnaldo Alicea-Colón aka “Naldito,” Xavier Castro-Vega aka “Raton,” Carlos M. Guerrero-Castro aka “Carlitos El Negro/Marcel,” Analdi Tanco-Moreno aka “Kimbito,” Orlando J. Santana aka “Fino,” Luis F. Rodríguez-Márquez aka “Cheykin,” Jesús E. Montalvan-Díaz aka “Luis Garcia-Diaz/Willy Wonka,” Amaury Méndez-Rosado aka “Boty,” Luis Yanyore-Pizarro aka “Kimbo/Bauncer/Jose Boria-Millan,” Fnu Lnu aka “Eziel,” Luis Martínez-Nieves aka “Raya/Trenza,” Michael Rivera-Rodríguez, Alvin A. Cabezas-Cintrón aka “Ardilla,” Jaime M. Semiday-Pérez, Kenny O. Pacheco aka “Keny/Bolin,” Roberto Fuentes-Pacheco aka “Junito Parcha,” Roger Falu-Diaz aka “Gua,” Félix A. Malave-Torres aka “Cholon,” Edgardo Luna-López aka “Piri/Enano,” Jessy J. Meléndez-Hernández aka “Koby/El Negro/Lely,” Denzel Rodríguez-Caraballo, Abimael Cruz-Rodríguez aka “Lindo/Feo/Metra,” Ángel L. Cotto-Negrón aka “Quija/Kija,” José E. Rivera-Maldonado aka “Camon,” Fnu Lnu aka “Gaby,” José D. Resto-Figueroa aka “Tego,” Orlando Padilla-Ayala aka “Oreo/Willito/Angel M. Santiago-Ayala,” Kernis Rodríguez-Rivera aka “Sosa,” Walter D. Muller-Colón aka “Vampy/Bolo,” Wilfredo Ruiz aka “Freddy,” Carlos E. Brioso-Collantes aka “El Barber/Wiso El Barber,” Carlos Velázquez-Fontanez aka “Pirin,” Jonathan Figueroa-Catinchi aka “Katinchi,” Iram I. Santander-Zulueta aka “Cubano,” Charlie J. Fournier-Collazo aka “Chiry,” Edgardo R. Ruano-Chévere aka “Masacre/Masa,” Francisco J. González-Camacho aka “Lento,” Nestor R. Concepción-Rivera aka “Nesti/Kilate,” Ivette Vázquez-Droz aka “Ive/Precious Moments,” Billy Villanueva-Carrasquillo aka “Meca/Billy Meca,” Jayfrank Quiñones-Carrión, Félix Rodríguez-Rodríguez aka “Correa/Baloncelista/El Indio,” Daniel O. Martínez-Vélez aka “Berto,” Luis F. Díaz-Tineo aka “Pipen/Pipe,” Josué O. Figueroa-Rodríguez, Ramón Vicenty-Rivera aka “Poke,” Luis E. Guadalupe-Camacho aka “Yaya/Yayi/Ardilla,” Julio N. Matos-Sánchez aka “Julio Maraña,” Reynaldo González-Zayas aka “Cuto,” Bryan Martínez aka “Fat Boy,” Damian Fernández-Jorge, José A. Fournier-Collazo aka “Semilla,” Kevin Castro-Vega, Juan Guadalupe-Delgado aka “Bocao,” David García-Franco aka “David Nota,” Giovani Justiniano-Díaz aka “Zegueta,” Christian Vázquez-Hernández aka “Chapa,” James Steele-Torres aka “Negro Steele,” Nilda Santiago-Espinosa aka “Katy,” Alex Santiago-Crespo aka “Papo Swing/Ale,” Francisco Vargas-Sánchez aka “Maraña,” Carlos Miranda aka “Eo,” Ramón Andino-Peguero aka “Mono,” Victor Alfonso-Jorge aka “Nano,” Héctor J. Cruz-Vargas, aka “Punky,” Yamil Arrizmendi-Santana, aka “El Mono,” Robert D. Pérez-Núñez aka “Minino,” Anthony Espada-Colón aka “Oreo/Apu,” Daniel De-Jesús-Díaz aka “Paleta,” Luis E. Espada-Colón aka “Zona” and Astrid J. Martínez-Valentin aka “La Jefa.”
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández are in charge of the prosecution of the case. They were assisted by attorney from the U.S. Department of Justice’s Capital Crimes Section and Organized Crime and Gang Section. ATF and PRPD were in charge of the investigation. Approximately 700 agents from federal and commonwealth authorities participated in the arrests.
If convicted, the defendants face up to life in prison. Eighteen of the defendants who participated in the murders included in the indictment are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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105 Individuals Indicted for Violating the Rico Act in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A nine (9) count federal indictment was unsealed today in the District of Puerto Rico charging one hundred and five (105) defendants with racketeering, drug trafficking, drive-by shooting murders and related firearm offenses, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD)- San Juan and Carolina Strike Forces were in charge of the investigation, with the assistance of PRPD’s Major Crimes Unit.
The indictment alleges that the defendants are part of a criminal organization known as “La Rompe ONU.” Through its criminal activities “La Rompe ONU” enriched its members and maintained and increased the power of the organization. Members of “La Rompe ONU” would sell crack, cocaine, heroin, and marihuana in public housing projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, Monte Park, and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, Trujillo Alto and Carolina, PR. Moreover, members of the organization used violence and intimidation, including murder, to increase the power, territory, and profits of “La Rompe ONU.”
Members of “La Rompe ONU” had different roles in order to further the goals of the enterprise. As alleged in the indictment, there were thirty-five (35) leaders/drug point owners/drug point administrators, who directed and supervised the organization’s criminal activities; twenty-five (25) enforcers; eight (8) suppliers; eleven (11) runners; twenty-five (25) sellers; and one (1) drug processor.
According to the indictment, as part of the racketeering conspiracy, the organization committed twelve (12) murders, including three (3) massacres. Enforcers of “La Rompe ONU” carried out the murders of the following individuals:
- On February 8, 2011, enforcers shot and killed David González-Reyes, aka “Chispa.”
- On May 10, 2011, enforcers shot and killed Ricco Luis Dávila-Díaz.
- On June 25, 2011, during a “drive-by” shooting, enforcers shot and killed Edwin Díaz-Cruz, Hervin Valcarcel-Martínez, aka “Prieto,” Javier Catala-Bermúdez, and Orlando Meléndez-Villegas. This massacre is known as the “Tortuguero Massacre.”
- On July 20, 2011, during a “drive-by” shooting, enforcers shot and killed Santos Díaz-Camacho, aka “Joel Bazooka,” Juan Rosario-Mercado, aka “Toñito,” and Kevin Soto-Román, aka “El Gordo.” This massacre is known as the “Paseos Massacre.”
- On August 28, 2012, during a “drive-by” shooting, enforcers shot and killed Luis Ojeda-Andino, aka “Pollo,” Luis Velázquez-Aquino, aka “Urraca,” and José Ayala-García. This massacre is known as the “Jardines de Cupey Massacre.”
According to the indictment, sixty-nine (69) of the one hundred and five (105) defendants are charged with using and carrying firearms during and in relation to a drug trafficking crime. Thirty-two (32) firearms were seized from the defendants during the investigation, and they face a forfeiture allegation of eighty-two million dollars ($82,000,000).
“The historic indictment unsealed today shows our continued efforts to dismantle dangerous criminal organizations operating in our communities. We remain undeterred in our commitment to ensure safety and seek justice for victims of violent crimes in Puerto Rico,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “‘La Rompe ONU’ will no longer terrorize law abiding citizens in Puerto Rico. We will continue to use all the tools at our disposal to build solid cases against these individuals, and bring them to justice.”
“Today’s arrests demonstrate law enforcement’s commitment to dismantle violent drug trafficking gangs that are affecting the quality of life of our law abiding citizens in the community. The key to this fight is bringing the resources of all levels of government to empower law enforcement to target organized groups of violent criminals with enhanced punishment and criminal penalties through the utilization of federal statutes, such as, the Violent Crime in Aiding and Abetting Racketeering statute. This sends a clear message that our community will not tolerate the heinous activity perpetrated by gangs like ‘La Rompe ONU,’ and evidences our commitment to work together to dismantle violent street gangs,” stated Hugo Barrera, Special Agent in Charge, ATF, Miami Field Division.
The defendants are: Josué Vázquez-Carrasquillo, aka “Mayito/Mayo/El Father”; Pedro Vigio-Aponte, aka “Pedrito/Pedrito He-Man/Pello/Pedrito Trauma”; Frankie Rosa-Calderón aka “Anky/El Negro/Frank”; Luis F. Alicea-Colón, aka “Trenza/Enano/Luis Trenza”; Miguel Vázquez-Martínez, aka “Miguelo/Radio/Miclo/Bj”; Rubén Cotto-Andino, aka “Rubén El Negro”; Ernesto Morales-Castro, aka “Nestor/Los Gorditos”; Christian Morales-Castro, aka “Bimbo/Los Gorditos”; Reyfrank Quiñones-Carrión, aka “Pelotero”; Kelvin D. Morales-Cintrón; Ismael Méndez-Arroyo, aka “Bolillo”; Michael Muñiz-Sánchez; Jonathan Pérez-Rodríguez, aka “Perra/Perreke”; José L. Ortiz-Aguirre, aka “Cheo/Cheo Cedeño”; Reinaldo Rodríguez-Martínez, aka “Pitbull”; William Ortiz-Aguirre, aka “Playa/Play”; Kidanny Figueroa-Osorio, aka “Sony/Sonata”; José L. Soto-Rivera, aka “Luisito/Scary”; José E. Mojica-Robles, aka “Papito Mojica”; Victor M. Rodríguez-Torres, aka “Cuca/Cucaracha/Papotin”; Rafael Andino-Ojeda, aka “Rafa/Rafa Colgate/Boca Chula”; Myles J. Román-Adorno; Guillermo Sánchez-Mora, aka “Guillo”; Emanuel Zabala-Pérez, aka “Punky/Dalmata”; Alexander Rivera-Carrión, aka “Lechon”; David E. Rodríguez-Castro; Rafael Hiraldo-Alejandro, aka “Bolillo”; Alexis Cartagena-Gerena, aka “Pollo”; Ángel L. Soto-Ramos, aka “Huesito”; Oscar A. Calviño-Acevedo, aka “Alex”; Jesús De-Jesús-Colón, aka “Romulo”; José L. Méndez-De-Jesús, aka “Sonso/Nariz”; William Zambrana-Sierra, aka “W/Willito”; Edgar González-Rivera, aka “Eggy”; Arnaldo Alicea-Colón, aka “Naldito”; Xavier Castro-Vega, aka “Raton”; Carlos M. Guerrero-Castro, aka “Carlitos El Negro/Marcel”; Analdi Tanco-Moreno, aka “Kimbito”; Orlando J. Santana, aka “Fino”; Luis F. Rodríguez-Márquez, aka “Cheykin”; Jesús E. Montalvan-Díaz, aka “Luis Garcia-Diaz/Willy Wonka”; Amaury Méndez-Rosado, aka “Boty”; Luis Yanyore-Pizarro, aka “Kimbo/Bauncer/Jose Boria-Millan”; FNU LNU, aka “Eziel”; Luis Martínez-Nieves, aka “Raya/Trenza”; Michael Rivera-Rodríguez; Alvin A. Cabezas-Cintrón, aka “Ardilla”; Jaime M. Semiday-Pérez; Kenny O. Pacheco, aka “Keny/Bolin”; Roberto Fuentes-Pacheco, aka “Junito Parcha”; Roger Falu-Diaz, aka “Gua”; Félix A. Malave-Torres, aka “Cholon”; Edgardo Luna-López, aka “Piri/Enano”; Jessy J. Meléndez-Hernández, aka “Koby/El Negro/Lely”; Denzel Rodríguez-Caraballo; Abimael Cruz-Rodríguez; aka “Lindo/Feo/Metra”; Ángel L. Cotto-Negrón; aka “Quija/Kija”; José E. Rivera-Maldonado, aka “Camon”; FNU LNU, aka “Gaby”; José D. Resto-Figueroa, aka “Tego”; Orlando Padilla-Ayala, aka “Oreo/Willito/Angel M. Santiago-Ayala”; Kernis Rodríguez-Rivera, aka “Sosa”; Walter D. Muller-Colón, aka “Vampy/Bolo”; Wilfredo Ruiz, aka “Freddy”; Carlos E. Brioso-Collantes, aka “El Barber/Wiso El Barber”; Carlos Velázquez-Fontanez, aka “Pirin”; Jonathan Figueroa-Catinchi, aka “Katinchi”; Iram I. Santander-Zulueta, “Cubano”; Charlie J. Fournier-Collazo, aka “Chiry”; Edgardo R. Ruano-Chévere, aka “Masacre/Masa”; Francisco J. González-Camacho, aka “Lento”; Nestor R. Concepción-Rivera, aka “Nesti/Kilate”; Ivette Vázquez-Droz, aka “Ive/Precious Moments”; Billy Villanueva-Carrasquillo, aka “Meca/Billy Meca”; Jayfrank Quiñones-Carrión; Félix Rodríguez-Rodríguez, aka “Correa/Baloncelista/El Indio”; Daniel O. Martínez-Vélez, aka “Berto”; Luis F. Díaz-Tineo, aka “Pipen/Pipe”; Josué O. Figueroa-Rodríguez; Ramón Vicenty-Rivera, aka “Poke”; Luis E. Guadalupe-Camacho, aka “Yaya/Yayi/Ardilla”; Julio N. Matos-Sánchez, aka “Julio Maraña”; Reynaldo González-Zayas, aka “Cuto”; Bryan Martínez, aka “Fat Boy”; Damian Fernández-Jorge; José A. Fournier-Collazo, aka “Semilla”; Kevin Castro-Vega; Juan Guadalupe-Delgado, aka “Bocao”; David García-Franco, aka “David Nota”; Giovani Justiniano-Díaz, aka “Zegueta”; Christian Vázquez-Hernández, aka “Chapa”; James Steele-Torres, aka “Negro Steele”; Nilda Santiago-Espinosa, aka “Katy”; Alex Santiago-Crespo, aka “Papo Swing/Ale”; Francisco Vargas-Sánchez, aka “Maraña”; Carlos Miranda, aka “Eo”; Ramón Andino-Peguero, aka “Mono”; Victor Alfonso-Jorge, aka “Nano”; Héctor J. Cruz-Vargas, aka “Punky”; Yamil Arrizmendi-Santana, aka “El Mono”; Robert D. Pérez-Núñez, aka “Minino”; Anthony Espada-Colón, aka “Oreo/Apu”; Daniel De-Jesús-Díaz, aka “Paleta”; Luis E. Espada-Colón, aka “Zona”; and Astrid J. Martínez-Valentin, aka “La Jefa.”
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández are in charge of the prosecution of the case. They were assisted by Attorney from the United States Department of Justice’s Capital Crimes Section and Organized Crime and Gang Section. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Puerto Rico Police Department (PRPD) were in charge of the investigation. Approximately seven-hundred (700) agents from federal and Commonwealth authorities participated in the arrests.
If convicted, the defendants face up to life in prison. Eighteen (18) of the defendants who participated in the murders included in the indictment are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
21 July 2015
Woman from Dominican Republic Sentenced to Three Years in Prison for Using Phony Passport to Re-Enter United StatesRead the Press Release
NEWARK, N.J. – A citizen of the Dominican Republic was sentenced today to 36 months in prison for several crimes related to her effort to re-enter the United States with a phony passport, U.S. Attorney Paul J. Fishman announced.
Angela De Jesus-Concepcion, 36, of Bergenfield, New Jersey, was previously convicted of all three counts of the indictment against her: false claim of U.S. citizenship, use of a U.S. passport obtained by false statement and aggravated identity theft. She was convicted following a one week trial before U.S. District Judge William Walls, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On March 17, 2012, De Jesus-Concepcion attempted to enter the United States at Newark Airport from the Dominican Republic. At CBP passenger processing she presented a United States passport bearing the name of an identity theft victim and De Jesus-Concepcion’s photograph. She also filled out a customs declaration using the victim’s name and the number of the passport that she was carrying. Customs and Border Protection conducted a secondary inspection and found a New Jersey driver’s license bearing the victim’s name and De Jesus-Concepcion’s photograph along with a Visa debit card in De Jesus-Concepcion’s own name. At trial, it was proven that the passport being carried by De Jesus-Concepcion had been obtained using an earlier version of the New Jersey driver’s license bearing the victim’s name and De Jesus-Concepcion’s photograph and a replacement naturalization certificate, also bearing the victim’s name and De Jesus-Concepcion’s photograph.
In addition to the prison term, Judge Walls sentenced De Jesus-Concepcion to serve three years of supervised release.
U.S. Attorney Fishman credited enforcement officers of U.S. Customs and Border Protection, under the leadership of Robert E. Perez, director of New York Field Operations, for the investigation leading to today’s sentencing. He also thanked the Department of State, Diplomatic Security Service, for its investigation.
The government is represented Assistant U.S. Attorneys Sara F. Merin of the General Crimes Unit and Shirley U. Emehelu of the Economic Crimes Unit in Newark.
Defense counsel: Kathleen Theurer Esq., Jersey City, New Jersey.
USNCB Supports Security at World Police and Fire GamesRead the Press Release
A Prince George's County Police Department competitor participates in the Pistol Action Combat event at the 2015 World Police and Fire Games. Image courtesy of WPFG.Once every two years, the World Police and Fire Games (WPFG) bring together the world’s toughest law enforcement, customs and corrections officers, and firefighters as they compete head-to-head in more than 60 extreme sporting events like Archery, Canine Search, and Toughest Competitor Alive. This year’s Games were held June 26-July 5 in Fairfax County, VA and welcomed more than 9,500 competitors from 70 different countries, 5,100 volunteers, and tens of thousands of spectators. Events such as the Games, with crowds this large and diverse, call for law enforcement and public safety support with international reach. Interpol Washington offered the WPFG Operations Center and the Fairfax County Police Department complementary tools and services to ensure everyone stayed safe while enjoying the event. For the first time Interpol Washington’s 24/7/365 Interpol Operations and Command Center (IOCC) helped field potential threats and was available around the clock to query subjects at this year’s Games. The IOCC helped to ensure a timely and coordinated law enforcement response was ready in the event of a major threat with an international nexus. The 2017 Games will be held in Montréal, Canada.
Two San Jose Men Plead Guilty to Posting Minor’s Info on Internet for ProstitutionRead the Press Release
SAN JOSE – Justin Everett Crutchfield and Demontae Terrell Toliver pleaded guilty in federal court yesterday to posting information about a minor on the internet to solicit prostitution customers, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David Johnson.
In pleading guilty, Crutchfield and Toliver both admitted that on or about June 18, 2013, they posted a telephone number for the minor, who they knew to be under the age of 16, on the Internet site myRedbook.com, along with photographs of her, with the intent to solicit others to pay to engage in sexual activity with her. At the time of his arrest, Crutchfield was employed as a Peer Health Counselor with the Santa Clara County Department of Mental Health.
Crutchfield, 28, and Toliver, 24, both of San Jose, were indicted by a federal Grand Jury on January 29, 2014. They were charged with four counts, including two counts of sex trafficking of a minor, in violation of 18 U.S.C. §1591, two counts of production of child pornography, in violation of 18 U.S.C. § 2251(a). Under the plea agreement, both Crutchfield and Toliver pleaded guilty to a superseding information charging a single count of use of an interstate wire to transmit information about a minor for criminal sexual activity, in violation of 18 U.S.C. § 2425.
Toliver is currently being held in the Santa Clara County Main Jail, pending sentencing, while Crutchfield, who had been in custody since June 2013, was released to home confinement with his parents in March 2015. Bail for Crutchfield was set at $ 150,000.
Toliver’s sentencing hearing is scheduled for October 5, 2015, before the Honorable Ronald M. Whyte, U.S. District Court Judge, in San Jose. Crutchfield’s sentencing hearing is scheduled for December 14, 2015, also before Judge Whyte in San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 2425 is five years and a fine of $ 250,000, plus restitution to the minor victims. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of a joint investigation by the San Jose Police Department Human Trafficking Task Force and the Federal Bureau of Investigation.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Two Commercial Trash Haulers Admit to Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – Mustafa Sharif, age 63, of Baltimore, pleaded guilty today to conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees. Adam Williams, Jr., age 52, of Randallstown, pleaded guilty to the same charges on July 17, 2015.
The plea agreements were 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; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to his plea agreement, in 2005, Williams collected and hauled trash in his small dump truck when he learned from a friend that he could avoid paying the disposal fee if he paid a cash bribe to the scale house operators. After the friend introduced Williams to a scale house operator, none of the scale house operators, including Tamar Washington, charged Williams a disposal fee for using the Landfill. In 2006 Williams partnered with another individual to haul trash, and then operated his own hauling business from 2007 to 2015. He paid a $100 bribe to the scale house operator for each trip he made to the Landfill, which saved him thousands of fees each month. Williams either paid the operator through the outbound window at the scale house, or met the operators at an off-site location where he would pay a week’s worth of bribes or more. From July 1, 2014 to May 1, 2015 alone, Williams paid more than $42,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $120,000.
According to his plea agreement, in 2012, Sharif collected and hauled trash in his small dump truck when one day he was allowed to dump trash at the Landfill without paying the disposal fee. Sharif told Williams about what had happened, and Williams explained that Sharif could avoid paying the disposal fee every time he dumped at the Landfill if he paid $100 in cash to the “girls” at the scale house, meaning Tamara Washington and another individual. Thereafter, Sharif paid the bribes, either through Williams or directly to the scale house operators, which saved him thousands of dollars in disposal fees each month. Sharif would meet one of the scale house operators off-site to deliver the weekly bribes, or he would drop it off in an envelope at their respective residences. From July 1, 2014 to May 1, 2015 alone, Sharif paid more than $42,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $150,000.
Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000.
Sharif and Williams face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Williams on October 21, and Sharif on November 6, 2015.
Former Baltimore City Department of Public Works (DPW) employee Tamara Oliver Washington, age 55, of Baltimore, pleaded guilty on July 2, 2015 to the conspiracy and to solicitation of bribes, and is scheduled to be sentenced on October 20, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Truck Driver Sentenced to 16 Years in Prison for Possession of More Than 24 Pounds of Heroin and Methamphetamine in His TruckRead the Press Release
RENO, Nev. – Victor H. Orozco, 40, of Grandview, Wash., was sentenced on July 20 by U.S. District Judge Miranda M. Du to 16 years in prison and five years of supervised release for possessing with the intent to distribute more than 24 pounds of methamphetamine and heroin, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Orozco, a licensed commercial truck driver, was operating a tractor trailer carrying a load of watermelons through White Pine County, Nev., on April 27, 2013, when he was pulled over by a Nevada Highway Patrol Officer for a commercial vehicle inspection. Orozco consented to a search of the tractor trailer, and the Highway Patrol Officer discovered more than 19½ pounds of methamphetamine and 4½ pounds of heroin meticulously-wrapped in multiple layers of plastic in a black duffel bag under the sleeping compartment of the tractor.
Orozco was arrested, and the case proceeded to a jury trial earlier this year. According to expert testimony at trial, the street value of the drugs was more than one-half million dollars. On Feb. 24, 2015, Orozco was convicted by the jury of one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute heroin.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham, with assistance from the White Pine County District Attorney’s Office, and investigated by White Pine County-based members of Nevada Department of Public Safety and Nevada Department of Investigations, and by the DEA.
Trafficker of Counterfeit MAC Cosmetics Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Tina Oleszczuk (45, New Port Richey) to 18 months in federal prison for trafficking in counterfeit cosmetics. As part of her sentence, the Court also entered a money judgment in the amount of $944,839.75, the proceeds of her criminal conduct. She pleaded guilty on September 25, 2014.
According to court documents, from March 2012 to March 2014, Oleszczuk, through her company Cozmetic Delights, LLC, sold more than $1 million worth of counterfeit Make-up Art Cosmetics, Inc. (“MAC”) cosmetics. Operating out of her residence in New Port Richey, Oleszczuk purchased and had bulk quantities of counterfeit MAC cosmetics delivered from a source in China. Oleszczuk then sold the counterfeit cosmetics as legitimate goods at significantly higher prices. She sold them to purchasers across the country via a website for Cozmetic Delights, via E-Bay, and directly to certain wholesale customers.
"Counterfeiting undermines the U.S. economy, robs Americans of jobs, stifles American innovation, and promotes other types of crime,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The only ones who benefit from schemes like this are the counterfeiters themselves, and they are benefiting at America's expense."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Matthew Jackson and Mark Bini.
Three Ohio men indicted for the production or possession of child pornographyRead the Press Release
Three Ohio men were indicted on federal charges related to the production or possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The cases are not related.
A grand jury returned a two-count indictment charging John Clements, 32, of Willoughby, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography.
Bradley D. Dawson, 27, of Canton, was charged with producing, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about May 1, 2015, through on or about June 21, 2015, Dawson knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On June 22, 2015, images of child pornography were also found on his RCA Tablet. The indictment also charges that in or around May 2015, Dawson used, persuaded, induced, enticed, or coerced a four-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, or transported in or affecting interstate commerce by any means, including by computer.
Joshua M. Buss, 26, of Spencer, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about December 29, 2014, through on or about June 23, 2015, in the Northern District of Ohio, Eastern Division, and elsewhere, Buss knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on June 24, 2015, Buss possessed a computer that contained child pornography.
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 Clements case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Child Exploitation Task Force.
The Dawson case is being prosecuted by Assistant United States Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation, Canton Office.
The Buss case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following ann investigation by the Akron Office of the Federal Bureau of Investigation.
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.
Three Family Members Indicted for Participating in Multi-Million Dollar Scheme to Defraud Commercial Lenders and the U.S. Export-Import BankRead the Press Release
Three family members were indicted for their alleged participation in a scheme to defraud Miami-area lenders and the Export-Import Bank of the United States (Ex-Im Bank), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Guillermo M. Sanchez, 60, Isabel C. Sanchez, 36, and Gustavo Giral 38, all of Cutler Bay, Florida, are charged in the indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering.
According to allegations in the indictment, from 2007 through 2012, the defendants utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred. In a process called “factoring,” the defendants sold the accounts receivables to two Miami-area lenders for approximately 90 percent of the value of the merchandise listed on the alleged fake invoices. The lenders were not aware that the invoices were fake, and expected to recover the full amount owed from the purported purchasers. To perpetuate the fraud, the defendants allegedly transferred the proceeds through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the funds to pay off other factored invoices.
After the Miami lenders refused to extend further credit, the defendants and their co-conspirators allegedly created false invoices and shipping documents to obtain a loan guaranteed by the Ex-Im Bank. Rather than acquiring, selling and shipping American-manufactured goods as required for Ex-Im Bank-guaranteed loans, the defendants allegedly used the loan proceeds to extend the fraudulent scheme by paying off other lenders, and split the remaining funds among themselves and other co-conspirators. Ultimately, the defendants defaulted on both the factoring loans and the Ex-Im Bank loan.
Co-conspirators Fredy Moreno-Beltran, Ricardo Beato and Jorge Amad were separately charged, and each have pleaded guilty to participating in the scheme. According to his plea agreement, Moreno-Beltran owned Clientric, a purported purchaser of goods from companies controlled by the defendants. According to their plea agreements, Beato and Amad owned Approach Technologies International, a company that the defendants falsely claimed had sold nearly $2 million of American-manufactured telephone call center software to Clientric in order to obtain an Ex-Im Bank-guaranteed loan. In connection with their guilty pleas, Beato, Amad and Moreno admitted that the invoices provided to Ex-Im Bank were false.
The alleged scheme caused approximately $8 million in losses to the private lenders and nearly $2 million in losses to the United States.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Ex-Im Bank Office of Inspector General, with assistance provided by the FBI and U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.
Sanchez et al Indictment
Three Family Members Indicted for Participating in Multi-Million Dollar Scheme to Defraud Commercial Lenders and the U.S. Export-Import BankRead the Press Release
Guillermo M. Sanchez, 60, Isabel C. Sanchez, 36, and Gustavo Giral 38, all of Cutler Bay, Florida, are charged in the indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering.
Three family members were indicted for their alleged participation in a scheme to defraud Miami-area lenders and the Export-Import Bank of the United States (Ex-Im Bank), announced United States Attorney Wifredo A. Ferrer of the Southern District of Florida and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to allegations in the indictment, from 2007 through 2012, the defendants utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred. In a process called “factoring,” the defendants sold the accounts receivables to two Miami-area lenders for approximately 90 percent of the value of the merchandise listed on the alleged fake invoices. The lenders were not aware that the invoices were fake, and expected to recover the full amount owed from the purported purchasers. To perpetuate the fraud, the defendants allegedly transferred the proceeds through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the funds to pay off other factored invoices.
After the Miami lenders refused to extend further credit, the defendants and their co-conspirators allegedly created false invoices and shipping documents to obtain a loan guaranteed by the Ex-Im Bank. Rather than acquiring, selling and shipping American-manufactured goods as required for Ex-Im Bank-guaranteed loans, the defendants allegedly used the loan proceeds to extend the fraudulent scheme by paying off other lenders, and split the remaining funds among themselves and other co-conspirators. Ultimately, the defendants defaulted on both the factoring loans and the Ex-Im Bank loan.
Co-conspirators Fredy Moreno-Beltran, Ricardo Beato and Jorge Amad were separately charged, and each have pleaded guilty to participating in the scheme. According to his plea agreement, Moreno-Beltran owned Clientric, a purported purchaser of goods from companies controlled by the defendants. According to their plea agreements, Beato and Amad owned Approach Technologies International, a company that the defendants falsely claimed had sold nearly $2 million of American-manufactured telephone call center software to Clientric in order to obtain an Ex-Im Bank-guaranteed loan. In connection with their guilty pleas, Beato, Amad and Moreno admitted that the invoices provided to Ex-Im Bank were false.
The alleged scheme caused approximately $8 million in losses to the private lenders and nearly $2 million in losses to the United States.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Ex-Im Bank Office of Inspector General, with assistance provided by the FBI and U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.
Three Arrested and Charged in Connection with Two Schemes Using Stolen Personal Identification InformationRead the Press Release
Baltimore, Maryland – Three Nigerian nationals were arrested today, charged by criminal complaint with fraud and aggravated identity theft in connection with two schemes using stolen personal identification information. In addition to the arrests, more than 130 law enforcement officers from nine agencies executed 17 search warrants as part of this ongoing investigation.
Charged by criminal complaint are:
Omolaja Terry Iginla, age 25, of Laurel, Maryland; Mayowa Olabiyi Towobola, age 24, of Parkville, Maryland; and
Hafis Omowonuola Oladokun, age 38, of Owings Mills, Maryland.The charges and arrests were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Kathryn Montemorra, Assistant Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
“Today’s enforcement sends a clear message to those who believe that the profit of cybercrime outweighs the risks of detection and capture,” said Ivan Arvelo, Acting Special Agent in Charge, HSI Baltimore. “The message is that you are not anonymous and you will be arrested. As we have shown, HSI and its law enforcement partners will vigorously pursue those who steal, peddle, and abuse the private information of American consumers.”
“This has been a complex and important fraud investigation that illustrates the commitment and cooperation of law enforcement personnel at all levels. With patience and a sound investigation, we ensure that perpetrators of such fraud will not get away with ruining the lives of innocent people,” said Baltimore County Police Chief James Johnson.
“Criminal conspiracies involving fraudulent refund schemes victimize our nation’s honest taxpayers,” said Kathryn Montemorra, Assistant Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s enforcement actions are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with our law enforcement partners to combat this type of criminal conduct.”
According to the affidavit filed in support of the criminal complaint, the investigation began in 2013 when Iginla was initially arrested after accepting delivery for two fraudulent Ghanaian passports. A search warrant executed at Iginla’s apartment recovered, among other items, an Apple iPod which was found to contain the personal identification information (PII) of more than 35,000 individuals, including names, dates of birth, social security numbers, addresses, telephone numbers and email addresses; named text files; account numbers and security codes for numerous Green Dot & other prepaid debit cards; business names, addresses, and associated EIN numbers; monetary loss values contained within “text files” associated with the PII of many of the probable identity theft victims residing throughout the United States; and a digital image of a social security card of a probable identity theft victim. Digital forensic examination of an iOS address book uncovered from the laptop computers seized during the search revealed a contact for “Mayowa”, which is the first name of Towobola. The cellular telephone number is subscribed in the name of Hafis Omowonuola Oladokun.
According to the criminal complaint, the PII data recovered from the iPod found in Iginla’s apartment was forwarded to the IRS. Analysis revealed that the stolen PII data recovered from the Apple iPod was used to file approximately 4,500 fraudulent tax returns with the IRS. The attempted refund amount from these returns is approximately $13,025,000, and over $2,400,000 in refunds has been distributed by the IRS. Investigation revealed that in some cases, tax refunds were transferred to Green Dot and other prepaid debit card accounts and the funds were then withdrawn from the accounts. For example, a prepaid debit visa account found in Iginla’s files show that the account was activated on line in the name of D.S. Within two day of its activation, that account received a direct deposit of a tax refund. When interviewed, D.S. advised investigators that he had not filed federal tax returns for 2012 or 2013, nor had he applied for or possessed a prepaid visa debit card. D.S. confirmed that the PII on the account was the same as his. Prior to his interview with law enforcement, D.S. was not aware of being a victim of identity theft.
During the Iginla investigation, law enforcement became aware of a related investigation, originally initiated by the Baltimore County Police Department, regarding a fraud allegedly perpetrated by Oladokun, Towobola and others, which involved the re-encoding of victims’ debit card account numbers and the purchasing of money orders using PII stolen as a result of the Target Store data breach which occurred during November and December 2013. Investigation revealed that victim debit card account numbers were re-encoded onto other unknown debit/credit cards, which were then used to purchase money orders and make automatic teller machine (ATM) withdrawals at various banks and retailers located in Baltimore County. The money orders were then cashed by the conspirators at local check cashing stores.
Additionally, a review of financial records showed that many of the money orders cashed at the check cashing stores in Maryland were purchased with Green Dot prepaid debit card accounts using stolen PII. Investigation revealed that Oladokun, Towobola and other co-conspirators have cashed approximately 1,105 third party money orders at one check cashing store, totaling approximately $737,373.
The defendants face a maximum sentence of 20 years in prison for wire fraud and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. The defendants all had an initial appearance today in U.S. District Court in Baltimore. Iginla and Towobola consented to detention and Olakodun was detained pending a detention hearing scheduled for Thursday, July 23, 2015 at 3:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, IRS-CI, and the Baltimore County Police Department for their work in the investigation and thanked the Baltimore City, Anne Arundel County, Montgomery County and Prince George’s County Police Departments, Maryland State Police and the U.S. Department of State, Diplomatic Security Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Sandra Wilkinson, who are prosecuting the case.
Tampa, Florida Woman Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
BOISE – Yinet Quintana Isalgue, 27, of Tampa, Florida, pleaded guilty today in federal court to one count of wire fraud and one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Quintana Isalgue was indicted by a federal grand jury on February 11, 2015.
As described in the factual basis of the plea agreement, read in court during the plea hearing, Quintana Isalgue travelled from Florida to Idaho to commit credit card fraud. On January 9, 2015, law enforcement in Boise and Meridian, Idaho, received multiple reports from loss prevention officers at different retail stores identifying Quintana Isalgue through witness and surveillance evidence, as attempting credit card fraud.
The next day, Quintana Isalgue was contacted by law enforcement when they executed a search warrant signed by a State of Idaho Magistrate Judge on the hotel room where she was staying. Inside the room in Quintana Isalgue’s purse and wallet, law enforcement found 17 counterfeit credit cards, 2 counterfeit driver’s licenses, and 35 gift cards. The counterfeit credit cards were embossed with real account numbers and a fake name. The two counterfeit driver’s licenses had names matching those on the credit cards, but using Quintana Isalgue’s picture and actual birthdate. Some of the gift cards found in her purse were identified as the gift cards Quintana Isalgue fraudulently purchased earlier in the day.
Based upon video surveillance, loyalty card records, GPS, and credit card records, law enforcement discovered that Quintana Isalgue made similar fraudulent purchases in Oregon and Washington. She admitted $97,496.11 in actual fraudulent purchases, and an additional $19,288.24 in attempted purchases, for a total of $116,784.35, between November 28, 2014, and January 9, 2015. She also admitted that she knowingly and fraudulently used the credit card number of a real person.
Wire fraud is punishable by a term of imprisonment of up to twenty years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100. Aggravated identity theft is punishable by a mandatory term of imprisonment of two years consecutive to the underlying wire fraud.
Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on November 3, 2015.
“This case demonstrates how vigilant cooperation between federal and local law enforcement, and local businesses, protects Idaho consumers from credit card fraud and other violations of financial security,” said Olson.
The case was investigated by the United States Secret Service, the Boise Police Department, and the Meridian Police Department.
Springfield Sex Offender Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender in Springfield, Mo., was indicted by a federal grand jury today for receiving and distributing child pornography.
Gary Thomas Sheldon, 52, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Sheldon on July 16, 2015.
Today’s indictment alleges that Sheldon received and distributed child pornography over the Internet from Oct. 5, 2014, to July 15, 2015. Sheldon, a registered sex offender, was convicted of possessing child pornography in October 2000. As a result, if convicted, Sheldon will be subject to a mandatory minimum sentence of 15 years in federal prison without parole.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers received a cybertip from the National Center for Missing and Exploited Children, which had received the tip from an adult pornography Web site where Sheldon had allegedly uploaded an image of child pornography. Law enforcement officers executed a search warrant at Sheldon’s residence on July 15, 2015.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Missouri State Highway Patrol and the Southwest Missouri Cybercrime Task Force.
Project Safe Childhood
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."