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Monday 1 June 2015
Sangerville Man Sentenced to Ten Years for Pharmacy RobberyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that James Stile, 58, of Sangerville, Maine, was sentenced on Friday in U.S. District Court by Judge John A. Woodcock, Jr., to ten years in prison, to be followed by five years of supervised release for pharmacy robbery. He was also ordered to pay $13,306.93 in restitution. Stile pled guilty on October 31, 2014.
Court records and proceedings reveal that on September 12, 2011, Stile entered the E.W. Moore and Sons pharmacy in Bingham, Maine, wearing a dust mask and purple gloves, and pulled a sawed-off shotgun from his pants. Stile pointed the gun at the owner and the three employees who were behind the pharmacy counter. He then ordered the three employees to lie on the floor behind the counter. A customer subsequently entered the store and Stile ordered the customer to go behind the pharmacy counter with the employees. Stile told the owner of the pharmacy to fill a bag with narcotics. As he did so, Stile tied the hands and feet of the customer and the three employees with zip ties. Once the bag was filled with narcotics, Stile instructed the owner to lie down on the floor. Stile then tied the hands and feet of the owner with zip ties and fled the store.
The pharmacist was able to free himself shortly after the robbery and saw the defendant depart in a minivan. The minivan was traced to Stile’s residence in Sangerville. A search warrant was executed at Stile’s residence early the next morning. Among the items found in the minivan on the property was a used dust mask and purple gloves. Three pieces matching the color and material of those gloves were also found at the pharmacy. Stile’s DNA was found in the gloves. In the defendant’s house, officers found the shoes and jacket that the defendant wore during the robbery.
In imposing sentence, Judge Woodcock noted that the violence and planning involved in this pharmacy robbery distinguished it from the other pharmacy robbery cases and noted that the victims must have wondered, as they lay tied up on the ground with a masked man pointing a sawed-off shotgun at them, whether this would be their last day on earth.
U.S Attorney Delahanty commended the investigation that was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Somerset County Sheriff’s Office; the Piscataquis County Sheriff’s Office; the Maine State Police; and the Maine Drug Enforcement Agency. “Their cooperative work led to the quick identification of Stile as the perpetrator.” “This robbery occurred over 3½ years ago at a time when the State of Maine was seeing a substantial increase in pharmacy robberies which became a priority for both federal and state law enforcement authorities,” said Delahanty. “This was definitely one of the most violent pharmacy robberies in Maine. We are very fortunate that no one was physically injured. Stile was quickly found and arrested because of the diligent efforts of multiple county, state and federal law enforcement agencies. This kind of cooperation has time and again provided positive results.”Randolph County woman sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Arica M. Boyles, 27, of Kerens, West Virginia, was sentenced today to 70 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Arica Boyles and her husband John Boyles collaborated to sell crack cocaine in Tucker County, West Virginia. They each pled guilty in May 2014 to one count of “Aiding and Abetting the Distribution of Cocaine Base.” John Boyles was sentenced to 97 months in prison in November 2014 stemming for the couple’s cocaine trafficking activities.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force and the Pocahontas County Sheriff’s Department investigated.
U.S. District Judge John Preston Bailey presided.
Qatar Military Official and Wife Charged with Engaging in Forced LaborRead the Press Release
In San Antonio, a military official from Qatar and his wife, a citizen of the United Arab Emirates, are charged with engaging in forced labor by obtaining the labor and services of two persons by means of force, threats of force, physical restraint, and threats of physical restraint, announced Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge James Spero, Homeland Security Investigations (HSI) in San Antonio.
According to a federal criminal complaint filed this morning, Hassan Salem H. M. Al Homoud and his wife, Zainab Al Hosani, along with their two children, currently reside in San Antonio while Al Homoud is attending military training at Camp Bullis. In mid-2014, the defendants allegedly brought with them to the U.S. two individuals--a housemaid and a servant who have since worked for the family. The housemaid is a citizen of Indonesia; the servant is a citizen of Bangladesh. Both were in the U.S. on visas sponsored by Al Homoud.
The criminal complaint alleges that the defendants housed the workers in primitive conditions, restricted their ability to move or travel, and provided them with limited amounts of food. In order to restrict their liberty to move and travel and to leave their place of employment, Al Homoud and Al Hosani withheld the payment of wages to both workers and deprived them of possession of cell phones, passports, and visas. Al Hosani also threatened the workers with arrest and incarceration in Qatar if they failed to perform their work obligations.
The workers’ conditions were discovered by an officer of the San Antonio Police Department in early April, when he encountered one of the workers in apparent distress along Camp Bullis Rd. This led law enforcement officers to a nearby apartment occupied by the workers, furnished with only a pallet on the floor for sleeping.
On Saturday, May 30, 2015, special agents of the Department of Homeland Security, Immigration and Customs Enforcement Homeland Security Investigations (HSI), arrested the defendants in San Antonio. Both are scheduled to appear before U.S. Magistrate Judge John Primomo in San Antonio this afternoon. Upon conviction, the defendants face up to 20 years in federal prison and/or a maximum fine of $250,000.
Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Plano Man Sentenced for Pipeline Bombing IncidentRead the Press Release
PLANO, Texas - A 35-year-old Plano, Texas man has been sentenced to 20 years in federal prison in relation to an incident involving an explosive device in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Anson Chi pleaded guilty on June 3, 2013, to possession of an unregistered firearm or explosive device and malicious use of explosive material and was sentenced to 240 months in federal prison today by U.S. District Judge Richard A. Schell. The Court applied a terrorism enhancement and did an upward departure of the sentencing guidelines. This enhancement classifies Chi as a domestic terrorist.
According to information presented in court, on June 18, 2012, Chi possessed a destructive device or explosive that was not registered in the National Firearms Registration and Transfer Record. The explosive device was manufactured by Chi through the combination of chemicals to create methyl nitrate. Methyl nitrate is a highly volatile explosive capable of inflicting significant damage to persons or property. Chi admitted to obtaining the chemical formula for methyl nitrate and documents related to explosives from the Internet. A superseding indictment was returned by a federal grand jury on Feb. 14, 2013, charging Chi with these violations.
Chi also admitted to intentionally damaging an Atmos Energy pipeline by attaching the explosive device to the pipeline and igniting it. Chi was ordered to pay restitution to Atmos in the amount of $28,127.77.
This case was investigated by the FBI, the FBI-Joint Terrorism Task Force, the Plano Police Department, and the ATF and prosecuted by Assistant U.S. Attorney M. Andrew Stover.
Owner of Fashion District Clothing Company Pleads Guilty to Customs, Immigration and Money Laundering OffensesRead the Press Release
Chinese Immigrant to Lose U.S. Citizenship as a Result of His Illegal Behavior
LOS ANGELES – The owner of a Fashion District import-export business pleaded guilty late Friday afternoon to federal charges stemming from an investigation into “Black Market Peso Exchange” schemes that are used by international drug cartels to launder and send narcotics proceeds out of the United States.
The owner of businesses known as Yili Underwear and Gayima Underwear pleaded guilty in United States District Court pursuant to a plea agreement that requires him to forfeit hundreds of thousands of dollars in assets and will result in the loss of his United States citizenship.
Xilin Chen (陳喜林), 55, of Temple City, pleaded guilty to three felony counts – knowingly passing false documents through a customhouse of the United States, conspiracy to launder money, and unlawful procurement of citizenship.
In a plea agreement filed with the court last week, Xilin Chen acknowledged that he received bulk cash at his business that he had good reason to believe was from illegal activity, specifically drug trafficking. Xilin Chen further acknowledged that he deliberately avoided learning the truth about the bulk cash that was being delivered to his businesses.
The investigation into Chen’s companies was part of a larger investigation into Black Market Peso Exchange (BMPE) schemes in the Fashion District. In a BMPE scheme, operatives for a drug trafficking organization use money derived from the sale of narcotics to purchase goods, typically using large sums of cash. The goods are shipped to another country, where they are sold, and the funds are delivered to the drug trafficking organization. These BMPE schemes – which is a type of trade-based money laundering – are often used by Mexico-based drug trafficking organizations to collect proceeds from their drug sales in the United States without having to take the risk of smuggling large amounts of U.S. currency across the Mexican border and without having to wire the funds through financial institutions, both of which carry the threat of authorities detecting the illegal source of the money.
Xilin Chen pleaded guilty to a customs offense related to a form he filed with U.S. Customs and Border Protection in which he claimed merchandise imported from China was worth $86,635, even though the true value of the clothing was $175,535. In the plea agreement, Xilin Chen admitted that the purpose of undervaluing the merchandise was to defraud the United States out of the proper duty owed on the merchandise. Because the clothing was then sold for prices lower than if the true and correct duty had been paid, the proceeds of the sales were illegal and depositing the proceeds into U.S. banks and then wire transferring some of the funds to China to pay for additional merchandise constituted money laundering.
In his plea agreement, Xilin Chen further acknowledged that on three occasions he accepted bulk cash as payment for clothing from an undercover agent posing as someone using the proceeds of narcotics trafficking to purchase merchandise. Xilin admitted the he was aware, or should have been aware, of the high probability that he was accepting money derived from narcotics trafficking, but he “deliberately avoided asking questions or confirming the truth,” according to the plea agreement.
Xilin Chen also pleaded guilty to illegally procuring citizenship in 2012 when he declared he was not involved in criminal activity, even though he was involved in customs fraud and money laundering.
Xilin Chen’s son – Chuang Feng Chen (aka “Tom” and 陳創鋒), 25, also of Temple City – also pleaded guilty Friday afternoon to conspiracy to pass false documents through a customhouse of the United States.
The Chens pleaded guilty before United States District Judge Percy Anderson, who is scheduled to sentence the defendants on August 24.
As part of this case, the Chens have agreed to forfeit to the United States proceeds from the sales of the building that houses the underwear company, two residences in Temple City and more than $435,000 that was seized during the execution of search warrants and seizure warrants last fall.
As part of the agreement with the Chens, prosecutors have asked Judge Anderson to dismiss charges against Aixia Chen, who is Xilin Chen’s daughter.
The case involving the Chens was investigated by the Drug Enforcement Administration and IRS – Criminal Investigation under the auspices of the Southwest Border Initiative.
Release No. 15-056
Ohio woman convicted of heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Amanda Elaine Wright, 29, of East Liverpool, Ohio, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Wright collaborated with other individuals to possess and distribute heroin in Hancock County, West Virginia throughout 2013 and 2014.
Wright pled guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crimes Task Force, a HIDTA-funded initiative, led the investigation.
Senior U.S. District Judge Frederick P. Stamp presided.
Newport News Man Sentenced for Armed Bank RobberyRead the Press Release
Defendant possessed loaded gun and demanded $40,000
NEWPORT NEWS, Va. – Harrison Nefale Branche, 36, of Newport News, Va., was sentenced today to 117 months in prison, followed by five years of supervised release for armed bank robbery and use, carry and possession of a firearm during a crime of violence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Charles E. Smith, Special Agent in Charge of the ATF Washington Field Office made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Blanche waived indictment and pled guilty to a criminal information on February 2, 2015. According to court documents, on September 11, 2014, Branche robbed the Virginia Educator’s Credit Union, located at 812 Main Street in Newport News. While brandishing a loaded Hi-Point, semi-automatic pistol, he presented a note to the teller stating he had a gun and demanded $40,000. The teller provided approximately $8,200 and Branche fled the scene. He then discarded his clothes in the storm drain on a public street. When officers encountered him after leaving the credit union he reached into his waistband to retrieve a firearm. Officers ordered him to drop the firearm and he threw it to the ground. The firearm, and approximately $7,800 in U.S. currency located in Branche’s pockets, were recovered. He later admitted his involvement in the robbery and apologized to the bank teller.
This case was investigated by the ATF and the Newport News Police Department. Special Assistant U.S. Attorneys Yvonne Garcia and Ivana Nizich from the Organized Crime and Gang Section of the Justice Department’s Criminal Section, prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr71.
New York Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Staten Island, New York, tax return preparer and business owner pleaded guilty today in U.S. District Court in the Eastern District of New York to preparing false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents and statements, Alabi Gbangbala, 51, was the operator of Broadfield, a tax return preparation business located in Staten Island. For tax years 2008 and 2009, Gbangbala prepared false individual income tax returns for Broadfield clients by, among other things, falsifying self-employment business receipts and losses on Schedules C and inflating or fabricating charitable contributions and unreimbursed employee expenses on Schedule A. Gbangbala was responsible for filing false tax returns on behalf of his clients that resulted in at least a $178,000 tax loss to the U.S. Treasury. Gbangbala also filed false personal individual income tax returns for tax years 2008 through 2010, in which he failed to report his total income for each calendar year.
Gbangbala faces a statutory maximum sentence of three years in prison and a fine of $250,000 for one count of aiding and assisting the preparation of a false return at his Sept. 24 sentencing.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Christopher O’Donnell and Mark McDonald of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Eastern District of New York for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nashville-Based Friendship Home Healthcare and Related Companies Pay U.S. and Tennessee $6.5 Million to Resolve False Claims Act LawsuitRead the Press Release
A group of home health care companies collectively known as “Friendship” and the companies’ owner Theophilus Egbujor paid $6.5 million, plus interest, to resolve allegations that they improperly billed TennCare, Medicare and TRICARE for home health services, announced David Rivera, United States Attorney for the Middle District of Tennessee. Friendship and its owner also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) in an effort to avoid future fraud and compliance failures.
“As this case demonstrates, enforcing the False Claims Act remains a key priority of the U.S. Attorney’s Office for the Middle District of Tennessee,” said United States Attorney Rivera. “The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue those who knowingly submit false claims to government health care programs.”
“We are pleased to be part of this coordinated effort to protect taxpayer dollars,” said Tennessee Attorney General Herbert H. Slatery III. “Preventing and prosecuting fraud in our government healthcare programs not only is a deterrent to those looking to take advantage of the system but also sees that much needed healthcare dollars are used as they are intended to be used.”
The settlement resolves the government’s claims that Friendship submitted false claims to TennCare, Medicare and TRICARE during the period of July 2007 through July 2013. The government asserted that Friendship billed TennCare for private duty nursing services that were furnished or supervised by a woman who was excluded from billing federal and state health care programs and that Friendship submitted required forms to TennCare that contained the forged signature of Friendship’s Director of Nursing. The government also contended that Friendship improperly billed TennCare services without the required forms and signatures. In addition, the government claimed that Friendship failed to repay TennCare within 60 days of learning that Friendship had wrongly billed for care provided by a woman whose nursing license had lapsed.
The specific entities included in the settlement agreement are:
- Friendship Home Healthcare, Inc., which has also done business as Friendship HealthCare System,
- Friendship Home Health, Inc., and Angel Private Duty and Home Health, which have also done business as Friendship Private Duty, and
- Friendship Home Health Agency, LLC.
Under the settlement agreement, Friendship and Egbujor paid a total of $6,500,000, plus interest.Of that amount, $4,025,573 goes to the United States, and $2,474,427 goes to the State of Tennessee.
“Fraud involving home health services is a major problem impacting the Medicare and TennCare programs,” said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Patients are particularly vulnerable to fraud in a home-based setting because there is often no one looking over the provider’s shoulder. This case demonstrates there are serious consequences to home health agencies that try to defraud federal health care programs.”
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against the Friendship companies and Egbujor by Kay Flippo, a licensed practical nurse who previously worked for Friendship Home Healthcare.She brought her claims under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.Flippo’s share of the settlement has not been determined.
The case was handled by the United States’ Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by HHS-OIG, the Tennessee Bureau of Investigation Medicaid Fraud Control Unit (TBI MFCU), and the Defense Criminal Investigative Service. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States. Tennessee Assistant Attorney General Mary McCullohs represented the State of Tennessee.
The case is docketed as United States ex rel. Flippo v. Friendship Home Healthcare, Inc., et al., No. 3:14-cv-1262 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Morgan Hill Resident Sentenced to over 16 Years in Prison in Connection with Methamphetamine Distribution ConspiracyRead the Press Release
SAN JOSE – Fredi Becerril (a/k/a Ademar Becerril, a/k/a Pitufo) was sentenced today to 196 months in prison for conspiring to distribute methamphetamine, announced United States Attorney Melinda Haag, Homeland Security Investigations Acting Special Agent in Charge Tatum King, and Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
According to the plea agreement, Becerril, 30, of Morgan Hill, was apprehended after law enforcement officers, pursuant to court orders, intercepted telephone conversations between Becerril and co-conspirators Arturo Cuevas-Quezadaz and Francisco Ortiz. Becerril admitted in the plea agreement that on December 1, 2013, he met with Ortiz, Cuevas-Quezadaz, and other co-defendants, at 13805 Center Avenue, San Martin, Calif. These men worked for Becerril and delivered methamphetamine to Becerril’s customers. Becerril gave his co-conspirators handwritten lists of the customers who were to receive the drugs and the quantities of methamphetamine each customer was to receive. After Cuevas-Quezadaz and Ortiz left to make their deliveries, Becerril received a warning that Cuevas-Quezadaz and another man had been arrested. Becerril warned Ortiz about the arrests but directed him to complete certain additional deliveries. When Cuevas-Quezadaz was arrested, the arresting officers found methamphetamine in his car. The DEA laboratory analyzed the seized drugs and determined that the amount of actual (pure) methamphetamine in the seized drugs was 7,949 grams. The DEA laboratory also discovered Becerril’s fingerprints on three of the packages of methamphetamine.
Becerril was arrested the next day, December 2, 2013. At the time of his arrest, agents seized duplicates of the lists he had given to Cuevas-Quezadaz and Ortiz, as well as additional evidence, including $26,960.00 in cash that Ortiz had just delivered to Becerril. Also, on December 2, 2013, a search warrant was executed at Becerril’s house in Morgan Hill. In Becerril’s home, agents discovered a pistol, ammunition, a gold coin and an additional $195,605 in cash.
The sentence was handed down by the Honorable Ronald M. Whyte, U.S. District Judge. Judge Whyte also sentenced Becerril to a 5 year period of supervised release. The defendant has been in federal custody since December 2, 2013.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Mexican Man Pleads Guilty in Kansas to Laundering $4.7 Million in Drug FundsRead the Press Release
WICHITA, KAN. – A Mexican man pleaded guilty Monday to laundering more than $4.7 million in drug funds through his bank accounts in Kansas and elsewhere, U.S. Attorney Barry Grissom said.
Franz Wiebe Rempel, 44, Cuauhtemoc, Chihuahua, Mexico, pleaded guilty in U.S. District Court in Wichita to one count of money laundering. In his plea, he admitted that from 2009 through July 30, 2013, he laundered drug funds through bank accounts at the Bank of America in Wichita, as well as accounts at Wells Fargo and J.P. Morgan Chase.
In his plea, he admitted he provided his bank account numbers so that another conspirator could distribute the information to others. Rempel had an understanding with the conspirator that third parties would deposit cash into his bank accounts. The deposits would be less than $10,000 in an attempt to avoid federal currency reporting requirements. Once Rempel received the funds, he would transfer or move the money through the U.S. financial system at the other conspirator’s direction. Rempel crossed the border from his home in Mexico almost on a weekly basis in order to move funds. Ultimately, most of the money wound up in the other conspirator’s hands.
Rempel’s accounts received funds deposited from Kansas City, Kan.; Kansas City, Mo.; Oklahoma City; Des Moines; Amarillo, Texas; El Paso, Texas; Knoxville, Tenn., Nashville, Tenn., Memphis, Tenn.; Charlotte, N.C., Atlanta, Ga., and Albuquerque, N.M. Rempel did not know the identities of the people making the deposits but he knew the funds were being transferred for the purpose of paying for drugs.
Sentencing is set for Aug. 17. He faces a maximum penalty of 20 years and a fine up to $500,000. Grissom commended the Drug Enforcement Administration and the Internal Revenue Service for their work on the case.
Mescalero Apache Man Sentenced for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Sonny Roy Valdez, 20, a member and resident of the Mescalero Apache Nation, was sentenced today in federal court in Las Cruces, N.M., to 30 months in federal prison followed by three years of supervised release for his federal assault conviction. Valdez was also ordered to pay $3,028.00 in restitution to the victim of his crime.
Valdez was arrested on June 5, 2014, on a criminal complaint charging him with assault resulting in serious bodily injury. According to the criminal complaint, Valdez assaulted his intimate partner, a Mescalero Apache woman, on May 27, 2014, by biting off part of her lip. The victim’s injuries required medical treatment and hospitalization. The offense occurred within the Mescalero Apache Reservation in Otero County, N.M.
On Nov. 12, 2014, Valdez pled guilty to a felony information charging him with assault resulting in serious bodily injury and admitted assaulting the victim. His guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Local Tax Return Preparer Heads to Federal PrisonRead the Press Release
HOUSTON - Diane Caldwell Larry has been ordered to prison following her conviction of falsifying client tax returns, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). Larry pleaded guilty July 7, 2014.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Larry a total sentence of 12 months and one day in federal prison to be immediately followed by one year of supervised release. She was further ordered to pay $168,792 in restitution. During today’s sentencing hearing, Larry promised never again to involve herself in the preparation of tax returns other than her own.
During her plea hearing in July 2014, Larry admitted that while operating a tax return preparation service under the name Paradise South Tax Services, she prepared 33 materially false client tax returns for tax years 2007 through 2010. Those returns generated excessive refunds and caused aggregate losses to the IRS totaling approximately $168,792. Larry acknowledged she had included in these client tax returns fraudulent “side business” losses and false and excessive itemized deductions and credits in order to generate excessive refunds. When some of these tax returns were audited, Larry made up false documents to create an illusion of legitimacy for some of the false and excessive itemized deductions and credits.
Specifically, Larry admitted she knowingly and willfully included a false $84,215 business loss deduction for a non-existent “side business” as well as false deductions for uniforms upkeep, toll bridge fees, job-related tools and employee business expenses totaling $10,644 in a client’s 2009 tax return. This tax return alone caused a loss to the U.S. Treasury of approximately $18,382.
Previously released on bond, Larry was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
Leichester Woman Pleads Guilty to Conspiracy to Sex Traffic A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ashlee Cook, 24, of Leichester, NY, pleaded guilty to conspiring to recruit an underage girl to commit a commercial sex act before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that Cook and her boyfriend, Jacob Shamp, 23, posted an ad on Backpage.com, advertising a minor victim for prostitution. Law enforcement officers conducted an undercover operation and arranged to meet the girl in Gates, NY. When officers arrived, they took a statement from the minor victim.
Jacob Shamp was convicted of the same charge. Both defendants will be sentenced on September 4, 2015 at 10:00 a.m. and 11:00 a.m. respectively before Judge Geraci.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, and the Gates Police Department, under the direction of Chief James VanBrederode.
Last Charged Conspirator Sentenced in CH2M Hill Time Card Fraud Case; U.S. Totals Nearly $20 Million from Those ResponsibleRead the Press Release
Richland – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that the last of 12 admitted criminal conspirators in the CH2M Hill Hanford Group Inc. (CHG) Time Card Fraud Conspiracy was sentenced for her role in nearly a decade of systemic fraud that took millions from the tax payers. Glenda Michele Davis, a former supervisor at CH2M Hill Hanford Group Inc. (CHG), who admitted her role in the conspiracy and who had cooperated for years with law enforcement, was sentenced to two years of probation and a fine. The other 11 admitted conspirators, including CHG itself, have also described to law enforcement, and ultimately the public, a systemic culture of time card fraud that existed at the Hanford Nuclear Site’s Tank Farms from at least 1999 through at least 2008. Through the 12 admitted criminal conspirators, including CHG, and the four members of management and upper management who paid individual civil fines, the United States has collected or imposed $19,882,412.40, in criminal and civil fines, damages, and penalties directly related to the CHG Time Card Fraud Conspiracy.
“We have been investigating and prosecuting this case since 2008 with our law enforcement partners, the Department of Energy Office of Inspector General and the FBI,” said Michael C. Ormsby. “While we recognize there are many dedicated people who work hard every day to advance the crucial mission of cleaning up Hanford, this case should serve as fair warning to all corporations and individuals doing business at Hanford who might seek to abuse the public’s trust.”
The first conspirator to plead guilty was Carl Schroeder in November of 2011. Between January 2012 and September 2014 another ten individual conspirators pleaded guilty to felony charges for conspiring to defraud the federal government.
Only one of the conspirators to plead guilty, Daniel Paul Niebuhr, did so without agreeing to cooperate with law enforcement. Mr. Niebuhr, a supervisor at CHG, was also the only conspirator sentenced to any prison time receiving a sentence of 30 days in addition to 3 months of home detention, a $34,146.60 fine, and a year of supervised release.
Taken together, the individual criminal defendants were ordered to pay a total of $766,912.40 in criminal fines for the fraud they perpetrated on the public.
In addition, in December of 2014, the United States entered into global criminal and civil settlements with another former CHG supervisor, Stephanie Livesey, and three former CHG upper managers Patrick “Brad” Brannan, Terrence Hissong, and Ryan Dodd. Those settlements involved the dismissal of the criminal charges against them and the imposition of over $100,000 in civil penalties with Mr. Dodd, a former CHG Vice President of Retrieval and Closure Operations, and Mr. Hissong, a former CHG Tank Farms Management Director, admitting no guilt but nonetheless paying $44,000 a piece to settle their personal liability under the False Claims Act.
Earlier, in March of 2013, CHG entered into a global civil and criminal settlement and fully admitted that it had criminally conspired with its own employees to defraud the federal government through the Time Card Fraud Conspiracy. CHG’s written public confession stated that it had conspired with, among others, members of its upper management generally and with Mr. Dodd in particular. CHG paid a total of $18.5 million and agreed to a 3 year corporate monitor at its remaining subsidiary on the Hanford Site, CH2M Hill Plateau Remediation Company (CHPRC). The CHPRC corporate monitor works closely with DOE OIG to help detect and deter fraud and will continue to do so into 2016. In addition, CHG agreed to pay an additional half million dollars to install an accountability system approved by DOE OIG to further help detect and deter any future conduct of this nature.
“While it is disheartening that this systemic fraud was ever perpetrated on the public, we are proud of our accomplishments in this case and thankful for the tremendous efforts of our law enforcement partners, as well as the Department of Energy, in bringing responsible parties to justice,” concluded Michael C. Ormsby. “Through these efforts we’ve made clear that blaming a culture of fraud provides no excuse for people or corporations to participate in that fraud.”
The investigation was conducted by the Department of Energy’s Office of Inspector General and the FBI. The cases were prosecuted by Tyler H.L. Tornabene, an Assistant United States Attorney for the Eastern District of Washington and Daniel H. Fruchter, a trial attorney with the United States Department of Justice, Civil Frauds Section.
KC Man Pleads Guilty to Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., pleaded guilty in federal court today to producing child pornography after recording videos of two minor victims, including a teenager who responded to his online advertisement for modeling and a minor who was secretly filmed in the shower.
Marcus S. Clarke, 43, a citizen of Jamaican residing in Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to one count of producing child pornography and one count of attempting to produce child pornography.
According to court documents, a 15-year-old girl, identified as Jane Doe #1, had been sending and receiving text messages on a borrowed cell phone. The cell phone’s owner notified a Prairie Village, Kan., police detective when she noticed a text conversation about a modeling photo shoot.
MV told law enforcement officers that she responded to a Craigslist advertisement for models for a photo shoot. Clarke picked her up at a park in Prairie Village on Oct. 3, 2014, and drove her to his apartment in the Northland. When they arrived at the apartment, Clarke put a flash drive in his television to display photos of nude females to MV. MV described the images to law enforcement officers as “disturbing” because the women were nude and engaged in sexual activity. Clarke took both nude and non-nude photos and videos of MV using a digital camera and digital recorder.
According to court documents, Clarke had been advertising online for lingerie and nude modeling as far back as September 2012.
An FBI agent used the same cell phone that MV had used to contact Clarke. Several text messages were exchanged in which Clarke made arrangements to meet MV again for another photo shoot. When Clarke arrived at the Prairie Village park to meet MV on Oct. 22, 2014, he was placed under arrest. Law enforcement officers executed a search warrant at Clarke’s residence and seized computers and computer storage devices that contained sexually explicit videos of MV.
Clarke also admitted today that he secretly recorded video of a second victim, identified as Jane Doe #2, to produce child pornography between Jan. 1, 2007, and Dec. 13, 2010. According to court documents, investigators discovered an SD card in Clarke’s apartment that contained video recordings in which Clarke appeared to secretly film a minor female while she took a shower.
Under federal statutes, Clarke is subject to a mandatory minimum sentence of 15 years in federal prison without parole for each count, up to a sentence of 60 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI and the Prairie Village, Kan., Police Department.
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."
Justice Department Reaches Agreement with Pennington County, South Dakota, to Improve AccessibilityRead the Press Release
The Department of Justice announced an agreement with Pennington County, South Dakota, today to resolve accessibility issues in the county’s services, programs, activities and facilities under Title II of the Americans with Disabilities Act (ADA). This year marks the 25th anniversary of the ADA, which the Civil Rights Division plays a critical role in enforcing. In honor of the anniversary, each month the Department of Justice has been highlighting efforts that are making full participation and equal opportunity for people with disabilities a reality.
Pennington County and the department reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the ADA. One of the hallmarks of the agreement is the requirement that the county hire an independent licensed architect (ILA) who is knowledgeable about the architectural accessibility requirements of the ADA. The ILA will certify that the accessibility modifications done to the county’s facilities comply with the ADA Standards for Accessible Design.
The agreement with the county will allow people with disabilities to participate in and benefit from the services provided in Pennington County’s facilities including its New Administration Building, Courthouse Complex, Jail, Jail Annex, Public Safety Building, Public Health Building, Juvenile Services Center and the Pennington County Fairgrounds. The county will renovate and remediate everything from entrances, service areas, counters, restrooms and parking so that people with disabilities can get into county buildings and use the services and programs offered by the county in each of its buildings. In addition, the agreement calls for implementing a comprehensive plan to improve the accessibility of sidewalks, transportation stops and pedestrian crossings by installing accessible curb ramps throughout the county.
“As we continue to celebrate the ADA’s 25th Anniversary this year, today’s agreement is the sixth PCA agreement the Department of Justice has signed in six months and exemplifies our continuing commitment to ensure that citizens with disabilities enjoy the same services, programs and activities that all others enjoy,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Equal access to local government is the cornerstone of Project Civic Access in its quest to protect the civil rights of municipalities’ citizens with disabilities.”
For more information about the ADA, today’s agreement, the Project Civic Access initiative, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Asks Federal Court to Permanently Bar South Carolina Tax Return Preparer from Preparing Federal Tax ReturnsRead the Press Release
The United States filed a complaint seeking to bar a Newberry County, South Carolina, woman from preparing federal tax returns for others, the Justice Department announced today.
The civil complaint against Julie E. Hueble, which was filed in the U.S. District Court for the District of South Carolina, alleges that Hueble owned and operated three Liberty Tax Service franchise locations in Greenwood and Clinton, South Carolina. According to the complaint, Hueble and the employees of her tax preparation stores prepared federal income tax returns that improperly understated customers’ tax liabilities or increased customers’ claims for refundable tax credits.
The complaint alleges that Hueble and her employees prepared returns for customers that, among other things, falsely reported on Schedule Cs (Profit or Loss From Business) non-existent businesses and/or inflated income or deductions. The suit further alleges that Hueble and her employees fabricated other deductions, claimed improper filing statuses and falsely claimed dependents, all of which resulted in fraudulently maximizing refunds and/or refundable credits.
In one example detailed in the complaint, Hueble falsely increased a customer’s taxable income by reporting a fabricated “childcare” business, even though the customer did not own a child care business and gave Hueble no documentation showing that she did. The increased income enabled the customer to receive an inflated Earned Income Tax Credit.
The complaint states that Hueble’s tax-preparation stores prepared 2,165 federal income tax returns between 2012 and 2014, and Hueble prepared 904 returns during this period. An analysis of returns filed between 2012 and 2014 revealed that the harm to the U.S. Treasury caused by Hueble’s conduct could be more than $1 million, according to the suit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury convicts five from Northeast Ohio for conspiracy to rob stash house and sell drugsRead the Press Release
Five men from Northeast Ohio were convicted of multiple crimes for their roles in a conspiracy to distribute heroin and cocaine and use firearms to rob what they believed to be a drug stash house.
A jury convicted Kali Alexander, 24, of Willoughby Hills, Rasheam Nichols, 24, Justin Maxwell, 26, Terrance Chappell, 22, and Kenneth Flowers, 21, all of Cleveland, on all 11 counts. They are scheduled to be sentenced in September.
Alexander recruited the other defendants to steal up to nine kilograms of cocaine from a stash house in Cleveland. The group planned to rob the stash house, then Alexander would sell the stolen cocaine and split the profits, according to court documents.
Alexander met with an undercover ATF agent last year and expressed an interest and willingness to commit the robbery. “I promise you, I know what I’m doing, I’m about to holler at my big brother, then we going to orchestrate it from there,” according to court documents.
Alexander, Nichols, Maxwell, Chappell and Flowers met with the ATF undercover on September 3, 2014, and discussed the strategy for the robbery. Then the five men drove to agreed-upon location in anticipation of acquiring a specific vehicle to use during the robbery, at which point they were arrested, according to court documents.
The indictments are the result of “Operation Samson II,” an initiative last summer in which 60 people were indicted and 110 firearms were seized. To date, 58 of the 60 people have been found guilty.
“This operation was like a vacuum cleaner, sucking up illegal firearms from the streets of Cleveland,” said U.S. Attorney Steven M. Dettelbach.
"There is no place in our society for those who use firearms for violent, criminal purposes," said Donald Soranno, Special Agent in Charge of ATF's Columbus Field Division. "ATF will continue to work with our law enforcement partners at every level to bring those individuals to justice."
This initiative was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, the Ohio Adult Parole Authority, the U.S. Marshals Service, the U.S. Attorney’s Office and the Cuyahoga County Prosecutor’s Office.
Indictment Unsealed Charging Former Altus Bank President and Altus Business Partner with Bank FraudRead the Press Release
Oklahoma City, Oklahoma – A federal indictment has been unsealed charging PAUL HAROLD DOUGHTY and FRED DON ANDERSON with bank fraud, conspiracy to commit bank fraud, false statements to banks, and misapplication of bank funds in connection with First State Bank of Altus (“FSB”) and various loan schemes, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Doughty, 66, of Edmond, Oklahoma, was the former president and chairman of FSB. Anderson, 66, of Eagle Point, Oregon, partnered with Doughty in several businesses headquartered in Altus. In July 2009, state banking regulators closed FSB due to the bank’s loan losses, and the Federal Deposit Insurance Corporation was appointed as the bank’s receiver.
The counts against Doughty and Anderson charge fraud related to three alleged loan schemes: (1) a series of FSB loans to finance a real estate development in Routt County, Colorado; (2) a series of “senior life settlement loans” from FSB to support an Altus aerospace company; and (3) a $2 million unauthorized loan from FSB to a company under Doughty and Anderson’s control.
According to the indictment, in 2006 and 2007 Doughty and Anderson recruited buyers for 19 Colorado real estate lots priced at approximately $700,000 each. The indictment alleges that Doughty approved and issued 14 loans to buyers, totaling more than $10,000,000.00 in loan proceeds for the seller, Mountain Adventure Property Investments, LLC (“MAPI”). MAPI was a Colorado company that Anderson had an indirect ownership interest in and where he served as president and manager. It is alleged that each loan exceeded Doughty’s individual lending authority, and most of the loans were issued without FSB loan committee or board approval, including a $580,000.00 loan to Anderson’s personal company. The indictment alleges that most lot sales were presented to buyers as “zero money down” investments, and that the earnest money for the purchases was either advanced or refunded to many of the buyers by Anderson on behalf of MAPI. Doughty and Anderson also assured the buyers that MAPI would make all payments on the loans to the bank. It is alleged that on the few occasions when Doughty presented a Colorado loan to FSB’s loan committee, he misrepresented the source and amount of borrowers’ down payments and the borrowers’ responsibility for making payment on the loans. The indictment includes eight counts for conspiracy, bank fraud, unauthorized issuance of a loan, and false statements related to the Colorado lot loans from FSB.
The indictment also alleges Doughty made false statements to Vectra Bank in Colorado in applying for his own loan to purchase a Colorado lot from MAPI. In his loan application, Doughty omitted his earlier $580,000.00 loan from a different bank and also represented to Vectra Bank that his down payment on the new lot was not borrowed. According to the indictment, Doughty planned to be reimbursed by Anderson from MAPI, the seller, for his entire down payment.
Second, the indictment charges Doughty and Anderson in connection with five $2.5 million individual loans taken out by FSB borrowers in 2008 in so-called “senior life settlement” loans. According to the indictment, Doughty and Anderson recruited borrowers to take out these “self-paying” loans to provide money for investments in Altus-based Quartz Mountain Aerospace, Inc. (“QMA”). It is alleged that a portion of the loan proceeds was invested in QMA, and another portion would pay the loan’s interest. It is also alleged that the remaining proceeds on the loans would buy and maintain third-party life insurance policies, where the death benefits on the third parties were intended to repay the loan’s principal. The indictment alleges that each loan exceeded Doughty’s lending authority, and he issued senior life settlement loans without FSB’s loan committee or board approval. According to the indictment, Doughty and Anderson funneled $125,000.00 in “service fees” to their shared company, Altus Ventures, from each loan. This service fee was not disclosed to FSB. The indictment charges Doughty and Anderson with false statements, unauthorized issuance of a loan, and misapplication of bank funds with the senior life settlement loans, including a $2.5 million loan issued to Anderson’s personal company.
Third, the indictment alleges that in January 2008, Doughty and Anderson arranged a $2 million loan from FSB to Ethanol Products Group, LLC (“EPG”), a startup company in which both Anderson and Doughty had an ownership interest. It is alleged that Doughty advanced the $2 million from FSB, above his individual lending authority, without approval by FSB’s loan committee or board. The indictment alleges that soon before issuing the loan, Doughty e-mailed Anderson his “cash strategy” for two of the other companies they controlled; the “strategy” showed all EPG loan proceeds would be directed to companies controlled by Anderson and Doughty, ultimately diverting $100,000.00 in “officer bonuses” to Anderson and Doughty. The indictment charges Doughty with unauthorized issuance of a loan and misapplication of bank funds, and Anderson is charged with participation in an unauthorized loan in relation to the EPG loan.
The indictment was unsealed after Anderson was recently arrested and had his initial appearance on the charges in Eugene, Oregon. Anderson’s arraignment in Oklahoma City federal court has been set for June 10, 2015. The arraignment for Doughty is set for June 5, 2015, in Oklahoma City federal court.
For each of the fifteen counts in the indictment, the charged defendant faces up to thirty years in prison and a fine of $1,000,000.00. Under federal law, each defendant would be required to pay restitution to victims. Furthermore, the indictment seeks forfeiture from each defendant in the amount of the proceeds of the fraudulent schemes and in the amount of the property involved in the offenses.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation - Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and K. McKenzie Anderson.
Reference is made to the indictment and other public filings for further information. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innnocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Ihsaan Al-Amin Sentenced to 100 Month in Prison for Illegally Dispensing Controlled SubstancesRead the Press Release
CHATTANOOGA, Tenn. – On June 1, 2015, Ihsaan Al-Amin, 64, of Smyrna, Ga., was sentenced by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 100 months in prison, followed by two years of supervised release. In November 2013, Dr. Al-Amin pleaded guilty to a one count bill of information charging him with illegally dispensing controlled substances and two counts of an indictment charging him with tax evasion.
Al-Amin operated the O’Neil Pain Clinic in Chattanooga until 2010, when a joint law enforcement investigation revealed that he had illegally prescribed thousands of pills containing opiates and, during 2005 and 2006, significantly under-reported his taxable income on his tax returns.
Agencies involved in this joint investigation included the Internal Revenue Service Criminal Investigation (IRS-CI), Federal Bureau of Investigation (FBI), Tennessee Bureau of Investigation (TBI), Drug Enforcement Administration (DEA), Hamilton County Sheriff’s Office, and Tennessee State Health Related Boards. Assistant U.S. Attorney James Brooks represented the United States.
U.S. Attorney Bill Killian said, “We continue to prosecute medical professionals who, by their acts, contribute to the prescription drug problems in Tennessee. Those specially trained in the field of medicine know the effects of their illegal acts regarding prescription drugs.”
“Today’s sentencing sends a clear message that illegally prescribing narcotics for profit is a serious crime and will be punished accordingly,” stated Christopher A. Henry, Special Agent in Charge. “IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to shut down these pill mills and stop the flow of these illegal drugs into our communities.”
TBI Director Mark Gwyn added, “Investigations like this one are by their nature very time and labor-intensive, and we were fortunate to work closely with the FBI and IRS on this case. So it is rewarding to see that a doctor who has violated the trust of his patients, and the community as a whole, is getting the message that these actions will not be tolerated. We will pursue them the same way we pursue street traffickers.”
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Houston Man Indicted for Wire Fraud and Aggravated Identity Theft in Tax SchemeRead the Press Release
HOUSTON – Federal charges have been filed against Tom Ineze Emasealu, 30, of Houston, alleging he committed wire fraud and aggravated identity theft in conjunction with a fraudulent tax refund scheme, announced U.S. Attorney Kenneth Magidson.
The 10-count indictment was returned May 20, 2015. He will appear in federal court before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. today for his arraignment. Initially arrest upon the filing of a criminal complaint in April, he has remained in custody pending further criminal proceedings.
Emasealu is charged with five counts of wire fraud and five counts of aggravated identity theft.
The indictment alleges that between Jan. 1, 2014, through May 8, 2015, Emasealu stole the identities of multiple victims to engage in a fraudulent tax refund scheme. Emasealu allegedly stole the identities of hundreds of victims, including their names, dates of birth and Social Security numbers. According to the allegations, he used the victim’s personal identifiers to apply for tax refunds and would then allegedly direct the tax refund monies to be deposited into bank accounts under his sole ownership and control.
On average, each fraudulently filed tax refund application netted Emasealu between $3,000 and $10,000, according to the indictment. In total, Emasealu allegedly obtained, or attempted to obtain, approximately $1.2 million.
If convicted, he faces up to 30 years imprisonment for each count of wire fraud and a possible $1 million fine. Emasealu will also face an additional 24 months in federal prison for each conviction of aggravated identity theft which must be served consecutively to any other sentence imposed.
This case is being investigated by the U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Julie Searle is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Health Care Provider Sentenced to 75 Months for $2.5 Million Health Care FraudRead the Press Release
CHICAGO ― A former owner and operator of Selectcare Health, Inc., a provider of outpatient physical and respiratory therapy located in Park Ridge and Skokie, was sentenced to federal prison for engaging in a $2.5 million health care fraud scheme. Ankur Roy, 38, of Miami Beach, Florida, was sentenced last Friday to 75 months in prison followed by 3 years of supervision after his release by U.S. District Court Judge Gary Feinerman. Roy was also ordered to forfeit more than $2.5 million in proceeds he and his codefendants gained by defrauding Medicare and Blue Cross Blue Shield of Illinois. Roy was ordered to surrender to the Federal Bureau of Prisons on July 15, 2015. Roy was charged in 2013 with two co-defendants who both pled guilty; Dipen Desai, who was sentenced to 27 months’ imprisonment in December 2014, and Akash Patel, who is scheduled to be sentenced in July. Roy was convicted of five counts of the indictment by a jury in July 2014.
Between March and May 2011, Roy and his co-defendants submitted false and fraudulent health insurance claim forms to Medicare and Blue Cross Blue Shield for respiratory therapy services that they knew were never provided to patients. Roy, who proposed the scheme to his co-defendants as a means to extricate themselves from debt, designed the scheme to avoid raising red flags with Medicare and Blue Cross Blue Shield’s fraud detection systems. As a result of these false claims, Medicare and Blue Cross Blue Shield paid defendants over $2.5 million. Defendant took over $600,000 of that sum and used it for his own personal purposes, including for personal expenses, paying off credit card bills and repaying his student loan.
“Defendant Roy’s fraud deprived Medicare and Blue Cross Blue Shield of over $2.5 million, a substantial sum of money that should have gone to pay for medical services for senior citizens, and not to line his and his partners’ pockets,” Assistant U.S. Attorney Maureen Merin argued at sentencing.
The sentence today was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent in Charge of the Federal Bureau of Investigation Chicago; Lamont Pugh III, Special Agent in Charge of the Chicago Regional Office of Health and Human Services, Office of Inspector General; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The government was represented by Assistant U.S. Attorney Maureen Merin.
Georgia Man Gets Probation, Ordered to Pay Restitution for Stolen Identity Refund Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of the State of Georgia has been sentenced in federal court to probation for a term of five years and restitution ordered in the amount of $139,357.27 on his conviction of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Edward Claude Hammitt, 67, of Summerville, GA.
In connection with the guilty plea, the court was advised that Hammitt and others conspired to steal identities of other persons which were used to file false electronic federal tax returns between 2010 and 2012.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the successful prosecution of Hammitt.
Four Indicted in Money Laundering ConspiracyRead the Press Release
DALLAS — Three individuals have been arrested on an indictment, unsealed on Friday, charging one count of conspiracy to commit money laundering stemming from their scheme to steal personal identifying information, use it to fraudulently obtain income tax refunds, and then launder those funds, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Latonya Lanette Carson, 41, Ricardo Garth Solomon, 49, and Smith Olsola Akin, 32, have made their initial appearances in federal court and each remains in custody. A detention hearing is set for this afternoon for Carson. Another defendant, Segun Edomwonyi, a/k/a “Benny O. Prince,” 49, has not been apprehended.
The indictment alleges that the defendants’ scheme began in 2010. They allegedly obtained stolen names and other personal identifying information and used that information to create fraudulent tax returns claiming fraudulent refunds. They electronically filed the fraudulent returns with the Internal Revenue Service (IRS) and directed the refunds to be deposited onto reloadable debit cards they had purchased and registered online in the names of the identity victims. The defendants then used these debit cards, funded by the fraudulent income tax refunds, to obtain cash and purchase used cars from wholesale dealers in Dallas County.
Over the course of the conspiracy, according to the indictment, the defendants established several bank accounts in the names of businesses that purportedly operated as used car businesses. Nearly 2000 money orders and checks, purchased in part with the proceeds from the fraudulently filed income tax returns, were deposited into these accounts.
The indictment alleges that between May 2012 and May 2014, the defendants and their conspirators paid $1,184,950 from these accounts to purchase used cars from wholesale dealer auctions in Dallas County, and that between January 2012 and January 2015, the defendants and their conspirators exported approximately 204 used cars to Nigeria.
The FBI, IRS Criminal Investigation, U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Secret Service and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Fort Campbell Army Sergeant Charged with Taking Bribes While Serving in AfghanistanRead the Press Release
PADUCAH, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced charges against a Fort Campbell, Kentucky, Army Sergeant for his role as a public official, for conspiring with another to commit an offense against the United States, namely bribery.
According to the federal information, filed in U.S. District court today in Paducah, Kentucky, Ramiro Pena, Jr., age 43, received and accepted illegal bribes totaling $100,000 U.S. currency and a Rolex watch, in return for being influenced in the performance of an official act, that is, ensuring the successful approval and processing of contracts to restock supplies while serving at Humanitarian Air Yard (“HA Yard”) at Bagram Airfield (“Bagram”) in Afghanistan.
From January 1, 2008 through September 30, 2009, Pena worked as a U.S. Army Sergeant First Class at the HA Yard at Bagram as a Project Purchasing Officer (“PPO”) who maintained the supply orders and made sure the inventory levels were never low. Pena’s supervisor at the HA Yard was Army Master Sergeant Jimmy W. Dennis, who was charged and convicted in the Western District of Tennessee. Dennis was the Army Paying Agent at the HA yard and worked with Pena to procure supplies for the HA Yard by issuing contracts to local Afghan vendors for supplies.
Between June 5, 2008 and March 21, 2009, Dennis and Pena processed approximately 217 contracts worth approximately $30,760,255 for Afghan vendors to provide supplies to the HA Yard. According to the federal information, Pena and Dennis received money and jewelry from the vendors in return for their official acts on the HA Yard contracts.
Further, it is alleged that Pena received about $100,000 from Dennis in approximately six installments and a Rolex watch which was provided by a vendor seeking to obtain HA Yard contracts.
Pena allegedly sent approximately $22,000 of the bribe money home in greeting cards addressed to his wife who resided at Fort Campbell. He sent three to four bills totaling $300 to $400 in each card at a time so as to not bring attention to the envelope at the post office. It is further alleged that Pena used bribe money to purchase a Harley Davidson motorcycle and pay his and his family’s personal expenses in Afghanistan and in the United States.
If convicted at trial, Pena could receive the maximum punishment of five years in prison, a $250,000 fine, no more than three years of supervised release, and forfeiture to the United States of any property traceable to the conspiracy to commit bribery.
This case is being prosecuted by Trial Attorney Daniel P. Butler of the Department of Justice, Criminal Division, Fraud Section and by Assistant United States Attorney Nute A. Bonner. These matters were investigated by the Special Inspector General for Afghanistan Reconstruction, FBI, Army Criminal Investigative Division, Defense Criminal Investigative Service, and Air Force Office of Special Investigation.
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The filing of a Criminal Information is an accusation only and that person is presumed innocent unless and until proven guilty.
Former Warrensburg Postal Worker Pleads Guilty to Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former postal worker in Warrensburg, Mo., pleaded guilty in federal court today to stealing thousands of pieces of mail that were not delivered.
David Thompson, 54, of Warrensburg, Mo., pleaded guilty before U.S. District Judge Dean Whipple to the delay and destruction of mail by a postal employee.
Thompson, who began his career with the U.S. Postal Service in 1990, was the regular mail carrier assigned to a delivery route from the Warrensburg post office on 201 E. Gay Street. He was placed on off-duty status on Jan. 21, 2014, and he is no longer in the employment of the Postal Service.
By pleading guilty today, Thompson admitted that he stole at least 20,000 pieces of mail addressed to 5,571 recipients from May 2012 to Jan. 18, 2014. Thompson admitted that he threw the mail into a dumpster or kept it in his house and personal vehicle rather than delivering the mail to its recipients. The mail was unopened and no specific monetary loss was identified.
Thompson’s supervisors suspected in late 2013 that he was drinking alcohol while on duty and while delivering mail on his official route. During their investigation, a covert camera was installed in his delivery vehicle. Thompson was observed pulling mail already sorted for delivery and placing the mail in a white tub, which he hid in a carport at his personal residence. The next two days, he also pulled mail already sorted for delivery, and each day he bundled it and put it into his personal vehicle. On Jan. 11, 2014, Thompson was recorded throwing a bundle of mail into a trash container, and later placing a tub of mail underneath the carport at his residence. On Jan. 13, 2014, he placed his coat over a tub of mail and placed the mail into his personal vehicle. On Jan. 15, 2014, he took a tub of mail and placed it under the carport at his residence. The next two days, he did the same thing. He took more mail on Jan. 18, 2014. On Jan. 17, 2014, a federal agent recovered four black plastic trash bags of mail from Thompson’s route from the dumpster behind the Elk’s Lodge (where Thompson was a member and served as Exalted Ruler) located at 822 E. Young Avenue in Warrensburg.
Under federal statutes, Thompson is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Postal Service Office of Inspector General.
Former Member of Moreno Valley City Council Sentenced to Five Years in Federal Prison for Taking $2.3 Million Cash BribeRead the Press Release
RIVERSIDE, California – In a case stemming from what is believed to be the largest bribe ever accepted by a public official in an undercover operation, a former member of the Moreno Valley City Council was sentenced this afternoon to 60 months in federal prison for taking a $2.36 million cash bribe from an undercover operative posing as a real estate broker.
Marcelo Co, 64, was sentenced this afternoon by United States District Judge Jesus G. Bernal. Co pleaded guilty last year to one bribery count and one count of filing a false corporate tax return.
The case against Co was the result of an investigation by the Inland Regional Corruption Task Force, which is comprised of prosecutors, agents and investigators from the Federal Bureau of Investigation, IRS – Criminal Investigation, the Riverside County District Attorney’s Office and the United States Attorney’s Office.
Co was elected to the Moreno Valley City Council in November 2010 and resigned from his seat in August 2013 after being charged in state court in an unrelated case. Court documents filed in the federal case outline a bribery scheme in which Co told a businessman and an undercover FBI operative posing as a real estate broker that he would control a voting majority of the Moreno Valley City Council and would be able to guarantee land use decisions that would benefit the businessman and the land
broker. Co also promised to always vote in favor of land use decisions that would benefit the real estate broker.Co solicited campaign donations from the FBI undercover operative and the
businessman, who was cooperating with the investigation. Co eventually received payments of $5,000 and $10,000 that he said were to be used to finance the campaigns of individuals who would vote with him on land use issues.
In the fall of 2012, Co met with the undercover operative to discuss a multimillion dollar sale of a 30-acre parcel that he owned. Co told the real estate broker that once he
had control of the City Council, he could change the zoning of the property and the land
value would dramatically increase. With the City Council election in November 2012, Co told the undercover investigator that he had the votes to alter the zoning and increase the value of Co’s 30-acre parcel, which had been appraised at $710,000. Co proposed that the undercover operative purchase the property for $5.36 million, which would include a cash payment of $2.36 million.At a meeting on January 30, 2013, Co agreed to sell the property for $5.36 million, but that the publicly filed documents would reflect a sale price of only $3 million. At this meeting, Co accepted $2.36 million in cash.
The tax charge concerns a federal Corporation Income Tax Return (Form 1120) that Co filed for his company, Qwik Pack Systems, for tax year 2010. In that filing with the IRS, Co failed to report well over $100,000 in income. This tax charge is not related to the bribery scheme.
Co must surrender himself to authorities on October 30 to begin serving his sentence.
Release No. 15-057
Former IRS Employee Pleads Guilty to $326,000 Fraud Scheme, Identity TheftRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Internal Revenue Service pleaded guilty in federal court today to using stolen identities in a scheme to receive $326,000 in fraudulent tax refunds.
Demetria Michele Brown, 38, of Birmingham, Ala., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to two counts of wire fraud and one count of aggravated identity theft.
By pleading guilty today, Brown admitted that she engaged in a scheme to submit hundreds of false and fraudulent state and federal income tax returns in order to generate refunds from 2008 to 2011. Brown, formerly of Fairview Heights, Ill., worked at an IRS office in St. Louis, Mo., during the fraud scheme.
Brown filed more than 120 fraudulent federal tax returns, resulting in a loss of approximately $211,000. Brown filed at least 236 fraudulent state tax returns, resulting in a loss of approximately $115,000, for an aggregate loss amount of approximately $326,000.
The scheme involved Brown obtaining personal identification information, including names, Social Security numbers, and dates of birth of other persons without their knowledge or consent. Brown completed U.S. individual income tax returns and Missouri state income tax returns for persons using the personal identification information she had obtained, adding other information which was false and fraudulent, including the address, place of employment, wages earned, taxes withheld and the fact that a refund was due.
Under federal statutes, Brown is subject to a sentence of up to 20 years in federal prison without parole for each wire fraud count and a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft, plus a fine up to $750,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.
Former Greece Police Officer Sentenced for Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that John Casey, 47, formerly of Greece, NY, who was convicted of possession of child pornography, was sentenced to 48 months in prison and 10 years supervised release by U.S. District Court Judge Elizabeth A. Wolford. The defendant will have to register as a sexual offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in March 2014, Federal Agents from Homeland Security Investigations working online in an undercover capacity observed the defendant sharing images of child pornography on the internet. At that time, they were able to download several sexually explicit images of children being raped from the defendant’s computer. They identified Casey’s physical location and then obtained and executed a federal search warrant for his Greece residence. During the search, agents seized multiple digital items which were forensically analyzed. Child pornography images and movies were recovered from two laptops which were also linked to the files shared online. Some of the images depicted children as young as infants being sexually abused.
Federal investigators reviewed the defendant’s time records and online activities and determined that the child pornography was downloaded during times when Casey was not at work as a Greece Police Officer. Agents also determined that no official or departmental equipment was used. Officers from the Greece Police Department assisted with the investigation.
The sentencing is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Patrick Phelan and Special Agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Former Amherst Woman Charged in Murder-For-Hire PlotRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Debra Arno, 56, formerly of Amherst, NY, was arrested and charged by criminal complaint with federal murder-for-hire. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that according to the complaint, on May 26, 2015, the Kenmore Police Department received a tip about a murder for hire plan. The individual told officers that another person had been given money by the defendant to murder her ex-husband, his current wife and their daughter. The individual reported to officers seeing hand written letters detailing the schedule and current residence of the family along with photos. On May 27, the Kenmore Police Department identified Arno’s ex-husband, his wife and their daughter. Officers also alerted the victims of the murder-for-hire plan.
On May 28, 2015, a search warrant was executed at the residence of the person allegedly hired by the defendant to carry out the murders. Officers seized a number of items including multiple documents from Arno to the individual including photos of the intended victims, a diagram of their residence and a schedule of their activities. Also seized were two cellular telephones and three shotguns.
The complaint alleges that Arno was going to pay the defendant a total of $20,000 to commit the murders.
Arno made an initial appearance this morning before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being detained pending a detention hearing on June 2, 2015 at 11:15 a.m.
The criminal complaint is the result of an investigation by the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer, the East Aurora Police Department, under the direction of Chief Ronald Krowka, and the Federal Bureau of Investigation Safe Streets Task Force which includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Florida Timeshare Resale Co-Owner Sentenced for Role in Multi-Million Dollar ScamRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Leandro Velazquez, 36, of Kissimmee, Florida, was sentenced in the U.S. District Court for the Southern District of Illinois on May 28, 2015, to 108 months in federal prison for his role is a conspiracy to commit mail and wire fraud.
In February 2014, a grand jury returned a one-count indictment charging Velazquez with conspiracy to commit mail fraud and wire fraud in connection with telemarketing. The indictment alleged that Velazquez, and others were engaged in an extensive telemarketing scam which operated in Orlando, Florida, that bilked thousands of victims of approximately $6 million dollars, victimizing consumers throughout the United States and Canada. There were victims in seven of the thirty eight (38) counties comprising the Southern District of Illinois.
According to documents filed with the Court in connection with his guilty plea and sentencing, Velazquez was a co-owner of National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timesharesales, and Landmark Timeshares, among others. Evidence provided to the Court established that Velazquez' participation in the scheme began on or about December 5, 2007 and continued through July 13, 2011. Telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within a number of days. Despite collecting fees from these victims, these companies were not successful in selling a single timeshare unit, according to testimony from the U.S. Postal Inspection Service.
The Federal Trade Commission investigated the National Solutions businesses and brought a civil complaint in the United States District Court for the Middle District of Florida in Orlando. In that action the FTC seized the offices and records of National Solutions on July 13, 2011 pursuant to Court Order.
This prosecution follows an investigation by the Midwest Region Office of the Federal Trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution of the case was handled by Assistant U.S. Attorneys Bruce E. Reppert and Michael J. Quinley.
Consumers who believe that they have been the victim of a consumer fraud should call the Federal Trade Commission 1-877-FTC-HELP (1-877-382-4357) or file an online complaint at https://www.ftccomplaintassistant.gov.
First Tennessee Bank, N.A. agrees to pay $212.5 Million to Resolve False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
ATLANTA – First Tennessee Bank, N.A. (“First Tennessee”) has agreed to pay the United States $212.5 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. First Tennessee is headquartered in Memphis, Tennessee.
“First Tennessee admitted failings that resulted in poor quality FHA loans. While First Tennessee profited from these loans, taxpayers incurred substantial losses when the loans defaulted,” said John A. Horn, the Acting U.S. Attorney for the Northern District of Georgia. “The settlement, as well as the investigation that preceded it, illustrates that the Department of Justice will closely scrutinize entities that cause financial injury to the Government, and, in turn, the American taxpayer.”
“First Tennessee’s reckless underwriting has resulted in significant losses of federal funds and was precisely the type of conduct that caused the financial crisis and housing market downturn,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to hold accountable lenders who put profits before both their legal obligations and their customers, and restore wrongfully claimed funds to FHA and the treasury.”
“We are pleased that First Tennessee has acknowledged facts that demonstrate its failure to comply with HUD’s requirements and has agreed to settle with the government,” said Helen Kanovsky, HUD’s General Counsel. “We thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us to make this settlement a reality. We hope this agreement sends a message to those lenders with whom we do business that HUD takes compliance very seriously and so should they.”
“Our investigation found that First Tennessee caused FHA to pay claims on loans that the bank never should have approved and insured in the first place,” said HUD Inspector General David A. Montoya. “This settlement reinforces my commitment to combat fraud in the origination of single family mortgages insured by the FHA and makes certain that only qualified, creditworthy borrowers who can repay their mortgages are approved under the FHA program.”
Between January 2006 and October 2008, First Tennessee, through its subsidiary First Horizon Home Loans Corporation (“First Horizon”), participated in the FHA insurance program as a Direct Endorsement Lender (DEL). As a DEL, First Tennessee had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL such as First Tennessee approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan.
Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs such as First Tennessee are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance, to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices, and to self-report any deficient loans identified by their quality control program. In August 2008, First Tennessee sold First Horizon to Metlife Bank, N.A. (“Metlife”), a wholly-owned subsidiary of Metlife, Inc., which thereafter originated FHA-insured mortgages under the Metlife name. In February 2015, Metlife agreed to pay $123.5 million to resolve its False Claims Act liability arising from its FHA originations after it acquired First Horizon from First Tennessee.
The settlement announced today resolves allegations that First Tennessee failed to comply with FHA origination, underwriting, and quality control requirements. As part of the settlement, First Tennessee admitted to the following facts:
- From January 2006 through October 2008, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements.
- Beginning in late 2007, First Tennessee significantly increased its FHA originations. The quality of First Tennessee’s FHA underwriting significantly decreased during 2008 as its FHA lending increased.
- Beginning no later than early 2008, First Tennessee became aware that a substantial percentage of its FHA loans were not eligible for FHA mortgage insurance due to its own quality control findings. These findings were routinely shared with First Tennessee’s senior managers. Despite internally acknowledging that hundreds of its FHA mortgages had material deficiencies, and despite its obligation to self-report findings of material violations of FHA requirements, First Tennessee failed to report even a single deficient mortgage to FHA.
First Tennessee’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.
Assistant United States Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office.
The investigation of the allegations in the Government’s complaint was a coordinated effort between the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Georgia, HUD, and HUD’s Office of Inspector General.
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/gan/.
First Tennessee Bank N.A. Agrees to Pay $212.5 Million to Resolve False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
First Tennessee Bank N.A. has agreed to pay the United States $212.5 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. First Tennessee is headquartered in Memphis, Tennessee.
“First Tennessee’s reckless underwriting has resulted in significant losses of federal funds and was precisely the type of conduct that caused the financial crisis and housing market downturn,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to hold accountable lenders who put profits before both their legal obligations and their customers, and restore wrongfully claimed funds to FHA and the treasury.”
Between January 2006 and October 2008, First Tennessee, through its subsidiary First Horizon Home Loans Corporation (First Horizon), participated in the FHA insurance program as a Direct Endorsement Lender (DEL). As a DEL, First Tennessee had the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL such as First Tennessee approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs such as First Tennessee are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance, to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices and to self-report any deficient loans identified by their quality control program. In August 2008, First Tennessee sold First Horizon to MetLife Bank N.A. (MetLife), a wholly-owned subsidiary of MetLife Inc., which thereafter originated FHA-insured mortgages under the MetLife name. In February 2015, MetLife agreed to pay $123.5 million to resolve its False Claims Act liability arising from its FHA originations after it acquired First Horizon from First Tennessee.
“First Tennessee admitted failings that resulted in poor quality FHA loans,” said Acting U.S. Attorney John A. Horn of the Northern District of Georgia. “While First Tennessee profited from these loans, taxpayers incurred substantial losses when the loans defaulted. The settlement, as well as the investigation that preceded it, illustrates that the Department of Justice will closely scrutinize entities that cause financial injury to the government, and, in turn, the American taxpayer.”
The settlement announced today resolves allegations that First Tennessee failed to comply with FHA origination, underwriting and quality control requirements. As part of the settlement, First Tennessee admitted to the following facts: From January 2006 through October 2008, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. Beginning in late 2007, First Tennessee significantly increased its FHA originations. The quality of First Tennessee’s FHA underwriting significantly decreased during 2008 as its FHA lending increased. Beginning no later than early 2008, First Tennessee became aware that a substantial percentage of its FHA loans were not eligible for FHA mortgage insurance due to its own quality control findings. These findings were routinely shared with First Tennessee’s senior managers. Despite internally acknowledging that hundreds of its FHA mortgages had material deficiencies, and despite its obligation to self-report findings of material violations of FHA requirements, First Tennessee failed to report even a single deficient mortgage to FHA. First Tennessee’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.
“Our investigation found that First Tennessee caused FHA to pay claims on loans that the bank never should have approved and insured in the first place,” said HUD Inspector General David A. Montoya. “This settlement reinforces my commitment to combat fraud in the origination of single family mortgages insured by the FHA and makes certain that only qualified, creditworthy borrowers who can repay their mortgages are approved under the FHA program.”
“We are pleased that First Tennessee has acknowledged facts that demonstrate its failure to comply with HUD’s requirements and has agreed to settle with the government,” said HUD General Counsel Helen Kanovsky. “We thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us to make this settlement a reality. We hope this agreement sends a message to those lenders with whom we do business that HUD takes compliance very seriously and so should they.”
The investigation of the allegations in the government’s complaint was a coordinated effort between the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Northern District of Georgia, HUD and HUD’s Office of Inspector General.
Essex County, New Jersey, Man Admits Taking Cellphone Pictures While Sexually Abusing Two ChildrenRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man today admitted sexually abusing two girls and recording the conduct on his cellphone, U.S. Attorney Paul J. Fishman announced.
Justin Kinney, 26, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with two counts of producing child pornography. Kinney was previously arrested and charged by federal complaint on April 20, 2014, and is currently in state custody on related charges.
According to the papers filed in the case and statements made in court:
On Oct. 25, 2012, law enforcement executed a search warrant on Kinney’s laptop computer and cellphone, which revealed several files of child pornography that appeared to be taken with Kinney’s cellphone. Kinney admitted that two of the images, dated Aug. 19, 2012 and Oct. 10, 2012, were taken by him while he sexually abused two girls.
On each count of the production of child pornography, Kinney faces a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. Kinney will be required to register as a sex offender. Sentencing is currently scheduled for Sept. 9, 2015.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Danielle M. Corcione and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
Eleven Sentenced to Combined 97.5 Years in Federal Prison for Methamphetamine Drug Trafficking OffensesRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced the final defendants tied to a large-scale drug trafficking organization that operated in Northwest Arkansas were sentenced today. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “These defendants transported large amounts of methamphetamine from California to Arkansas where they sold and distributed it into our communities. The drug trafficking organization responsible has now been successfully dismantled, and its members brought to justice. Our office remains focused on identifying and prosecuting those responsible for bringing drugs onto our streets and crime into our communities.”
“Methamphetamine is a plague that drug traffickers inflict upon law-abiding communities without any regard for the violence and destruction that often accompanies its use,” said Acting Deputy Special Agent in Charge of HSI New Orleans Jerry Templet. “This case illustrates the successful ongoing partnership between HSI, ATF, the DEA, and local law enforcement partners with the Rogers Police Department, Springdale Police Department, Eureka Springs Police Department and the Washington County Sheriff's Office that continue to identify and bring Arkansas drug traffickers to justice.”
"These sentences mark the final blow reflecting the successful dismantling of this large scale methamphetamine trafficking organization," said DEA Assistant Special Agent in Charge David Downing. "By removing these criminals from the streets of Arkansas, they can no longer distribute this toxic poison to our communities. Through remarkable partnerships with HSI, ATF, and local law enforcement partnerships with Rogers Police Department, Springdale Police Department, Eureka Springs Police Department and the Washington County Sheriff's Office, we are making major progress in preventing meth trafficking from taking hold in our communities. This investigation is a compelling example of that success." said Downing.
As early as April, 2014, investigators with United States Homeland Security Investigations (HSI), Drug Enforcement Agency (DEA), and the Rogers, Arkansas Police Department began an investigation into a drug trafficking organization involving the distribution of methamphetamine in Northwest Arkansas. Numerous controlled buys, surveillance, search warrants, and monitoring were used during the course of the investigation, which resulted in the seizure of approximately ten pounds of methamphetamine and eight weapons, including one fully automatic rifle. Investigators were able to track approximately $150,000.00 in cash deposits made into Arkansas banks which were later withdrawn in California.
The defendants were sentenced as follows:
Rudy Richard Sanchez, aka “Lil Man”, 36, of Lowell, Arkansas, was sentenced on May 5, 2015, to 151 months in prison followed by three years of supervised release on one count of Delivery of More Than Five Grams of Actual Methamphetamine. At sentencing, Sanchez was found to be a Career Offender.
Jarvis Miranda, aka “Crazy”, 35, of Springdale, Arkansas, was sentenced on May 28, 2015, to 293 months in prison, 240 months on count one, Conspiracy to Distribute Methamphetamine, and 120 months on count two, Felon in Possession of a Firearm, with 53 months on count two to run consecutively to count one, and 67 months on count two to run concurrently with count one, followed by three years of supervised release on each count, to run concurrently. At sentencing, Miranda was found to be a Career Offender.
Fabian Uribe, aka “Sporty”, 28, of Arleta, California, was sentenced on June 1, 2015, to 240 months in prison followed by three years of supervised release, a $12,500.00 fine and a five year denial of federal benefits on one count of Conspiracy to Distribute a Substance Containing Detectable Amounts of Methamphetamine. Uribe is a member of the “Project Boys” (Sureno faction) a violent street gang based in Pacoima, California.
Cruz Eduardo Segundo, aka “Eddie”, 26, of North Hills, California, was sentenced on June 1, 2015, to 135 months in prison followed by three years of supervised release and a five year denial of federal benefits on one count of Conspiracy to Distribute a Substance Containing Detectible Amounts of Methamphetamine.
Joey Jonathon Morse, aka “Red”, 30, of Springdale, Arkansas, was sentenced on May 26, 2015, to 72 months in prison followed by four years of supervised release on one count of Delivery of Methamphetamine.
Tara Marie Hickman, 39, of Burbank, California, was sentenced on June 1, 2015, to 70 months in prison followed by three years of supervised release on one count of Conspiracy to Distribute a Substance Containing Detectible Amounts of Methamphetamine.
Sara Chaisson, 26, of Houma, Louisiana, was sentenced on March 19, 2015, to 60 months in prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.
Henry Alonzo Diaz, aka “Hank”, 34, of Montebello, California, was sentenced on June 1, 2015, to 60 months in prison followed by three years of supervised release, and a $25,000.00 fine on one count of Interstate or Foreign Travel or Transportation In Aid of Racketeering Enterprises.
Karen Vasquez-Benitez, 27, of Los Angeles, California, was sentenced on June 1, 2015, to 60 months in prison followed by three years of supervised release and a $15,000.00 fine on one count of Interstate or Foreign Travel or Transportation In Aid of Racketeering Enterprises.
Nichole Rana Hayes, 27, of Riverside, California, was sentenced on May 27, 2015, to 15 months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Roxanna Hernandez, 28, of Springdale, Arkansas, was sentenced on May 27, 2015, to 15 months in prison, followed by three years of supervised release on one count Aiding and Abetting the Distribution of Methamphetamine.
This case was investigated by Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Rogers, Arkansas Police Department, the Springdale, Arkansas Police Department, the Eureka Springs, Arkansas Police Department, the Washington County, Arkansas Sheriff’s Office and the Arkansas State Police. Assistant United States Attorneys Brandon Carter and Kenny Elser prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Detroit One Partnership Announces Initiative to Reduce Gun ViolenceRead the Press Release
The Detroit One violence reduction partnership today announced an initiative to reduce gun violence in Detroit. The initiative includes enforcement and public awareness about the serious federal penalties that face violent felons who possess firearms. Joining in the announcement were United States Attorney Barbara L. McQuade, Detroit Mayor Mike Duggan, Wayne County Prosecutor Kym Worthy, Detroit Police Chief James Craig and John Broad, President, Crime Stoppers of Michigan. The Wayne County Prosecutor’s Office and the U.S. Attorney’s Office are focusing on prosecution of the illegal possession of guns by felons with violent criminal convictions. Felons with one prior violent crime conviction who possess a gun in Detroit will face federal prosecution. An offender with three prior violent felony convictions who merely possesses a gun faces a mandatory minimum sentence of 15 years. An offender who uses a gun during a violent crime faces a mandatory minimum sentence of five years, and an additional mandatory minimum sentence of 25 years for a second offense. The public awareness campaign is designed to deter possession of illegal guns by violent felons by raising awareness of the significant federal penalties for firearms offenses. The campaign’s message, "You Do The Math: Felon + Gun = Long Federal Sentences" will be communicated on billboards and in a public service announcement for broadcast media. The billboards are located on E. I-94 Freeway and Conner and the Southfield Freeway and Grand River. Last year, the Detroit One partnership tackled carjacking in Detroit with a similar enforcement and deterrence strategy. Carjacking fell by 32 percent last year. During the past three years, fatal and non-fatal shootings have ranged between 1,400 and 1,600 per year. Violent crimes often increase during warmer weather, so this campaign is designed to coincide with the approaching summer months. "We hope that if violent felons are aware of the very serious penalties for carrying a gun, then they will be less likely to carry one,” McQuade said, “If violent felons do carry guns, we are prepared to back up our warnings with federal prosecution.” Detroit Mayor Mike Duggan stated, "This kind of partnership among all of our local, state and federal law enforcement agencies is something people are going to start seeing a lot more of in Detroit. When we are operating under a single, unified strategy and engaging our community partners more effectively, we will see a reduction in gun violence, just as we have seen reductions in every other major category or crime over the past two years." Wayne County Prosecutor Worthy stated, “We must continue to think of innovative ways to address the problem of gun violence. The Detroit One Initiative does just that. Our work together will allow us to be more effective in reducing the gun violence that plagues our community” “Strong, collaborative relationships with the common goal of making our city safer will continue to reduce violent crime,” said Detroit Police Chief James E. Craig. “This has been a very effective crime-abatement strategy here in Detroit and in other cities around the country.” “Crime Stoppers is pleased to be a partner in the Detroit One violence reduction initiative,” stated John Broad, President. “We encourage those who witness a crime to call their local police department or Crime Stoppers at 1-800-SpeakUp.” Participating agencies in the Detroit One initiative include the Detroit Police Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service, Homeland Security Investigations, Internal Revenue Service, Michigan State Police, Michigan Department of Corrections, Wayne County Sheriff’s Department, Wayne County Prosecutor’s Office and U.S. Attorney’s Office. To view the PSA, please visit our website at http://www.justice.gov/usao/mie/index.html or on YouTube at https://youtu.be/7Nqbi6iUk1QClarksburg woman sentenced for selling heroin near local playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alicia Radel, 31, of Clarksburg, was sentenced today to 24 months in prison for selling heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Radel sold heroin in September 2014 near the Clarksburg City Park – North Side Playground. She pled guilty in January 2015 to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.”
In another matter, Ellan Miller, 54, of Fairmont, West Virginia was sentenced today to 41 months in prison after she was discovered in possession of medication containing pseudoephedrine in Marion County, West Virginia in September 2014. She pled guilty in January 2015 to one count of “Possession of Pseudoephedrine to be used in the Manufacturing of Methamphetamine,” following an investigation by the Three Rivers Drug Task Force.
Assistant U.S. Attorney Shawn Morgan prosecuted Radel and Assistant U.S. Attorney Zelda Wesley prosecuted Miller on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Career bank robber sentencedRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that a Fort Wayne man convicted of conspiracy to commit bank robbery in Fishers, IN. was sentenced to 27 years in federal prison. Deandre Armour, 39, Fort Wayne, was sentenced by U. S. District Judge Sarah Evans Barker after being convicted of conspiracy to commit armed bank robbery, bank robbery and brandishing a firearm in relation to a crime of violence.
Minkler said, “Mr. Armour and his robbery team were career bank robbers who held hostages at gunpoint. He will be well into his 60s when he is released from federal prison. Hopefully, that means his career as a bank robber is done.”
In early June 2013, the Federal Bureau of Investigation (FBI) learned that Armour and several others were planning to commit bank robberies in the vicinity of Indianapolis. FBI agents began surveillance of Armour as he cased a Community Bank branch located on Reynolds Drive in Fishers. Agents watched Armour case the same bank for approximately two weeks.
By June 25, 2013, Armour had decided to rob the Community Bank the following morning. Armour and several associates traveled to Fishers from Fort Wayne, Indiana. That evening, Armour and two conspirators purchased items to be used in the robbery, including clothing for disguises, zip ties, latex gloves, and a set of two-way radios.
Early the morning of June 26, 2013, Armour and a conspirator dropped off two accomplices, Duryea Rogers and Xavier Hardy, near the Community Bank, where they hid themselves in a dumpster enclosure near the back door to the bank. Rogers and Hardy wore disguises provided by Armour and carried loaded firearms. Shortly thereafter, Armour and two other accomplices parked in a nearby parking lot where Armour could observe the bank and where he directed the activities of Rogers and Hardy by two-way radio.
A bank employee arrived at about 8:00 AM, and when she went to unlock the back door, Rogers and Hardy emerged from hiding and forced her into the bank at gunpoint. When the employee was unable to open the vault by herself, Rogers forced her onto the floor where he secured her hands and feet with zip ties. Rogers and Hardy then stole the employee’s car and fled. Armour and his accomplices followed in two other vehicles.
FBI agents and officers of the Fishers Police Department quickly tracked the three vehicles to the vicinity of North-by-Northeast Boulevard and Carney Drive near 96th Street in Fishers. Hardy, who was still armed, was apprehended in a hotel lot after a short foot chase. Duryea Rogers fled into a nearby hotel, where he was arrested after officers found him hiding in a closet. Rogers’ handgun and various other evidence was found nearby.
Three other accomplices have been sentenced for their role in the robbery.
Duryea Rogers 28, Fort Wayne- received a 12 year sentence
Xavier Hardy, 27, Fort Wayne, received an 11 year sentence
Tahitia Burnett, 42, Fort Wayne, received a seven year sentence
According to Assistant United States Attorneys William L. McCoskey and Michelle P. Brady, who prosecuted this case for the government, Armour faces five years of supervised release after serving his sentence.
Anchorage Woman Sentenced to Two Years Imprisonment for HIPAA ViolationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that on Friday, May 29, United States District Court Judge, Ralph R. Beistline, sentenced an Anchorage woman, Stacy Laulu, age 33, to two years imprisonment on her convictions for two felony violations of the Health Information Portability and Accountability Act (“HIPAA”). The case represented the first felony HIPAA prosecution in Alaska, and one of the few in the country.
Laulu was convicted after trial along with her co-defendant , Stuart Seugasala, who was recently sentenced to life imprisonment on convictions for Drug Conspiracy, Kidnapping, Use of Firearms in Furtherance of those crimes, and HIPAA violations.
According to prosecutors, at the time of the crimes, Laulu worked at Providence Hospital as a financial counselor. In that capacity, she had access to computerized medical records. The evidence at trial established that, in mid-March 2013, Seugasala contacted Laulu on her cellular telephone and asked her to check the medical records of two people he had victimized: one victim who had been sexually assaulted and another who had been shot by Seugasala. Laulu determined the identity of the victims (one of whom was still hospitalized), and provided Seugasala with confidential information about the victims, including what they had told hospital staff about how they sustained their injuries, the severity of the injuries, and what was reflected in hospital records about their cooperation with law enforcement. Laulu communicated this information through text messages to Seugasala.
Seugasala was stopped by the Anchorage Police Department (APD) in May 2013. At the request of the Drug Enforcement Administration (DEA), APD seized Seugasala’s cellular telephone. DEA agents later obtained a search warrant for this telephone, which revealed the texts between Seugasala and Laulu, which Seugasala had attempted to delete from his phone. Laulu was then confronted by DEA agents and admitted to sending the information to Seugasala. Providence Hospital was then notified and Laulu’s employment was terminated.
Evidence at trial established that Laulu’s husband was a close friend and former co-defendant with Seugasala in a federal drug case. At the time of her crimes, Laulu’s husband was awaiting trial on murder charges. Witnesses at Seugasala’s and Laulu’s trial testified that, at times, Seugasala would arrange to drop off drug proceeds for Laulu and her husband’s benefit.
In imposing a two-year sentence on Laulu, Judge Beistline stated that Laulu “displayed no respect for the law or the private and confidential information of the victims,” adding that “in this day and age, every human being expects private records to remain private.” In disclosing the private information to Seugasala, Judge Beistline noted that Laulu assisted Seugasala and his gang’s “lawless pursuits.”
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case. Providence Hospital also provided valuable assistance in the form of records and testimony at trial.
Alabama Woman Pleads Guilty for Involvement in Stolen Identity Refund Fraud RingRead the Press Release
A Phenix City, Alabama, resident pleaded guilty today in the Middle District of Alabama for her role in a stolen identity refund fraud (SIRF) scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to court documents, between March 2011 and May 2014, Teresa Floyd conspired with her daughter, Lasondra Miles Davis, and others to defraud the United States by filing false federal income tax returns using stolen identities. Miles Davis obtained the means of identification of individuals without their authorization and provided the stolen identities to Floyd. Floyd and her co-conspirators obtained Electronic Filing Identification Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of tax preparation businesses, which Floyd then used to file false tax returns with the stolen identities. All of the false returns included fraudulent claims for tax refunds. Floyd, Miles Davis and others cashed the refund checks at several companies in Alabama and Georgia, and Floyd deposited refund checks into her bank account.
Floyd faces a mandatory statutory sentence of two years in prison for the aggravated identity theft count and an additional statutory maximum sentence of 10 years in prison for the conspiracy count. Both counts include a statutory maximum fine of $250,000. Miles Davis pleaded guilty on April 10 to one count of aggravated identity theft and is scheduled to be sentenced on Aug. 12.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Michael P. Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Sunday 31 May 2015
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on May 29, 2015, and entering pleas of Not Guilty were:
- LEVI MICHAEL BIERWILER, a 39-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, BIERWILER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force, Drug Enforcement Administration and Homeland Security Investigations. PACER Case Reference. 15-53
- JAMES WARD PRICE, a 29-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, PRICE faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation HIDTA and Homeland Security Investigations. PACER Case Reference. 15-58
- HOPE MARGIE RATHBUN, a 36-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, RATHBUN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation HIDTA and Homeland Security Investigations. PACER Case Reference. 15-59
Appearing before U.S. Magistrate Lynch in Missoula on May 28, 2015, and entering pleas of Not Guilty were:
- BRUCE EDWARD DENNISON, a 52-year-old resident of Bozeman, appeared on charges of conspiracy to distribute heroin and possession with intent to distribute heroin. If convicted of the most serious charge contained in the indictment, DENNISON faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Federal Bureau of Investigation. PACER Case Reference. 15-25
- MARK DAVID SMITH, a 37-year-old resident of Bozeman, appeared on charges of possession of a firearm not registered in the national firearms registration and transfer record. If convicted of the charge contained in the indictment, SMITH faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana State University Police Department. PACER Case Reference. 15-23
Appearing before U.S. Magistrate Johnston in Great Falls on May 26, 2015 and entering pleas of Not Guilty were:
- DARIN LEE MILLER, a 42-year-old resident of Havre, appeared on charges of income tax evasion. If convicted of the most serious charge contained in the indictment, MILLER faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Internal Revenue Service Criminal Investigation Division. PACER Case Reference. 15-32
Appearing before U.S. Magistrate Ostby in Billings on May 26, 2015 and entering pleas of Not Guilty were:
- ELIJAH LEE ROCK, a 32-year-old resident of Hardin, appeared on charges of assault resulting in substantial bodily injury of a dating partner, assault with a dangerous weapon, use and discharge of a firearm during and in relation to a crime of violence, robbery involving motor vehicle, and use and brandish a firearm during and in relation to a crime of violence. If convicted of the most serious charges contained in the indictment, ROCK faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-60
Appearing before U.S. Magistrate Ostby in Billings on May 20, 2015 and entering pleas of Not Guilty were:
- GORDON DEAN SMALL, a 43-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SMALL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs and the Billings Police Department. PACER Case Reference. 15-48
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Friday 29 May 2015
Yancey County Man Sentenced to More Than 21 Years in Prison for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Thursday, May 28, 2015 U.S. District Judge Martin Reidinger sentenced Patrick Ronald Silva, 44, of Burnsville, N.C. to 262 months in prison on production of child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Silva was ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay $6,000 as restitution to his victim.
Ryan L. Spradlin, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, and Sheriff Gary Banks of the Yancey County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
In June 2014, Silva pleaded guilty to one count of production of child pornography. According to court documents and statements made in court, from May 26, 2012 to June 26, 2012, in Yancey County, Silva solicited his co-defendant, Tabatha Black, to produce child pornography of a female minor. Court records indicate that Silva then distributed the child pornography via the Internet and e-mail. Law enforcement executed a search warrant at Silva’s residence, and seized his computer and cellular phones. A forensic examination of the seized items revealed that they contained images and videos of child pornography. Silva has been in federal custody since April 2014. Black was sentenced in February 2015 to 210 months in prison and a lifetime of supervised release, after pleading guilty to one count of production of child pornography.
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Judge Reidinger also sentenced a second defendant today on child pornography charges. Robert George Ross, 29, of Old Fort, N.C. was sentenced to 60 months in prison, a lifetime of supervised release, and was ordered to register as a sex offender. According to court records, in July 2013 in McDowell County, Ross received and possessed images depicting child pornography. Court records show that Ross possessed approximately 800 images of child pornography as well as numerous videos. Ross pleaded guilty in October 2014 to one count of possession of child pornography and one count of receipt of child pornography. He has been in federal custody since April 2014. The case was investigated by HSI, the Yancey County Sheriff’s Office, and the McDowell County Sheriff’s Office.
In announcing today’s sentences, Acting U.S. Attorney Rose said, “The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to protect the most vulnerable members of our communities from child predators. Victimizing innocent children is repulsive and in all instances will receive swift and forceful attention from my office.” Rose also thanked all the law enforcement agencies that investigated these cases for their outstanding work.
The defendants will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Washington Man Pleads Guilty in Missoula to Drug and Prostitution CrimesRead the Press Release
MISSOULA – Yusuf Reeves, 47, of Spokane Valley, Washington, pleaded guilty today in Missoula federal court to drug and racketeering-related charges. He faces a mandatory prison sentence of five to forty years, up to five million dollars in fines, and at least four years supervised release for the drug crime. For the racketeering crime involving prostitution, he faces up to five years in prison, a $250,000 fine, and three years of supervised release. U.S. Magistrate Court Judge Jeremiah Lynch presided over the change of plea and set sentencing for September 17, 2015 in Missoula. Reeves was detained pending sentencing.
Yusuf pleaded guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine and heroin as well as one count of interstate travel in aid of racketeering. In an Offer of Proof filed with the Court, federal prosecutor Cyndee Peterson stated that Reeves received methamphetamine and heroin from sources in Washington state and elsewhere. With several others, Reeves conspired to bring heroin and methamphetamine to Missoula County for distribution, and did so over a ten-month period in 2014. During the summer of 2014, Reeves also travelled from Spokane, Washington, to Missoula, Montana, with five others to promote prostitution in violation of Montana law. They rented hotel rooms, or directed others to rent rooms, in Missoula to facilitate those crimes.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Utah Brothers Sentenced for Trafficking Marijuana into Rhode IslandRead the Press Release
PROVIDENCE, R.I. – Benjamin J. Daniels, 38, of Sandy, Utah, was sentenced today in federal court in Providence, R.I., to 34 months in federal prison to be followed by 5 years supervised release for his participation in a conspiracy to ship 239 pounds of marijuana to Rhode Island from Pennsylvania in December 2013.
Benjamin’s brother, Michael Daniels, 33, of Provo, Utah, formerly of Tiverton, R.I., was sentenced on December 18, 2014, to 18 months in federal prison to be followed by 3 years supervised release for his participation in the drug trafficking conspiracy.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Benjamin Daniels pleaded guilty on September 14, 2014, to conspiracy to distribute and possess with the intent to distribute fifty kilograms or more of marijuana. Michael Daniels pleaded guilty on August 28, 2014, to conspiracy to distribute and possess with the intent to distribute fifty kilograms or more of marijuana.
According to court files and information presented to the court, in December 2013, HSI agents in Pittsburgh, working with the Customs and Border Protection Air and Marine Division in Riverside, CA, conducted an investigation of a single-engine aircraft located at an airport in New Castle, PA, believed to be involved in the transportation of large quantities of marijuana. A court authorized search of the aircraft resulted in the discovery of twelve sealed boxes marked “Sun Max, Hot Water Solutions” which contained a total of 239 pounds of marijuana. HSI agents determined that Benjamin Daniels arranged to have the packages flown to New England for delivery, either to Benjamin Daniels or a person designated by him.
On December 16, 2013, federal agents followed the shipment from Pennsylvania to North Central Airport in Smithfield, RI. Once on the ground, at the direction of Benjamin Daniels, the boxes were transported to a hotel in Lincoln, RI. At the hotel, HSI agents arrested Michael Daniels as he was loading the boxes into a rented vehicle that he was driving. Agents seized the twelve boxes of marijuana and $4,694 in cash found on Michael Daniels’ person.
A federal arrest warrant was issued for Benjamin Daniels. He was arrested on January 31, 2014, during a traffic stop in Park City, Utah.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island State Police High Intensity Drug Trafficking Area Task Force and Warwick Police Department assisted in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Wyoming Residents and One Arizona Resident Convicted of Tax Fraud and Obstruction of JusticeRead the Press Release
On May 28, a jury in the District of Wyoming convicted two Cheyenne, Wyoming, residents and a Sedona, Arizona, resident on charges of conspiracy to defraud the United States and obstructing a grand jury investigation. The announcement was made by Acting Assistant Attorney General Caroline D. Ciraolo for the Justice Department’s Tax Division, U.S. Attorney Christopher A. Crofts for the District of Wyoming and Special Agent in Charge Gilbert R. Garza for the Internal Revenue Service (IRS) Criminal Investigations.
Joseph Ruben Hill aka Joe Hill, 56, and Lucille Kathleen Hill aka Kathy Hill, 58, both of Cheyenne, Wyoming, and Gloria Jean Reeder, 68, of Sedona, Arizona, were convicted on charges of conspiracy to defraud the United States and obstructing a grand jury investigation following a three-week trial. In July 2014, Joe Hill, Kathy Hill and Reeder were indicted for conspiring to defraud the United States by promoting and using a sham trust scheme. Joe Hill and Reeder were also indicted for conspiring to obstruct the grand jury investigation in the District of Wyoming by causing individuals to withhold records required to be produced by federal grand jury subpoenas. Joe Hill was indicted on four substantive counts of obstruction with respect to four individuals that he corruptly persuaded to withhold documents from the grand jury. The jury convicted Joe Hill, Kathy Hill and Reeder of all charges alleged in the indictment.
“Yesterday’s verdicts demonstrate that the Tax Division is committed to identifying abusive tax schemes and pursuing and prosecuting the promoters to the fullest extent of the law,” said Acting Assistant Attorney General Ciraolo.
The evidence at trial established that Joe Hill and Kathy Hill last filed a federal individual income tax return in 1994, while Reeder had not filed since 1985. None of the defendants paid any income taxes from those years to the present. Joe Hill and Kathy Hill operated the business Creative Consulting Group (CCG), which sold sham trusts that they claimed would reduce or eliminate an individual’s federal income tax liability. Essentially, the scheme involved assigning income to the trust by using a bank account in the trust’s name that was opened with a false federal tax identification number. The Hills, Reeder, and many other CCG clients who testified during the trial used the CCG trusts to conceal income and assets from the IRS. Kathy Hill and Reeder both had prior IRS assessments of income tax in the 1990s, which they never paid. To prevent the IRS from seizing their homes, they both used false liens to conceal the properties’ equity.
During 2007 through 2012, Joe Hill and Kathy Hill earned almost $500,000 in income through selling the CCG trusts, while Reeder earned more than $400,000 in income from insurance commissions and a travel business. Three trial witnesses who used the CCG trusts --Lawrence Paille, Amanda Campbell and Stephanie Maciel -- previously pleaded guilty to conspiracy to defraud the United States. The unreported income related to the scheme exceeded $2.7 million.
Chief U.S. District Judge Nancy D. Freudenthal set sentencing on Aug 6. The maximum penalty faced by each of the three defendants for conspiracy to defraud the United States is five years in prison and a $250,000 fine. For their convictions for conspiracy to obstruct an official proceeding, Joe Hill and Reeder each face a maximum sentence of 20 years in prison and a $250,000 fine.
“This verdict should send a clear message, promoting or participating in a fraudulent tax scheme is unacceptable; there is no secret formula that can eliminate a person's tax obligations,” said Special Agent in Charge Garza. “We owe it to every American taxpayer to investigate and prosecute individuals who participate in these fraudulent tax schemes.”
The case was investigated by special agents from the Cheyenne, Wyoming, and Denver, Colorado, offices of IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Todd I. Shugart and Eric J. Heimann of the U.S. Attorney’s Office for the District of Wyoming and Trial Attorney Lori A. Hendrickson of the Tax Division.
Two Wyoming Residents and One Arizona Resident Convicted of Tax Fraud and Obstruction of JusticeRead the Press Release
WASHINGTON – On May 28, a jury in the District of Wyoming convicted two Cheyenne, Wyoming, residents and a Sedona, Arizona, resident on charges of conspiracy to defraud the United States and obstructing a grand jury investigation. The announcement was made by Acting Assistant Attorney General Caroline D. Ciraolo for the Justice Department’s Tax Division, U.S. Attorney Christopher A. Crofts for the District of Wyoming and Special Agent in Charge Gilbert R. Garza for the Internal Revenue Service (IRS) Criminal Investigations.
Joseph Ruben Hill aka Joe Hill, 56, and Lucille Kathleen Hill aka Kathy Hill, 58, both of Cheyenne, Wyoming, and Gloria Jean Reeder, 68, of Sedona, Arizona, were convicted on charges of conspiracy to defraud the United States and obstructing a grand jury investigation following a three-week trial. In July 2014, Joe Hill, Kathy Hill and Reeder were indicted for conspiring to defraud the United States by promoting and using a sham trust scheme. Joe Hill and Reeder were also indicted for conspiring to obstruct the grand jury investigation in the District of Wyoming by causing individuals to withhold records required to be produced by federal grand jury subpoenas. Joe Hill was indicted on four substantive counts of obstruction with respect to four individuals that he corruptly persuaded to withhold documents from the grand jury. The jury convicted Joe Hill, Kathy Hill and Reeder of all charges alleged in the indictment.
“Yesterday’s verdicts demonstrate that the Tax Division is committed to identifying abusive tax schemes and pursuing and prosecuting the promoters to the fullest extent of the law,” said Acting Assistant Attorney General Ciraolo.
The evidence at trial established that Joe Hill and Kathy Hill last filed a federal individual income tax return in 1994, while Reeder had not filed since 1985. None of the defendants paid any income taxes from those years to the present. Joe Hill and Kathy Hill operated the business Creative Consulting Group (CCG), which sold sham trusts that they claimed would reduce or eliminate an individual’s federal income tax liability. Essentially, the scheme involved assigning income to the trust by using a bank account in the trust’s name that was opened with a false federal tax identification number. The Hills, Reeder, and many other CCG clients who testified during the trial used the CCG trusts to conceal income and assets from the IRS. Kathy Hill and Reeder both had prior IRS assessments of income tax in the 1990s, which they never paid. To prevent the IRS from seizing their homes, they both used false liens to conceal the properties’ equity.
During 2007 through 2012, Joe Hill and Kathy Hill earned almost $500,000 in income through selling the CCG trusts, while Reeder earned more than $400,000 in income from insurance commissions and a travel business. Three trial witnesses who used the CCG trusts --Lawrence Paille, Amanda Campbell and Stephanie Maciel -- previously pleaded guilty to conspiracy to defraud the United States. The unreported income related to the scheme exceeded $2.7 million.
Chief U.S. District Judge Nancy D. Freudenthal set sentencing on Aug 6. The maximum penalty faced by each of the three defendants for conspiracy to defraud the United States is five years in prison and a $250,000 fine. For their convictions for conspiracy to obstruct an official proceeding, Joe Hill and Reeder each face a maximum sentence of 20 years in prison and a $250,000 fine.
“This verdict should send a clear message, promoting or participating in a fraudulent tax scheme is unacceptable; there is no secret formula that can eliminate a person's tax obligations,” said Special Agent in Charge Garza. “We owe it to every American taxpayer to investigate and prosecute individuals who participate in these fraudulent tax schemes.”
The case was investigated by special agents from the Cheyenne, Wyoming, and Denver, Colorado, offices of IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Todd I. Shugart and Eric J. Heimann of the U.S. Attorney’s Office for the District of Wyoming and Trial Attorney Lori A. Hendrickson of the Tax Division.
Two Tennessee Men Plead Guilty to Killing During Home Invasion RobberyRead the Press Release
Two Tennessee men pleaded guilty to using a firearm to kill during a home invasion robbery they conducted on May 7, 2011, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
Demario Winston, 27, of Clarksville, Tennessee, and Michael Massey, 26, of Lexington, Tennessee, pleaded guilty before Chief District Court Judge Kevin H. Sharp of the Middle District of Tennessee to conspiracy to commit Hobbs Act Robbery and use of a firearm in a crime of violence resulting in death. Massey also pleaded guilty to attempted Hobbs Act Robbery. A sentencing hearing for Massey is scheduled for Sept. 18, 2015, and a sentencing hearing for Winston will be scheduled at a later date.
According admissions reflected in the plea agreements, on May 7, 2011, Winston, Massey and others attempted to rob a home in Clarksville, and Massey used a sledge hammer to gain entry. The conspirators previously had been advised that a large amount of cocaine and cash was stored inside a safe in the basement of the home.
The defendants further admitted that, while inside the home, Winston, who was armed with a 9mm pistol, engaged in a gun fight with the homeowner on the first floor as other conspirators attempted to force one of the occupants of the home, Raul Triana, to open the safe in the basement, and pistol-whipped him in the face in the process. Evidence introduced in the plea hearing indicated that in response to the shooting on the first floor, some of the conspirators fled the home, and Massey, who was armed with an assault rifle, fled through the basement where he encountered Triana and shot and killed him.
In addition, according to the statement of facts in support of Massey’s plea, on Oct. 21, 2011, he and a co-defendant robbed the owner of a Clarksville-based construction company at gunpoint.
This case was investigated by the Clarksville Police Department and the DEA. The case is being prosecuted by Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee.
Two Rochester Men Charged with Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Hogan and Maximillion Broadnax, both of Rochester, NY, were arrested and charged by criminal complaint with conspiring with each other to rob and with robbing the Chase Bank at 2900 Dewey Avenue in Rochester. The charges carry a maximum possible penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Charles E. Moynihan, who is handling the case, stated that according to the complaint, on May 22, 2015, Hogan entered the Chase Bank just after it opened and passed the bank teller a note demanding money and saying that nobody would be hurt if the teller complied. The teller provided Hogan with a specific amount of United States Currency.
Hogan left the bank and entered a white minivan in which Broadnax was waiting and the two drove away. Broadnax was arrested later that same day at 17 Second Street in Rochester by members of the Rochester Police Department who were looking for him in connection with his involvement in stolen vehicles. While taking Broadnax into custody, officers saw that Broadnax’s pants fell down and a large amount of United States currency fell out. Officers investigating the case also took Hogan into custody when he approached 17 Second Street.
The charges are a culmination of an investigation by the Rochester Area Major Crimes Task Force which includes the Federal bureau of Investigation, the New York State Police, the Rochester Police Department, the Gates Police Department and the Greece Police Department and the Irondequoit Police Department.
The fact that the defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Two Pine Ridge Men Sentenced for Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that two Pine Ridge, South Dakota, men convicted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury were sentenced on June 2, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court. The men were found guilty at the conclusion of four-day federal jury trial in Rapid City in February.
Wesley Running Shield, age 28, and Michael Alford, age 33, both of Pine Ridge, were each sentenced to 15 years in custody, 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The convictions stem from Running Shield and Alford assaulting a male with a metal bar and shod feet on June 12, 2014, at Pine Ridge. The defendants utilized a metal bar to break the victim’s leg and hand and caused a large laceration on his head.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Assistant U.S. Attorneys Sarah B. Collins and Kathryn N. Rich prosecuted the case.
Running Shield and Alford were immediately turned over to the custody of the U.S. Marshal's Service.