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16 July 2015
Salem Man Sentenced on Methamphetamine ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jeffrey A. Kirkman, 29, of Salem, Illinois, was sentenced today to 54 months in federal prison, to be followed by 3 years of supervised release, a $750 fine and a $300 special assessment. Sentencing followed a guilty plea in April 2014 to all charges against Kirkman brought in an indictment returned by a Federal Grand Jury in December 2014. Kirkman was sentenced for two counts of Distribution of Methamphetamine and one count of Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know It Would Be Used to Manufacture Methamphetamine. The offenses occurred in Marion County, Illinois.
Information leading to the charges against Kirkman was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Sacramento Resident Charged with Credit Card Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — On Wednesday, a federal grand jury returned an indictment against Abdul Mannan, 32, of Sacramento, charging him with four counts of bank fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Mannan allegedly used stolen identity information of others to obtain credit cards, and used them to obtain cash, goods and services. On July 1, 2015, federal agents executed a search warrant at his residence and recovered evidence that Mannan possessed personal and financial information for over 25 different named victims and more than 25 different credit card accounts. Mannan's alleged conduct has caused a reported loss to financial institutions of over $70,000. Mannan obtained access to lines of credit exceeding $500,000.
This case is the product of an investigation of the United States Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Sacramento Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
If convicted, Mannan faces up to 30 years in prison for each bank fraud charge and two consecutive years in prison for aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Quad Cities Man Sentenced for Firearms OffenseRead the Press Release
DAVENPORT, IA – On July 15, 2015, Travis Diontrae Harris, also known as Travis Taggart Harris, age 28, was sentenced by Senior United States District Judge James E. Gritzner to 60 months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney Nicholas A. Klinefeldt. Harris was also ordered to serve two years supervised release following the imprisonment, to forfeit of the firearm and ammunition he possessed, and to pay $100 towards the Crime Victims Fund.
On June 14, 2014, Harris fired multiple shots from a .22 caliber handgun into the side of a residence in Rock Island, IL, and into a vehicle parked near the residence. Multiple adults were in the residence at the time of the shooting.
On July 17, 2014, Davenport, Iowa, police searched Harris’ Davenport residence pursuant to a search warrant. In the kitchen of the residence police seized slightly over an ounce of marijuana, two digital scales, and a .22 caliber handgun which was loaded with 10 rounds of ammunition, all of which belonged to Harris. Harris intended to distribute at least a portion of the seized marijuana to others. Prior to July 17, 2014, Harris had been convicted of three felony crimes.
This case was investigated by the Davenport, Iowa, Police Department, Rock Island, IL, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.Philadelphia Man Pleads Guilty to Federal Drug Law ViolationsRead the Press Release
JOHNSTOWN, Pa. - A Pennsylvania resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Paul A. Robinson, Jr., 33, Philadelphia, Pa., pleaded guilty to three counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 31, 2013, to April 23, 2013, Robinson conspired to distribute less than 28 grams of cocaine base, in the form commonly known as "crack". Robinson also distributed less than 28 grams of cocaine base on Jan. 31, 2013, and Feb. 12, 2013.
Judge Gibson scheduled sentencing for Oct. 8, 2015, at 11 a.m. The law provides for a total sentence of 60 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Robinson.
Philadelphia Man Charged with Sex TraffickingRead the Press Release
PHILADELPHIA - Daiquan Davis, 21, of Philadelphia, PA, was charged today by indictment with two counts of sex trafficking of a minor or by force, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life imprisonment, lifetime supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation with assistance from Bensalem Township Police and the Bucks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced to Six Months in Prison for Defrauding Computer Equipment Companies for $2.5 MillionRead the Press Release
TRENTON, N.J. – A Gladwyne, Pennsylvania, man was sentenced today to six months in prison and six months of home confinement for using phony documents and “straw buyers” to fraudulently secure millions of dollars in discounted computer equipment from Hewlett-Packard Co. (HP) and Cisco Systems Inc. (Cisco), U.S. Attorney Paul J. Fishman announced.
Andrew Silverman, 52, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of wire fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From January 2008 through May 2012, Silverman exploited HP and Cisco discount programs that provided reduced prices on products used locally within a certain country and were not resold. As the president and owner of DataQ Internet Equipment Corp., which sold computer hardware and software, Silverman was not eligible to receive these discounts.
Silverman admitted that he recruited business owners to pose as buyers interested in securing a large volume of computing products. He directed these straw buyers to falsely tell HP and Cisco that the procured products would be used internally by those individuals’ businesses and not resold. Once negotiations were complete and the straw buyers fraudulently secured the discounts, Silverman sent funds via international wire transfers to the straw buyers to cover the purchase cost. He then had the discounted equipment shipped to destinations other than the straw buyer’s businesses, including to New Jersey and other locations in the United States.
Silverman also admitted he sent multiple emails to HP representatives posing as an individual named “P.B,” regarding the purchase of deeply discounted HP equipment. Silverman created a company called Integrated Data Centers to conduct negotiations with an HP representative so he could fraudulently obtain discounted HP products.
The estimated combined losses to HP and Cisco are $2.5 million.
In addition to the prison term, Judge Shipp ordered Silverman to serve three years of supervised release, pay a $75,000 fine and forfeit $2.5 million in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Economic Crimes Unit in Newark.
Defense counsel: William Winning and Megan Scheib Esqs., Conshohocken, Pa., and Gerald Krovatin Esq., Newark
Pair Sentenced for Treasury Check Fraud SchemeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that Peachess S. Wilson, aged 32, of Albany, Georgia, and Katoria M. Greene, aged 34, also of Albany, Georgia, were sentenced on July 15, 2015 by the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia, for their involvement in a Treasury check fraud scheme. Ms. Green was sentenced to 120 months (10 years) in the Bureau of Prisons, and Ms. Wilson, to 42 months in the Bureau of Prisons. In addition, both defendants were ordered to pay restitution in the amount of $732,427 to the United States Treasury. Ms. Wilson and Ms. Greene were charged in separate charging documents. However, both were jointly involved in criminal activity. Ms. Green pleaded guilty to three fraud-related offenses: theft of government property, aggravated identity theft, and fraud in connection with access devices. Ms. Wilson pleaded guilty to two counts of theft of government property and two counts of aggravated identity theft. As set forth in their plea agreements, Ms. Wilson had a business checking account in the name of an entity called “Spunkie’s” at SunTrust bank, Albany, Georgia. Ms. Greene and others obtained numerous United States Treasury checks payable to third parties by fraud. Many of these Treasury checks were generated by the filing of fraudulent on-line tax returns in the names of the third parties without their knowledge. Wilson deposited approximately $732,427 of fraudulently obtained Treasury checks into her SunTrust account. Ms. Wilson would then make cash withdrawals from her account and distribute the proceeds or write checks on her account to herself or to “straw” payees who would cash the checks and give her cash back. The case was investigated by the United States Secret Service. Assistant United States Attorney Jim Crane represented the Government in the prosecution of these cases. Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.Oxford County Man Sentenced to over 4 Years on Firearms ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Corey Eustis, 39, formerly of Mexico, Maine, was sentenced yesterday in U.S. District Court by Judge Nancy Torresen to 51 months in prison and three years of supervised release for possession of firearms by a person convicted of a misdemeanor crime of domestic violence. Eustis was found guilty of the charge on May 27, 2015 after a four-day bench trial.
According to trial evidence and court documents, in 2011, Eustis was convicted in Maine state court of assaulting his wife. On August 26, 2012, Eustis shot himself outside of his Bethel, Maine residence while sitting at a camp fire. Responding law enforcement deputies found Eustis in possession of three firearms and ammunition. He was prohibited from possessing firearms and ammunition because of his domestic violence conviction.
In imposing sentence, Judge Torresen departed upward from the guideline range because of the seriousness of Eustis’s criminal history, which included multiple convictions for drunk driving, and his history of domestic violence incidents involving at least five women. Judge Torresen stated that Eustis is a danger to the community and, in particular, to his intimate partners.
The investigation was conducted by the Oxford County Sheriff’s Office; the Maine State Police; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Opelousas man charged for participating in major computer hacking forumRead the Press Release
WASHINGTON – The computer hacking forum known as “Darkode” was dismantled, and criminal charges have been filed in the Western District of Louisiana, the Western District of Pennsylvania, and elsewhere against 12 individuals associated with the forum, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Deputy Director Mark F. Giuliano of the FBI.
Working with local, national and international partners, law enforcement were able to arrest an Opelousas man for his role in the forum. Rory Stephen Guidry, aka [email protected], of Opelousas, La., is charged with computer fraud. He is accused of selling botnets on Darkode.
“Hackers and those who profit from stolen information use underground Internet forums to evade law enforcement and target innocent people around the world,” said Assistant Attorney General Caldwell. “This operation is a great example of what international law enforcement can accomplish when we work closely together to neutralize a global cybercrime marketplace.”
“Cybercrime is a serious threat facing our country and has enormous implications for citizens,” U.S. Attorney Stephanie Finley stated. “As the cyber threat in this nation and around the world continues to grow, our response to this type of criminal activity will be swift and aggressive. Clever computer criminals will not be able to hide or maintain their anonymity even as they cross national boundaries. Through the coordinated response and international cooperation of our law enforcement partners, individuals such as these who are involved in computer hacking forums will see their organizations dismantled, and they will be prosecuted to the fullest extent of the law.”
“This is a milestone in our efforts to shut down criminals’ ability to buy, sell, and trade malware, botnets and personally identifiable information used to steal from U.S. citizens and individuals around the world,” said Deputy Director Giuliano. “Cyber criminals should not have a safe haven to shop for the tools of their trade and Operation Shrouded Horizon shows we will do all we can to disrupt their unlawful activities.”
As alleged in the charging documents, Darkode was an online, password-protected forum in which hackers and other cyber-criminals convened to buy, sell, trade and share information, ideas, and tools to facilitate unlawful intrusions on others’ computers and electronic devices. Before becoming a member of Darkode, prospective members were allegedly vetted through a process in which an existing member invited a prospective member to the forum for the purpose of presenting the skills or products that he or she could bring to the group. Darkode members allegedly used each other’s skills and products to infect computers and electronic devices of victims around the world with malware and, thereby gain access to, and control over, those devices.
The takedown of the forum and the charges announced today are the result of the FBI’s infiltration, as part of Operation Shrouded Horizon, of the Darkode’s membership. The investigation of the Darkode forum is ongoing, and the U.S. Attorney’s Office of the Western District of Pennsylvania is taking a leadership role in conjunction with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges announced today are part of a coordinated effort by a coalition of law enforcement authorities from 20 nations to charge, arrest or search 70 Darkode members and associates around the world. The nations comprising the coalition include Australia, Bosnia and Herzegovina, Brazil, Canada, Colombia, Costa Rica, Cyprus, Croatia, Denmark, Finland, Germany, Israel, Latvia, Macedonia, Nigeria, Romania, Serbia, Sweden, the United Kingdom and the United States. Today’s actions represent the largest coordinated international law enforcement effort ever directed at an online cyber-criminal forum.
The following defendants face charges in the Western District of Pennsylvania:
- Johan Anders Gudmunds, aka Mafi aka Crim aka Synthet!c, 27, of Sollebrunn, Sweden, is charged by indictment with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He is accused of serving as the administrator of Darkode, and creating and selling malware that allowed hackers to create botnets. Gudmunds also allegedly operated his own botnet, which at times consisted of more than 50,000 computers, and used his botnet to steal data from the users of those computers on approximately 200,000,000 occasions.
- Morgan C. Culbertson, aka Android, 20, of Pittsburgh, is charged by criminal information with conspiring to send malicious code. He is accused of designing Dendroid, a coded malware intended to remotely access, control, and steal data from Google Android cellphones. The malware was allegedly offered for sale on Darkode.
- Eric L. Crocker, aka Phastman, 39, of Binghamton, New York, is charged by criminal information with sending spam. He is accused of being involved in a scheme involving the use of a Facebook Spreader which infected Facebook users’ computers, turning them into bots which Crocker controlled through the use of command and control servers. Crocker sold the use of this botnet to others for the purpose of sending out massive amounts of spam.
- Naveed Ahmed, aka Nav aka semaph0re, 27, of Tampa, Florida; Phillip R. Fleitz, aka Strife, 31, of Indianapolis; and Dewayne Watts, aka m3t4lh34d aka metal, 28, of Hernando, Florida, are each charged by criminal information with conspiring to send spam. They are accused of participating in a sophisticated scheme to maintain a spam botnet that utilized bulletproof servers in China to exploit vulnerable routers in third world countries, and that sent millions of electronic mail messages designed to defeat the spam filters of cellular phone providers.
- Murtaza Saifuddin, aka rzor, 29, of Karachi, Sindh, Pakistan, is charged in an indictment with identity theft. Saifuddin is accused of attempting to transfer credit card numbers to others on Darkode.
The following defendant faces charges in the Eastern District of Wisconsin:
- Daniel Placek, aka Nocen aka Loki aka Juggernaut aka M1rr0r, 27, of Glendale, Wisconsin, is charged by criminal information with conspiracy to commit computer fraud. He is accused of creating the Darkode forum, and selling malware on Darkode designed to surreptitiously intercept and collect email addresses and passwords from network communications.
The following defendants face charges in the District of Columbia:
- Matjaz Skorjanc, aka iserdo aka serdo, 28, of Maribor, Slovenia; Florencio Carro Ruiz, aka NeTK aka Netkairo, 36, of Vizcaya, Spain; and Mentor Leniqi, aka Iceman, 34, of Gurisnica, Slovenia, are each charged in a criminal complaint with racketeering conspiracy; conspiracy to commit wire fraud and bank fraud; conspiracy to commit computer fraud, access device fraud and extortion; and substantive computer fraud. Skorjanc also is accused of conspiring to organize the Darkode forum and of selling malware known as the ButterFly bot.
The following defendant faces charges in the Western District of Louisiana:
- Rory Stephen Guidry, aka [email protected], of Opelousas, Louisiana, is charged with computer fraud. He is accused of selling botnets on Darkode.
The charges and allegations are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This investigation, Operation Shrouded Horizon, is being conducted by the FBI with assistance from Europol and their European Cyber Crime Center (EC3). This case is being prosecuted by Assistant U.S. Attorneys James T. Kitchen and Charles A. Eberle of the Western District of Pennsylvania and Trial Attorneys Gavin A. Corn, Marie-Flore Johnson and Harold Chun of CCIPS, Assistant U.S. Attorney Erica O’Neil of the Eastern District of Wisconsin and Assistant U.S. Attorney Myers Namie of the Western District of Louisiana. The Criminal Division’s Office of International Affairs also provided significant assistance.
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In a related case, Aleksandr Andreevich Panin, aka Gribodemon, 26, of Tver, Russia; and Hamza Bendelladj, aka Bx1, 27, of Tizi Ouzou, Algeria, pleaded guilty on Jan. 28, 2014, and June 26, 2015, respectively, in the Northern District of Georgia in connection with developing, distributing and controlling SpyEye, a malicious banking trojan designed to steal unsuspecting victims’ financial and personally identifiable information. Bendelladj and Panin advertised SpyEye to other members on Darkode. One of the servers used by Bendelladj to control SpyEye contained evidence of malware that was designed to steal information from approximately 253 unique financial institutions around the world. Panin and Bendelladj will be sentenced at a later date.
This case is being prosecuted by Assistant U.S. Attorneys Steven Grimberg and Kamal Ghali of the Northern District of Georgia. All press inquiries relating to this case should be directed to the U.S. Attorney’s Office for the Northern District of Georgia at [email protected] or (404) 581-6016.
Ohio Man Indicted for Providing Support to ISIL and Other Federal OffensesRead the Press Release
A 28-count indictment was filed charging a Sheffield Lake, Ohio, man with providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms and narcotics violations.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven D. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
Amir Said Rahman Al-Ghazi aka Robert C. McCollum, 38, was arrested last month after he attempted to buy an AK-47 from an undercover agent.
Al-Ghazi, who changed his name from Robert McCollum earlier this year, is alleged to have pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL, according to court documents.
Count one of the indictment charges Al-Ghazi with attempting to provide material support to ISIL. Counts two and three charge Al-Ghazi with being a felon in possession of a firearm. Counts four through 28 pertain to his sale of marijuana from February 2014 through last month.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the FBI’s JTTF. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos N. Georgalis, and the National Security Division’s Counterterrorism Section.
Al-Ghazi Indictment
New York Man Sentenced for Trafficking in over $4 Million of Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New York man was sentenced in federal court today for his role in a multi-million dollar, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
Keith Donald Stoldt, 62, of Cowlesville, N.Y., was sentenced by U.S. District Judge Fernando J. Gaitan to five years of probation and ordered to forfeit $247,080 to the government, representing the profit from the sale of contraband cigarettes. Stoldt paid the forfeiture at today’s court hearing.
On May 7, 2013, Stoldt pleaded guilty to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking from July 1, 2011 to Jan. 28, 2012. Stoldt and his wife operate the Totem Smoke Shop, located on the Tonawanda Seneca Indian Reservation in Basom, N.Y.
Stoldt placed orders for more than $4.1 million of unstamped cigarettes (that is, cigarettes that did not carry the mandated tax stamps because the New York excise tax of $4.35 per pack of cigarettes was not paid) from Gerald E. Barber, 68, of Virginia. Barber was the president of the Seneca-Cayuga Tobacco Company (SCTC) in Grove, Okla., which is a corporation operated by the Seneca Cayuga Tribe of Oklahoma, a federally recognized Indian tribe. Although SCTC manufactures its own brands of native cigarettes, Barber was interested in selling unstamped and untaxed premium-brand cigarettes to smoke shops on other Indian nations, specifically in the state of New York.
Barber, who has pleaded guilty in a separate but related case to his role in the conspiracy, also sold those premium-brand cigarettes to other smoke shops located on New York Indian reservations, including Jan’s Smoke Shop and AJ’s Candy & Tobacco, LLC, both of whom have pleaded guilty to their roles in the conspiracy.
The contraband cigarettes were transported to New York without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. The benefit to those smoke shops was that they did not pay New York state cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers by over $40 per carton.
Barber ordered premium-brand contraband cigarettes from Gholamreza “Reza” Tadaiyon, 51, of Weston, Fla. Tadaiyon owns Brand Name Connoisseurs, Corp., a business located in Florida. Tadaiyon, who has pleaded guilty to his role in the conspiracy, purchased those cigarettes from co-defendant Craig Sheffler, 45, of Independence, through his business, Cheap Tobacco Wholesale.
Sheffler, who has pleaded guilty to his role in the conspiracy, made regular purchases of contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during the undercover operation. Approximately 620,600 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Kansas City, Mo., Police Department and FDIC-Office of Inspector General.
New Jersey Man Charged with Damaging Employer's ComputerRead the Press Release
PHILADELPHIA - Lars Jepsen, 36, of Deptford, NJ was charged today by indictment with one count of intentionally causing damage to a protected computer and one count of fraud in connection with authentication features, announced United States Attorney Zane David Memeger.
The indictment charges that after being terminated by his employer, Jepsen, using the username and password of another employee, logged into his former employer’s network and crippled their Voice Over Internet Protocol (VOIP) telephone network.
If convicted the defendant faces a maximum possible sentence of 13 years in prison, three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Michael L. Levy.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Hampshire Man Charged with Computer Hacking and Cyberstalking in “Sextortion” Scheme Targeting MinorsRead the Press Release
A New Hampshire man was charged with remotely hacking into the social media, email and online shopping accounts of almost a dozen minor females and threatening that he would delete, deface, and make purchases from the accounts unless the victims sent him sexually explicit photographs of themselves.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Donald Feith of the District of New Hampshire and Special Agent in Charge Lisa A. Quinn of the U.S. Secret Service’s Boston Field Office made the announcement.
“Predators troll the Internet in search of vulnerable children to extort for their own sexual gratification,” said Assistant Attorney General Caldwell. “The Criminal Division and our law enforcement partners are committed to protecting our youth from sextortion and to finding and prosecuting wrongdoers lurking in the shadows of the Internet.”
“Individuals who would take advantage of today’s modern technologies to entice and then threaten minors deserve special investigative and prosecutorial attention,” said Acting U.S. Attorney Feith. “We will continue to work with law enforcement, technology specialists and education professionals to teach minors about the dangers of placing personal information in social media and the need to report threats of this nature so that we may bring these predators to justice.”
“Child sexual exploitation is an alarming problem in our society,” said Special Agent in Charge Quinn. “The Secret Service is committed to work closely with our law enforcement partners to identify and prosecute these predators.”
Ryan J. Vallee, 21, of Franklin, New Hampshire, was charged by indictment with 10 counts of making interstate threats, two counts of computer hacking to steal information, seven counts of computer hacking to extort and seven counts of aggravated identity theft. Vallee is scheduled to make his initial appearance today at 4:30 p.m. EDT in the District of New Hampshire.
According to the indictment, from 2012 through November 2013, Vallee, using various aliases that included “Seth Williams” and “James McRow,” engaged in a computer hacking and “sextortion” campaign designed to coerce numerous minor females to provide him with sexually explicit photographs of themselves. He allegedly hacked into and took control of the girls’ online accounts – including their e-mail, Facebook and Instagram accounts – and threatened to delete the accounts, and defaced the contents of some of the accounts. Vallee also allegedly hacked into the girls’ Amazon.com accounts and, using their stored payment card information and shipping addresses, ordered items of a sexual nature and had them shipped to the girls’ homes. Vallee also allegedly obtained sexually explicit photographs of the girls and their friends and distributed them to others.
The indictment alleges that, in conjunction with his harassment campaign, Vallee sent communications to his victims, usually using a text message spoofing or anonymizing service, threatening to continue his attacks unless the victims provided sexually explicit photographs of themselves. The indictment alleges that, when victims refused to comply with Vallee’s demands and begged him to leave them alone, Vallee responded with threats to inflict additional harm.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the U.S. Secret Service, with substantial assistance from the Belmont, New Hampshire, Police Department. The case is being prosecuted by Senior Trial Attorney Mona Sedky and Trial Attorney Sumon Dantiki of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
Vallee Indictment
Navajo Man from Littlewater, N.M., Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Michael Benally, 31, an enrolled member of the Navajo Nation who resides in Littlewater, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 41 months in prison followed by three years of supervised release for his assault conviction. Benally is the last of three defendants to be sentenced in this case.
Benally and co-defendants Gabriel Largo, 28, and Joshua Largo, 20, both enrolled members of the Navajo Nation who reside in Crownpoint, N.M., were arrested on Sept. 17, 2014, on a criminal complaint charging them with assaulting a Navajo man with a sledgehammer and a rock and causing him serious bodily injury. According to the complaint, the assault took place in the Crownpoint Chapter of the Navajo Nation in McKinley County, N.M., on Sept. 5, 2014.
The three co-defendants subsequently were indicted on Oct. 7, 2014, in a four-count indictment. Count 1 charged Benally with assaulting the victim and causing him serious bodily injury on July 30, 2014. Count 2 charged Benally, Gabriel Largo and Joshua Largo with conspiring to assault the victim by chasing the victim, throwing rocks at him, kicking him, and striking him with a sledgehammer on Sept. 5, 2014. Counts 3 and 4 charged the three defendants with assault resulting in serious bodily injury and assault with a dangerous weapon.
On March 27, 2015, Benally pled guilty to a felony information charging him with conspiracy to commit assault resulting in bodily injury and assault with a dangerous weapon. Benally admitted that on Sept. 5, 2014, he and his co-defendants approached the victim who was selling firewood. When the victim ran away from them, Benally and his co-defendants chased the victim, threw rocks at him and knocked him down. The three men then hit and kicked the victim. In his plea agreement, Benally admitted taking a sledgehammer from his truck and striking the victim in the legs with it with the intention of injuring and harming him. Benally further admitted that at some point he handed the sledgehammer to Gabriel Largo who used it to strike the victim.
On March 5, 2015, Gabriel Largo pled guilty to a felony information charging him with assault, and admitted that on Sept. 5, 2014, he and his co-defendants assaulted the victim. When the victim ran away from them, Gabriel Largo and his co-defendants chased the victim, threw rocks at him and knocked him down. In his plea agreement, Gabriel Largo admitted obtaining a sledgehammer from Benally and using it to strike the victim.
Joshua Largo also pled guilty to a felony information on March 5, 2015, and admitted his participation in a conspiracy to assault the victim. Joshua Largo admitted joining his co-defendants in chasing the victim, throwing rocks at him and knocking him down, and hitting and kicking the victim.
Gabriel Largo and Joshua Largo were both sentenced on June 4, 2015, for their assault convictions. Garbiel Largo was sentenced to 37 months in prison followed by three year of supervised release, while his brother Joshua Largo was sentenced to 24 months in prison followed by one year of supervised release.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Linda Mott.
Merced County Traffic Stop Leads to Indictment for Interstate Transportation of over 40 Pounds of CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Martha Patricia Pio, 37, of Tacoma, Washington, charging her with conspiracy to distribute and to possess with intent to distribute cocaine and possession with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 1, 2015, Pio was stopped by a California Highway Patrol officer while driving northbound on Highway 99. During a subsequent search of her vehicle, officers located a hidden compartment containing 17‑brick‑shaped packages of cocaine weighing a total of approximately 18.5 kilograms, or about 40.7 pounds.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Michael Frye is prosecuting the case.
If convicted, Pio faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Media Advisory: ADA 25th Anniversary Commemorative EventRead the Press Release
Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa will join representatives from area disability rights groups to celebrate the 25th anniversary of the signing of the American with Disabilities Rights legislation. The purpose of the event is to highlight how this law has helped people with disabilities fulfill the American vision of equal opportunity for all. The historical significance of the ADA, as well as how the U.S. Attorney’s Office pursues its mission to protect the rights of persons with disabilities through enforcement, will be highlighted.
Event Details
When: Monday, July 20, 2015
Where: United States Federal Courthouse, 111 7th Ave. S.E., Cedar Rapids, IA (outside the front entrance)
Time: 10:00 a.m.
Program
A press release and interview opportunities will be available at the end of the celebratory event.
Matthew Peterson Sentenced After Pleading Guilty to Federal Charges for Stealing Prescription OpioidsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MATTHEW RICHARD PETERSON, 39, who pleaded guilty to federal charges of fraudulently acquiring pain medication while he was employed as a paramedic. PETERSON was indicted on August 11, 2014, and pleaded guilty on November 7, 2014. He was sentenced today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn.
“This defendant stole opioids to feed his own addiction, leaving vulnerable patients without the medicine they needed,” said U.S. Attorney Luger. “The charges in this case reflect our growing concern about the theft and abuse of opioids. I encourage those with an addiction – particularly caregivers and medical professionals – to seek help so they do not end up facing the type of criminal charges faced by Mr. Peterson.”
“Minnesota paramedic Mathew Peterson abused his position of public trust by providing diluted pain medication to those facing critical health emergencies to fuel his own drug addiction,” said Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Dan Moren. “Peterson’s reckless behavior not only denied patients relief from pain but also jeopardized their medical condition and potentially exposed them to contaminated medications. This joint investigation between DEA and the Federal Food and Drug Administration, with the assistance of the St. Paul Police Department, has eliminated this diversion of controlled substances and reduced the potential for further public harm.”
“The defendant in this case exhibited a complete disregard for the patients he victimized,” said Special Agent in Charge John J. Redmond of the Food and Drug Administration’s Office of Criminal Investigations, Chicago Field Office. “We will continue our work to ensure that those who tamper with patients’ pain medication for their own purposes are brought to justice. We commend our law enforcement partners for their efforts in this case as well as the U.S. Attorney’s Office for its prosecution of this matter.”
According to his guilty plea and documents filed in court, from August 2013 to November 5, 2013, PETERSON, who was then working as a paramedic for Allina Health, stole morphine and hydromorphone intended for ambulance patients. PETERSON extracted the drugs with a syringe and, in an effort to cover up his crime, replaced the liquid with a saline solution. PETERSON left more than 100 patients at greater risk of infection and pain as a result of his tampering, and only reported himself when co-workers discovered his malfeasance.
According to the defendant’s guilty plea and documents filed in court, on April 4, 2014, after his dismissal from both inpatient and outpatient addiction treatment, PETERSON was discovered hiding under a trailer in a Bloomington fire station where he was attempting to steal and use opioids. When questioned by law enforcement, PETERSON admitted that he accessed the fire station to steal drugs.
This case is the result of an investigation conducted by the U.S. Drug Enforcement Administration, U.S. Food and Drug Administration’s Office of Criminal Investigations, and the St. Paul Police Department.
This case was prosecuted by Assistant U.S. Attorney Richard A. Newberry.
On Tuesday, August 25, 2015, a conference entitled, “Pain.Pill.Problem.” will be held at the University of Minnesota’s Twin Cities Campus, to bring together experts in the fields of public health and law enforcement to define the scope of the opioid abuse problem and develop solutions to move Minnesota forward together. The one-day conference is co-sponsored by the United States Attorney’s Office for the District of Minnesota, the Minnesota Department of Human Services, U.S. Drug Enforcement Administration, Hazelden Betty Ford Institute for Recovery Advocacy, Mayo Clinic, Hennepin County Sheriff’s Office, University of Minnesota, and others. Please contact [email protected] for more information about the event.
Defendant Information:
MATTHEW RICHARD PETERSON, 39
Richfield, Minn.
Convicted:
- Obtaining a controlled substance by fraud, 1 count
Sentenced:
- 3 years of probation, including:
- Regular drug testing
- Prohibited from having a job with access to controlled substances
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Local Man Sentenced to 35 Years for Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Ralph Jason Miller, 32, of Woodville, was sentenced to 35 years in federal prison after convictions for using a minor in the production of child pornography and for committing these offenses while required to register as a sex offender. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Upon Miller’s release from prison, he will be supervised by the United States Probation Office for the remainder of his life.
Miller was convicted at a jury trial held April 20-22, 2015. During the trial, the government presented evidence that, in January, April, and July 2012, Miller caused a minor female to engage in sexual intercourse and in graphic sexual displays for the purpose of making visual depictions of these activities. The victim was 14 and 15 at the time of these offenses.
Sheriff’s detectives discovered the child pornography when they executed a search warrant on Miller’s residence on December 4, 2013. The search warrant was based upon reports that Miller had engaged in sexual acts with other minor females.
United States Attorney Marsh praised the work of the Leon County Sheriff’s Office, the State Attorney’s Office for the Second Judicial Circuit, the Florida Department of Law Enforcement, and the United States Immigration and Customs Enforcement Homeland Security Investigations, whose joint investigation led to this successful prosecution. This case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Loan Officer Sentenced to More Than Two Years in Prison for her Role in $2.4 Million Mortgage FraudRead the Press Release
RICHMOND, Va. – Brenda Ann Blair, 37, of Bonita Springs, Florida, formerly of Goochland County, Virginia, was sentenced today to 27 months in prison, followed by five years of supervised release for participating in a fraud scheme that obtained approximately $2.4 million worth of mortgage backed loans from federally backed financial institutions.
Blair was charged in a criminal information on Dec. 4, 2014, and pled guilty on Dec. 19, 2014. In a statement of facts filed with the plea agreement, Blair admitted that she and others devised and participated in a scheme from 2006 to 2008 to fraudulently obtain $2.42 million worth of mortgage backed loans from Washington Mutual Bank, SunTrust Bank, Fannie Mae and Freddie Mac. The mortgage loans were obtained in approximately 16 different real estate transactions, and produced actual losses in the approximate amount of $916,700. This scheme also defrauded HUD, which lost an additional $63,964, for a total loss of $980,664.
The essence of the scheme was to mislead the lender about the true creditworthiness of the borrowers and the true value of the properties securing the loan. For example, the schemers made various misrepresentations on the loan applications about such topics as the employment status, income, assets and debts of the buyers. Other times the schemers would falsify information to make it appear that the buyer had made a down payment when in fact he or she had not.
In another aspect of the scheme, some borrowers purchased more than one property in a short period of time, resulting in some mortgage loan liabilities not appearing on the borrowers’ credit reports and the mortgage loan applications. Even though Blair was the loan officer for all of the transactions, she failed to report to the lenders that the borrowers had obtained other outstanding mortgage loans which affected their debt-to-income ratios, and would have affected the lenders’ decision to approve the loans.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Cary Rubenstein, Special Agent in Charge, Mid-Atlantic Region of the Office of Inspector General of HUD; David M. McGinnis, Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS); and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the sentencing by U.S. District Judge James R. Spencer.
This case was investigated by the Office of the Inspector General of HUD, USPIS, and the FBI. Assistant U.S. Attorney David T. Maguire prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-172.
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Lawyer Who Conspired to Obtain Immigration Visas for Clients Based on Fraudulent Diplomas Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that RICHARD KASSEL, an immigration lawyer who conspired to obtain immigration visas for his clients based on fraudulent advanced-degree diplomas and transcripts, was sentenced today in Manhattan federal court to 27 months in prison, a $6,000 fine, 2 years supervised release, and $187,000 in forfeiture. The sentence was imposed by U.S. District Judge Paul G. Gardephe. KASSEL pled guilty to conspiring to commit immigration fraud on April 15, 2015.
Manhattan U.S. Attorney Preet Bharara said: “As a lawyer, Richard Kassel had a duty to know and uphold the law. Instead, he violated the law and advised his clients do the same. Kassel helped his clients fraudulently obtain immigration visas through fake diplomas and advanced degrees, including from schools they did not even attend.”
According to the allegations in documents filed in Manhattan federal court, and statements made at today’s sentencing and other court proceedings:
Federal immigration law provides that alien workers who are professionals holding advanced degrees may apply for employment-based immigration visas. Applicants must submit advanced-degree diplomas and other related documents to U.S. immigration authorities in support of their applications for such visas.
From at least January 2008 until his arrest in August 2014, KASSEL, a lawyer and graduate of the City University of New York (“CUNY”) Law School, orchestrated a scheme to submit to U.S. immigration authorities false advanced-degree diplomas and supporting documents on behalf of his clients. KASSEL, who practiced at his own law firm, instructed certain of his clients to obtain fraudulent diplomas and transcripts representing that they obtained degrees that they had not in fact earned from schools that they had not in fact attended. KASSEL directed his clients to a co-conspirator who provided the fraudulent diplomas and supporting documents, which were created by another co-conspirator on a home computer and printer. KASSEL and an assistant at his law firm helped coordinate the manufacturing of the fraudulent documents. KASSEL then prepared and submitted fraudulent visa applications to U.S. immigration authorities on behalf of his clients based on the false documents.
KASSEL’s law firm typically charged, and in many cases received, thousands of dollars from clients in exchange for these fraudulent services. These fees were on top of money paid by KASSEL’s clients directly to KASSEL’s co-conspirators for the creation of the fraudulent documents.
* * *
KASSEL, 51, of New York, New York, was arrested in August 2014. In addition to the prison term, KASSEL was sentenced to 2 years of supervised release, a $6,000 fine, and the forfeiture of $187,000, which represents the proceeds of the fraudulent scheme.
Vaclav Haloda, who created false documents, pled guilty to conspiring to commit immigration fraud and substantive immigration fraud in May 2015 before U.S. Magistrate Judge Kevin Nathaniel Fox and is awaiting sentencing.
Rosanna Almonte, KASSEL’s office assistant who helped coordinate the creation of false documents, pled guilty to conspiring to commit immigration fraud in May 2015 before U.S. Magistrate Judge Kevin Nathaniel Fox and is awaiting sentencing.
Mr. Bharara praised the outstanding investigative work of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrea Griswold and Drew Johnson-Skinner are in charge of the prosecution.
Law Enforcement Agencies to Hold Houses of Worship Interfaith Security SummitRead the Press Release
Following the tragic shooting at Emanuel A.M.E Church in Charleston, South Carolina, last month, the U.S. Attorney’s Office is hosting a training summit to share best practices for security at houses of worship. The summit will take place on Monday, July 27, 2015, from noon to 4:00 p.m. at the Spencer M. Partrich Auditorium at Wayne State University Law School. “Places of worship often define themselves by being open and welcoming to all people, but we want to make sure that faith communities have the information they need to keep everyone who walks through their doors as safe as possible.” The summit will focus on providing faith-based leaders with information that will help them develop and implement security programs and emergency action plans, deter threats, share information and address risks, such as active shooter situations. Hate crime trends and prosecutions will also be discussed. Speakers include U.S. Attorney Barbara L. McQuade, Al Shenouda, Protective Security Advisor, Department of Homeland Security, FBI Special Agent in Charge Paul Abbate, Dearborn Police Chief Ron Haddad and Commander Todd Bettison, Detroit Police Department. The event is being co-hosted the FBI, the U.S. Department of Homeland Security, the U.S. Department of Justice’s Community Relations Service, the Detroit Police Department, the Wayne State University Police Department and the Anti-Defamation League. Leaders from all faith-based communities are encouraged to attend. For more information and/or to reserve a seat at the summit, please contact Robert Poikey, Law Enforcement Coordinator, U.S. Attorney’s Office at (313) 226-9120 or email at [email protected].Lancaster Man Charged with Drug DistributionRead the Press Release
PHILADELPHIA - Felix Mendez, 40 of Lancaster, PA, was charged by indictment, unsealed today, with three counts of distribution of methamphetamine, announced United States Attorney Zane David Memeger and Berks County District Attorney John T. Adams.
If convicted the defendant faces a maximum statutory sentence of 120 years in prison with a mandatory minimum five years in prison, four years of supervised release, a fine of up to $15 million, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation Allentown Resident Agency, the Reading Police Department, and the Berks County District Attorney’s Office with assistance from the Pennsylvania State Police, the U.S. Marshals Service, and the Lancaster Police Department. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kenner Postal Worker Charged with Theft of Mail and Delay of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIAN CARTER, age 40, of Kenner, was charged today in a four-count Indictment, specifically, two counts of theft of mail by a postal employee and two counts of opening mail in his possession without authorization.
According to the Indictment, on or about June 15, 2013, CARTER, a United States Postal employee, stole two gift cards from the mail, each in the amount of $50.00.
The Indictment also alleges that on August 7, 2013, CARTER, while on his postal route in Kenner, opened one greeting card and removed cash from another.
If convicted, CARTER faces a maximum term of imprisonment of five years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each count.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Brian Carter Indictment.pdf (140.33 KB)
Justice Department Announces Three Banks Reach Resolutions under Swiss Bank ProgramRead the Press Release
Three Banks Collectively Will Pay Penalties of More than $3.1 Million and Continue to Cooperate with Department
The Department of Justice announced today that Mercantil Bank (Schweiz) AG, Banque Cantonale Neuchâteloise and Nidwaldner Kantonalbank have reached resolutions under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Mercantil Bank (Schweiz) AG is based in Zurich and initiated operations in 1988. Its main focus is private banking, which offers wealth management services to individuals and private investment companies. Mercantil opened, serviced and profited from accounts for U.S. clients and knew or should have known that many of its U.S. clients were likely not complying with their tax obligations. Its cross-border banking business aided and assisted U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts. Until 2010, Mercantil maintained a U.S. toll-free telephone number to service its customers.
Mercantil used a variety of means that could and did assist U.S. clients in concealing their accounts, including hold mail and code name or numbered account services, thereby ensuring that documents reflecting the existence of the accounts could remain outside the United States, beyond the reach of U.S. tax authorities and protected by Swiss banking secrecy laws. Mercantil also assisted clients in opening and maintaining accounts in the names of sham entities. For example, Mercantil provided accounts for what were referred to as “Personal Investment Companies” through its private banking unit. Where there was no active, ongoing business, it was Mercantil’s practice to ignore the form of the structures and to treat the beneficial owners of the entity as the accountholders in substance. Mercantil provided services to the accounts knowing that they could be used for evasion or avoidance of tax obligations. On one occasion in March 2008, Mercantil opened an account for a bank executive with U.S. citizenship in the name of a Panamanian holding company. In that instance, Mercantil accepted and included in account records forms provided by the director of the Panamanian company that falsely represented the ownership of the account for U.S. federal income tax purposes.
Since Aug. 1, 2008, Mercantil held a total of 116 U.S.-related accounts with a maximum aggregate value totaling over $59.8 million. Mercantil will pay a penalty of $1.172 million.
Banque Cantonale Neuchâteloise (BCN) was formed in 1883 and is headquartered in the city of Neuchâtel, Switzerland. BCN opened, serviced and profited from accounts for U.S clients with the knowledge that many likely were not complying with their U.S. tax obligations. BCN knew or had reasons to know that it was likely that certain U.S. taxpayers were maintaining undeclared accounts at BCN in order to evade their U.S. tax obligations in violation of U.S. law.
BCN provided traditional Swiss banking services that it knew could assist, and that did in fact assist, certain U.S. taxpayers to evade their U.S. tax obligations and otherwise hide accounts held at BCN from the Internal Revenue Service (IRS). For example, after it became public that the department was investigating the conduct of UBS, and later other Swiss banks, BCN allowed several U.S. persons to open accounts at BCN and transfer funds into those BCN accounts from the banks under investigation.
BCN provided numbered accounts and agreed to hold bank statements and other mail relating to accounts at BCN, rather than send them to U.S. taxpayers located in the United States, thereby ensuring that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities. In some instances, BCN permitted accounts to be held by Swiss or, in one case, foreign non-operating entities that were ultimately beneficially owned by U.S. persons. By permitting U.S. accountholders to hold their accounts in the name of non-operating entities, BCN thus enabled U.S. accountholders to conceal their identity from the U.S. government. Until 2014, BCN permitted its U.S. accountholders to withdraw funds in cash both by withdrawing sums below $10,000 and, in some cases, withdrawing larger sums of cash when closing their accounts.
As part of its participation in the Swiss Bank Program, BCN has provided certain account information related to U.S. taxpayers which may assist the government in making requests under the 1996 Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Since Aug. 1, 2008, BCN had 190 U.S. clients with a total of 595 U.S.-related accounts. The maximum dollar value, in the aggregate, of all accounts associated with U.S. taxpayers at BCN was approximately $67.5 million. BCN will pay a penalty of $1.123 million.
Nidwaldner Kantonalbank (NKB), established in 1879, is a public and registered cantonal bank in Switzerland owned by the canton of Nidwalden, Switzerland. Despite understanding that U.S. taxpayers had a legal duty to report to the IRS and to pay taxes on income earned in accounts maintained in Switzerland, NKB opened and maintained undeclared accounts for U.S. taxpayers. NKB chose to continue to service U.S. clients without disclosing their identity to the IRS and without regard for the impact of U.S. criminal law on that decision.
NKB offered a variety of traditional Swiss banking services that it knew could assist, and that did assist, U.S. clients in the concealment of assets and income from the IRS. These services included hold mail and numbered accounts. NKB also allowed U.S. nationals with Swiss relatives to open accounts, even in circumstances where NKB was or should have been aware that the accounts were not declared in the United States.
In several instances, requirements of an agreement NKB had with the IRS, in particular with respect to requiring IRS Forms W-9 from U.S. clients, were either not followed or were waived by NKB. For example, in one case, NKB knowingly waived the W-9 requirement for an account from a bank under investigation by the department. This allowed the accountholders, both U.S. citizens and residents, to hold U.S. securities in the account without disclosure of the account to the IRS. NKB’s failure to comply with its reporting and withholding obligations allowed these and other U.S. accountholders to conceal their accounts from U.S. authorities.
One external asset manager had a relationship with an NKB banker and brought five accounts to NKB, including some from Credit Suisse. One of these accounts held U.S. securities through a life insurance policy (an “insurance wrapper”) for the benefit of a U.S. person, allowing the account to hold U.S. securities without disclosure to U.S. authorities. NKB accepted another account from UBS that was owned by an individual who was a foreign national and U.S. resident. At the time it approved the account, NKB was aware that the client left UBS because he was concerned about the U.S. government’s activities in investigating U.S. persons with accounts at that bank.
During the Applicable Period, NKB held a total of 95 U.S.-related accounts with a peak value of assets under management of approximately $30.5 million. NKB will pay a penalty of $856,000.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked Dara B. Oliphant, Gregory S. Seador, Sean P. Beaty and Kathleen E. Lyon, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Finds Rochester Man Guilty of Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal jury has convicted Arthur Long, 46, of Rochester, NY, of possession with intent to distribute methylone (Ecstasy) and marijuana, using a premises for drug trafficking and possession of a firearm in furtherance of drug trafficking crimes. The drug charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine, the firearm charge carries a mandatory minimum sentence of five years and a maximum sentence of life“This defendant, despite having great talent and a road filled with opportunity, chose instead to hurt the very public who once encouraged his success,” said U.S. Attorney Hochul. “Arthur Long’s drug trafficking activities have taken him from the basketball court to criminal court where he could receive a lengthy jail sentence.”
Assistant U.S. Attorneys Jennifer M. Noto and Robert A. Marangola, who handled the prosecution of the case, stated that in July 2013, the Rochester Police Department conducted an investigation that culminated in the execution of search warrants at the defendant’s home on Chi Mar Drive in Chili, NY. Officers also searched Long’s vehicle, a 1977 Cadillac Eldorado. During the execution of the warrants, investigators recovered ecstasy tablets and capsules containing Methylone, marijuana, an AK-47 rifle and a stolen .45 caliber handgun, along with packaging materials.
During his post arrest interview with investigators, the defendant admitted to selling drugs in the violent open-air drug market on South Plymouth Avenue in the City of Rochester and to possessing the AK-47 and .45 caliber hand gun for protection.
The verdict is the culmination of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli and the Federal Bureau of Investigation.
Sentencing is scheduled for October 13, 2015 at 3:00 p.m. before Chief U.S District Judge Frank P. Geraci, Jr. who presided over the trial of the case.
Jury Convicts San Antonio Man of Federal Child Pornography ChargesRead the Press Release
A federal jury convicted a San Antonio man late yesterday afternoon of production, receipt, possession and distribution of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
As a result, 39-year-old Carl Wade Bailes faces a statutory maximum of 120 years in federal prison.
According to court records and trial testimony, undercover FBI agents in September 2012 discovered numerous files depicting child pornography available for download from a peer-to-peer file sharing program on the Internet. Further investigation identified Bailes as the person responsible for making the child pornography available through the use of his personal computer. On October 22, 2012, FBI agents seized his computer. A subsequent forensics examination of the computer revealed that Bailes had deleted child pornography from his computer including 157 files available for download on September 20, 2012, and 50 files available for download on October 4, 2012. During the investigation, authorities downloaded 31 of those files prior to their deletion. Testimony also revealed that agents were able to recover evidence that Bailes produced images depicting the sexual abuse of two minor females, ages 15 and 6.
Bailes, who remains in federal custody, is scheduled to be sentenced at on November 20, 2015, before Chief United States District Judge Fred Biery.
“The FBI is committed to protecting children in our community, who are among the most vulnerable and precious in our society,” stated Special Agent in Charge Christopher Combs, FBI San Antonio Division.
This joint investigation was conducted by the FBI and the Bexar County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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, 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.
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 Lynch in Missoula on July 14, 2015, and entering pleas of Not Guilty were:
- SHAWNSTON BEAUDOIN, a 31-year-old resident of Kennesaw, Georgia, appeared on charges of conspiracy to advertise child pornography. If convicted of the charge contained in the indictment, BEAUDOIN faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation, Montana Division of Criminal Investigation and Homeland Security Investigations. PACER Case Reference. 14-27
Appearing before U.S. Magistrate Johnston in Great Falls on July 10, 2015, and entering pleas of Not Guilty were:
- DENNIS PEIKER, a 61-year-old resident of Lincoln, appeared on charges of manufacture of marijuana. If convicted of the charge contained in the indictment, PEIKER faces 40 years in prison, $2,000,000 in fines and 4 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Lewis and Clark County Sheriff’s Office. PACER Case Reference. 15-09
Appearing before U.S. Magistrate Ostby in Billings on July 8, 2015, and entering pleas of Not Guilty were:
- ALEXANDER CAMPOS, a 33-year-old resident of Billings, appeared on charges of felon in possession of a firearm and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, CAMPOS 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. PACER Case Reference. 14-87
Appearing before U.S. Magistrate Ostby in Billings on July 7, 2015, and entering pleas of Not Guilty were:
- TIMOTHY JAMES ANDERSON, a 31-year-old resident of Shepherd, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, ANDERSON 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, Billings Police Department and Yellowstone County Sheriff’s Office. PACER Case Reference. 14-103
- MERRILL CLARK GARDNER, a 61-year-old resident of Fishtail, 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, GARDNER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-73
- GARY ALLEN OSTERHOUT, a 60-year-old resident of Toston, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, OSTERHOUT faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-29
- WILJO CLEVE SPANG, a 23-year-old resident of Lame Deer, appeared on charges of felon in possession of a firearm and ammunition. If convicted of the charge contained in the indictment, SPANG 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. PACER Case Reference. 15-69
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.
Indictment Charges Two in Gun ConspiracyRead the Press Release
PHILADELPHIA - Emilio Alvarez, 29, and Roberto Santiago, 33, both of Reading, Pennsylvania, were charged by Indictment, unsealed today, with conspiracy, dealing in firearms without a license, providing firearms to a convicted felon, and possession of stolen firearms, announced United States Attorney Zane David Memeger and Berks County district Attorney John T. Adams.
If convicted, defendant Alvarez faces a maximum statutory sentence of 40 years in prison, three years of supervised release, a fine of up to $1.25 million, and $500 special assessment; defendant Santiago faces a maximum statutory sentence of 30 years in prison, three years of supervised release, a fine of up to $1 million, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation Allentown Resident Agency, the Reading Police Department, and the Berks County District Attorney’s Office, with assistance from the Pennsylvania State Police and the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien with Prior Convictions Sentenced to Sixteen Months in PrisonRead the Press Release
A man who illegally re-entered the United States after being deported was sentenced July 14, 2015, to 16 months in federal prison.
Jose Alejandro Vasquez-Pacheco, age 33, an illegal alien from Mexico living in Mount Vernon, Iowa, received the prison term after an April 23, 2015, guilty plea to one count of illegally reentering the United States after having been deported following a felony conviction.
The evidence showed that Vasquez-Pacheco was convicted of operating a motor vehicle while intoxicated in 2003, and twice in 2007. He violated the terms of his state probation and a warrant was issued for his arrest in 2008. Vasquez- Pacheco was deported to Mexico on August 8, 2009, and again on August 13, 2009. He again illegally re-entered the United States in August 2010. On March 17, 2015, Vasquez-Pacheco was arrested by immigration officers in Mount Vernon, Iowa.
Vasquez-Pacheco was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to sixteen months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Vasquez-Pacheco is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Homeland Security Investigations and Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0029.
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Illegal Alien with Felony Record Sentenced to Sixteen Months in PrisonRead the Press Release
A man who illegally re-entered the United States after being deported and used false documents to obtain employment was sentenced July 14, 2015, to 16 months in federal prison.
Alejandro Paredes-Barradas, age 34, an illegal alien from Mexico living in Waterloo, Iowa, received the prison term after an April 24, 2015, guilty plea to one count of unlawful use of an identification document, one count of misuse of a Social Security number, one count of making a false claim to U.S. citizenship, and one count of illegally reentering the United States after having been deported after a felony conviction.
The evidence showed that on May 1, 2013, Paredes-Barradas (using an alias name) used a fraudulent Social Security card and account number to apply for work. On the Immigration Form I-9, Paredes-Barradas claimed to be a United States Citizen. He had been previously deported to Mexico in 2007 after his third Iowa conviction for operating a motor vehicle while intoxicated. After his deportation, Paredes-Barradas returned to Iowa and was convicted again in 2012 of possession of fictitious identification documents.
Immigration authorities were notified by the Black Hawk County Sheriff’s Office in November 2014 that Paredes-Barradas was in custody on new state charges. On March 5, 2015, he was convicted in state court of one count of threatening to use explosive or incendiary device, one count of assault domestic abuse causing injury, and one count of reckless use of fire.
Paredes-Barradas was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to sixteen months’ imprisonment. A special assessment of $400 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Paredes-Baradas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Homeland Security Investigations and Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2051.
Follow us on Twitter @USAO_NDIA.
Henrico Man Pleads Guilty to Child Exploitation EnterpriseRead the Press Release
RICHMOND, Va. – Noland Anthony Harper, 61, of Henrico County, Virginia, pleaded guilty today to charges of engaging in a child exploitation enterprise.
According to court documents, Harper conspired with three other adult males to sexually abuse three juvenile victims, photograph the abuse, and then distribute the photos to other individuals over the Internet. In 2014, Harper traveled from Richmond to Desert Hot Springs, California on three separate occasions where he rendezvoused with the coconspirators who were residents of California and Arizona. While there, Harper and the others met up with the three minor boys, all of whom were under 16-years-old, including two who were 11-years-old, and sexually abused them, which included engaging in various sexual acts. During these trips, Harper took the boys to the beach, Disneyland, and the house of a coconspirator in Arizona, where he bought various gifts for the victims to induce them to pose for sexually explicit photographs. Harper would subsequently upload the sexually explicit images to a website from his Henrico residence and distribute them to willing recipients. Law enforcement initially detected Harper after one of the enterprise participants was arrested in California on outstanding warrants for child exploitation offenses. Evidence recovered from that arrest revealed that the arrestee was in possession of credit cards in Harper’s name, that he was in constant contact with Harper’s cell phone number, and that $10,000 had recently flowed through a bank account in both Harper’s and the arrestee’s name.
Harper was indicted by a federal grand jury on March 4, 2015. Harper faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison when he is sentenced on October 9, 2015. Following his prison term, Harper will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young.
This case was investigated by the FBI, as part of the FBI’s Innocent Images Task Force, and Homeland Security Investigations. Assistant U.S. Attorneys Jessica D. Aber and Thomas A. Garnett, and Special Assistant U.S. Attorney Samuel E. Fishel of the Virginia Attorney General’s Office, are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-36.
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Fourteen Members of the Simple City Criminal Organization Indicted for a $5 Million Racketeering Conspiracy Related to a Vehicle Theft RingRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted 14 members of the Simple City Criminal Organization (Simple City) for a $5 million racketeering conspiracy. The indictment alleges that the members of the conspiracy engaged in criminal activity, including: the theft of vehicles, the sale and transportation of stolen vehicles and items stolen from vehicles including cell phones, computers, tablets and purses, among other items; fraud and identity theft committed using stolen credit and debit cards and check books; and commercial armed robberies and thefts from ATMs. The indictment was returned on July 13, 2015 and unsealed today, upon the arrests of the defendants. Approximately 140 law enforcement officers from four federal, state and local agencies executed 11 search warrants and arrested seven defendants. Two defendants were already in custody on state and federal charges. Five defendants are still being sought.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
The indictment charges the following defendants who are in custody:
Jeff Crews, a/k/a “Fro,” age 24, of Washington, D.C.;
Sylvia Price, a/k/a “Deez Nuts,” age 49, of Suitland, Maryland;
Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 22, of Marlow Heights, Maryland;
Kwasi Crichlow, age 21, of Washington, D.C.;
Earl Ferguson, a/k/a “Frank,” age 32, of Upper Marlboro;
Lamonte Henson, a/k/a “Tiggy,” and “Tiggy Stacks,” age 23, of Upper Marlboro;
Michael Price, a/k/a “Mikey,” age 21, of Suitland;
Jessica Rubio, a/k/a “Jazz,” age 38, of Washington, D.C.; and
Shatei Tucker, a/k/a “Bootsie,” age 54, of Washington, D.C.
According to the indictment, Simple City has been operating in the Washington metropolitan area since at least 2009. The conspirators met on a regular basis, and reported to the organization’s leadership, including Jeff Crews, Sylvia Price, and Stefon Janey, through the use of cell phones, texts and iMessages, and social media (such as Instagram). Members sought direction, instruction, and advice on how to commit crimes. The leaders updated members on Simple City business and resolved disagreements regarding operations among members and associates. Incarcerated members regularly communicated with outside members and associates to discuss Simple City matters and to plan future criminal activity. The conspirators trafficked firearms and shared the proceeds from their criminal activity.
According to court documents, Simple City usually started their crime sprees by committing “hop-in” style motor vehicle thefts or carjackings. Hop-in thefts occur when a person leaves a running vehicle unattended and a member of the organization gets into the vehicle and drives away. The conspirators typically parked the stolen vehicle on the side of a road or in a public parking lot until they believed that law enforcement was no longer actively looking for the vehicle. The conspirators then used the stolen vehicle to commit other crimes, including thefts from autos, citizen robberies and burglaries targeting ATMs. The conspirators then attempted to sell the stolen car. Additionally, the conspirators sold any personal identification information (PII) and credit cards and debit cards they stole during the crime spree to another group within Simple City led by Sylvia Price. Sylvia Price’s group then allegedly used the PII and credit/debit cards to commit wire fraud, credit card fraud and aggravated identity theft. Sylvia Price typically provided a portion of the proceeds to Crews for disbursement to other Simple City members – generally those members who were active participants in the thefts. Any cash obtained during the crime spree was kept by the conspirators and stolen electronics were typically sold for profit.
For example, the indictment alleges that on June 23, 2014, Crews and a co-conspirator communicated by text message discussing whether Crews had stolen vehicles to sell to the co-conspirator. Crews subsequently sent the co-conspirator three pictures of a stolen 2014 Mercedes by text message. On September 5, 2014, a co-defendant sent Crews an iMessage that contained a photograph of two firearms, offering to sell Crews the two pictured firearms for $1,200. On April 18, 2015, Crews, Janey and another person robbed a gas station in Beltsville, using a crowbar to forcibly enter the employee vestibule area and stealing cash from the register. Further, Sylvia Price, Jessica Rubio, Shatei Tucker and others used stolen checks and credit cards to obtain cash and merchandise.
Finally, the indictment seeks the forfeiture of $5 million, believed to be the proceeds obtained from the racketeering activity.
The defendants face a maximum sentence of 20 years in prison for racketeering conspiracy. An initial appearance was held for six of the arrested defendants today in U.S. District Court in Greenbelt. Rubio, Crichlow, Janey and Crews were ordered detained pending detention hearings next week. Henson and Ferguson, who are currently in custody on other charges, will have an initial appearance on these federal charges at a later date. No court appearance has been scheduled for Sylvia Price.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.
Four from Ohio indicted for defrauding investors out of $7 millionRead the Press Release
Four Ohio men were indicted for their roles in a conspiracy to defraud investors out of more than $7 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.
Named in the 31-count federal indictment are: Kenneth Jackson, 58, of Glenmont; William Schureck, 80, of Lexington; Dennis Deciancio, 72, of Macedonia, and Daryl Dane Donohue, 66, of Mansfield. The counts include conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.
“These men travelled around the country and deliberately misled investors,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “They left financial hardship in their wake. Now they will be held accountable for their actions.”
“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”
"Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Kathy Enstrom, IRS Criminal Investigation, Special Agent in Charge, Cincinnati Field Office. "Financial fraud is not a victimless crime, and IRS-CI will continue with our law enforcement partners in bringing those responsible to justice.”
All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont, according to the indictment.
Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to the indictment.
The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States, according to the indictment.
Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012, according to the indictment.
Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to the indictment.
They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to the indictment.
To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.
MSS investors, between 2007 and 2013, incurred a combined out-of -pocket loss of more than $7 million. Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations and the Food and Drug Adminstration.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Perry County Residents Plead Guilty to Methamphetamine OffensesRead the Press Release
On July 16, 2015, four Perry County residents pled guilty to methamphetamine offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Skyler A. Elder, 25, Joseph D. Smith, 41, Jamie L. Smith, 34, and Herman E. Sims, Jr., 35, all of Pinckneyville, pled guilty to the offense of conspiracy to manufacture methamphetamine. The Smiths also pled guilty to one count of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offenses occurred between 2012 and December 2014, in Perry, Jackson, and Randolph Franklin Counties. The Smiths were allowed to remain on bond, pending their November 17, 2015, sentencing hearings. Elder and Sims are currently being held without bond, pending their sentencing hearings, which are set for November 17, 2015, and November 3, 2015, respectively. Co-defendant Jamie Trzinski has previously pled guilty to her role in the methamphetamine offenses and is scheduled for a September 15, 2015, sentencing hearing.
The methamphetamine and pseudoephedrine offenses carry a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release. The methamphetamine offense carries a fine of up to $1,000,000 fine, while the pseudoephedrine offense carries a fine of up to $250,000.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Former Washington, D.C., Tax Return Preparers Sentenced to Prison for ConspiracyRead the Press Release
A former Washington, D.C., public school teacher and tax return preparer and her son, a current Washington, D.C., public school teacher and former tax return preparer, were sentenced to prison today in the U.S. District Court for the District of Columbia, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Sherri Davis, 42, and her son, Andre Davis, 24, both of Washington, D.C., were convicted by a federal jury on Jan. 29 of one count of conspiracy to defraud the United States. Sherri Davis was also convicted of 25 counts of aiding and assisting in the preparation and filing of false federal individual income tax returns and three counts of filing her own false tax returns. Andre Davis was also convicted of one count of aiding and assisting in the preparation and filing of a false tax return.
U.S. District Court Judge Thomas Hogan of the District of Columbia sentenced Sherri Davis to serve 48 months in prison to be followed by three years of supervised release, and ordered her to pay $642,103 in restitution to the Internal Revenue Service (IRS) and a $2,900 special assessment. Judge Hogan sentenced Andre Davis to serve six months of home detention and 100 hours of community service as part of five years of supervised release, and ordered him to pay $37,537 in restitution to the IRS and a $200 special assessment.
“Identifying and prosecuting fraudulent return preparers are among the Tax Division’s highest priorities,” said Acting Assistant Attorney General Ciraolo. “Today’s sentences demonstrate that those who willfully assist U.S. taxpayers in filing false returns and in doing so, stealing from the U.S. Treasury, will pay a heavy price for their criminal conduct.”
According to the evidence presented at trial, from 2003 through 2012, Sherri Davis was the owner and operator of 2FT Fast Facts Tax Service, a tax return preparation business located in Washington, D.C. In 2012, Sherri Davis changed the business name to Davis Financial Services and Andre Davis was designated as the owner and operator of that business.
At trial, the evidence established that Sherri and Andre Davis prepared and filed false tax returns for clients that included various false and fraudulent deductions, expenses and credits intended to reduce the amount of taxes owed and obtain refunds for their clients that were larger than the clients were entitled to receive. In some instances, Sherri and Andre Davis, and others working for them, included false and fraudulent Schedules C that reported false business losses and Schedules A that reported fraudulent itemized deductions. On some of the returns, Sherri and Andre Davis completely fabricated the Schedule C businesses. On other returns, the Schedule A included false or grossly inflated gifts to charity, job expenses and other miscellaneous expenses.
The evidence at trial further established that for calendar years 2007 through 2009, Sherri Davis filed her own false income tax returns on which she failed to report more than $300,000 in tax preparation fees that she received from her business.
“IRS-Criminal Investigation is focused on cases where greedy individuals, who for their own personal benefit, participate in identity theft schemes to accumulate ill-gotten wealth at a cost to the taxpayer,” said Special Agent in Charge Thomas Jankowski of the IRS-Criminal Investigation (CI), Washington, D.C., Field Office. “In cooperation with the Department of Justice, IRS-CI is committed to holding thieves, such as Sherri and Andre Davis, accountable for their misdeeds.”
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation and the Washington, D.C., Office of Tax and Revenue-Criminal Investigation Division, who investigated the case, and Trial Attorneys Jessica Moran, Tiwana Fleming and Mark McDonald of the Tax Division, who prosecuted the case. Ciraolo also thanked the U.S. Attorney’s Office of the District of Columbia for their substantial assistance.
Former U.S. Soldier Sentenced in Manhattan Federal Court to 20 Years in Prison for Conspiring to Murder A DEA Agent and A DEA Informant, to Import Cocaine, and to Possess A FirearmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that TIMOTHY VAMVAKIAS, a former member of the U.S. Army, was sentenced to 20 years in prison for his participation in a conspiracy to murder a Drug Enforcement Administration (“DEA”) agent and a confidential informant working at the direction of the DEA, a conspiracy to import cocaine into the United States, and a conspiracy to possess a firearm in furtherance of the murder conspiracy. VAMVAKIAS was arrested in September 2013 along with co-defendants Joseph Hunter, Dennis Gogel, Slawomir Soborski, and Michael Filter following a long-term DEA undercover investigation. VAMVAKIAS pled guilty on January 9, 2015, before U.S. District Judge Laura Taylor Swain, who imposed the sentence.
Manhattan U.S. Attorney Preet Bharara said: “Timothy Vamvakias’s callous disregard for human life made him an ideal member of an international mercenary team that conspired in an elaborate and diabolical scheme to murder a DEA agent and an informant. Vamvakias went from serving his country in the military to serving the interests of drug lords and contract killers. Thanks to the investigative efforts of the DEA, Vamvakias’s descent into the criminal underworld has been put to an end.”
According to the Indictment filed against VAMVAKIAS, Hunter, Gogel, Soborski, and Filter, and other documents filed in Manhattan federal court:
All five defendants have previously served in the armed forces of their respective nations. VAMVAKIAS served in the U.S. Army between approximately 1991 and 2004; Gogel served in the German armed forces until 2010; Hunter served in the U.S. Army between approximately 1983 and 2004; Filter served in the German armed forces until 2009; and Soborski served in the Polish armed forces until 2011. VAMVAKIAS attained the rank of sergeant and served both as infantryman and a military police officer. Gogel was trained as a sniper. Hunter served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics; and Soborski and Filter were also trained as snipers.
In 2013, VAMVAKIAS was recruited by Hunter to serve as security for a Colombian drug trafficking organization and to perform contract killings. Hunter recruited VAMVAKIAS based on their prior experiences working together for a transnational criminal organization. During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, Hunter communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. Hunter agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization and assembled a “security team” consisting of VAMVAKIAS, Gogel, Filter, and Soborski. Hunter also told the CSs that he had previously been involved in contract killings – referred to as “bonus jobs” – and that some team members wanted to do as much “bonus work” as possible.
Hunter and his co-defendants thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Furthermore, VAMVAKIS, Gogel, and Hunter agreed to commit murder-for-hire in Liberia by assassinating both a Special Agent of the DEA and a person who, according to the CSs, was providing information to the DEA about the CSs’ narcotics trafficking organization. In exchange for the murders, VAMVAKIAS and Gogel were together to be paid approximately $700,000, and Hunter was to receive an additional $100,000 for his leadership role. Communications between the defendants and the CSs occurred by telephone, over email, and in a series of surreptitiously audio-recorded and videotaped meetings over a nine-month period.
In late June 2013, VAMVAKIAS, Gogel, Filter, and Soborski conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
With respect to the murder-for-hire scheme, in mid-May 2013, at a meeting with the CSs in Thailand, VAMVAKIAS, Gogel, Hunter, and Soborski were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in email communications, Hunter confirmed that his team would be willing to murder both a U.S. law enforcement agent and an informant (a boat captain) who was providing information to U.S. law enforcement authorities. Hunter confirmed by email that his team would kill both the DEA agent and the informant who was providing information to law enforcement about the CSs’ narcotics trafficking organization. At a meeting in late June 2013, CS-3 explained to VAMVAKIAS and Gogel that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. VAMVAKIAS and Gogel discussed the weapons that could be used and masks to be worn for the murders, and VAMVAKIAS stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, Hunter sent via email a list of the items needed for the murders, including “[t]wo Submachine Guns with silencers . . .[t]wo .22 pistols with Silencers.”
In mid-August 2013, at a meeting in Thailand, VAMVAKIS, Gogel, and Hunter discussed in detail the weapons that would be used and the possibility of entering Liberia without having their passports stamped. They suggested that CS-3 fly them out of the country via private plane following the murders. VAMVAKIAS stated that among other weapons, a sub-machine gun and two .22 caliber pistols would be needed for the murders, and CS-3 agreed to deliver the weapons to Liberia. The next day, at a meeting with Gogel, CS-3 confirmed that an order for the requested weapons had been made. Later that same day, Gogel met again with CS-3 and provided CS-3 with two highly sophisticated latex facemasks, which can make the wearer appear to be of another race, for CS-3 to transport to Liberia.
In late September 2013, VAMVAKIAS and Gogel arrived in Liberia to commit the planned murders-for-hire.
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In addition to prison, VAMVAKIAS, 43, was sentenced to five years of supervised release.
The remaining defendants, Hunter, 50, Gogel, 29, Soborski, 43, and Filter, 30, each pled guilty to conspiracy to import cocaine into the United States. Hunter and Gogel also pled guilty to conspiracy to murder a law enforcement agent and a person assisting a law enforcement agent; and conspiracy to possess a firearm in furtherance of a crime of violence. Each defendant faces a maximum possible term of life in prison. The maximum potential sentences faced by these remaining defendants are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants will be determined by the judge.
Soborski is scheduled to be sentenced on July 29, 2015; Gogel is scheduled to be sentenced on August 4, 2015; Hunter is scheduled to be sentenced on August 5, 2015; and Filter is scheduled to be sentenced on September 9, 2015. Each of the defendants will be sentenced by Judge Swain.
The prosecution was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutors Office; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael Lockard, Anna Skotko, Aimee Hector, and Emil Bove are in charge of the prosecution.
Former Houston Charter School Officials Charged with Bilking School out of MillionsRead the Press Release
HOUSTON – A federal grand jury has returned a 19-count indictment against the founding superintendent of The Varnett Public School and her husband alleging charges of conspiracy, mail fraud, tax evasion and obstruction of justice, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge Lucy Cruz of Internal Revenue Service - Criminal Investigation (IRS-CI) and Special Agent in Charge Neil Sanchez of the U.S. Department of Education - Office of Inspector General.
Marian Annette Cluff and Alsie Cluff Jr. are expected to surrender to authorities and make their initial appearance before U.S. Magistrate Judge Nancy Johnson later this week.
The indictment was returned late yesterday.
Annette Cluff was the founding superintendent of The Varnett Public School and her husband Alsie Cluff Jr. was the facilities and operations manager of the three campus charter schools located in Northeast and Southwest Houston. The Indictment alleges the couple embezzled in excess of $2.6 million in funds intended for the operation and function of the charter school and its programs.
“We take allegations such as these very seriously,” said Magidson. “If proven guilty, those found to have taken funds intended for the benefit of students for their personal benefit will be held accountable for their actions.”
“Those in positions of public trust must and will be held to higher standards,” said Turner. “The FBI and our law enforcement partners take all allegations seriously and are committed to fighting corruption at all levels.”
The Cluffs are also charged with tax evasion of approximately $851,845 which does not include interest and penalties owed to the IRS. According to the indictment, the Cluffs did not pay income taxes on the money they received as a result of the scheme.
“IRS-CI enforces the nation's tax laws, but also takes particular interest in cases in which someone appears to have taken what belongs to others for their own personal benefit,” said Cruz. “This indictment alleges these two not only betrayed the public’s trust by diverting funds intended for the benefit of underprivileged students for their own personal gain, but also allegedly conspired to defraud the IRS and evade paying their taxes. IRS-CI is committed to identifying and holding accountable those that seek to enhance their lives by misappropriating funds intended to educate our children.”
The indictment alleges that the Cluffs used their positions of trust and authority to embezzle money from the charter school by opening four “off-books” accounts (bank accounts not directly tied to the financial operation of the charter school) in a name similar to The Varnett Public School. The Cluffs were the signatories of the accounts, according to the allegations, and only used the off-books accounts for the purpose of diverting money intended for the charter school for their own personal use and benefit. Annette and Alsie Cluff allegedly concealed the off-books accounts from the charter school office manager, the school’s external accountant and their income tax preparer.
“Today’s indictment alleges that these school officials abused their positions of trust to steal funds from the very ones they promised to serve – the children who attended the Varnett Public School,” said Sanchez. “As the law enforcement arm of the U.S. Department of Education, we are committed to ensuring that Federal education dollars reach the intended recipients. That’s why we will continue to aggressively pursue those who seek to enrich themselves at the expense of students. America’s students, their families and taxpayers deserve nothing less.”
According to the indictment, the Cluffs embezzled more than $1 million from “money orders” submitted by parents of the students to pay for school field trips and student fundraisers, such as chocolate sales, book fairs, school carnivals and other school related activities. Additionally, the Cluffs also allegedly diverted and concealed money received from vendors of the school, insurance companies and federal agencies into the off-books accounts.
In a separate false invoicing scheme also charged in the indictment, Annette Cluff directed the charter school’s building maintenance and landscaping contractor to submit false invoices to the school for payment on work that was never actually done. The indictment alleges the charter school paid invoices totaling more than $115,000. Mrs. Cluff allegedly instructed the contractor to return the money by writing checks from the contractor to her personally, which she deposited into her personal bank account. Later, she told the contractor to make a false statement to the FBI that the money was for a “loan” and that she paid the contractor back in cash, according to the allegations.
If convicted of either mail fraud or obstruction of justice, each defendant faces up to 20 years imprisonment, while the conspiracy and tax evasion charges carry a possible five-year federal prison sentence. All charges could also result in a possible $250,000 fine, upon conviction.
The charges are the result of the investigative efforts of the FBI, IRS-CI and the U.S. Department of Education-OIG. Assistant U.S. Attorneys Quincy L. Ollison and Cedric L. Joubert are 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.Former Ft. Thomas X-Ray Technician Sentenced to a Year for Health Care FraudRead the Press Release
COVINGTON — A former X-ray technician from Ft. Thomas, Ky., who previously admitted to defrauding state and federal health care programs out of thousands of dollars, has been sentenced to one year in federal prison.
U.S. District Judge Amul Thapar sentenced Robert Moyer for health care fraud and also ordered him to pay 112,173.93 in restitution. Under federal law, Moyer must serve at least 85 percent of his prison sentence.
According to court records, starting in June 2010 and continuing until December 2011, Moyer, who owned Mobile Medical Resources, knowingly allowed an unlicensed individual to administer x-rays to Medicare and Medicaid patients from Kentucky and Ohio. He then falsified documentation to conceal who performed the x-ray services. Under federal law, the Medicare and Medicaid programs only reimburse for such medical services when they are provided by a licensed professional.
“Billing Medicare and Medicaid for services performed by non-licensed personnel is fraud,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This defendant not only stole money from the taxpayers, his X-rays sometimes had to be re-taken because they were of such poor quality that they were useless.”
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Sylvia Mathews, Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General, Office of Investigations; Jack Conway, Kentucky Attorney General; and Mike DeWine, Ohio Attorney General, jointly made the announcement.
The investigation was conducted by the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit; Assistant U.S. Attorney Laura K. Voorhees prosecuted this case on behalf of the federal government.
Former Florida TV Weatherman Sentenced for Telemarketing FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Robert J. Lopicola, 45, of Brooksville, FL, was sentenced in the United States District Court in East St. Louis, Illinois on his conviction for conspiracy to commit mail and wire fraud in connection with telemarketing. Lopicola was sentenced to 21 months in prison. The court ordered that Lopicola will serve this federal sentence consecutively to, or after, he completes the sentence he is currently serving in the state of Florida for unrelated offenses. Lopicola was also fined $300 and ordered to pay a $100 special assessment.
Lopicola was a telemarketer at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). PTS telemarketers earned commissions that were based upon the volume of sales made. PTS operated out of offices located in West Palm Beach Florida. The company targeted owners of timeshares throughout the United States and Canada who wished to sell their timeshares. By falsely representing that PTS had located buyers who were interested in purchasing the victims’ timeshares, the closers convinced the victims to pay upfront fees of approximately $2,000 to PTS. During the lifespan of the scam, PTS defrauded over 7,000 people out of approximately $14.5 million. Victims were located throughout the United States and Canada.
Prior to working at PTS, Lopicola was a weatherman for WPTV in West Palm Beach.
This prosecution is one of more than 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, assisted by the Florida Attorney General’s Office and the Florida Department of Agriculture. The case was prosecuted by Assistant United States Attorneys Scott Verseman and Michael Hallock.
Former Corrections Officer Indicted for Accepting Bribes to Smuggle ContrabandRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III, announces the return of an indictment charging Robert Lawrence Brown (32, Clermont) with acceptance of a bribe by a public official. If convicted, he faces a maximum penalty of 15 years in federal prison. The indictment also notifies Brown that the United States intends to forfeit $7,100, which is alleged to be traceable as proceeds of the offense.
According to court documents, beginning in January 2015, Brown allegedly used his position as a corrections officer at the Coleman Federal Correctional Complex to smuggle contraband to inmates in exchange for illegal monetary payments. On June 18, 2015, federal agents monitored a meeting between Brown and a cooperating witness. During the meeting, Brown accepted a $2,600 bribe for illegal items that he already had smuggled into the prison. When confronted by investigators, Brown admitted that he had illegally negotiated $7,100 in cash payments in return for smuggling cellular telephones, prescription pills, tobacco, and other items to federal inmates over the previous six months.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Bastrop Federal Prison Pharmacy Technician and Two Inmates Sentenced to Federal Prison on Bribery ChargeRead the Press Release
In Austin, a former Bastrop federal prison pharmacy technician was sentenced to federal prison for accepting bribes to smuggle contraband into the facility announced Acting United States Attorney Richard L. Durbin, Jr.
This morning, United States District Judge Sam Sparks sentenced 26-year-old Eric Renaldo Tellez of Taylor, TX, to 12 months plus one day in federal prison followed by three years of supervised release. Judge Sparks also sentenced FCI-Bastrop inmates 27-year-old Shanon E. Frank and 25–year-old Mattheu Ellis Jones to 18 months and 15 months incarceration followed by three years of supervised release, respectively, for their roles in the bribery scheme.
In May 2015, Tellez pleaded guilty to one count of receipt of a bribe by a public official; Frank and Jones, one count of conspiracy to bribe a public official. According to court records, Frank and Jones admitted to bribing Tellez to smuggle contraband into FCI-Bastrop from June 2014 to February 2015. The smuggled contraband included Casio G-Shock watches, creatine, nutritional supplements and muscle shirts. Tellez, admittedly, collected as much as $2,000 in bribes as a result of the scheme.
The case resulted from an investigation by the Department of Justice Office of the Inspector General, United States Postal Inspection Service and the Taylor Police Department. This case was prosecuted by Assistant United States Attorney Matthew Devlin.
Foreign National Indicted for Passport Fraud and Use of False Social Security Number to Obtain Unemployment BenefitsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Marco Antonio Lara-Gomez, 27, of Suisun City, charging him with making a false statement in an application for a U.S. passport and use of a false Social Security number, United States Attorney Benjamin B. Wagner announced.
According to court documents, Lara-Gomez is a Mexican national who fraudulently applied for a U.S. passport in 2007, using an identity theft victim’s name and birth certificate in connection with the application. Lara-Gomez received a passport and used it to travel to and from Mexico. Additionally, Lara-Gomez used the same victim’s identity, including his social security number, to apply for, and receive unemployment insurance benefits between 2010 and 2014.
This case is the product of an investigation by the U.S. Department of State’s Diplomatic Security Service and California’s Employment Development Department, with Assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Nirav Desai is prosecuting the case.
If convicted, Lara-Gomez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Final Defendant Sentenced to over 3 Years in Prison for Role in Husband’s Massive Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Tamara Tikal, 45, of Rio Vista, was sentenced today by United States District Judge Troy L. Nunley to three years and nine months in prison for her conviction for conspiring to commit mail fraud in relation to a foreclosure rescue scam, United States Attorney Benjamin B. Wagner announced. Tamara Tikal was also ordered to pay $3,671,000 in restitution to victims of the offense.
Tamara Tikal’s husband Alan Tikal was convicted following a bench trial and sentenced to 24 years in prison. Tamara Tikal pleaded guilty to the conspiracy in August 2014, as did co-defendant Ray Kornfeld, who was sentenced to five years in prison.
According to her plea agreement, between January 2010 and August 2013, Alan Tikal was the principal behind a business known as KATN, which targeted distressed homeowners experiencing difficulties making their existing monthly mortgage payments. Many of the victims did not speak English. Alan Tikal promised to reduce their outstanding mortgage debt by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Homeowners were told that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to Tikal in an amount equaling 25 percent of their original obligation. In reliance upon these misrepresentations, many of these homeowners stopped making payments on their existing mortgage loans and lost their homes to foreclosure as a result.
Tamara Tikal filled a variety of roles in the business, including paying the salaries of various employees, serving as a notary for various documents utilized in furtherance of the scheme, and opening and maintaining post-office boxes and bank accounts that received homeowner payments. She also communicated with individual homeowners, assuring them of the legitimacy of the program.
In fact, the Tikals never made any payments to financial institutions on behalf of homeowners in satisfaction of their pre-existing mortgage debt obligations; the money for the purported “loan” payments were simply spent by the Tikals and their associates for personal use; and there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. In all, more than 1,000 homeowners in California and other states were convinced to participate in the program. As a result of their participation, many homeowners became delinquent on their loans and ultimately had their homes foreclosed upon. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by the Tikals.
This case was a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell prosecuted the case.
Fifteen Defendants Facing Federal or State Charges for Selling Heroin, Cocaine and Crack Cocaine on Chicago’s South and West SidesRead the Press Release
CHICAGO — Fifteen defendants are facing federal or state narcotics charges for their alleged roles in supplying and distributing heroin and cocaine on Chicago’s South and West Sides. A lengthy investigation led by agents of the Drug Enforcement Administration and officers of the Chicago Police Department assigned to the Chicago Strike Force, resulted in federal charges against twelve defendants and state charges against three others.
Police and federal agents from the Chicago Strike Force began arresting the defendants this morning. All twelve federal defendants are in custody.
The federal defendants were charged in seven separate criminal complaints filed yesterday in U.S. District Court and unsealed following the arrests. The federal defendants began making initial court appearances this afternoon before U.S. Magistrate Judge Michael T. Mason in Chicago. The state defendants were charged in separate complaints and will appear at a later time in state court.
According to affidavits filed in support of the federal arrests, the investigation revealed that ANTHONY MURRAY, a member of the Black P-Stone Nation street gang (the “P-Stones”), distributed narcotics in an area the P-Stones refer to as the “Hundreds,” which is near 112th Street and Princeton Avenue in Chicago’s Roseland neighborhood. Murray, 43, of Chicago, also known as “Ant” or “Big Ant,” allegedly arranged narcotic transactions with a confidential source working with agents from the Chicago Strike Force in 2013 and 2014. The deals were surreptitiously recorded by officers who used wiretapped cellular phones and extensive surveillance as part of the investigation.
According to the federal affidavits, Murray was supplied with narcotics by three co-defendants: BRIAN GORDON, 42, of Chicago, also known as “G”; LAMONT TURNER, 41, of Chicago, also known as “Pookie”; and RUDOLPH CALLASO, 35, of Chicago. The affidavit alleges that FLOMONT JOHNSON, 40, of Hammond, Ind., contributed to the operation by converting powder cocaine into crack cocaine.
The federal affidavits allege that Murray and Gordon sold narcotics to a high-ranking member of the P-Stones, who, unbeknownst to Murray and Gordon, was assisting the government as a confidential source.
Murray, Gordon, Turner, Callaso and Johnson were charged with conspiring with each other to knowingly and intentionally possess with intent to distribute cocaine and heroin. If convicted, Murray, Gordon, and Johnson each face a mandatory minimum sentence of 5 years in prison and a maximum of 40 years in prison and a $5 million fine. If convicted, Turner and Callaso each face a maximum of 20 years in prison and a $1 million fine.
The affidavits allege that Murray also sold narcotics to another co-defendant, GERLAND ORR, 45, of Chicago. Orr was charged with knowingly and intentionally possessing cocaine with the intent to distribute. If convicted, Orr faces a maximum of 20 years in prison and a $1 million fine.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; Garry F. McCarthy, Superintendent of the Chicago Police Department; and Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division.
“The Chicago Strike Force is a potent alliance of federal, state and local law enforcement that is committed to halting the stream of narcotics into our communities,” Mr. Fardon said. “The charges announced today are the result of the hard work and determination of our investigative partners,” Mr. Fardon said.
“As prosecutors, we recognize the efforts of specialized law enforcement partners like the Chicago Strike Force and we work hand in hand to eradicate the flow of dangerous drugs in our communities,” Ms. Alvarez said. “We applaud the work of the Strike Force and look forward to continued collaboration,” Ms. Alvarez said.
"The Chicago Police Department remains manically focused on reducing violence in our city,” said Superintendent McCarthy. "With the engine of violence in Chicago primarily fueled by the drug trade, the Chicago Strike Force represents the culmination of local, state and federal resources targeting those who torment our neighborhoods with violence and sending a clear message that violence, drug dealing and gang activity will simply not be tolerated."
“DEA, along with its outstanding Strike Force partners, will continue to focus our efforts against heroin traffickers and gang members that plague our communities with violence, the concern of everyday Chicagoans,” said Special Agent Wichern. “This investigation exemplifies the created synergy of the Chicago Strike Force.”
The investigation was conducted through the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force, which ― in addition to the DEA, IRS-CID and CPD ― consists of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and task force officers from various state and local law enforcement agencies, including the Cook County Sheriff’s Police Department and the Illinois State Police.
The federal complaints charge several other defendants with various narcotics-related violations on the South and West Sides of the city. MELVIN SYKES, 34, of Chicago, also known as “Cooch,” and ANDRE GLADNEY, 48, of Chicago, also known as “Red,” were charged with knowingly and intentionally distributing heroin. If convicted, Sykes and Gladney each face a maximum of 20 years in prison and a $1 million fine. LEON LONDON, 32, of Bellwood, Ill., also known as “Bookie,” and JAMES WILSON, 36, of Cicero, were charged with knowingly and intentionally distributing crack cocaine. If convicted, London and Wilson each face a mandatory minimum of 5 years in prison and a maximum of 40 years and a $5 million fine.
A federal complaint also charges VINCENT YOAKUM, 55, of Chicago, also known as “Vinny Blue,” and RANDY GRIFFIN, 44, of Chicago, with conspiring with each other to knowingly and intentionally possess with intent to distribute cocaine. A federal affidavit filed in support of the complaint alleges that a high-ranking member of the P-Stones assisted the government as a confidential source and purchased cocaine from Yoakum and Griffin for $10,000 in cash. The transaction was observed and recorded by federal agents, according to the affidavit. If convicted, Yoakum and Griffin each face a maximum of 20 years in prison and a $1 million fine.
Assistant United States Attorneys Shoba Pillay and Jeremy Daniel are representing the government in the federal cases. Assistant State’s Attorney Daniel Maloney is handling the state cases.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Yoakum Complaint
Wilson Complaint
Sykes Complaint
Orr Complaint
Murray et al Complaint
London Complaint
Gladney ComplaintFederal Judge Sentences Monroe Man to Six Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced Darren Mark Webb, 41, of Monroe, N.C. to six years in prison on child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Webb was also ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay $2,500 as restitution to his victims.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins Acting U.S. Attorney Rose in making today’s announcement.
According to court documents and the sentencing hearing, in or about July 2013, FBI agents conducting an undercover investigation discovered that Webb was downloading child pornography from the Internet. Upon executing a search warrant at Webb’s residence, law enforcement discovered that Webb possessed over 550 images and videos of child pornography, including images and videos of prepubescent children.
Webb pleaded guilty to one count of receiving child pornography in January 2015. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
FBI handled the investigation. Assistant U.S. Attorney Cortney S. Randall, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
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.
Federal Indictment Returned Against Two Individuals for Two Separate Drug-Related HomicidesRead the Press Release
St. Louis, MO – An indictment was returned today by a federal grand jury related to two separate drug-related homicides occurring in the City of St. Louis.
The indictment charges DIONNE GATLING and ANDRE RUSH for their involvement in the April 5, 2010, murder of Theodis Howard, and alleges that Mr. Howard was killed in retaliation for being a witness in a drug trafficking case.
The indictment further charges Gatling and Rush for their involvement in the May 2, 2013, murder of Terrance Morgan, and alleges that Mr. Morgan was killed in order to prevent Mr. Morgan from providing information to law enforcement regarding the commission of a drug trafficking offense.
The indictment also charges Dionne Gatling, Andre Rush and two other defendants, TIMOTHY RUSH and LORENZO GIBBS with conspiracy to distribute and possess with the intent to distribute over 5 kilograms of cocaine and over 1 kilogram of heroin.
This case was investigated by the St. Louis Metropolitan Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Internal Revenue Service.
As always, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. If convicted, these various charges carry penalties that include possible life sentences of imprisonment.
Federal Grand Jury Indicts Raymon Carter for Arson of the CVSRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment today charging Raymon Carter, age 24, of Baltimore, Maryland, with the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore, on April 27, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
“Federal law enforcement agencies are working closely with local police and prosecutors to investigate crimes committed during the Baltimore riots,” said U.S. Attorney Rod Rosenstein.
According to the indictment and court documents, on April 27, 2015, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned. On May 22, 2015, ATF released two still photographs of a suspect in the arson to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction. The indictment alleges that Carter is the person who started the fire in the CVS.
Carter faces a mandatory minimum sentence of five years in prison, and a maximum of 20 years in prison for arson. No court appearance is scheduled at this time.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who is prosecuting the case.
Federal Court Sentences Man on Illegal Re-entry ChargeRead the Press Release
DAVENPORT, IA - On July 14, 2015, Juan De Dios Mendez Ayala, age 35, a citizen of Mexico, was sentenced by United States Senior District Court Judge James E. Gritzner to 51 months in prison after Mendez Ayala stipulated to a violation of his supervised release from a prior 2011 conviction and pleaded guilty to illegal re-entry into the United States as an aggravated felon, announced United States Attorney Nicholas A. Klinefeldt. Mendez Ayala was also ordered to serve three years of supervised release following his imprisonment, and to pay $100 towards the Crime Victims Fund.
After serving his prison sentence, Mendez Ayala will be turned over to immigration authorities for deportation proceedings. Mendez Ayala was sentenced as an aggravated felon based on a 1997 conviction for burglary second degree and a 2008 conviction for possession of stolen property. Mendez Ayala was deported on three prior occasions, most recently in 2012.
This case was investigated by the Homeland Security Investigations (HSI), and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Court Sentences Former Davenport Man for Distribution of Child PornographyRead the Press Release
DAVENPORT, IA - On July 15, 2015, Stephen Allen Brooks, age 39, formerly of Davenport, was sentenced by United States Senior District Court Judge James E. Gritzner to 168 months in prison after pleading guilty to distribution of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Brooks was also ordered to serve five years of supervised release following the imprisonment, to pay $3,000 in restitution to a victim, and to pay $100 towards the Crime Victims Fund. Brooks was also ordered to register as a sex offender.
In 2013, the United States Department of Homeland Security Investigations (HSI) received information from an ongoing Nebraska child exploitation investigation. Further investigation showed that an email account later identified to Brooks was distributing and receiving child pornography with a Nebraska subject. Through email chats and exchanges in September 2013, approximately 26 images of child pornography were distributed from Brooks from an email account which belonged to Brooks. Brooks later admitted that he had sent images of minors engaged in sexually explicit conduct to a person in Nebraska.
This case was investigated by Homeland Security Investigations (HSI) and the Davenport, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Essex County, New Jersey, Man Sentenced to 14 Years in Prison for Convenience Store Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 168 months in prison for committing six armed robberies of Newark convenience stores – including the same grocery store twice within a week, U.S. Attorney Paul J. Fishman announced.
Larry McRae, 28, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with six counts of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From June 30, 2012, through Sept. 15, 2012, McRae entered convenience stores in Newark on six different occasions and robbed the store clerks at gunpoint. During the spree, he robbed the same P & T Grocery on Sept. 5, 2012 that he robbed on Sept. 1, 2012. Also, during the Sept. 15, 2012, robbery, he discharged one round from a .357 Magnum handgun as he exited the store. He was apprehended by the Newark Police Department later that morning.
In addition to the prison term, Judge McNulty sentenced McRae to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Newark Police Department, under the direction of Police Director Eugene Venable and Chief Anthony Campos, for their work in this case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Donna R. Newman Esq., New York