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Wednesday 27 May 2015
Sacaton Man Sentenced to 57 Months in Prison for Domestic ViolenceRead the Press Release
PHOENIX – On May 26, 2015, Roberto Miguel Nanez, 31, of Sacaton, Ariz., a member of the Gila River Indian Tribe, was sentenced by U.S. District Judge G. Murray Snow to 57 months in prison. Nanez previously pleaded guilty to domestic assault by a habitual offender.
Over the course of 2 days, from Feb. 5-6, 2014, within the Gila River Indian Community, Nanez beat his girlfriend causing bruises over her entire body. Among other things, he choked her with an electrical cord. Prior to this assault, the defendant had been twice convicted of domestic violence.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00749-PHX-GMS
RELEASE NUMBER: 2015-041_ Nanez
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Prior Felon from Rio Rancho Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Nicholas Ray Leyba, 35, of Rio Rancho, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to violating the federal firearms laws. The guilty plea was entered without the benefit of a plea agreement.
Leyba was arrested on Feb. 5, 2015, by the Albuquerque Police Department following a SWAT operation involving another crime allegedly committed by Leyba. At the time of his arrest, Leyba had a loaded firearm next to him.
Leyba was transferred into federal custody on Feb. 25, 2015, based on a criminal complaint alleging that he was a felon in possession of a firearm. Leyba subsequently was indicted on Feb. 25, 2015, on that same charge. At the time of his arrest, Leyba was prohibited from possessing firearms or ammunition because he previously had been convicted of the felony offenses of false imprisonment and aggravated assault against a household member with a firearm.
During today’s proceedings, Leyba pled guilty to the indictment and admitted possessing a firearm and ammunition on Feb. 5, 2015.
At sentencing, Leyba faces a maximum statutory penalty of ten years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Lynn Wei-Yu Wang is prosecuting this case.
Leyba is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Prince George’s County PCP Dealer Sentenced to 13 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Eric Goodall, age 44, of Temple Hills, Maryland today to 13 years in prison, followed by five years of supervised release, for two counts of possessing with intent to distribute one kilogram or more of phencyclidine (PCP), and illegal possession of ammunition by a convicted felon. Judge Titus also ordered Goodall to forfeit $22,316 seized from his home, a 2013 Porsche Panamera and a 2005 Chevrolet van.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division
According to his plea agreement, on October 22, 2013, United States Postal Inspectors intercepted a suspicious Express Mail parcel addressed to a residence in Lanham, Maryland. After obtaining a search warrant for the package, agents found an iced tea jug containing 128 ounces, or approximately 3.6 kilograms, of a PCP mixture. The next day, agents saw Goodall arrive at the residence, park the Chevrolet van he was driving in the driveway and go into the home. Agents then conducted a controlled delivery of the package to Goodall. After Goodall accepted the delivery of the package, law enforcement executed a search warrant at the residence and the Chevrolet van agents saw Goodall driving prior to the delivery. Law enforcement recovered from the van a United States Postal Service receipt for an Express Mail parcel that Postal Inspectors had previously intercepted on August 13, 2013, in California. That package was found to contain $80,000 in cash. Goodall was arrested and provided an address in Temple Hills, Maryland, as his current address.
On October 23, 2013, after the controlled delivery, another parcel addressed to the Lanham residence was intercepted by Postal Inspectors. That package also contained an iced tea jug containing 128 ounces, approximately 3.6 kilograms, of a PCP mixture. On October 25, 2013, members of law enforcement executed a search warrant at Goodall’s Temple Hills residence and recovered $22,316 in cash, a scale, a grain alcohol bottle, and an iced tea jug with PCP residue. In addition, inside the master bedroom, law enforcement found a box of .380 caliber ammunition. Goodall had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein praised the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Prince George’s County Police Department and Maryland State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Ponca City Man Sentenced to 151 Months in Federal Prison for Forcible Sexual AssaultRead the Press Release
Oklahoma City, Oklahoma – Today, Ivan Bennett Willis (22) was sentenced to 151 months in federal prison by Senior United States District Court Judge Robin J. Cauthron announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Upon his release from incarceration, Willis was ordered to serve five years of supervised release and register as a sex offender, said Coats.
In January, Willis was convicted by a jury of forcing his victim to engage in a sexual act on September 22, 2013, at a home located on Ponca Tribal land. This case was investigated by the Federal Bureau of Investigation and Bureau of Indian Affairs; the prosecutor was Assistant U.S. Attorney Rozia McKinney-Foster.
Pennsylvania man sentenced to 12 years in prison for attempting to exploit a Lake Charles child, possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Pennsylvania man was sentenced to 151 months in prison for using the internet to attempt to entice a child in Lake Charles, La., to engage in sexual activity and for possessing child pornography.
Timothy Lee Kelly, 41, of Jeannette, Penn., was sentenced by U.S. District Judge Richard T. Haik on one count of using a facility in interstate commerce to attempt to cause a minor to engage in elicit sexual activity and on one count of possession of child pornography. He was also sentenced to a lifetime of supervised release and is required to register as a sex offender.
According to evidence presented at the guilty pleas, Kelly began communicating with a 13-year-old girl in Lake Charles in January of 2013. He discussed sexually explicit conduct, sent explicit images of himself to the girl and requested she send sexually explicit pictures of herself. He also requested that the girl have sex with him and discussed traveling to Louisiana for that purpose. In February of 2013, Kelly was arrested in Pennsylvania for his contact with the minor. While examining the computer and electronic storage devices Kelly owned, agents found child pornography that included adult males sexually assaulting prepubescent children.
“We will aggressively pursue those who sexually abuse minors and possess child pornography,” Finley stated. “Keeping children safe is one of our highest priorities in this District. I hope this serves as a deterrent to anyone seeking to acquire this type of material and a warning that child predators cannot hide.”
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Homeland Security Investigations, the Greenburg Pennsylvania Police Department and the Delaware County Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Jamilla A. Bynog prosecuted the case.
Pasadena Man Sentenced to Nine Years in Prison for Conspiracy to Distribute and Receive Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Howard James Clem IV, a/k/a “Jamie,” age 34, of Pasadena, Maryland, today to nine years in prison, followed by lifetime supervised release, for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. Clem has been detained since his conviction by a federal jury on January 28, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Anne Arundel County Police Chief Tim Altomare.
According to the evidence presented at Clem’s six day trial, Clem met Erin Elizabeth Mali in a mobile social networking and dating application in September 2012. Many of the communications exchanged by Mali and Clem, and images Mali sent to Clem focused on graphic sexual conduct involving prepubescent minors. Mali sent Clem images depicting prepubescent minors engaged in sexually explicit conduct, including a prepubescent female whom Mali and Clem identified by name.
According to witness testimony, on June 3, 2013, the social networking and dating application and website captured the images and communications exchanged by Mali and Clem, including child pornography, which caused a “cybertip” to be generated to the National Center for Missing and Exploited Children. An investigation by the Anne Arundel County Police Department resulted in a search warrant being executed at Clem’s and Mali’s residences and on their social networking accounts.
As a result of his conviction, Clem will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Erin Elizabeth Mali, age 33, of Arnold, Maryland, previously pleaded guilty to conspiracy to distribute and receive child pornography, and to distribution of child pornography and was sentenced to seven years in prison and lifetime supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Leo J. Wise, who prosecuted the case.
Parks Pleads Guilty to Wire Fraud, Agrees to Forfeit MillionsRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Stephen K. Parks, 61, of Little Rock, Arkansas, pled guilty on May 27, 2015, to a one-count Federal Information charging him with wire fraud relating to a fraudulent investment scheme involving the sale of refined coal tax credits.
Wednesday’s plea hearing took place in Little Rock before U.S. District Judge J. Leon Holmes. The plea agreement is governed by Federal Rule of Criminal Procedure 11(c)(1)(C), which, if accepted by Judge Holmes, binds the Court to the terms of the plea agreement. In the plea agreement the parties stipulate to a sentence of 27 months imprisonment, plus multiple forfeitures. If at the time of sentencing the Court does not accept the plea agreement and all terms, Parks will have the opportunity to then withdraw his guilty plea.
“Stephen K. Parks’ fraudulent sale of non-existent refined coal tax credits was a flagrant abuse of the tax code,” Thyer stated. “Despite the fact that no federal tax return for Global Coal LLC was filed; no coal was produced, refined, or sold to an unrelated third party; and Global Coal LLC had no facility in place to refine coal, Parks approved the sale of the non-existent federal tax credits. He then used the fraudulently obtained funds to give his wife $40,000 and purchase a house in the Heights, which was intended to be torn down and used as a back yard for his family. The tireless work of the IRS and FBI has resulted in the resolution of this investigation and the recovery of approximately $7.5 million, a house, an office building, two investment accounts, and five vehicles, including a 2008 Bentley.”
“With today’s guilty plea, Parks admitted his role in a scheme to finance his own lifestyle at the expense of the American taxpayer,” stated Assistant Special Agent in Charge David Shepard with the Federal Bureau of Investigation in Little Rock. “We appreciate the hard work of our partners at the U.S. Attorney’s Office and the Internal Revenue Services, and we will continue to work together to pursue those who choose to use their official position for personal gain.”
In addition to serving 27 months in federal prison, if the agreement is accepted, the plea agreement contemplates $845,000 in restitution payable to the IRS, forfeiture of all jewelry purchased with money obtained from the sale of Ecotec Coal and Global Coal tax credits, and consent to the forfeiture of all property seized to date, including approximately $7.5 million, plus other pieces of real and personal property in Case No. 4:13-CV-00054 SWW, with the exception of a home at 2020 N. Spruce Street, Little Rock, AR, and approximately $73,000 seized from that home.
“IRS-Criminal Investigation is committed to unraveling complex fraud schemes,” stated Christopher A. Henry, IRS Special Agent in Charge. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and the IRS will continue to work to identify and prosecute these types of schemes.”
The refined coal tax credit was added to the tax code by the American Jobs Creation Act of 2004. The credit requires that the refined coal be produced by the taxpayer at a refined coal production facility during the 10-year period beginning on the date the facility was originally placed in service, and sold by the taxpayer to an unrelated person during such 10-year period and such taxable year.
On or about June 1, 2010, Parks formed Global Coal, LLC, and served as its CEO, President and Manager. He was also President of Ecotec Coal, LLC and King Coal, LLC. Global Coal has never refined any coal or sold any refined coal to an unrelated third party, as required by 26 U.S.C. § 45. Global Coal has never had a facility in place to refine coal, as required by 26 U.S.C. § 45. As of March 2015, Global Coal has failed to file any federal income tax returns and has never purported to create refined coal tax credits pursuant to 26 U.S.C. § 45 in any federal tax return. Despite knowledge of these facts, Parks approved and facilitated the sale of nonexistent Global Coal refined coal tax credits through a broker to the investor, representing that the tax credits were valid and available for sale. Parks subsequently used a large portion of the proceeds of that sale for his personal use and the use of his family.
In late 2011, a broker acting on behalf of Parks and Global Coal began communicating with the representative of a potential investor regarding Global Coal and Ecotec Coal refined coal tax credits. Parks represented to the broker that Global Coal tax credits were available for sale and was in communication with the broker throughout the course of the Global Coal tax credit transaction.
On January 9, 2012, the investor agreed to purchase 845,000 Global Coal tax credits and 268,000 Ecotec Coal tax credits for total payment of $723,450. On January 13, 2012, the investor wired $549,250 from a bank in Iowa into King Coal Holding LLC’s account at Delta Trust & Bank in Arkansas. A backdated invoice dated December 30, 2011, reflected the sale of 845,000 Class C Units of interest of Global Coal, LLC, the sole benefit of which is $845,000 of Refined Coal Tax Credits to the investor. The invoice reflected the total due as $549,250 to be wired to a Delta Trust & Bank account with account name “KHC, LLC c/o Global Coal”. The Global Coal, LLC subscription documents reflect that Stephen Parks is the manager and CEO and contain his signature. The documents also acknowledge receipt by Global Coal of $549,250 from the investor. A separate invoice was sent for the Ecotec Coal tax credits, which directed that $174,200 be wired Ecotec Coal’s account at First Security Bank.
From the proceeds of the Global Coal tax credit sale, Parks wrote a $40,000 check to his wife for “Coal Rights Arkansas.” This $40,000 was part of approximately $1.3 million paid to Parks’ wife from 2008-2012 for “advanced royalties.” According to a “Royalty Agreement” backdated to December 1, 2007, Parks’ wife “controls certain mineral rights within the state of Arkansas and King Coal, LLC . . . desires to extract coal from these properties . . .” In fact, Parks’ wife had no interest in any land with coal rights in Arkansas and had no mineral rights to coal during the time she was receiving the “advanced royalties.” In 2014 tax court pleadings, the explanation of Parks’ wife’s receipt of royalties was altered, alleging that Parks’ wife “assisted and facilitated the negotiations” between the parties to a lease agreement regarding coal rights, but witnesses state that Parks’ wife was not involved in the negotiations of the lease agreements.
Also from the proceeds of the Global Coal tax credit sale, a check to Delta Trust & Bank for $301,271.50 was used to purchase a cashier’s check. That cashier’s check was used to purchase 4817 Stonewall Road, Little Rock, Arkansas, a residence located behind the Parks family residence, and was purchased to be torn down and used as a back yard for the Parks family.
The wire fraud charge carries a statutory sentence of not more than 20 years imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. If the plea agreement is accepted, Parks will be sentenced by Judge Holmes at a later date.
The case was investigated by special agents from the Federal Bureau of Investigation and the IRS-Criminal Investigations.
Oneida County Resident Sentenced on Marijuana ChargesRead the Press Release
SYRACUSE, NEW YORK – Hon. Glenn T. Suddaby today sentenced Richard Williams, age 44, of Utica, New York, to thirty (30) months incarceration for his role in a marijuana conspiracy, announced United States Attorney Richard S. Hartunian.
Williams was arrested on June 24, 2014, when he took possession of a U.S. mail parcel containing four pounds of marijuana. Investigation revealed that over a several year period Williams had received numerous such parcels, all shipped from California. These parcels, all of which contained marijuana, were mailed from several different sources of supply in California. Investigation further revealed Williams paid approximately $8,000 to $10,000 for the marijuana in each parcel, which marijuana Williams thereafter sold, in smaller weights, to area customers.
Williams was charged with being a participant in a marijuana conspiracy between 2011 and 2014. On January 22, 2015, Williams pled guilty and admitted to distributing between 100 and 400 kilograms (220 and 880 pounds) of marijuana over the three year period.
After Williams serves his term of imprisonment, he will be placed on supervised release for three years.
The Williams case was investigated by agents and officers of the U.S. Postal Service, the Oneida County Drug Enforcement Task Force, the New York State Police Special Investigations Unit, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms. The Williams case was prosecuted by AUSA Carl Eurenius and Oneida County District Attorney’s Office Bureau Chief and Special AUSA Grant Garramone.
North Texas Man Convicted in Foreign Currency Trading SchemeRead the Press Release
SHERMAN, Texas – A 47-year-old former resident of Frisco, Texas, was found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frank Edwin Pate was found guilty by a jury of two counts of wire fraud and one count of mail fraud following a five-day trial before U.S. District Judge Amos Mazzant.
According to information presented in court, Pate perpetrated a fraud scheme on seven individuals who invested money with Pate for the purpose of trading foreign currency on their behalf. The evidence established that seven investors gave Pate a total of over $2.6 million over a several year period for the purpose of currency trading. Instead of using the money for foreign currency trading, Pate spent a large portion of the money for his own personal expenses. Pate was indicted by a federal grand jury on Aug. 13, 2014.
Pate faces up to 20 years in federal prison on each conviction. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys J. Andrew Williams and Christopher Eason.
Nine FIFA Officials and Five Corporate Executives Indicted for Racketeering Conspiracy and CorruptionRead the Press Release
The Defendants Include Two Current FIFA Vice Presidents and the Current and Former Presidents of the Confederation of North, Central American and Caribbean Association Football (CONCACAF); Seven Defendants Arrested Overseas; Guilty Pleas for Four Individual Defendants and Two Corporate Defendants Also Unsealed
A 47-count indictment was unsealed early this morning in federal court in Brooklyn, New York, charging 14 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants’ participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The guilty pleas of four individual defendants and two corporate defendants were also unsealed today.
The defendants charged in the indictment include high-ranking officials of the Fédération Internationale de Football Association (FIFA), the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of other soccer governing bodies that operate under the FIFA umbrella. Jeffrey Webb and Jack Warner – the current and former presidents of CONCACAF, the continental confederation under FIFA headquartered in the United States – are among the soccer officials charged with racketeering and bribery offenses. The defendants also include U.S. and South American sports marketing executives who are alleged to have systematically paid and agreed to pay well over $150 million in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.
The charges were announced by Attorney General Loretta E. Lynch, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Director James B. Comey of the FBI, Assistant Director in Charge Diego W. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI’s Los Angeles Field Office.
Also earlier this morning, Swiss authorities in Zurich arrested seven of the defendants charged in the indictment, the defendants Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Eugenio Figueredo, Rafael Esquivel and José Maria Marin, at the request of the United States. Also this morning, a search warrant is being executed at CONCACAF headquarters in Miami, Florida.
The guilty pleas of the four individual and two corporate defendants that were also unsealed today include the guilty pleas of Charles Blazer, the long-serving former general secretary of CONCACAF and former U.S. representative on the FIFA executive committee; José Hawilla, the owner and founder of the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and two of Hawilla’s companies, Traffic Sports International Inc. and Traffic Sports USA Inc., which is based in Florida.
“The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,” said Attorney General Lynch. “It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks. And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable. Today’s action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice – and we look forward to continuing to work with other countries in this effort.”
Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland, as well as several other international partners, for their outstanding assistance in this investigation.
“Today’s announcement should send a message that enough is enough,” said Acting U.S. Attorney Currie. “After decades of what the indictment alleges to be brazen corruption, organized international soccer needs a new start – a new chance for its governing institutions to provide honest oversight and support of a sport that is beloved across the world, increasingly so here in the United States. Let me be clear: this indictment is not the final chapter in our investigation.”
Acting U.S. Attorney Currie extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues abroad, for their tremendous effort in this case.
“As charged in the indictment, the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world,” said Director Comey. “Undisclosed and illegal payments, kickbacks, and bribes became a way of doing business at FIFA. I want to commend the investigators and prosecutors around the world who have pursued this case so diligently, for so many years.”
“When leaders in an organization resort to cheating the very members that they are supposed to represent, they must be held accountable,” said Chief Weber. “Corruption, tax evasion and money laundering are certainly not the cornerstones of any successful business. Whether you call it soccer or football, the fans, players and sponsors around the world who love this game should not have to worry about officials corrupting their sport. This case isn't about soccer, it is about fairness and following the law. IRS-CI will continue to investigate financial crimes and follow the money wherever it may lead around the world, leveling the playing field for those who obey the law.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The Enterprise
FIFA is composed of 209 member associations, each representing organized soccer in a particular nation or territory, including the United States and four of its overseas territories. FIFA also recognizes six continental confederations that assist it in governing soccer in different regions of the world. The U.S. Soccer Federation is one of 41 member associations of the confederation known as CONCACAF, which has been headquartered in the United States throughout the period charged in the indictment. The South American confederation, called CONMEBOL, is also a focus of the indictment.
As alleged in the indictment, FIFA and its six continental confederations, together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
As alleged in the indictment, one key way the enterprise derives revenue is to commercialize the media and marketing rights associated with soccer events and tournaments. The organizing entity that owns those rights – as FIFA and CONCACAF do with respect to the World Cup and Gold Cup, their respective flagship tournaments – sells them to sports marketing companies, often through multi-year contracts covering multiple editions of the tournaments. The sports marketing companies, in turn, sell the rights downstream to TV and radio broadcast networks, major corporate sponsors and other sub-licensees who want to broadcast the matches or promote their brands. The revenue generated from these contracts is substantial: according to FIFA, 70% of its $5.7 billion in total revenues between 2011 and 2014 was attributable to the sale of TV and marketing rights to the 2014 World Cup.
The Racketeering Conspiracy
The indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive well over $150 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
Most of the schemes alleged in the indictment relate to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, including FIFA World Cup qualifiers in the CONCACAF region, the CONCACAF Gold Cup, the CONCACAF Champions League, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, the CONMEBOL Copa América, the CONMEBOL Copa Libertadores and the Copa do Brasil, which is organized by the Brazilian national soccer federation (CBF). Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.
The Indicted Defendants
As set forth in the indictment, the defendants and their co-conspirators fall generally into three categories: soccer officials acting in a fiduciary capacity within FIFA and one or more of its constituent organizations; sports media and marketing company executives; and businessmen, bankers and other trusted intermediaries who laundered illicit payments.
Nine of the defendants were FIFA officials by operation of the FIFA statutes, as well as officials of one or more other bodies:
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Jeffrey Webb: Current FIFA vice president and executive committee member, CONCACAF president, Caribbean Football Union (CFU) executive committee member and Cayman Islands Football Association (CIFA) president.
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Eduardo Li: Current FIFA executive committee member-elect, CONCACAF executive committee member and Costa Rican soccer federation (FEDEFUT) president.
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Julio Rocha: Current FIFA development officer. Former Central American Football Union (UNCAF) president and Nicaraguan soccer federation (FENIFUT) president.
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Costas Takkas: Current attaché to the CONCACAF president. Former CIFA general secretary.
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Jack Warner: Former FIFA vice president and executive committee member, CONCACAF president, CFU president and Trinidad and Tobago Football Federation (TTFF) special adviser.
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Eugenio Figueredo: Current FIFA vice president and executive committee member. Former CONMEBOL president and Uruguayan soccer federation (AUF) president.
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Rafael Esquivel: Current CONMEBOL executive committee member and Venezuelan soccer federation (FVF) president.
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José Maria Marin: Current member of the FIFA organizing committee for the Olympic football tournaments. Former CBF president.
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Nicolás Leoz: Former FIFA executive committee member and CONMEBOL president.
Four of the defendants were sports marketing executives:
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Alejandro Burzaco: Controlling principal of Torneos y Competencias S.A., a sports marketing business based in Argentina, and its affiliates.
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Aaron Davidson: President of Traffic Sports USA Inc. (Traffic USA).
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Hugo and Mariano Jinkis: Controlling principals of Full Play Group S.A., a sports marketing business based in Argentina, and its affiliates.
And one of the defendants was in the broadcasting business but allegedly served as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials:
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José Margulies: Controlling principal of Valente Corp. and Somerton Ltd.
The Convicted Individuals and Corporations
The following individuals and corporations previously pleaded guilty under seal:
On July 15, 2013, the defendant Daryll Warner, son of defendant Jack Warner and a former FIFA development officer, waived indictment and pleaded guilty to a two-count information charging him with wire fraud and the structuring of financial transactions.
On Oct. 25, 2013, the defendant Daryan Warner waived indictment and pleaded guilty to a three-count information charging him with wire fraud conspiracy, money laundering conspiracy and the structuring of financial transactions. Daryan Warner forfeited over $1.1 million around the time of his plea and has agreed to pay a second forfeiture money judgment at the time of sentencing.
On Nov. 25, 2013, the defendant Charles Blazer, the former CONCACAF general secretary and a former FIFA executive committee member, waived indictment and pleaded guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion and failure to file a Report of Foreign Bank and Financial Accounts (FBAR). Blazer forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.
On Dec. 12, 2014, the defendant José Hawilla, the owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, waived indictment and pleaded guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice. Hawilla also agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.
On May 14, 2015, the defendants Traffic Sports USA Inc. and Traffic Sports International Inc. pleaded guilty to wire fraud conspiracy.
All money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
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The indictment unsealed today has been assigned to U.S. District Court Judge Raymond J. Dearie of the Eastern District of New York.
The indicted and convicted individual defendants face maximum terms of incarceration of 20 years for the RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges. In addition, Eugenio Figueredo faces a maximum term of incarceration of 10 years for a charge of naturalization fraud and could have his U.S. citizenship revoked. He also faces a maximum term of incarceration of five years for each tax charge. Charles Blazer faces a maximum term of incarceration of 10 years for the FBAR charge and five years for the tax evasion charges; and Daryan and Daryll Warner face maximum terms of incarceration of 10 years for structuring financial transactions to evade currency reporting requirements. Each individual defendant also faces mandatory restitution, forfeiture and a fine. By the terms of their plea agreements, the corporate defendants face fines of $500,000 and one year of probation.
The government’s investigation is ongoing.
The government’s case is being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, Keith D. Edelman and Brian D. Morris of the Eastern District of New York, with assistance provided by the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
The Indicted Defendants:
ALEJANDRO BURZACO
Age: 50
Nationality: Argentina
AARON DAVIDSON
Age: 44
Nationality: USA
RAFAEL ESQUIVEL
Age: 68
Nationality: Venezuela
EUGENIO FIGUEREDO
Age: 83
Nationality: USA, Uruguay
HUGO JINKIS
Age: 70
Nationality: Argentina
MARIANO JINKIS
Age: 40
Nationality: Argentina
NICOLÁS LEOZ
Age: 86
Nationality: Paraguay
EDUARDO LI
Age: 56
Nationality: Costa Rica
JOSÉ MARGULIES, also known as José Lazaro
Age: 75
Nationality: Brazil
JOSÉ MARIA MARIN
Age: 83
Nationality: Brazil
JULIO ROCHA
Age: 64
Nationality: Nicaragua
COSTAS TAKKAS
Age: 58
Nationality: United Kingdom
JACK WARNER
Age: 72
Nationality: Trinidad and Tobago
JEFFREY WEBB
Age: 50
Nationality: Cayman Islands
The Convicted Defendants:
CHARLES BLAZER
Age: 70
Nationality: USA
JOSÉ HAWILLA
Age: 71
Nationality: Brazil
DARYAN WARNER
Age: 46
Nationality: Trinidad and Tobago, Grenada
DARYLL WARNER
Age: 40
Nationality: USA, Trinidad and Tobago
TRAFFIC SPORTS INTERNATIONAL INC.
Registered: British Virgin Islands
TRAFFIC SPORTS USA INC.
Registered: USA
E.D.N.Y. Docket Numbers:
United States v. Daryll Warner, 13 Cr. 402 (WFK)
United States v. Daryan Warner, 13 Cr. 584 (WFK)
United States v. Charles Blazer, 13 Cr. 602 (RJD)
United States v. José Hawilla, 14 Cr. 609 (RJD)
United States v. Traffic Sports International, Inc., 14 Cr. 609 (RJD)
United States v. Traffic Sports USA, Inc., 14 Cr. 609 (RJD)
United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)
Documents:
Webb et al. Indictment (12.25 MB)
Daryan Warner Information (320.77 KB)
Daryll Warner Information (2.26 MB)
Hawilla et al. Information (2.98 MB)
Charles Blazer Information (4.45 MB)
FIFA Graphic (490 KB)
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Nine FIFA Officials and Five Corporate Executives Indicted for Racketeering Conspiracy and CorruptionRead the Press Release
BROOKLYN, N.Y. – A 47-count indictment was unsealed early this morning in federal court in Brooklyn charging 14 defendants with racketeering, wire fraud, and money laundering conspiracies, among other offenses, in connection with the defendants’ participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The guilty pleas of four individual defendants and two corporate defendants were also unsealed today.
The defendants charged in the indictment include high-ranking officials of the Fédération Internationale de Football Association (FIFA), the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of other soccer governing bodies that operate under the FIFA umbrella. The defendants Jeffrey Webb and Jack Warner – the current and former presidents CONCACAF, the continental confederation under FIFA headquartered in the United States – are among the soccer officials charged with racketeering and bribery offenses. The defendants also include U.S. and South American sports marketing executives who are alleged to have systematically paid and agreed to pay well over $150 million in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.
The charges were announced by Attorney General Loretta E. Lynch; Kelly T. Currie, Acting U.S. Attorney for the Eastern District of New York; James B. Comey, Director, Federal Bureau of Investigation (FBI); Diego W. Rodriguez, Assistant Director-in-Charge, FBI, New York Field Office; Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation; and Special Agent in Charge Erick Martinez, IRS Criminal Investigation, Los Angeles Field Office.
Also earlier this morning, Swiss authorities in Zurich arrested seven of the defendants charged in the indictment, the defendants Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Eugenio Figueredo, Rafael Esquivel, and José Maria Marin, at the request of the United States.1
The guilty pleas of the four individual and two corporate defendants that were also unsealed today include the guilty pleas of Charles Blazer, the long-serving former general secretary of CONCACAF and former U.S. representative on the FIFA executive committee; José Hawilla, the owner and founder of the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and two of Hawilla’s companies, Traffic Sports International, Inc. and Traffic Sports USA, Inc., which is based in Florida.
“The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,” said Attorney General Lynch. “It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks. And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable. Today’s action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice – and we look forward to continuing to work with other countries in this effort.” Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland, as well as several other international partners, for their outstanding assistance in this investigation.
“Today’s announcement should send a message that enough is enough. After decades of what the indictment alleges to be brazen corruption, organized international soccer needs a new start – a new chance for its governing institutions to provide honest oversight and support of a sport that is beloved across the world, increasingly so here in the United States. Let me be clear: this indictment is not the final chapter in our investigation,” stated Acting United States Attorney Currie. Mr. Currie extended his thanks to the agents, analysts, and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS Criminal Investigation Los Angeles Field Office, as well as their colleagues abroad, for their tremendous effort in this case.
“As charged in the indictment, the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world. Undisclosed and illegal payments, kickbacks, and bribes became a way of doing business at FIFA. I want to commend the investigators and prosecutors around the world who have pursued this case so diligently, for so many years,” said FBI Director Comey.
“When leaders in an organization resort to cheating the very members that they are supposed to represent, they must be held accountable,” said IRS Criminal Investigation Chief Weber. “Corruption, tax evasion, and money laundering are certainly not the cornerstones of any successful business. Whether you call it soccer or football, the fans, players, and sponsors around the world who love this game should not have to worry about officials corrupting their sport. This case isn’t about soccer, it is about fairness and following the law. IRS CI will continue to investigate financial crimes and follow the money wherever it may lead around the world, leveling the playing field for those who obey the law.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The Enterprise
FIFA is composed of 209 member associations, each representing organized soccer in a particular nation or territory, including the United States and four of its overseas territories. FIFA also recognizes six continental confederations that assist it in governing soccer in different regions of the world. The U.S. Soccer Federation is one of 41 member associations of the confederation known as CONCACAF, which has been headquartered in the United States throughout the period charged in the indictment. The South American confederation, called CONMEBOL, is also a focus of the indictment.
As alleged in the indictment, FIFA and its six continental confederations, together with affiliated regional federations, national member associations, and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
As alleged in the indictment, one key way the enterprise derives revenue is to commercialize the media and marketing rights associated with soccer events and tournaments. The organizing entity that owns those rights – as FIFA and CONCACAF do with respect to the World Cup and the Gold Cup, their respective flagship tournaments – sells them to sports marketing companies, often through multi-year contracts covering multiple editions of the tournaments. The sports marketing companies, in turn, sell the rights downstream to TV and radio broadcast networks, major corporate sponsors, and other sub-licensees who want to broadcast the matches or promote their brands. The revenue generated from these contracts is substantial: according to FIFA, 70% of its $5.7 billion in total revenues between 2011 and 2014 was attributable to the sale of TV and marketing rights to the 2014 World Cup.
The Racketeering Conspiracy
The indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery, and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive well over $150 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
Most of the schemes alleged in the indictment relate to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, including FIFA World Cup qualifiers in the CONCACAF region, the CONCACAF Gold Cup, the CONCACAF Champions League, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, the CONMEBOL Copa América, the CONMEBOL Copa Libertadores, and the Copa do Brasil, which is organized by the Brazilian national soccer federation (CBF). Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup, and the 2011 FIFA presidential election.
The Indicted Defendants
As set forth in the indictment, the defendants and their co-conspirators fall generally into three categories: soccer officials acting in a fiduciary capacity within FIFA and one or more of its constituent organizations; sports media and marketing company executives; and businessmen, bankers, and other trusted intermediaries who laundered illicit payments.
Nine of the defendants were FIFA officials by operation of the FIFA statutes, as well as officials of one or more other bodies:
Jeffrey Webb: Current FIFA vice president and executive committee member, CONCACAF president, Caribbean Football Union (CFU) executive committee member, and Cayman Islands Football Association (CIFA) president.
Eduardo Li: Current FIFA executive committee member-elect, CONCACAF executive committee member, and Costa Rican soccer federation (FEDEFUT) president.
Julio Rocha: Current FIFA development officer. Former Central American Football Union (UNCAF) president and Nicaraguan soccer federation (FENIFUT) president.
Costas Takkas: Current attaché to the CONCACAF president. Former CIFA general secretary.
Jack Warner: Former FIFA vice president and executive committee member, CONCACAF president, CFU president, and Trinidad and Tobago Football Federation (TTFF) special adviser.
Eugenio Figueredo: Current FIFA vice president and executive committee member. Former CONMEBOL president and Uruguayan soccer federation (AUF) president.
Rafael Esquivel: Current CONMEBOL executive committee member and Venezuelan soccer federation (FVF) president.
José Maria Marin: Current member of the FIFA organizing committee for the Olympic football tournaments. Former CBF president.
Nicolás Leoz: Former FIFA executive committee member and CONMEBOL president.
Four of the defendants were sports marketing executives:
Alejandro Burzaco: Controlling principal of Torneos y Competencias S.A., a sports marketing business based in Argentina, and its affiliates.
Aaron Davidson: President of Traffic Sports USA, Inc. (Traffic USA).
Hugo and Mariano Jinkis: Controlling principals of Full Play Group S.A., a sports marketing business based in Argentina, and its affiliates.
And one of the defendants was in the broadcasting business but allegedly served as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials:
José Margulies: Controlling principal of Valente Corp. and Somerton Ltd.
The Convicted Individuals and Corporations
The following individuals and corporations previously pled guilty under seal:
On July 15, 2013, the defendant Daryll Warner, son of defendant Jack Warner and a former FIFA development officer, waived indictment and pled guilty to a two-count information charging him with wire fraud and the structuring of financial transactions.
On October 25, 2013, the defendant Daryan Warner, son of defendant Jack Warner and a businessman, waived indictment and pled guilty to a three-count information charging him with wire fraud conspiracy, money laundering conspiracy, and the structuring of financial transactions. Daryan Warner forfeited over $1.1 million around the time of his plea and has agreed to pay a second forfeiture money judgment at the time of sentencing.
On November 25, 2013, the defendant Charles Blazer, the former CONCACAF general secretary and a former FIFA executive committee member, waived indictment and pled guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion, and failure to file a Report of Foreign Bank and Financial Accounts (FBAR). Blazer forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.
On December 12, 2014, the defendant José Hawilla, the owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, waived indictment and pled guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, and obstruction of justice. Hawilla also agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.
On May 14, 2015, the defendants Traffic Sports USA, Inc. and Traffic Sports International, Inc. pled guilty to wire fraud conspiracy.
All money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
The indictment unsealed today has been assigned to the Honorable Raymond J. Dearie, United States District Judge for the Eastern District of New York.
The indicted and convicted individual defendants face maximum terms of incarceration of 20 years for the RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering, and obstruction of justice charges. In addition, the defendant Eugenio Figueredo faces a maximum term of incarceration of 10 years for a charge of naturalization fraud and could have his U.S. citizenship revoked. He also faces a maximum term of incarceration of 5 years for each tax charge. The defendant Charles Blazer faces a maximum term of incarceration of 10 years for the FBAR charge and 5 years for the tax evasion charges; and the defendants Daryan and Daryll Warner face maximum terms of incarceration of 10 years for structuring financial transactions to evade currency reporting requirements. Each individual defendant also faces mandatory restitution, forfeiture, and a fine. By the terms of their plea agreements, the corporate defendants face fines of $500,000 and one year of probation.
The government’s investigation is ongoing.
The government’s case is being prosecuted by Assistant United States Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, Keith D. Edelman, and Brian D. Morris, with assistance provided by the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
The Indicted Defendants:
ALEJANDRO BURZACO
Age: 50
Nationality: Argentina
AARON DAVIDSON
Age: 44
Nationality: USA
RAFAEL ESQUIVEL
Age: 68
Nationality: Venezuela
EUGENIO FIGUEREDO
Age: 83
Nationality: USA, Uruguay
HUGO JINKIS
Age: 70
Nationality: Argentina
MARIANO JINKIS
Age: 40
Nationality: Argentina
NICOLÁS LEOZ
Age: 86
Nationality: Paraguay
EDUARDO LI
Age: 56
Nationality: Costa Rica
JOSÉ MARGULIES, also known as José Lazaro
Age: 75
Nationality: Brazil
JOSÉ MARIA MARIN
Age: 83
Nationality: Brazil
JULIO ROCHA
Age: 64
Nationality: Nicaragua
COSTAS TAKKAS
Age: 58
Nationality: United Kingdom
JACK WARNER
Age: 72
Nationality: Trinidad and Tobago
JEFFREY WEBB
Age: 50
Nationality: Cayman Islands
The Convicted Defendants:
CHARLES BLAZER
Age: 70
Nationality: USA
JOSÉ HAWILLA
Age: 71
Nationality: Brazil
DARYAN WARNER
Age: 46
Nationality: Trinidad and Tobago, Grenada
DARYLL WARNER
Age: 40
Nationality: USA, Trinidad and Tobago
TRAFFIC SPORTS INTERNATIONAL, INC.
Registered: British Virgin Islands
TRAFFIC SPORTS USA, INC.
Registered: USA
E.D.N.Y. Docket Numbers:
United States v. Daryll Warner, 13 Cr. 402 (WFK)
United States v. Daryan Warner, 13 Cr. 584 (WFK)
United States v. Charles Blazer, 13 Cr. 602 (RJD)
United States v. José Hawilla, 14 Cr. 609 (RJD)
United States v. Traffic Sports International, Inc., 14 Cr. 609 (RJD)
United States v. Traffic Sports USA, Inc., 14 Cr. 609 (RJD)
United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)
_______________________________________________________________________
1. Also this morning, a search warrant is being executed at CONCACAF headquarters in Miami, Florida.
Attachments
- UNITED STATES V. CHARLES BLAZER
- UNITED STATES V. DARYAN WARNER
- UNITED STATES V. DARYLL WARNER
- UNITED STATES V. JOSE HAWILLA ET AL
- FIFA Press Visuals.05.27.2015
- FIFA Indictment - Certified Copy_Clean_Reduced Size_Redacted (2)
New Orleans Businessman Pleads Guilty to Wire Fraud and Failing to Pay over TaxesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, pled guilty yesterday to wire fraud and failing to pay over taxes.
According to documents filed in federal court, DOYLE operated, controlled, marketed and sold several restaurant franchises to willing investors. From 2010 through 2014, DOYLE defrauded three investors who paid him monies for a restaurant franchise. DOYLE defrauded the investors of monies totaling in excess of $888,000. These investor monies were paid to DOYLE with the understanding that DOYLE would furnish them with either a restaurant or the equipment and essentials necessary to open a restaurant establishment. Instead of using the investor funds to complete the promised restaurant project, DOYLE fraudulently diverted the monies for his own personal use.
In 2010, DOYLE also deducted federal taxes from his employees’ wages. However, he failed to pay over the collected employee taxes to the Department of Treasury, in violation of federal tax law. The taxes due and owing to the Department of Treasury exceed $105,000.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. The maximum penalty for failing to pay over taxes is five years imprisonment and/or a fine of $250,000. U.S. District Judge Sarah S. Vance set ssentencing for August 16, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorneys, Richard R. Pickens, II and Andre J. Lagarde are in charge of the prosecution.
Jason Doyle Factual Basis (3.17 MB)
New Haven Man Sentenced to Prison for Role in Check Fraud RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRANDON KEY BENTLEY, 31, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, for his role in a check fraud ring.
According to court documents and statements made in court, between July 2010 and May 2011, BENTLEY, Langston Neal and Benjii Carr obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
On September 9, 2014, BENTLEY pleaded guilty to one count of conspiracy to commit bank fraud.
Neal, of Charlotte, N.C., and Carr, of New Haven, previously pleaded guilty to the same charge and were sentenced to prison terms of 18 months and 30 months, respectively.
Each of the three defendants was ordered to pay full restitution.
This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments. U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland. The case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
New Albany, Indiana Man Charged with Interstate Transportation for ProstitutionRead the Press Release
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the indictment of a New Albany, Indiana, man on charges of interstate transportation for prostitution.
David McNeary, age 33, was charged by grand jury indictment on May 20, 2015. The indictment was unsealed yesterday during his initial appearance before Magistrate Judge Colin H. Lindsay. Today, during arraignment and detention hearing, Judge Lindsay placed McNeary on home detention with work release. McNeary was arrested Friday, May 22, 2015, in Jeffersonville, Indiana.
According to the indictment, between January 2014 and March 2014, McNeary, knowingly transported four different adult females during at least three different trips from Indiana to Kentucky, with the intent that they engage in prostitution.
If convicted at trial, McNeary could be sentenced to no more than ten years in prison for each count, no less than five years of supervised release and fined $250,000 for each count.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the Federal Bureau of Investigation (FBI).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Navajo Man from Tohatchi Pleads Guilty to Federal Aggravated Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Donald Norton, 46, an enrolled member of the Navajo Nation who resides in Tohatchi, N.M., pled guilty this afternoon in federal court in Albuquerque, N.M., to a felony information charging him with sexually abusing a minor child. Under the terms of his plea agreement, Norton will be sentenced within the range of 15 to 25 years in prison followed by not less than five years of supervised release. Norton will be required to register as a sex offender after completing his prison sentence.
Norton was arrested on Dec. 2, 2013, on an indictment alleging that he sexually abused the victim in Dec. 2009, and from May 2010 through Aug. 2010, in Indian Country in McKinley County, N.M.
During today’s change of plea hearing, Norton entered a guilty plea to an aggravated sexual abuse charge. In entering his guilty plea, Norton admitted sexually molesting a child in Dec. 2009. Norton committed the crime within the Navajo Indian Reservation.
Norton has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Jacob Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Minnesota Business Executive Sentenced to 5 Years in Prison on Charges of Conspiracy, Tax Evasion, and Failure to File Tax ReturnsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MICHAEL ANDREW SCHLEGEL, 56, to 60 months in prison for conspiracy to defraud the United States, tax evasion, and failure to file tax returns. SCHLEGEL, who was convicted on March 13, 2014 following a seven-day trial, was sentenced on May 19, 2015 before Judge Patrick J. Schiltz in United States District Court in Minneapolis, Minn.
According to the evidence presented at trial and documents filed in court, from 2002 to 2009, SCHLEGEL controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, SCHLEGEL and co-defendant Bradley Mark Collin received wages and commission payments from NatureRich that totaled more than $400,000. SCHLEGEL also caused NatureRich to pay his commissions to a nominee trust called the "Andrew James Living Trust," from which he then paid his family’s expenses. During that time, SCHLEGEL also operated a painting business, receiving more than $400,000 in income from painting contracts.
According to the evidence presented at trial and documents filed in court, in 2004, the defendants, through the use of nominee entities, began engaging the "warehouse" banking services of Olympic Business Systems and Century Business Concepts. Warehouse banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited and transacted, thereby concealing the true source of the funds and the individual truly responsible for the transactions.
According to the evidence presented at trial and documents filed in court, the defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that amount and also avoiding having those funds seized for payment of their previous tax debts.
According to the evidence presented at trial and documents filed in court, from 2002 through 2010, SCHLEGEL, and his co-defendant Bradley Mark Collin, conspired with each other and others to defraud the U.S. by obstructing the Internal Revenue Service ("IRS") in its lawful collection and assessment of individual income taxes. To that end, SCHLEGEL failed to make any payments toward the back taxes, interest and penalties levied against him in 2000, which totaled more than $600,000. SCHLEGEL failed to file federal individual tax returns for tax years 2002-2009, pursuing "tax protestor" ideologies.
On December 23, 2013, Bradley Mark Collin pleaded guilty to one count of conspiracy to defraud the United States. On November 4, 2014, Bradley Mark Collin was sentenced to federal prison for 24 months and 3 years supervised release by Federal District Court Judge Patrick J. Schiltz.
"These sentencings should send a clear message; schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in significant jail time" stated IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office.
These cases are the result of an investigation by the IRS Criminal Investigation. They were prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and John E. Kokkinen.
Defendant Information:
ANDREW SCHLEGEL, 56
Corcoran, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 count
• Attempt to Evade or Defeat Tax, 3 counts
• Willful Failure to File Tax Returns, 3 counts
Sentenced:
• 60 months in prison
• 3 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Pleads Guilty to KidnappingRead the Press Release
McALLEN, Texas ‐ Martin Margarito-Casimiro, 28, of Camargo, Tamaulipas, Mexico, has pleaded guilty to kidnapping, announced U.S. Attorney Kenneth Magidson.
On Jan. 22, 2015, law enforcement responded to a man’s cry for help as he ran down the street with rope still tied around his arms and legs. That victim led law enforcement to the McAllen residence where he had been held. There, law enforcement found another victim with his arms and legs bound. At that time, law enforcement discovered Margarito-Casimiro and others who were attempting to flee.
During the guilty plea today, Margarito-Casimiro admitted he held at least one victim at gunpoint for ransom and directed co-conspirators to tie the victim’s hands and feet. The victim was told he needed to pay in order to be released.
Based on today’s conviction, Margarito-Casimiro could face up to life in prison. He is set for sentencing Aug. 20, 2015, before U.S. District Judge Micaela Alvarez. He will remain in custody pending that hearing.
The investigation leading to the charges was conducted by Homeland Security Investigations and McAllen Police Department. Assistant U.S. Attorney Kristen Rees and Leo J. Leo are prosecuting the case.
Methamphetamine Trafficker Sentenced to 10 Years in PrisonRead the Press Release
SAN JOSE – Alondra Nayali Torres-Sanchez was sentenced today to 10 years in prison, for distribution of methamphetamine, announced United States Attorney Melinda Haag and Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
Torres-Sanchez, 28, a citizen of Mexico living in Canada at the time of the offense, previously pleaded guilty on December 2, 2014, to one count of distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a).
According to government filings, Torres-Sanchez arranged for the distribution of 65.9 grams of 99% pure methamphetamine in San Jose, Calif., on May 31, 2012. Thereafter, again from Canada, she arranged the distribution of 1.929 kilograms of 99% pure methamphetamine in San Jose, Calif., on August 9, 2012. Torres-Sanchez was charged in an information on December 2, 2014, for distribution and possession with the intent to distribute methamphetamine—the charge to which she pleaded guilty.
The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge. Judge Koh also sentenced Torres-Sanchez to a 5 year period of supervised release. The defendant has been in federal custody since October 30, 2013.
Assistant U.S. Attorneys Richard Cheng and Chinhayi Cadet are prosecuting the case. The prosecution is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Members of Phantom Outlaw Motorcycle Club Convicted of Violent Racketeering-Related CrimesRead the Press Release
Today, a federal jury in Detroit convicted two members of the violent Phantom Outlaw Motorcycle Club, one of whom also was a member of the Vice Lords street gang, on separate crimes of conspiracy to commit murder in aid of racketeering, and assault with a dangerous weapon in aid of racketeering and a firearms offense.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Detroit Field Division and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Division made the announcement.
“The dismantling of the Phantom Outlaw Motorcycle Club demonstrates how law enforcement authorities and community members can work hand-in-hand to combat gang violence across the nation,” said Assistant Attorney General Caldwell. “In this case, law enforcement unquestionably saved lives by making a wave of arrests to prevent a planned nationwide campaign of violence against a rival motorcycle gang. The verdict in this case holds violent gang members accountable for the destruction they inflicted and the havoc they intended to wreak.”
“The Detroit One initiative targets criminal gang members like these defendants, who are responsible for gun violence in neighborhoods,” said U.S. Attorney McQuade. “We hope that removing dangerous trigger pullers will give our communities the peaceful quality of life we all deserve.”
“ATF works every day with our partners to take the most violent offenders off our streets and put them behind bars,” said Special Agent in Charge S. Robin Shoemaker. “Without partnership, without standing up against the violence, no public safety issues can be solved. ATF is committed to this fight, and committed to working together to keep our citizen safe and our communities livable.”
“The defendants in this case were active members of violent criminal groups, one of which was based in Detroit and operated across numerous, and sometimes distant, states,” said Special Agent in Charge Abbate. “These convictions reflect our continuing resolve through interstate cooperation between federal, state and local law enforcement authorities to prevent violent crime regardless of how far its reach may extend.”
The jury convicted the defendants of the following offenses:
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Christopher Odum (aka Murder), 29, of Detroit, a member of the Detroit chapters of both the Phantoms and the Vice Lords, was convicted of conspiracy to commit murder in aid of racketeering.
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William Frazier (aka Daytona), 37, of Auburn Hills, the Vice President of the Pontiac, Michigan, chapter of the Phantoms, was convicted of two counts of assault with a dangerous weapon in aid of racketeering, and one count of using and carrying firearms during and in relation to a crime of violence.
The evidence showed that the Phantom Outlaw Motorcycle Club and its members were involved in a range of criminal activity including conspiracy to commit murder, shootings, robberies, extortion and the possession and sale of stolen vehicles and motorcycles. The evidence also showed overlap between the leadership of the Phantoms and membership in the Vice Lords street gang, which assisted the Phantoms in various criminal endeavors, including searching for and violently attacking rivals of the Phantoms.
Specifically, the evidence at trial demonstrated that, on Oct. 27, 2012, at the Columbus, Ohio clubhouse of the Toros Motorcycle Club, a fight took place between the Phantoms and the Zulus Motorcycle Club, a rival gang. During the fight, William Frazier, a Phantom member, shot two men.
The evidence at trial also showed that, on Sept. 8, 2013, Antonio Johnson, who was both the National President of the Phantoms and the “Three-Star General” over the Vice Lords in Michigan, ordered numerous Phantoms, including Christopher Odum, to rob the Satan Sidekicks Motorcycle Club, a rival motorcycle club. During the attempted robbery, a Phantom member, Bryan Sorrell (aka PC) shot a Satan Sidekick member in the face. A few days later, Odum and another Phantom violently assaulted a prospective member of the Satan Sidekicks during another attempted robbery at a gas station.
Additionally, according to the evidence presented at trial, Johnson blamed the Hell Lovers Outlaw Motorcycle Club for a September 2013 murder of a Phantoms member, and ordered retaliatory murders that were to be carried out in three phases. In the first phase, the Phantoms were to murder at least three members of the Hell Lovers in Detroit in order to lure additional Hell Lovers to Michigan for the funeral. In the second phase, the Phantoms were to murder all members of the Hell Lovers who would be at the Hell Lovers’ Detroit clubhouse following the funeral. In the third phase, the Phantoms were to kill Hell Lovers in other cities throughout the country where the Phantoms had chapters. In October 2013, ATF and FBI agents disrupted the mass murder plot. At trial, the government presented evidence that, at the time that investigators disrupted the murder plot, the Phantoms were preparing for the first phase, including stockpiling firearms, conducting research and surveillance of their intended victims, and assigning Phantom members and Vice Lords members to stalk and murder the intended victims. Odum participated in the murder plot.
This was the second of two recent trials in the prosecution of the Phantoms. On March 16, 2015, a jury convicted six leaders and members of the Phantoms, many of whom also were leaders and members of the Vice Lords, for various crimes, including the September – October 2013 murder plot against the Hell Lovers and the September 2013 shooting of the Satan Sidekicks member. Among those six convicted defendants were Johnson and Marvin Nicholson, who was both the National Enforcer of the Phantoms and a member of the Vice Lords. The charges included RICO conspiracy involving murder, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, firearms offenses, and assault on federal officers. In addition, four defendants previously have pleaded guilty to charges, including RICO conspiracy and assault with a dangerous weapon in aid of racketeering, and await sentencing.
The arrests in this case were made as part of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit, and through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI. By working collaboratively, local, state and federal law enforcement are striving to maximize their ability to identify and arrest the persons and groups initiating the violence in Detroit. These convictions are a tangible and significant result of this joint effort.
The case is being prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.
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Man Pleads Guilty to Conspiracy to Transmit Stolen MoniesRead the Press Release
In San Antonio this afternoon, 57-year-old Rolando Gonzalez-Trevino from Coahuila, Mexico, pleaded guilty to one count of conspiracy to transmit stolen monies in interstate and foreign commerce announced Acting United States Attorney Richard L. Durbin, Jr.
Appearing before United States Magistrate Judge Henry J. Bemporad, Gonzalez-Trevino admitted he, in concert with others, caused stolen funds in the amount of $1,846,782.10 to be transmitted to the United States through electronic bank transfers. Gonzalez-Trevino admitted that these funds were stolen from the State of Coahuila, Mexico. The United States seized these funds and interest derived therefrom as part of the case. As part of Gonzalez-Trevino’s plea agreement, seized funds in the amount of the transfers and interest will be forfeited to the United States.
The offense to which Gonzalez-Trevino pled guilty carries punishment up to 5 years in federal prison. Sentencing is scheduled for 9:30am on September 3, 2015, before United States District Judge Orlando L. Garcia in San Antonio.
This case is part of an ongoing investigation in the Western District of Texas by the Organized Crime Drug Enforcement Task Forces (OCDETF), and was investigated by the Department of Homeland Security Investigations, the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigations Division. The principal mission of the OCDETF program is to dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
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Man Arrested on Charges of Wire Fraud, Blackmail, Obtaining Money Under False Pretenses and ExtortionRead the Press Release
St. Croix, USVI – Miguel A. Esperanza-Vazquez, 59, was arrested today after a federal grand jury returned a five-count indictment on Tuesday charging him with two counts of wire fraud, one count of blackmail, one count of obtaining money under false pretenses, and one count of extortion, United States Attorney Ronald W. Sharpe announced. After his arrest, Esperanza-Vazquez was arraigned in District Court before U.S. Magistrate Judge George W. Cannon. He was released on an unsecured bond.
The five-count indictment is the result of months of investigative work by the Federal Bureau of Investigation, U.S. Department of Homeland Security Office of the Inspector General, U.S. Immigration and Customs Enforcement Office of Professional Responsibility, and Internal Revenue Service Criminal Investigations. The indictment alleges that Esperanza-Vazquez attempted to extort money from an undocumented immigrant while pretending to be a member of law enforcement.
If convicted of wire fraud, Esperanza-Vazquez faces a maximum sentence of 20 years in prison and a $250,000 fine on each count. If convicted of blackmail, he faces a maximum sentence of one year in prison and a $100,000 fine. If convicted of obtaining money under false pretenses, he faces a maximum sentence of 10 years in prison. If convicted of extortion, he faces a maximum sentence of five years in prison.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Local Defense Attorney Convicted in Connection to Scheme to Obstruct JusticeRead the Press Release
HOUSTON – Abraham Moses Fisch, 56, a criminal defense attorney in Houston, has been convicted on 18 counts to include conspiracy, obstruction of justice, money laundering, conspiracy to commit money laundering and failure to file tax returns, announced United States Attorney Kenneth Magidson. The jury returned its verdicts late today following a 15-day trial and approximately 14 hours of deliberations.
Lloyd Glen Williams, 67, a former used car financier in Houston, previously entered a plea of guilty to conspiring to obstruct justice and to filing a false tax return.
The evidence at trial showed that Fisch and Williams conspired to defraud defendants who were facing federal criminal charges in Houston. The fraud was perpetrated in at least four different federal criminal cases pending in Houston, including U.S. v. Edilberto Portillo et al. (H-06-182), U.S. v. Hugo Barrera Cavazos et al. (H-06-422), U.S. v. Umawa Oke Imo et al. (H-09-426) and U.S. v. Clifford Ubani and Princewill Njoku et al. (H-09-421 and H-10-416).
The defendants in the four cases as well as their wives and associates testified that Williams and Fisch told them that in return for paying exorbitant fees, Williams would pay off his alleged government contacts in Washington D.C. in order to obtain a “guaranteed” dismissal of the criminal cases. Those individuals were supposedly officials at the Central Intelligence Agency, FBI, Department of Justice and Medicare.
Drug trafficker Edilberto Portillo and his wife, Elida Sanchez, paid $1.1 million to Fisch in order to obtain the dismissal of their charges. Fisch paid $700,000 of the Portillo/Sanchez fee to Williams. Umawa Oke Imo, a defendant in a large health care fraud case, testified that Fisch and Williams quoted him a fee of $3 million in order to obtain a dismissal. In reality, however, no officials were paid, no cases were dismissed, and Fisch and Williams simply split the fees between them.
The evidence showed that the scam undermined the functioning of the federal justice system by misleading defendants about the nature of the cooperation process with the government and interfering with defendants’ cooperation with the government, including failing to pass information from a defendant to the government. It also interfered with plea negotiations with the government by preventing defendants from timely entering guilty pleas because of the mistaken belief their case was going to be dismissed.
The scam also interfered with defendants’ relationships with former and subsequent counsel, including communicating with represented defendants unbeknownst to their legitimate counsel, causing them to fire counsel, not to communicate fully and truthfully with their attorneys and not to assist their attorneys in preparing their defense or in negotiating guilty pleas.
Fisch and Williams also insisted that defendants keep the nature of Williams’ so-called “assistance” secret from the court, the government and other attorneys.
Fisch was convicted of money laundering based on the deposit of the funds earned from the scheme, which totaled at least $1,150,000. The United States is seeking forfeiture of that amount as money derived from the criminal activity.
U.S. District Judge Lee H. Rosenthal has set sentencing for Sept. 29, 2015. At that time, Fisch faces up to five years for the conspiracy, 10 years on each of the four counts of obstruction of justice, 10 years for each of the seven counts of money laundering, 10 years for conspiracy to commit money laundering and one year for each of the five counts of failure to file tax returns in addition to substantial monetary fines. He was permitted to remain on bond pending that hearing.
The investigation that led to this indictment and the arrests and plea was conducted by the FBI and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson.
Livingston County Man Arrested for Importing Designer DrugRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jack Jett, 41, of Hemlock, NY, was arrested and charged by criminal complaint with unlawful possession and importation of Alpha PVP, a schedule I controlled substance. The charge carries a maximum penalty of 20 years and a $1,000,000 fine.
“Some areas around the country are sounding the warning bell about the dangerous effects of Alpha PVP,” said U.S. Attorney Hochul. “In the last year alone, our Office has prosecuted nine defendants on charges involving this dangerous and potentially deadly drug. Seven of those nine defendants now stand convicted.”
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, the defendant was arrested following the controlled delivery of a package containing approximately three kilograms of Alpha PVP, a schedule I designer drug. The package was sent to Jett at his residence in Hemlock from China. The complaint states that the defendant admitted to law enforcement officers that he ordered the package from China and he knew that it contained Alpha PVP. The defendant further admitted that he distributed Alpha PVP.Alpha PVP, more commonly known as bath salts, is a schedule I controlled substance that has been reported to be the cause or a contributing cause of death in suicides and polydrug overdoses. Alpha PVP has also been known to cause paranoia and hallucinations.
U.S. Attorney Hochul further stated “Ordering any legal drug online must be done very carefully and under the strict guidelines of a medical professional. The public should also know that if you order illegal drugs, you will be prosecuted to the fullest extent of the law.”
Jett made an initial appearance before U.S. Magistrate Judge Johnathan W. Feldman and was released on bail.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the New York State Police, under the direction of Major Craig Hanesworth, the Hornell Police Department, under the direction of Chief TJ Murray, the Steuben County Sheriff’s Department, under the direction David V. Cole, and the Ontario County Sheriff’s Department, under the direction of Philip C. Povero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Jason Michael Leatherwood, 41, of Lincoln, was sentenced to 10 years and eight months, (128 months), in federal prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between about October of 2012 and April of 2014. Following the prison term, Leatherwood will serve five years on supervised release.
Information provided to law enforcement indicated that Leatherwood was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine. In December of 2013, an undercover officer purchased a small amount of methamphetamine from Leatherwood. In February of 2014, Leatherwood was contacted by law enforcement officers and found to be in possession of methamphetamine residue. At that time, he admitted he had been selling small amounts of methamphetamine for approximately two years. In April of 2014, Leatherwood was contacted again and was found to be in possession of approximately ¼ ounce of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Law Enforcement Executives Attend Civil Rights Seminar in WorcesterRead the Press Release
BOSTON – The United States Attorney’s Office, Justice Department’s Community Relations Service, Federal Bureau of Investigation and the City of Worcester sponsored a civil rights seminar today for law enforcement executives. District Attorney Joseph Early Jr. and nearly 100 other law enforcement executives from federal, state and local agencies attended the seminar which was hosted by the College of the Holy Cross in Worcester.
United States Attorney Carmen M. Ortiz said, "Effective police practices and training programs are important tools to prevent officer misconduct and to improve the community’s confidence with law enforcement. Today's training was an important opportunity to reeducate executives, learn from the mistakes of others and in some cases reaffirm areas where police departments are doing it right."
During the seminar, staff from the U.S. Attorney’s Office and the Federal Bureau of Investigation’s Public Corruption and Civil Rights Division in Washington, D.C. provided participants with information about how police departments can implement or enhance procedures that may reduce officer misconduct. Participants also learned how the Department of Justice has assisted law enforcement and communities with improving relationships as a result of police pattern or practice investigations. The East Haven Police Department in Connecticut provided insight about its November 2012 consent decree with the Department, and the Community Relations Service provided presentations about fundamental human bias and conflict de-escalation.
“I want to thank U.S. Attorney Ortiz and the Department of Justice for coming to Worcester today. We need to be proactive on the issues of misconduct, fundamental human bias, and conflict de-escalation. Seminars like this are a great chance for our local public safety officers to discuss best practices with their counterparts from across the state,” said Worcester Mayor Joseph M. Petty.
Worcester City Manager Edward Augustus said, “Quality, community policing is imperative for the health and vitality of a city and the well-being and peace of mind of its residents. I am thankful to all the police officials who demonstrated their commitment to those ideals by attending this seminar, and to the office of U.S. Attorney Carmen Ortiz, the FBI and DOJ’s Community Relations Service for sponsoring and to the College of the Holy Cross for hosting this important, timely event.”
“The FBI's Civil Rights Program is committed to restoring trust in law enforcement and to educating our partners about lessons learned from those who have abused their power and abandoned their responsibilities,” said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Field Division.“The city of Worcester’s leadership should be commended for hosting a seminar on civil rights for law enforcement,” said Francis Amoroso, Regional Director of the Community Relations Service in New England.
“I was proud to be a part of such a timely and important seminar,” District Attorney Early said. “Raising awareness of civil rights among our law enforcement partners was an admirable undertaking. I was glad to be a part of it.”
If you would like information about how to sponsor a civil rights seminar in the District of Massachusetts, please contact the U.S. Attorney’s Office at 617-748-3100 and ask to speak to the Law Enforcement Coordinator.
Law Enforcement and Community Partners Unite to Combat Crimes Against ChildrenRead the Press Release
Tampa, FL - U.S. Attorney A. Lee Bentley, III and representatives of several federal, state, and local law enforcement agencies are continuing the observance of National Missing Children's Day (May 25th) by convening in Tampa today to announce an expanded national child safety campaign. Originally created in 2007 by the National Center for Missing and Exploited Children (NCMEC) as a campaign among federal, state, and local agencies to prevent, enforce, and prosecute crimes of exploitation against children, “Take 25” urged parents to take 25 minutes to talk to their children about Internet safety, prevention, and abduction. Beginning May 21, 2015, NCMEC’s expanded initiative, "Be Here for Kids,” encourages the public to get involved in the mission to find and protect children.
“Child predators are using more cunning and persuasive techniques and technologies to lure and exploit innocent children,” said U.S. Attorney A. Lee Bentley, III. “As a community, we must educate ourselves and others to raise awareness on how to best protect our children against these threats.”
The Department of Justice is committed to the safety and well-being of our children and has placed a high priority on protecting and combating the sexual exploitation of minors. In 2006, Project Safe Childhood was launched by the Department of Justice as a unified and comprehensive strategy to combat child exploitation by combining law enforcement efforts, community action, and public awareness. It marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. The goal of Project Safe Childhood is to reduce the sexual exploitation of children.
From October 1, 2013, through April 30, 2015, the U.S. Attorney's Office for the Middle District of Florida, with the close assistance of numerous federal, state, and local agencies, brought 204 Project Safe Childhood cases against 209 individuals. The charges in those cases vary by defendant, but they include conspiring to travel in interstate commerce to engage in illicit sexual conduct, production of child pornography, distribution and receipt of child pornography, and possession of child pornography. In addition, the MDFL has prosecuted numerous cases involving human trafficking, where individuals, including minors, were forced to commit commercial sex acts. These cases were brought by each of the five division offices of the Middle District of Florida.
Children of all ages are victimized through child pornography, from as young as infants and toddlers, to adolescents. About half of the victims are younger than 12 years old. NCMEC reports that 24 percent of identified victims were pubescent, and 76 percent were prepubescent. To learn more about the Be Here for Kids Campaign, visit www.BeHereForKids.org.
Law enforcement agencies participating in today’s event included representatives from U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Florida Department of Law Enforcement, Hillsborough County Sheriff's Office, Tampa Police Department, and the Clearwater Police Department (Clearwater/Tampa Bay Area Task Force Against Human Trafficking).
Significant MDFL Cases
October 2013 through April 2015
Tampa Division
United States vs. Matthew William McLean. On March 23, 2014, a 14-year-old juvenile was reported missing to the Hillsborough County Sheriff’s Office. Law enforcement investigators learned that the juvenile had been involved in online communications (e.g. Kik messenger, Skype) with the defendant, a 25-year-old registered sex offender from Minneapolis, Minnesota. A few days earlier, McLean had purchased a Greyhound bus ticket from Minneapolis to Tampa, and on March 23rd, he purchased two bus tickets from Tampa to Brownsville, Texas, with a stop in Tallahassee. Law enforcement responded to the bus station, recovered the minor, and arrested McLean. During the trip to Tallahassee, McLean engaged in sex acts with the minor. He was sentenced to 31 years and 6 months in prison in March 2015.
United States vs. Benjamin Cuadrado. Between July 26, 2012, and March 25, 2014, Cuadrado produced, transported, received, and possessed child pornography. He used his cellular phone to produce at least 70 videos of him sexually assaulting an infant and a toddler in his care. He transported the child pornography over the Internet using his email account and an Internet messaging program. A forensic review of Cuadrado’s cellular phone revealed 250 videos and more than 4,000 images of child pornography, including files depicting pre-pubescent children and sadomasochistic conduct. He was sentenced to 80 years in prison in March 2015.
United States vs. Melvin Barber Bridgers, III. From at least December 2012, through his arrest on May 1, 2014, Bridgers used multiple Facebook accounts to pose as a young teenage girl and befriend other girls between the ages of 10 and 16 years old. After befriending the minors, he engaged in online chats with them and used manipulation, coercion, threats, and extortion to compel the minors to send him sexually graphic photographs through Facebook. Bridgers then threatened the minor victims with exposing the sexually graphic photos to their parents, or to other Internet users, in order to extort more sexually graphic photographs and videos from them. On May 1, 2014, law enforcement executed a federal search warrant at Bridgers’s residence and obtained computer media containing numerous chat logs with the minor victims, as well as over 28,000 images and videos containing child pornography. Law enforcement agents estimate that over a two-year period, Bridgers attempted to make contact with and sexually extort, or “sextort,” thousands of young girls on Facebook. To date, approximately 129 of Bridgers’s victims have been positively identified, making this one of the largest online child “sextortion” cases prosecuted in the United States. He was sentenced to 40 years in prison in April 2015.
United States vs. Michael C. Vella. A 16-year-old female reported to law enforcement that Vella had been forcing her to have sex with him since the middle of 2012. She also disclosed that Vella had, on at least one occasion, used his laptop computer to record their encounter. The video was recorded in a hotel room when he transported the victim to the Orlando area. At the time the arrest warrant was issued, Vella was deployed to Afghanistan as a Department of Defense contractor. He was sentenced to 30 years in prison in November 2014.
Orlando Division
United States vs. Matthew C. Graziotti. Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an undercover FBI agent. During the execution of a search warrant, agents located thousands of child pornography images on Graziotti’s computer involving children under the age of 12. One computer folder, named “personally known,” contained sexually explicit photographs and videos of 29 children that Graziotti had sexually abused when they were under the age of 12. Graziotti stored the sexually explicit images that he produced in subfolders bearing each child’s name. He produced these images from 2010 through 2014, during which he taught elementary school in South Daytona and was the director of the school’s summer day camp program. He also coached youth sports. He was sentenced to 210 years in prison on January 26, 2015.
United States vs. Xavier Francisco Villanueva, et al. Between January 17, 2013 and January 25, 2013, Orange County gang members agreed to recruit and entice a 14-year-old girl to engage in commercial sex acts. The defendants were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. Over a period of nine days, they used drugs, intimidation, and physical restraint to cause the minor to engage in prostitution with customers they solicited through the Internet. On January 25, 2013, the minor escaped from the house where she was being held captive. Xavier Francisco Villanueva a/k/a “X,” (25, Orlando) was sentenced to 19 years and 7 months in prison; Jose Carmona, a/k/a “Hood,” (21, Orlando) was sentenced to a term of 12 years and 6 months; Ashley Nicole Barnett, a/k/a “Snow,” (25, Orlando) was sentenced to 10 years’ imprisonment; and Keith E. Romby, II, a/k/a “PJ,” (23, Orlando) was sentenced to 8 years and 4 months in prison.
United States vs. Michael Glenn Glascock. From October 11, 2012, through October 11, 2013, Glascock used a three-year-old victim to produce visual depictions of the child engaging in sexually explicit conduct. In the fall of 2013, an undercover agent with the Brevard County Sheriff’s Office responded to an online advertisement that Glascock had posted on Craigslist. The agent communicated with Glascock over the Internet and by cell phone. During these conversations, Glascock described his sexual abuse of the minor victim and expressed an interest in meeting the agent and the agent’s fictitious minor daughter. Glascock further expressed a desire to meet and engage in illegal sexual activity with the fictitious child, and he offered to allow the agent to engage in sexual activity with the minor victim. After finalizing plans to meet, agents went to Glascock’s home, where they met him and located the minor victim. The victim was taken to a medical facility and examined for sexual assault. Subsequent laboratory tests revealed the presence of Glascock’s semen on the child’s body, as well as in the child’s diaper. Glascock admitted to producing pornographic images of the minor victim, to sexually abusing the minor as depicted in some of the images, and to distributing and receiving images of child pornography over the Internet. Agents executed a search warrant at Glascock’s home and recovered his cell phones, SD cards, and the digital camera that he had used to produce some of the explicit images involving the minor victim. A forensic examination of these devices revealed that there were 24 images depicting explicit sexual conduct involving the minor victim on one of the SD cards. He was sentenced to life in prison on February 6, 2015.
United States vs. Jonathan Tyler Prive. In September and October 2013, an undercover agent with the Brevard County Sheriff’s Office conducted an investigation into an individual identified as Michael Glenn Glascock. The undercover investigation revealed that Glascock was sexually abusing a three-year-old minor victim, producing child pornography images of the minor victim, and distributing some of these images to others. Law enforcement agents eventually arrested Glascock at his residence in Brevard County, located the minor victim, and executed a search warrant at Glascock’s residence. A forensic examination of Glascock’s electronic devices and a review of his email accounts revealed emails between Prive and Glascock. In these emails, the two discussed a prior incident where Prive had sexually abused the minor victim at Glascock’s home, while Glascock was present. After discovering these emails, the undercover agent used Glascock’s email account to initiate online communications with Prive. He later communicated with the undercover agent via the Internet and arranged to meet the agent (posing as Glascock) for the purpose of engaging in illegal sexual activity with the minor victim for a second time. Prive traveled to the street where this residence was located and was arrested. In his possession was a packet of lubricant that he had brought for his planned meeting with the minor victim. He was sentenced to 30 years and 5 months in prison in April 2015.
Jacksonville Division
United States vs. Christopher Richard Cloonan. In March 2014, an undercover officer (UC) in Washington, D.C. posted an advertisement on an online website frequented by individuals who have a sexual interest in children. Cloonan responded to the ad and expressed interest and experience in sexual activity with a child. Later, Cloonan sent the UC an email indicating that he was alone with an infant child. Attached to the email were two images that Cloonan had produced depicting an infant engaged in sexually explicit conduct. Cloonan later sent the UC an email containing two additional images that depicted the same infant. In several subsequent emails, Cloonan discussed his fantasies about sex with children. A search warrant was later executed at Cloonan’s residence, where a forensic analysis of his phone revealed that it contained at least 85 images of child pornography, most depicting infants and toddlers. Two of the images of the infant that were taken by Cloonan and sent to the UC were also present on the smart phone. He was sentenced to life imprisonment on February 27, 2015.
United States vs. Lucas Michael Chansler. From 2007 through January 2010, Chansler transmitted threatening communications to hundreds of girls over the Internet. He transmitted these threats with the intent to extort photographs and webcam videos showing the victims exposing themselves and engaging in sexually explicit conduct. Chansler pretended to be a friend, acquaintance, or admirer of the victims on various social networking websites. After gaining some measure of trust from a particular child, Chansler would invite her to engage in a live video chat and later would ask her to expose herself. Unbeknownst to the child, he was recording the video session. Chansler often enticed his victims to expose themselves by showing a streaming video of a minor male exposing himself or engaging in masturbation. If a victim did expose herself, he recorded it and then later sent it to her over the Internet. Chansler would then demand additional and more graphic images or webcam videos. He would inform the child that if she did not comply, he would post the images and videos online, or send them to her family and friends. He was sentenced to 105 years in prison in November 2014.
United States vs. Charles Hudson. On January 6, 2014, an officer with the Jacksonville Sheriff’s Office was dispatched to a residence in response to a call regarding allegations of sexual battery on a minor child. Subsequently, detectives from the JSO Sex Crimes Unit interviewed the child, who indicated that she had been sexually abused by Hudson. Two days later, detectives obtained a search warrant for Hudson’s residence. During the execution of the warrant, officers discovered numerous items of digital media, including several computers, cameras, SD cards, CDs, and DVDs. In the attic, officers recovered a backpack containing cameras, sex devices and restraints, and several pill bottles bearing Hudson’s name. Five SD cards were found inside one of the pill bottles. Subsequent forensic analyses of the five SD cards revealed approximately 90 video and image files depicting sexually explicit conduct involving Hudson. At least two of these videos, which had been produced by Hudson, depicted him and a minor child engaged in sexually explicit conduct. He was sentenced to 60 years in prison in March 2015.
Fort Myers
United States vs. William Graydon Roberts. Roberts began communicating with a 9-year-old girl via Skype, requesting that she send sexually explicit photos to his private email account. He also sent the minor text messages instructing her on how to upload videos to YouTube. Subsequent search warrants of Internet Service Providers revealed images of the minor by Roberts on his electronic devices. Following his arrest, he pleaded guilty to receiving pornographic images of the minor, at his request. He was sentenced to 12 years in prison in March 2015.
United States vs. David Edward Judd. An FBI task force investigation into the sharing of child pornography over the Internet revealed a Fort Myers residence registered to Judd. Further investigation revealed that Judd had been downloading child pornography for years, with a preference for teenage girls. Seized computer items at the residence contained at least 8,831 images of child pornography on Judd’s computer hard drive. He subsequently pleaded guilty and was sentenced to 72 months in prison in April 2015.
Laurel Heroin Dealer Sentenced to 15 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore Chuang sentenced Christian Diamond Byrd, age 44, of Laurel, Maryland today to 15 years in prison followed by four years of supervised release for distribution of heroin. Judge Chuang also ordered Byrd to forfeit $440,000, as the proceeds of his drug distribution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, Byrd admitted that from May 2012 through September 2014 he regularly distributed heroin in 50 gram and 100 gram quantities. For example, Byrd sold a confidential source 100 grams of heroin for $11,000 on June 11, 2014, and again on July 9, 2014. On July 24, 2014, Byrd sold a confidential source 50 grams of heroin for $5,500. Each transaction took place in Laurel, Maryland and was video and audio recorded.
On October 1, 2014, a search warrant was executed at Byrd’s residence and law enforcement recovered $31,400, including some of the money given to Byrd by the confidential source on June 11th. Byrd was arrested on October 1, 2014 and agents seized approximately one gram of heroin and $8,510 in cash from Byrd.
United States Attorney Rod J. Rosenstein praised DEA, FBI, IRS-CI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Lake City Man Sentenced to More Than Seven Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Samuel Franklin Crews (32, Lake City) to seven years and eight months in federal prison for knowingly receiving images and videos of child pornography over the Internet. He has been in custody since his arrest on December 31, 2013.
According to court documents, an FBI agent in Jacksonville began an undercover investigation to identify individuals in that area that had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in the Lake City area was hosting images of child pornography using a peer-to-peer file sharing program. The agent was able to download several videos depicting child pornography from this computer. The subscriber information was traced to Crews’s Lake City residence.
Law enforcement officers executed a federal search warrant at Crews=s residence and seized his computer. Crews told the agents, among other things, that he had come across child pornography using a file sharing program on the Internet and became “curious,” he had searched for and downloaded more child pornography using certain search terms, and he knew that viewing such material is harmful to children. Subsequent analysis of Crews’s computer revealed that it contained 124 images and 10 videos depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Columbia County Sheriff’s Office, and the Gainesville Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Settles Immigration-Related Claim Against Luis Esparza Services, Inc.Read the Press Release
The Justice Department reached an agreement today with Luis Esparza Services, Inc. (LES), a farm labor contractor company based in Bakersfield, California, resolving claims that the company discriminated against individuals because of citizenship status in violation of the Immigration and Nationality Act (INA). This agreement contains the largest civil penalty the Justice Department has ever secured to resolve a discrimination claim under the INA.
The Justice Department’s investigation found that LES required work-authorized non-U.S. citizens to produce documents issued by the Department of Homeland Security as a condition of employment, but did not require the same of U.S. citizen workers. The anti-discrimination provision of the INA prohibits employers from placing additional documentary burdens on workers during the employment eligibility verification process based on their citizenship status.
Under the settlement agreement, LES will pay $320,000 in civil penalties; compensate a worker who lost wages due to LES’s employment eligibility verification practices; undergo training on the anti-discrimination provision of the INA; revise its employment eligibility verification policies; and be subject to monitoring of its employment eligibility verification practices for three years.
“Creating unlawful discriminatory barriers that prevent work-authorized immigrants from working is unacceptable,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department is committed to removing these barriers and ensuring equal employment opportunities.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. The case was handled by OSC Trial Attorney Adriana Vieco.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Files Lawsuit to Permanently Bar Kentucky Man from Preparing Tax ReturnsRead the Press Release
The United States filed a complaint to permanently bar a Louisville, Kentucky, man and his business, NJ Mobile Tax Service, LLC, from preparing federal income tax returns for others, the Justice Department announced today.
According to the complaint, which was filed in the U.S. District Court of the Western District of Kentucky, Napoleon L. Jackson has prepared federal income tax returns that improperly understated his customers’ income tax liabilities. According to the suit, in a flyer for NJ Mobile, Jackson, offers to travel to his customers’ homes and prepare their tax returns. The flyer invites potential customers to “Let me do the numbers & I’ll even come to you,” and boasts that “[Jackson] can increase your chances for a higher return.”
The complaint alleges that Jackson understated his customers’ federal tax liabilities by, among other things:
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Falsely claiming deductions related to home ownership for taxpayers that did not own homes, including cases where Jackson prepared and filed returns from customers’ rental homes;
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Falsely claiming dependents, including listing Jackson’s relatives, as dependents on a customer’s tax return;
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Fabricating charitable contributions, and offering to falsify letters from a church that indicated the customers contributed $5,500 in cash to the church that the customers had not in fact donated; and
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Falsely claiming education credits for taxpayers who were not entitled to them.
The Internal Revenue Service (IRS) audited 31 tax returns that Jackson prepared on behalf of 20 customers for tax years 2010 and 2011. An examination of these 31 returns resulted in an increase in taxes owed for every return, according to the suit. The complaint further alleges that Jackson prepared at least 162 returns from 2010 to 2011, and continues to prepare returns today. Overall, the suit alleges that Jackson’s conduct may have cost the U.S. Treasury more than $800,000.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Justice Department Files Lawsuit to Permanently Bar Kentucky Man from Preparing Tax ReturnsRead the Press Release
WASHINGTON — The United States filed a complaint to permanently bar a Louisville, Kentucky, man and his business, NJ Mobile Tax Service, LLC, from preparing federal income tax returns for others, the Justice Department announced today.
According to the complaint, which was filed in the U.S. District Court of the Western District of Kentucky, Napoleon L. Jackson has prepared federal income tax returns that improperly understated his customers’ income tax liabilities. According to the suit, in a flyer for NJ Mobile, Jackson, offers to travel to his customers’ homes and prepare their tax returns. The flyer invites potential customers to “Let me do the numbers & I’ll even come to you,” and boasts that “[Jackson] can increase your chances for a higher return.”
The complaint alleges that Jackson understated his customers’ federal tax liabilities by, among other things:
- Falsely claiming deductions related to home ownership for taxpayers that did not own homes, including cases where Jackson prepared and filed returns from customers’ rental homes;
- Falsely claiming dependents, including listing Jackson’s relatives, as dependents on a customer’s tax return;
- Fabricating charitable contributions, and offering to falsify letters from a church that indicated the customers contributed $5,500 in cash to the church that the customers had not in fact donated; and
- Falsely claiming education credits for taxpayers who were not entitled to them.
The Internal Revenue Service (IRS) audited 31 tax returns that Jackson prepared on behalf of 20 customers for tax years 2010 and 2011. An examination of these 31 returns resulted in an increase in taxes owed for every return, according to the suit. The complaint further alleges that Jackson prepared at least 162 returns from 2010 to 2011, and continues to prepare returns today. Overall, the suit alleges that Jackson’s conduct may have cost the U.S. Treasury more than $800,000.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Man of Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was convicted by a jury May 22, 2015, after a 2 ½-day trial in federal court in Sioux City.
Jose W. Orellana, 42, from South Sioux City, Nebraska, was convicted of conspiracy to distribute 5 grams or more but less than 50 grams of actual (pure) methamphetamine. The verdict was returned May 22, 2015, following about 3 ½ hours of jury deliberations.
The evidence at trial showed that Orellana participated in a conspiracy that distributed methamphetamine in Sioux City, Iowa and South Sioux City, Nebraska. Law enforcement officers collected evidence from September 2013 through May 13, 2014.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Orellana was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Orellana faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, a special assessment of $100, and four years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4046.
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Jury Convicts Akron Man of Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Antonio L. Sibley, 38, of Akron, Ohio with production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, along with members of the Central Ohio Human Trafficking Task Force, including Ohio Attorney General Mike DeWine, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced verdict reached today, which was returned following a trial that began on May 18 before U.S. District Judge Frost.
According to court testimony, in July 2014, while Sibley was harboring a 17-year-old girl in a motel room in Whitehall, Ohio, he took sexually explicit photographs of her and advertised her on internet websites for paid sexual services. Members of the Human Trafficking Task Force found the girl during an undercover operation on July 31, 2014, and thereafter found the pornographic photographs Sibley had taken on a phone that was in the motel room. The victim testified that she and Sibley had been involved in a sexual relationship since she was 15 years old, and that Sibley had taken the pornographic photographs of her.“Cases such as this one highlight the importance of collaboration among various law enforcement agencies and with service providers like the Salvation Army,” said Assistant United States Attorney Heather A. Hill. “This case would not have been possible without all of the tremendous work of all of the members of the Human Trafficking Task Force, the Salvation Army, and the special assistance of Brant Cook, the director of the Ohio Attorney General’s Crimes Against Children Initiative.”
The jury convicted Sibley of production of child pornography, a crime punishable by a sentence ranging from a mandatory minimum 15 years in prison to 30 years in prison. The jury could not reach a verdict on a second charge of sex trafficking of a minor.
Sibley was arrested on August 11, 2014, by members of the Central Ohio Human Trafficking Task Force at the Casa Villa Motel in Whitehall, Ohio, and remains in custody. He was indicted on September 11, 2014.
U.S. Attorney Stewart commended the investigation of this case by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), Columbus Division of Police, Homeland Security Investigations (HSI), Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney General Brant Cook represented the government in this case.
Indictment Charges Pair with CounterfeitingRead the Press Release
PHILADELPHIA - Nathaniel Sloh, 25, of Darby, PA, and Kevin “Prince” Kpou, 22, of Philadelphia, PA, were charged by indictment, unsealed today, with one count of conspiracy, three counts of manufacturing counterfeit currency, and two counts of dealing in counterfeit currency, announced United States Attorney Zane David Memeger. The indictment alleges that from August 2014 to November 2014, Sloh and Kpou conspired to manufacture and sell counterfeit currency.
If convicted, Sloh and Kpou, each face a maximum possible sentence of 105 years in prison, three years of supervised release, a fine of up to $1.5 million, and a special assessment of $600.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SELVIN IRIAS-MURILLO, age 44, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Kurt D. Engelhardt sentenced SELVIN IRIAS-MURILLO to 20 months imprisonment followed by one year of supervised release, a $2,500 fine and a $100 special assessment. Following his incarceration, IRIAS-MURILLO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about August 25, 2014, IRIAS-MURILLO was arrested by Jefferson Parish Sheriff Deputies for a home incarceration violation and was booked into the Jefferson Parish Correctional Center in Gretna. Immigration and Customs Enforcement (ICE) agents then encountered IRIAS-MURILLO during their Criminal Alien Program checks at the correctional facility. ICE agents discovered that IRIAS-MURILLO was a Honduran national who had been deported from the United States on four previous occasions between 1998 and 2011 and was once again illegally present in the United States. IRIAS-MURILLO admitted to ICE agents that he had illegally re-entered the United States sometime after his most recent deportation on August 26, 2011.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters was in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DENYS JAVIER BENITEZ-FERNANDEZ, age 31, a citizen of Honduras, was sentenced yesterday after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced BENITEZ-FERNANDEZ to four months incarceration (time served). BENITEZ-FERNANDEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to the court documents, on January 22, 2015, BENITEZ-FERNANDEZ was found in the United States after having been deported on April 24, 2013.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Hamilton Health Center Agrees to Settlement of Federal Civil MatterRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hamilton Health Center, Inc., a federally qualified health center in Harrisburg, Pennsylvania, has agreed to pay the United States $270,000 to settle False Claims Act allegations. The settlement results from a self-disclosure by Hamilton to the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) through the OIG’s Provider Self-Disclosure Protocol.
Federal law prohibits Medicare and Medicaid from paying for any item or service rendered by an individual excluded from participation in those programs. According to the self-disclosure and the investigation that followed, from 2006 to 2013, Hamilton allegedly employed an individual who had been previously excluded from participation in Medicare and Medicaid. The United States alleged that it had civil claims against Hamilton resulting from Medicare and Medicaid payments it received during that period of time that reimbursed the company for the excluded individual’s services. Hamilton has since taken corrective action and voluntarily disclosed the matter. This settlement resolves the matter without the filing of litigation.
HHS OIG has the authority to “exclude” persons or businesses that engage in certain misconduct from participation in Medicare, Medicaid, and other federal healthcare programs. The effect of exclusion is that no federal program payment may be made for items or services provided by the excluded person/business, or provided because the excluded person prescribed or directed the item or service. The prohibited items or services goes beyond direct patient care and include such things as administrative and management services. If a person or business knows or should know that a claim may be submitted to one of the federal healthcare programs that covers one of these prohibited items or services, it exposes itself to liability.
The matter was investigated by the United States Attorney’s Office for the Middle District of Pennsylvania and the Office of Inspector General of the U.S. Department of Health and Human Services. The matter was handled by Assistant United States Attorney Anthony D. Scicchitano for the United States Attorney’s Office.
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Georgia Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
Leon Nathan Davis, 37, of Augusta, Georgia, pleaded guilty earlier today to an information charging him with attempting to provide material support to a designated foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL).
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement. Davis pleaded guilty in federal court before U.S. District Court Judge J. Randal Hall of the Southern District of Georgia.
According to the testimony presented in court during the guilty plea proceeding, for more than a year, an FBI-led team investigated Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartfield Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta Airport. Davis has been in custody since his arrest.
Providing material support to a designated foreign terrorist organization is a crime punishable by up to 15 years in prison, a lifetime of supervised release and a $250,000 fine. A sentencing hearing will be conducted after the U.S. Probation Office conducts a presentence investigation.
Assistant Attorney General Carlin joined U.S. Attorney Tarver in commending the FBI-led Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Georgia Board of Pardons and Paroles for their work on this case. Assistant Attorney General Carlin and U.S. Attorney Tarver also expressed their gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Georgia and the Justice Department’s National Security Division.
Four Plead Guilty in Indian Ridge Real Estate Fraud CaseRead the Press Release
KANSAS CITY, KAN. – Four people pleaded guilty Wednesday to taking part in a real estate fraud scheme in connection with the development of Indian Ridge Resort, a resort community located near Branson, Mo.
The following defendants pleaded guilty:
David P. Drake, 56, Lone Tree, Colo., one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.
Donald D. Snider, Jr., 55, Littleton, Colo., one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.
Vickie A. Hall, 63, Lone Tree, Colo., one count of concealing a felony (misprision).
Heather A. Gibbs, 53, Littleton, Colo., one count of concealing a felony (misprision).
Drake and Snider were partners in Western Sites Services, a company that was engaged in developing Indian Ridge Resort. They borrowed money for the project from three banks, one of which was Columbian Bank and Trust in Topeka, Kan. In their pleas, they admitted they and other conspirators made false representations to Columbian Bank in order to obtain loan funds.
Vickie Hall was the wife of David Drake. Heather Gibbs was the wife of Donald Snider and a 2 percent owner of Western Site Services. In her plea, Gibbs admitted she knew invoices submitted to the bank included overhead and profit in the line item costs in violations of the terms of the loan agreement. Hall owned a company called Colorado Modular Home Finders Service, LLC. In her plea she admitted she helped to conceal Drake and Snider’s felonies by allowing her company, Colorado Modular Home Finders Services, LLC, to be used to withdraw home deposits from Columbia Bank.
Sentencing hearings will be set for a later date. Both parties have agreed to recommend five-year prison terms for Drake and Snider, and three years on probation for Hall and Gibbs.
Grissom commended the Federal Deposit Insurance Corporation, the Internal Revenue Service, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Four Appear in Court on Charges of Sex Trafficking of MinorsRead the Press Release
GALVESTON, Texas - Federal charges have been filed against four Galveston residents alleging they were involved in the sex trafficking of children, announced United States Attorney Kenneth Magidson.
Charles Devan Fulton Sr., 39, Charmell Latonya Potts, 31, Dominique Warner, 23, and Lawrence James Julian, 22, were in Galveston federal court today. They will remain in custody pending further criminal proceedings.
According to the allegations in the indictment, between June 1, 2014, through April 1, 2015, in the Galveston Division of the Southern District of Texas and elsewhere, the four individuals engaged in conspiracy to recruit, entice and harbor minors to engage in sex trafficking. Fulton aka “Black” or “Blacc,” Warner aka “Meathead,” Julian aka “Wolf” and Potts allegedly posted pictures and prostitution ads of the minor victims on websites. The charges further allege that Warner and Julian would transport the victims to their prostitution dates. Afterwards, Warner and Julian would allegedly transport the victims back to Fulton and Potts, who would keep all of the money the minors earned.
If convicted of conspiracy to commit sex trafficking, each defendant faces up to 30 years imprisonment, while the sex trafficking charges carry a minimum of 10 years and up to life in prison.
This case is being investigated by the FBI and Galveston Police Department with the assistance of the Galveston County District Attorney’s Office. Assistant U.S. Attorneys Sherri Zack and Julie Searle are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Short Sale Specialist Convicted of Mortgage and Tax FraudRead the Press Release
Ashburn Resident Did Not Report More Than $720,000 Earned from Scheme
An Ashburn, Virginia resident was convicted today by a federal jury on 13 charges related to mortgage fraud, passing fictitious financial instruments, and tax fraud, the Department of Justice announced.
Charise Stone, 46, was indicted on April 15, 2014. According to court records and evidence at trial, Stone targeted distressed homeowners from 2007 to 2010 who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.
Jose Marinay owned a settlement company that closed every short sale transaction for Stone. Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions. Marinay destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme. Stone profited more than $700,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Stone faces a maximum penalty of 20 years in prison for each of the wire fraud and wire-fraud conspiracy charges, 30 years in prison for the charges of false statements to a bank, 25 years in prison for the fictitious obligation charges, three years for the charge of corruptly impeding the internal revenue laws, and one year for each count of willful failure to file a tax return at her Aug. 14 sentencing.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service -Criminal Investigation (IRS-CI) Washington, D.C. Field Office, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and IRS-C I. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Tax Division are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-127.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Short Sale Specialist Convicted of Mortgage and Tax FraudRead the Press Release
Ashburn Resident Did Not Report Over $720,000 Earned from Scheme
ALEXANDRIA, Va. – Charise Stone, 46, of Ashburn, Virginia, was convicted today by a federal jury on 13 charges related to mortgage fraud, passing fictitious financial instruments, and tax fraud.
Stone was indicted on April 15, 2014. According to court records and evidence at trial, Stone targeted distressed homeowners from 2007 to 2010 who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.
Jose Marinay, who owned a settlement company that closed every short sale transaction for Stone, pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements at the direction of Stone to facilitate the transactions. Marinay destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme. Stone profited over $700,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Stone will be sentenced on Aug. 14, 2015, and faces a maximum penalty of 20 years in prison for each of the wire fraud and wire-fraud conspiracy charges, 30 years in prison for the charges of false statements to a bank, 25 years in prison for the fictitious obligation charges, three years for the charge of corruptly impeding the internal revenue laws, and one year for each count of willful failure to file a tax return. 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; and Caroline D. Ciraolo, the Acting Assistant Attorney General for the Justice Department’s Tax Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’S Washington Field Office; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and IRS-Criminal Investigation. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-127.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictment(s) against the following:
Postal employee steals money from the mail
Melvin Lewis Jones, age 58, of Bennettsville, South Carolina was charged in a 1-count indictment. Melvin Lewis Jones was charged with stealing money from the mail by a postal employee, a violation of Title 18, U. S. C. §1709. The maximum penalty Jones could receive is 5 years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Postal Service - Office of Inspector General and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Money embezzled from the Department of Veterans Affairs
Reginald Vereen, age 48, of Nichols, South Carolina was charged in a 1-count indictment. Reginald Vereen was charged with embezzling money from the Department of Veterans Affairs, a violation of Title 18, U. S. C. §641. The maximum penalty Vereen could receive is 10 years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Marion County Man Indicted for Drug Trafficking
Gabriel Emanuel Foxworth, age 27, of Marion, South Carolina was charged in a 5-count indictment for Possession with Intent to Distribute Marijuana, a violation of Title 21, U. S. C. §841(a)(1), Felon in Possession of a Firearm, a violation of Title 18, U. S. C. §922(g)(1) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, a violation of Title 18, U. S. C. §924(c)(1)(A). The maximum penalty Foxworth could receive is life imprisonment. The case was investigated by agents of the ATF and Marion County Sheriff’s Office and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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FCI Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Joshua Starr, 29, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced Acting United States Attorney Donald Feith. The Court imposed a term of fifteen months’ imprisonment, to be served consecutive to Starr’s current prison sentence.
During a routine search in August 2014, correctional officers discovered on Starr’s person a six-inch piece of wood sharpened into a stabbing weapon. Acting United States Attorney Donald Feith stated, “The safety of federal correctional officers and inmates is threatened whenever an inmate possesses a weapon in the facility. Our office will continue to work with the Bureau of Prisons by prosecuting those inmates who fashion or possess a weapon within the prison walls. Prosecuting these cases helps make New Hampshire’s only federal correctional facility a safer place for both staff and inmates.”
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Essex County, New Jersey, Man Admits Role in $80,000 Phony Check Cashing SchemeRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man today admitted making counterfeit checks as part of a scheme that caused bank losses of approximately $80,000, U.S. Attorney Paul J. Fishman announced.
Laronn Moultrie, 30, pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From October 2010 through May 2012, Moultrie used check-writing software to create hundreds of counterfeit checks, most of which were in amounts of less than $5,000. In furtherance of the scheme, Moultrie recruited numerous individuals to open new accounts at Bank of America, Sovereign Bank (now Banco Santander) and TD Bank by promising a share of the proceeds.
After obtaining the cooperation of an account holder, Moultrie or another conspirator would deposit one of the counterfeit checks into a new account. Before the bank realized that the deposited check was counterfeit, Moultrie would arrange to withdraw the funds within a day or two of the deposit. Moultrie also arranged for some account holders to cash counterfeit checks directly against their accounts. Moultrie admitted obtaining around $80,000 in cash through this scheme.
Moultrie faces a statutory maximum potential penalty of 30 years in prison and $1 million fine. Sentencing is scheduled for Sept. 23, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; investigators at the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park; and investigators at the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office General Crimes Unit.
Defense counsel: Jean Barrett Esq., Montclair, New Jersey
East Haven Zoning Official Charged with Extorting from ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANK BIANCUR, JR., 40, of West Haven, was arrested today on a federal criminal complaint charging him with seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven.
According to the criminal complaint and to statements made in court, BIANCUR has been employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer. Earlier this month, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR.
The complaint alleges that, most recently, on May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence. Although BIANCUR stated that he was “fighting” for the victim, he also demanded a payment of $200 or he would make the victim tear down the addition. On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall. During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.
The complaint charges BIANCUR with one count of theft of honest services mail fraud, which carries a maximum term of imprisonment of 20 years.
BIANCUR was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $20,000 bond.
Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. Citizens can contact the Task Force to report corrupt activity by calling 1-800-CALL-FBI (1-800-225-5324).
East Hartford Man Convicted of Federal Firearms OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RONDELL JACKSON, also known as “D-Rugs,” 28, of East Hartford, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on September 25, 2014, JACKSON sold a loaded Vektor 9mm semi-automatic pistol to another individual in exchange for $550. The firearm had been reported stolen to the East Hartford Police Department in November 2013 in connection with a burglary complaint.
JACKSON was arrested on October 29, 2014.
JACKSON’s criminal history includes several state felony convictions, including convictions for robbery, possession of narcotics and sexual assault. He was on state probation at the time of the offense.
Judge Shea scheduled for sentencing for October 30, 2015, at which time JACKSON faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Durable Medical Equipment Suppliers to Pay $7.5 Million to Resolve False Claims Act AllegationsRead the Press Release
Orbit Medical Inc. and Rehab Medical Inc. will pay $7.5 million to resolve allegations that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories, the Justice Department announced today. Orbit Medical and Rehab Medical, a partial successor of Orbit, are durable medical equipment suppliers based in Salt Lake City, Utah and Indianapolis, Indiana, respectively.
“Power wheelchair suppliers must bill federal healthcare programs accurately and honestly to ensure that federal dollars are used for individuals who truly need these mobility devices,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who seek to abuse taxpayer-funded programs.”
Medicare pays for power wheelchairs for beneficiaries who cannot perform activities of daily living in their home using other mobility-assistance equipment, such as a cane, walker or power scooter. To qualify for reimbursement, a physician must conduct a face-to-face examination of the beneficiary and provide the supplier with a written prescription for a power wheelchair within 45 days of such an encounter, along with documentation that supports the medical necessity of the device. The prescription must be completed by the physician who performed the exam and must include the beneficiary’s name, the exam date, the diagnoses and conditions the wheelchair is expected to accommodate, the length of need and the physician’s signature.
The settlement with Orbit Medical and Rehab Medical resolves allegations that Orbit sales representatives knowingly altered physician prescriptions and supporting documentation to get Orbit’s power wheelchair and accessory claims paid by Medicare, the Federal Employees Health Benefits Plan and the Defense Health Agency. In particular, the government alleged that Orbit sales representatives changed or added dates to physician prescriptions and chart notes to falsely document that the prescription was sent to the supplier within 45 days of the face-to-face beneficiary exam; changed the physician prescription to falsely establish medical necessity for the power wheelchair or accessory; created or altered chart notes and other documents to falsely establish the medical necessity of the power wheelchair or accessory; forged physician signatures on prescriptions and chart notes; and added facsimile stamps to supporting documentation to make it appear as though the physician’s office had sent the documents to Orbit.
“The resolution of this case helps to restore funds taken from the Medicare trust fund through the use of falsified records and billings,” said U.S. Attorney Carlie Christensen of the District of Utah. “Taxpayers’ dollars paid for power wheelchairs not legitimately prescribed by a physician. Health care fraud is aggressively prosecuted in Utah and every effort is made to restore government funds taken through such conduct.”
“Wheelchair schemes such as this divert Medicare funds meant to pay for legitimate health care, including providing wheelchairs for patients who have a genuine medical need for such equipment,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to investigate those who attempt to cheat federal health care programs.”
The allegations resolved by the settlement with Orbit and Rehab were filed under the False Claims Act by two former Orbit employees, Dustin Clyde and Tyler Jackson. Under the Act, a private party can sue for false claims on behalf of the government and share in any recovery. Clyde and Jackson will receive approximately $1.5 million. The whistleblowers’ suit also named as a defendant Jake Kilgore, the former vice president and sales manager at Orbit Medical for the Western region of the United States. The United States intervened in that aspect of the suit on April 2, 2014, and today’s settlement does not resolve the pending claims against Kilgore. Separately, on Oct. 23, 2013, a federal grand jury in Utah indicted Kilgore on three counts of health care fraud, three counts of false statements related to health care and three counts of wire fraud.
Today’s settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of Utah, HHS-OIG, the FBI, the Office of Personnel Management and the Defense Health Agency. The lawsuit is captioned United States ex rel. Clyde et al. v. Orbit Medical et al., No. 2:10-CV-00297 (D. Utah).
The claims settled by the government are allegations only; there has been no determination of liability.
Durable Medical Equipment Suppliers to Pay $7.5 Million to Resolve False Claims Act AllegationsRead the Press Release
SALT LAKE CITY – Orbit Medical Inc. and Rehab Medical Inc. will pay $7.5 million to resolve allegations that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories, the Justice Department announced today. Orbit Medical and Rehab Medical, a partial successor of Orbit, are durable medical equipment suppliers based in Salt Lake City, Utah and Indianapolis, Indiana, respectively.
“Power wheelchair suppliers must bill federal healthcare programs accurately and honestly to ensure that federal dollars are used for individuals who truly need these mobility devices,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who seek to abuse taxpayer-funded programs.”
“The resolution of this case helps to restore funds taken from the Medicare trust fund through the use of falsified records and billings,” said U.S. Attorney Carlie Christensen of the District of Utah. “Taxpayers’ dollars paid for power wheelchairs not legitimately prescribed by a physician. Health care fraud is aggressively prosecuted in Utah and every effort is made to restore government funds taken through such conduct.”
Medicare pays for power wheelchairs for beneficiaries who cannot perform activities of daily living in their home using other mobility-assistance equipment, such as a cane, walker or power scooter. To qualify for reimbursement, a physician must conduct a face-to-face examination of the beneficiary and provide the supplier with a written prescription for a power wheelchair within 45 days of such an encounter, along with documentation that supports the medical necessity of the device. The prescription must be completed by the physician who performed the exam and must include the beneficiary’s name, the exam date, the diagnoses and conditions the wheelchair is expected to accommodate, the length of need and the physician’s signature.
The settlement with Orbit Medical and Rehab Medical resolves allegations that Orbit sales representatives knowingly altered physician prescriptions and supporting documentation to get Orbit’s power wheelchair and accessory claims paid by Medicare, the Federal Employees Health Benefits Plan and the Defense Health Agency. In particular, the government alleged that Orbit sales representatives changed or added dates to physician prescriptions and chart notes to falsely document that the prescription was sent to the supplier within 45 days of the face-to-face beneficiary exam; changed the physician prescription to falsely establish medical necessity for the power wheelchair or accessory; created or altered chart notes and other documents to falsely establish the medical necessity of the power wheelchair or accessory; forged physician signatures on prescriptions and chart notes; and added facsimile stamps to supporting documentation to make it appear as though the physician’s office had sent the documents to Orbit.
“Wheelchair schemes such as this divert Medicare funds meant to pay for legitimate health care, including providing wheelchairs for patients who have a genuine medical need for such equipment,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to investigate those who attempt to cheat federal health care programs.”
The allegations resolved by the settlement with Orbit and Rehab were filed under the False Claims Act by two former Orbit employees, Dustin Clyde and Tyler Jackson. Under the Act, a private party can sue for false claims on behalf of the government and share in any recovery. Clyde and Jackson will receive approximately $1.5 million. The whistleblowers’ suit also named as a defendant Jake Kilgore, the former vice president and sales manager at Orbit Medical for the Western region of the United States. The United States intervened in that aspect of the suit on April 2, 2014, and today’s settlement does not resolve the pending claims against Kilgore. Separately, on Oct. 23, 2013, a federal grand jury in Utah indicted Kilgore on three counts of health care fraud, three counts of false statements related to health care and three counts of wire fraud.
Today’s settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of Utah, HHS-OIG, the FBI, the Office of Personnel Management and the Defense Health Agency. The lawsuit is captioned United States ex rel. Clyde et al. v. Orbit Medical et al., No. 2:10-CV-00297 (D. Utah).
The claims settled by the government are allegations only; there has been no determination of liability.
Defense Lawyer Charged with Witness Tampering in Hate Crime CaseRead the Press Release
BOSTON – A Boston lawyer was charged today with repeatedly encouraging the victim of a hate crime to ignore calls from state and federal law enforcement officials.
Timothy R. Flaherty, 50, of Cambridge, was indicted on tampering with a witness to a possible federal civil rights offense.
As alleged in the charging documents, Flaherty is a defense attorney and was retained to represent a defendant in Cambridge District Court who was facing state civil rights charges. Among other things, Flaherty’s client was charged in connection with an incident in which the client assaulted a man while yelling, “you little Muslim…you f!*king terrorist.”
Shortly after Flaherty’s client was arraigned in state court, Flaherty contacted the victim of the case and offered him cash in exchange for informing state authorities that he was too busy to pursue the case and no longer wanted to assist in the prosecution of Flaherty’s client. On Dec. 24, 2014, Flaherty met the victim and provided him with an envelope that contained $2,500 in cash. He instructed the victim to ignore contact from law enforcement authorities and in the event he received a subpoena to appear, he was to immediately call Flaherty. On March 12, 2015, during a hearing at Cambridge District Court, Flaherty pressed for a trial date and then asked the Assistant District Attorney whether the Middlesex District Attorney’s Office had been able to contact the victim.
On May 6, 2015, the victim informed Flaherty that he had received a letter from the District Attorney’s Office. Flaherty instructed the victim to tell the District Attorney’s Office, “I have no interest in this. I’d have to come to court, I really don’t want anything to do with it. Um, you know the guy had a bad day and I’m just not going to testify ….” Flaherty also told the victim, “…they won’t press you, they won’t subpoena you, if they try to, just duck it….”
The victim then informed Flaherty that he had received a voice message from an employee of the United States Attorney’s Office who wanted him to call her back regarding the alleged indictment. Flaherty told the victim to, “blow her off.” The victim stated to Flaherty that this U.S. Attorney’s Office employee said she was from “civil rights.” Flaherty continued to advise the victim not to call her back.
On May 21, 2015, the victim made a telephone call to Flaherty and informed him that someone from the FBI had left the victim a message concerning Flaherty’s client’s case. At the conclusion of this call, the victim asked Flaherty, “So, so, should I call him back or no?” Flaherty replied, “No, don’t call him back.”
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Middlesex County District Attorney Marian T. Ryan, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Robert A. Fisher and S. Theodore Merritt of Ortiz’s Public Corruption Unit, with substantial assistance form the Middlesex DA’s Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.