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8 July 2015
Social Security Administration Benefits Authorizer and Four Others Charged in $1.9 Million Kickback SchemeRead the Press Release
CHICAGO — A benefits authorizer at the Social Security Administration in Chicago authorized over $1.9 million in fraudulent benefits to more than 150 recipients who kicked backed cash to him and several others, according to a federal indictment unsealed today.
The benefits authorizer, JAYSON CRUZ, 39, of Chicago, worked at the Social Security Administration’s Great Lakes Program Service Center in Chicago. Cruz and four others were arrested this morning by federal authorities.
The ten-count indictment, which was filed on June 30, 2015, and unsealed today following the arrests, alleges that the defendants fraudulently caused the Social Security Administration to issue more than $1.9 million in payments to approximately 154 recipients between approximately September 2009 and December 2013.
Cruz was charged with ten counts of wire fraud. MONICA KNOX-SUMRELL, 41; VONZELL WHITE, 33; MICHAEL ELARDE, 37; and JERRY BROWN JR., 36, all of Chicago, were each charged with two counts of wire fraud. All five defendants pleaded not guilty during their arraignments this afternoon before U.S. District Judge Virginia M. Kendall in Chicago. All five defendants were released on their own recognizance. Judge Kendall scheduled a status hearing for 9/16/15 for all defendants.
According to the indictment, Cruz was one of the Social Security Administration employees responsible for authorizing monthly Old-Age, Survivors, and Disability Insurance Benefits to beneficiaries, representative payees, qualifying family members and representatives of deceased beneficiaries. The indictment alleges that Cruz, Knox-Sumrell, White, Elarde, and Brown recruited recipients of these benefits to receive additional payments on top of what they were legitimately owed. After Cruz fraudulently authorized the excess payments, Cruz, Knox-Sumrell, White, Elarde and Brown collected the majority of the money back from the recruited individuals, according to the indictment. Cruz also fraudulently authorized “underpayments” to White, Elarde, Brown and others, by falsely representing that they were relatives or representatives of deceased beneficiaries who were owed money from the Social Security Administration, according to the indictment.
Cruz authorized the fraudulent payments by entering false codes into the Social Security Administration’s electronic system, the indictment alleges. According to the indictment, Social Security Administration procedures allowed Cruz to authorize a payment of less than $6,000.00 to a recipient without supervisor approval. Cruz authorized the fraudulent payments in amounts slightly less than $6,000 in order to avoid detection of the fraud, the indictment alleges.
The indictment also alleges that Knox-Sumrell falsely represented to recipients that she worked for the Social Security Administration in order to further the scheme
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tracey Thanos, Special Agent in Charge of the Chicago Field Division of the Social Security Administration’s Office of the Inspector General. “Employee fraud is something we take very seriously,” Thanos said. “We have no higher priority than investigating and pursuing justice whenever these instances occur, and we will continue to do so.”
The investigation is ongoing, the officials said.
The indictment seeks forfeiture from all five defendants of approximately $1,981,290, as well as a residence in Chicago. Each count of wire fraud carries a maximum sentence of 20 years in prison; a $250,000 fine, which may be increased to the greater of twice the gain or twice the loss3 from the crime; and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Special Assistant U.S. Attorney Heidi Manschreck.
Indictment
Sioux City Man to Federal Prison for Crack Cocaine ConspiracyRead the Press Release
A man who conspired to distribute crack cocaine was sentenced July 8, 2015, to more than five years in federal prison.
James Lillard, 34, from Sioux City, Iowa, received the prison term after an April 1, 2015, guilty plea to conspiracy to distribute crack cocaine.
At the guilty plea, Lillard admitted his involvement with the distribution of at least 28 grams but less than 112 grams of crack cocaine. On two separate occasions in July 2013, Lillard distributed a total of 4.9 grams of cocaine base to an individual cooperating with law enforcement.
Lillard was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Lillard was sentenced to 70 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lillard is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by 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 CR14-4071.
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San Antonio Woman Indicted for Wire Fraud and Identity TheftRead the Press Release
In San Antonio today, a federal grand jury indicted 35-year-old Jessica Rivas Alva in connection with a scheme to defraud undocumented immigrants and their family members out of money by claiming to work on behalf of an attorney announced Acting United States Attorney Richard L. Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge, James C. Spero.
The indictment charges the San Antonio resident with three counts of wire fraud and two counts of aggravated identity theft. According to court records, in April of 2015, Alva faxed forged letters whereby she fraudulently used the name and state bar number of two former employers, both of whom are San Antonio-based attorneys, to gain access to two immigration detention facilities in Louisiana. While at the South Louisiana Correctional Center in Basile and the LaSalle Detention Facility in Jena, Alva met with detained immigrants and offered to have the attorneys provide legal services for a fee. The immigrants’ families were then instructed to deposit those fees into a bank account that belonged to Alva. Alva was not an attorney and was not actually working for either attorney at the time she made the fraudulent representations. Furthermore, at the time Alva entered the detention facilities, she was enjoined by a Texas state court from entering any immigration facility in the United States unless accompanied by an attorney for whom she worked.
Wire fraud carries a maximum penalty of 20 years imprisonment upon conviction. Aggravated identity theft carries a mandatory minimum sentence of two years upon conviction. Both charges have a maximum fine of $250,000.
Last week, federal authorities arrested Alva in Sulphur, Louisiana. She remains in federal custody at this time awaiting transfer to the Western District of Texas.
This case was investigated by agents with HSI and Enforcement and Removal Operations with Immigration and Customs Enforcement. Assistant United States Attorneys Tom Moore and Christina Playton are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Salisbury Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – David C. Andrews, age 52, of Salisbury, Maryland, pleaded guilty today to distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; and Wicomico County State’s Attorney Matthew Maciarello.
According to Andrews’ plea agreement, between May 28 and July 12, 2010, Andrews made files depicting children engaged in sexually explicit conduct available to others through a file sharing program installed on his computer. On July 17, 2010, a Wicomico County Sheriff’s detective working on undercover investigations of individuals trafficking child pornography through the use of file sharing programs was able to download child pornography being shared using the internet account at Andrews’ residence. A search warrant was executed at Andrews’ home and law enforcement located Andrews’ computer which contained 49 images and approximately 160 video segments of child pornography. Andrews admitted that he collected and shared child pornography over the internet, including the video downloaded by the detective. On October 12, 2011, Andrews pleaded guilty to possession of child pornography in Wicomico County Circuit Court. The charge for possession of child pornography with intent to distribute was dropped.
Also according to Andrews’ plea agreement, on May 12, 2014, a Worcester County Sheriff’s Office detective was conducting an online investigation for individuals using file sharing software to share child pornography. During the investigation, the detective downloaded a video from Andrews that depicted a prepubescent girl engaged in sexually explicit conduct. Investigators determined that the IP address associated with the account was assigned to Andrews’ residence.
On June 20, 2014, Andrews saw law enforcement officers conducting surveillance and photographing his home in preparation for obtaining a search warrant. Andrews admitted that on June 22, 2014, he ran memory-wiping software on the hard drive and reinstalled the operating system, thereby deleting any files or images, including any files containing child pornography from his laptop. When law enforcement executed a search warrant at Andrews’ home on June 24, 2014, they were initially unable to find any devices belonging to Andrews or that appeared to be associated with child pornography. After locating Andrews’ laptop in the laundry room, investigators realized the hard drive had been removed. Andrews directed the investigators to a truck tire in the back yard of the uninhabited house next door where law enforcement recovered a gallon zip lock bag containing the hard drive from the laptop, as well as a tablet computer.
Although a forensic examination of the laptop hard drive was not able to recover any images or files, a forensic analysis of the tablet recovered 142 images of child pornography. Andrews admitted that he attempted to delete the files in an attempt to conceal them from investigators. Twenty-five of the images belonged to a series of child pornography whose victim(s) were previously identified by the National Center for Missing and Exploited Children.
As part of his plea agreement, Andrews must 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). In addition, Andrews will be required to pay restitution to any identified victims used to produce the child pornography Andrews distributed.
Andrews and the government have agreed that if the Court accepts the plea agreement Andrews will be sentenced to between 70 and 87 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 27, 2015 at 3:00 p.m.
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 HSI Baltimore and Ocean City, Maryland, the Worcester County Sheriff’s Office, Maryland State Police, Wicomico County Sheriff’s Office, and the Wicomico County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Rochester Woman Sentenced for False Passport ApplicationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced that Jennifer Gilbert, 47, of Rochester, NY, who was convicted of fraudulently obtaining a U.S. Passport by making false statements in the passport application, was sentenced to five years probation to include six months home detention by Chief U.S. District Judge Frank P. Geraci. The defendant will also have to perform 100 hours of community service.Assistant U.S. Attorney John J. Field, who handled the matter, stated that Gilbert applied for a passport in 2007 using the name and identification of another individual, Lena B.W. Years later, in May 2014, Lena B.W. applied for a passport for herself. Lena B.W.’s application triggered a review of the 2007 application that defendant had submitted, and resulted in defendant’s fraud being discovered.
The sentencing is the culmination of an investigation by Special Agents from the United States Department of State, under the direction of Special Agent in Charge William Ferrari.
Ringleader of Extortion Ring Sentenced to More Than 14 Years in Manhattan Federal Prison for Massive “Call Center” Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director in Charge New York Field Office of the Federal Bureau of Investigation (“FBI”), and Timothy P. Camus, Deputy Inspector General for Investigations of the United States Treasury Inspector General for Tax Administration (“TIGTA”), announced today that SAHIL PATEL was sentenced to 175 months in prison and $1 million in forfeiture for his role in organizing the U.S. side of a massive fraud and extortion ring run through various “call centers” located in India, through which PATEL and his coconspirators impersonated American law enforcement officials and threatened victims with arrest and financial penalties unless those victims made payments to avoid purported charges. PATEL pleaded guilty in January 2015 before U.S. District Judge Alvin Hellerstein, who imposed the sentence today.
Manhattan U.S. Attorney Preet Bharara said: “Sahil Patel’s elaborate scheme involved impersonating law enforcement officers and using intimidation and fear to bilk over a million dollars from hundreds of unsuspecting victims. I want to thank the FBI and the Treasury Inspector General for Tax Administration for their excellent work in this investigation.”
Assistant Director in Charge Diego Rodriguez said: “This duplicitous consumer fraud scheme preyed on the vulnerabilities of victims who were forced to pay false penalties for fear of retribution. Wreaking havoc on hundreds of innocent Americans, Patel and his co-conspirators also called into question the integrity of the federal law enforcement community by falsely portraying themselves as government officials. Today’s sentencing serves as a fine example of how the FBI and our partners are successfully combining efforts to eliminate sophisticated impersonation scams.”
Deputy Inspector General Timothy P. Camus said: “Through his ruthless criminal enterprise, Mr. Patel has inflicted harm on thousands of innocent Americans who fell victim to his impersonation scheme. Victimizing taxpayers by impersonating the IRS is a serious crime and individuals who do so will be prosecuted to the fullest extent of the law.”
According to the Superseding Indictment, other documents filed in Manhattan federal court, and statements made at related court proceedings:
From December 2011 through the day of his arrest on December 18, 2013, PATEL participated as a leader in a sophisticated scheme to intimidate and defraud hundreds of innocent victims of hundreds of dollars apiece.
Throughout the course of the fraud, telephone call centers located in India hired English-speaking employees to place telephone calls to individuals living in the U.S. Armed with long lists of potential victims, referred to by PATEL and his co-conspirators as “lead sheets,” those India-based callers systematically placed thousands of calls to individuals in the U.S. in the hopes of intimidating the call recipients into providing a payment to the co-conspirators. In order to extort these victims, the India-based callers impersonated law enforcement officials of the FBI and IRS and threatened their victims with financial penalties and arrest in connection with fabricated financial crimes.
In order to receive funds in a manner that would mask the identity of PATEL and his co-conspirators, the ring undertook several measures to anonymize itself, including by using anonymized voice-over-internet technology, which was subscribed under fraudulent names in order to give the appearance of being related to U.S. law enforcement agencies.
Patel and his co-conspirators also used several layers of wire transactions in order to conceal the destination and nature of the extorted payments, which totaled at least $1.2 million dollars.
* * *
In addition to the prison sentence, PATEL, 36, of Tatamy, Pennsylvania, was sentenced to three years of supervised release.
In imposing today’s sentence, Judge Hellerstein said: “The nature of this crime robbed people of their identities and their money in a way that causes people to feel they have been almost destroyed.”
If you have been targeted by this scam, you can report the incident to TIGTA at www.tigta.gov and clicking on the IRS Impersonation Scam Reporting tab in the upper right corner, or call the TIGTA hotline at 1-800-366-4484.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the prosecution.
Prison Tax Fraud Ringleader Sentenced to 7 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Edwin Ludwig IV, 34, currently an inmate in an Oklahoma state prison, was sentenced today to seven years in prison for conspiring to defraud the United States and for filing false claims for federal tax refunds, United States Attorney Benjamin B. Wagner announced. Ludwig was ordered to pay over $219,000 in restitution.
According to court documents, beginning in March 2011, Ludwig and three fellow inmates in the California Correctional Center in Susanville obtained personal identification information of other inmates at the correctional center. Ludwig then provided the information to co-defendants on the outside who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. False tax returns also were filed in some of the defendants’ own names. The defendants caused the false refund checks to be deposited to various bank accounts they controlled. According to the indictment, the investigation into the conspiracy began on January 11, 2012, when a correctional officer found some records behind Ludwig’s personal locker.
According to court documents, the refunds were used for personal expenditures, and included the purchase of prepaid debit cards, and adding money to inmates’ commissary accounts. At sentencing, Ludwig stated that some of the proceeds had been used to purchase drugs. In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of the refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
Charges against six co-defendants are pending. A status conference for them is scheduled for September 2, 2015. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Service Unit at the California Correctional Center. Assistant United States Attorney Sherry D. Hartel Haus is prosecuting the case.
Portland Man Pleads Guilty to Crack Cocaine Distribution ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marco Gordon, 34, of Portland and Detroit, Michigan, pleaded guilty yesterday in U.S. District Court to conspiring to distribute 28 grams or more of cocaine base, often referred to as crack cocaine, and to possession with intent to distribute 28 grams or more of cocaine base.
Court records reveal that between December 2013 and January 2015, Gordon conspired with others to distribute crack cocaine. Conspirators arranged for the acquisition of drugs out of state and transported them to Maine where they were provided to retail distributors, including Gordon, who sold them in the Portland area. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from members of the conspiracy. On January 9, 2015, officers arrested Gordon on Gilman Street in Portland and seized 183.6 grams of crack cocaine and over $3,400 in cash.
Gordon faces between five and 40 years in prison and a $5,000,000 fine on each count. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. In May 2015, conspirators Russell Gordon and Robert Joiner, Jr. pleaded guilty to crack cocaine distribution charges and await sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland and Biddeford Police Departments. The Lewiston Police Department, Maine Drug Enforcement Agency, and Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Owner of Louisiana Automotive Businesses Pleads Guilty for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
A resident of Tangipahoa Parish, Louisiana, and the owner of two automotive businesses pleaded guilty today for his involvement in a stolen identity refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
Martin Jackson Sr., 48, pleaded guilty to one count of a triple object conspiracy to defraud the United States, to commit theft of public money and mail fraud. According to court documents, Jackson conspired with at least six other individuals to use stolen identities to file false federal income tax returns that fraudulently claimed tax refunds. Jackson owns Woodscale Automotive Sales LLC and Woodscale Autobody and Mec. LLC. He used the business bank accounts as part of the scheme. Some of the co-conspirators prepared and filed the false tax returns using the stolen identity information and requested that the Internal Revenue Service (IRS) mail the refund checks to addresses in Louisiana, including to post office boxes that were opened by co-conspirators. Jackson deposited refund checks into his business bank accounts and gave cash or checks to his co-conspirators, while retaining a portion of the proceeds for himself.
Jackson is the final co-conspirator to plead guilty of the seven defendants indicted in this case. Previously, Angela Chaney, 43, Thaddeus Richardson, 50, Corey Lewis, aka Coco, 37, Craig Lewis, 40, Brad Lewis, aka Bird, 32, and Cedrick Mitchell, aka Skeet, 39, pleaded guilty. Their sentencings are scheduled in August and September.
U.S. District Court Judge Jay Zainey of the Eastern District of Louisiana set sentencing for Jackson on Oct. 6. Jackson faces a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss caused by the offense and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
Owner of Louisiana Automotive Businesses Pleads Guilty for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
A resident of Tangipahoa Parish, Louisiana, and the owner of two automotive businesses pleaded guilty today for his involvement in a stolen identity refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
Martin Jackson Sr., 48, pleaded guilty to one count of a triple object conspiracy to defraud the United States, to commit theft of public money and mail fraud. According to court documents, Jackson conspired with at least six other individuals to use stolen identities to file false federal income tax returns that fraudulently claimed tax refunds. Jackson owns Woodscale Automotive Sales LLC and Woodscale Autobody and Mec. LLC. He used the business bank accounts as part of the scheme. Some of the co-conspirators prepared and filed the false tax returns using the stolen identity information and requested that the Internal Revenue Service (IRS) mail the refund checks to addresses in Louisiana, including to post office boxes that were opened by co-conspirators. Jackson deposited refund checks into his business bank accounts and gave cash or checks to his co-conspirators, while retaining a portion of the proceeds for himself.
Jackson is the final co-conspirator to plead guilty of the seven defendants indicted in this case. Previously, Angela Chaney, 43, Thaddeus Richardson, 50, Corey Lewis, aka Coco, 37, Craig Lewis, 40, Brad Lewis, aka Bird, 32, and Cedrick Mitchell, aka Skeet, 39, pleaded guilty. Their sentencings are scheduled in August and September.
U.S. District Court Judge Jay Zainey of the Eastern District of Louisiana set sentencing for Jackson on Oct. 6. Jackson faces a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss caused by the offense and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
Oak Hill man pleads guilty to possession of child pornographyRead the Press Release
Defendant had more than 600 child-pornography photos and videos
CHARLESTON, W. Va. – An Oak Hill, West Virginia man pleaded guilty today to possessing child pornography, United States Attorney Booth Goodwin announced. William A. Cracraft, 52, admitted to having more than 600 photographs and videos of child pornography on his computers and mobile phones.
The images included sexually explicit depictions of prepubescent minors, as well as scenes of sadistic and masochistic conduct and of violence toward minors.
Cracraft faces up to 20 years in prison and a $250,000 fine when he is sentenced on October 8, 2015. The devices containing the child pornography will be destroyed.
The Department of Homeland Security and the West Virginia State Police conducted the investigation. Assistant United States Attorney Erik S. Goes is handling the prosecution. United States District Judge John T. Copenhaver, Jr., conducted the plea hearing.
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 http://www.justice.gov/usao/wvs/PSCpage.html.
New York Man Admits Role in Scheme to Bilk Bank Customer AccountsRead the Press Release
PHILADELPHIA – Divine Garcia, 29, of New Rochelle, NY, pleaded guilty today to conspiracy and bank fraud. Garcia was a middleman in a fraud conspiracy that involved recruiting employees at various banks, between Pennsylvania and New York, to provide information about bank customers’ accounts. A sentencing date is scheduled for October 19, 2015.
Garcia and his co-conspirators, charged elsewhere, formed an organization based out of New York which stole large sums of money from FDIC insured banks across the United States, including some in the Eastern District of Pennsylvania. The organization included numerous bank employees, three of whom were recruited by Garcia to provide confidential information about customers and their accounts. The organization used this information to take control of the customers’ account. Once they had sufficient control, an imposter working for the organization would enter a branch carrying: (a) a fake identification card, which Garcia had given them, with the biographical information of the customer but the photo of the imposter; and (b) a pre-printed and signed withdrawal slip with a signature which mimicked the customer’s actual signature. Using the forged withdrawal slip and fake identification card, the imposter would typically withdraw large sums of U.S. currency at various branches. The imposters were often accompanied by a handler from the organization, who would organize and supervise the fraudulent transactions. In total, Garcia provided the bank fraud organization with 65 confidential customer account profiles. From those accounts, the organization stole $481,856.00.
Garcia faces a maximum statutory sentence of 35 years in prison, a fine of up to $4 million, five years of supervised release, and a $200 special assessment.
The case was investigated by Homeland Security Investigations and U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.
New York City Corrections Officer and 11 Additional Members and Associates of A Queens-Based Sect of the Bloods Gang Arrested on Narcotics Conspiracy ChargesRead the Press Release
Earlier today, a total of 12 members and associates of the Bloods street gang located in Queens, New York, including Covel Duncan, a New York City Corrections Officer at Riker’s Island, were arrested on narcotics trafficking charges. The defendants’ initial appearances are scheduled this afternoon before United States Magistrate Judge James Orenstein at the federal courthouse in Brooklyn.[1]
The charges and arrests were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Raymond R. Parmer, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI), and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Agency, New York.
As charged in the criminal complaint, between November 2014 and June 2015, the defendants Kamel Lambus, Stanley Fuller, Shavona Trappier, Shakeem Powell, Tyran Trotter, Henry Curry, Sean Brabram, Tiheem Crocker, Scott Williams, Earl Davis, Michael Scott, and Andre Mitchell, and others, conspired to distribute over a kilogram of heroin. Lambus and Fuller are allegedly leaders of a sect of the Bloods gang called the Paper Chasing Goons (PCG) or POV City, and used a network of distributors, some of whom are also members of PCG/POV City, to sell hundreds of glassines of heroin daily to customers throughout Queens and elsewhere. The glassines were marked with labels including “Sweet Dreams,” “First Take,” “Pepsi,” and “Coca Cola.” Duncan was charged separately in a criminal complaint charging her with possessing heroin with intent to distribute.
The gang had several stash houses used to store narcotics and the proceeds of narcotics sales. This morning, search warrants were executed at three stash houses in Queens located at 119-26 165th Street, 107-53 Watson Place, and Lambus’s residence. Law enforcement agents seized 40 glassines of heroin labeled “Coca Cola” and “Sweet Dreams” and over $5,000 in U.S. currency from Lambus’s residence. Additionally, law enforcement agents seized approximately 500 glassines of heroin bearing the labels “Coca Cola” and “Sweet Dreams” and approximately $7,000 in U.S. currency from the residence where Trappier and Duncan were arrested, and 250 glassines of heroin bearing the label “Coca Cola” from the residence where Mitchell was arrested.
During the investigation, law enforcement intercepted numerous telephone communications which revealed that Lambus and Fuller sent samples of heroin to their distributors to test for quality, and supplied the members of their gang, as well as other narcotics traffickers, with heroin on a daily basis.
Acting United States Attorney Currie stated, “Members of street gangs who distribute heroin are on notice that they will be held strictly accountable for their actions. We and our partners in law enforcement are committed to ending the scourge of illegal narcotics in our communities.” Mr. Currie expressed his grateful appreciation to the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the New York City Police Department, the Internal Revenue Service, and the New York State Department of Corrections and Supervision for their assistance in the investigation.
“Today’s arrests help dismantle a violent gang responsible for flooding the streets of New York with heroin,” said HSI Special Agent-in-Charge Parmer. “Working alongside our law enforcement partners, HSI will continue to use its unique authorities to ensure gangs and their members are brought to justice.”
DEA Special Agent-in-Charge Hunt stated, “These alleged gang members were distributing heroin with brand names such as “Sweet Dreams,” “Pepsi,” and “Coca Cola” – three things that appeal to America’s youth. The CDC reported the heroin death rate has quadrupled in a decade, and today’s collaborative efforts demonstrate law enforcement’s commitment to arresting those responsible for trafficking heroin which ultimately opens the door to increased heroin abuse, addiction, crime, and violence.”
“This investigation is an example of multiple law enforcement agencies working together toward a common objective, which is to protect our communities from individuals who would compromise the safety and well-being of our neighborhoods through the trafficking of illegal narcotics,” said Police Commissioner William J. Bratton. “I would like to thank the NYPD Gang Squad Queens and our many law enforcement partners whose work in this investigation resulted in the charges and arrests of these alleged gang members.”
ATF Special Agent in Charge Delano A. Reid states: "The ATF is grateful to the United States Attorneys Office as well as our law enforcement partners for their assistance and investigative expertise in dismantling what once was allegedly a structured and organized heroin ring. The arrests of these alleged gang members will hopefully create a ripple effect inside their ranks and remind them that when they decide to engage in narcotics trafficking, the full weight of law enforcement will be there at every turn. "
IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said, “IRS Criminal Investigation is proud to work with our partner law enforcement agencies in the investigation of crimes that directly impact our communities, including narcotics, illegal firearms, and gang activities. We are always ready to apply our expertise to the financial aspects of investigations of criminal organizations.”
If convicted, the defendants each face a maximum sentence of life imprisonment and a $10 million fine.[2]
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Kenji Price, Lauren Elbert, and Michael Robotti are in charge of the prosecution.
The Defendants:
Name: COVEL DUNCAN
Age: 30
Residence: Queens, New YorkName: KAMEL LAMBUS
Age: 32
Residence: Queens, New YorkName: STANLEY FULLER
Age: 40
Residence: Queens, New YorkName: SHAVONA TRAPPIER
Age: 25
Residence: Queens, New YorkName: SHAKEEM POWELL
Age: 26
Residence: Queens, New YorkName: TYRAN TROTTER
Age: 20
Residence: Queens, New YorkName: HENRY CURRY
Age: 26
Residence: Queens, New YorkName: SEAN BRABRAM
Age: 46
Residence: Queens, New YorkName: TIHEEM CROCKER
Age: 40
Residence: Queens, New YorkName: SCOTT WILLIAMS
Age: 30
Residence: Queens, New YorkName: EARL DAVIS
Age: 50
Residence: Queens, New YorkName: MICHAEL SCOTT
Age: 45
Residence: Queens, New YorkName: ANDRE MITCHELL
Age: 28
Residence: Queens, New York
[1] The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
[2] Duncan faces a maximum term of imprisonment of 20 years and no minimum term of imprisonment.
New U.S. Attorney Announces Office Leadership ChangesRead the Press Release
SALT LAKE CITY – United States Attorney John W. Huber, who became U.S. Attorney for the District of Utah in mid-June after being nominated by President Obama and confirmed by the U.S. Senate, has announced his new office leadership team. The changes are effective immediately.
“The attorneys I have appointed to leadership positions in the office bring experience and sound judgment to their new responsibilities. They live in Utah neighborhoods and are committed to working with our local, state, and federal law enforcement partners to make communities safe for everyone,” Huber said.
“These changes will have immediate impact. For example, I have appointed veteran prosecutor Rob Lund as the new chief of our White Collar Section. For the past 10 years, drug cartel members have been looking over their shoulders because of Lund’s work in fighting narcotics traffickers. Now Ponzi scheme and white collar fraudsters in our state will do the same because of Lund’s dedication to bringing offenders to justice,” Huber said.
Diana Hagen, who joined the U.S. Attorney’s Office in 2001 and has been chief of the Appellate Section since 2006, will be First Assistant U.S. Attorney in the office. This is the top Assistant U.S. Attorney position in the office. Hagen has briefed hundreds of federal appeals and has personally argued more than 70 cases before the Tenth Circuit Court of Appeals. She was a member of the trial team that prosecuted Brian David Mitchell and Wanda Barzee for the kidnaping of Elizabeth Smart. She also has been active in local and federal bar associations and is the president-elect of Women Lawyers of Utah.
Andrew Choate will be Executive Assistant U.S. Attorney in the office. Choate joined the U.S. Attorney’s Office as a Special Assistant U.S. Attorney in 2010 and became an Assistant U.S. Attorney in June 2014. Prior to his new appointment, Choate worked in the office’s National Security Section as chief of the Immigration Crimes Unit and deputy section chief. He has been involved in the prosecution of several immigration fraud, national security, and domestic terrorism cases. Before joining the U.S. Attorney’s Office, he worked as Assistant Chief Counsel for the U.S. Department of Homeland Security in Salt Lake City.
Robert Lunnen has been named chief of the Criminal Division in the office. The Criminal Division is one of three divisions in the office. Lunnen joined the U.S. Attorney’s Office in 2002 after working in the Narcotics and Dangerous Drug Section at the U.S. Department of Justice. As a part of that position, Lunnen served for three years as the Judicial Attaché for DOJ in Bogota, Columbia. Lunnen later served for more than three years as the Judicial Attaché in Kabul, Afghanistan, where he was the senior DOJ official in Afghanistan, directing the Department’s Rule of Law reform program.
David Backman, who has been an Assistant U.S. Attorney for 13 years, will be deputy chief of the Criminal Division. He previously worked in the office’s Violent Crime Section and also served as Executive Assistant U.S. Attorney in the office. Backman clerked for U.S. District Court Judge Dee Benson prior to joining the office.
Jared Bennett will continue as chief of the Civil Division in the office and Dan Price will continue as deputy chief of that division.
Karin Fojtik, who has been an Assistant U.S. Attorney in the office since 2004, will be chief of the Violent Crime Section. Fojtik clerked for former U.S. District Court Judge Paul Cassell. She also was an Assistant Utah Attorney General and an assistant prosecutor in Salt Lake City and Sandy. Drew Yeates, who has been in the office for more than seven years, will be the deputy chief of the Violent Crime Section. Yeates was a deputy district attorney and an assistant city prosecutor in Utah prior to joining the office. He also has been Project Safe Neighborhoods Coordinator in the U.S. Attorney’s Office.
Robert Lund will be moving from chief of the Narcotics Section and the Organized Crime Drug Enforcement Task Force (OCDETF) in the office, a position he has had since 2007, to chief of the White Collar Section. Lund joined the U.S. Attorney’s Office in 2001 after working as a state prosecutor and private attorney. Lund is a judge advocate in the Army National Guard and teaches trial advocacy at the University of Utah law school.
Taking over as chief of the Narcotics Section and OCDETF will be Vernon Stejskal. Stejskal was an Assistant Utah Attorney General and Special Assistant U.S. Attorney from 2002 to 2012 and was assigned to the DEA Metro Narcotics Task Force. He became an Assistant U.S. Attorney in 2012 and has been working in the Narcotics Section.
Elizabethanne Stevens, who joined the Utah office in 1995 after working in the Criminal Division’s Fraud Section at the Department of Justice, will be chief of the Appellate Section in the office. Stevens has been working in the Appellate Section since 2005. Prior to joining the Appellate Section, Stevens was chief of the White Collar Section. Jeannette Swent, who has been an AUSA in the office since 1995 and has served as Civil Appellate Coordinator since 1997, will be deputy chief of the Appellate Section. Swent was chief of the office’s Civil Division for several years.
Alicia H. Cook, who joined the U.S. Attorney’s Office in October 2012 after working as a Deputy District Attorney for Salt Lake County for about 12 years, will continue as chief of the National Security Section in the office. Richard Daynes, who has been an Assistant U.S. Attorney for more than 13 years, has been appointed deputy chief of the National Security Section. Daynes has been chief of the Identity Theft Unit in the office and co-chairs the Utah Identity Theft Task Force. He was previously chief of the Asset Forfeiture Section in the office.
Tyler Murray will continue as chief of the Asset Forfeiture Section in the office. Murray joined the office in September 2008 as a member of the Affirmative Civil Enforcement section of the Civil Division where he focused on wildfire recovery litigation. He transferred to the Asset Forfeiture Section in 2012.
New Jersey Couple Convicted on Federal Child Abuse ChargesRead the Press Release
NEWARK, N.J. – A former U.S. Army major and his wife were convicted today on federal charges that they abused their adopted children, who all were less than 4 years old and developmentally delayed, through neglectful and cruel acts, including by breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Paul J. Fishman announced.
Carolyn Jackson, 37, and John E. Jackson, 40, formerly a Major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, who was discharged from the Army in May 2015, were each found guilty of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child following four months of trial before U.S. District Judge Katharine S. Hayden in Newark federal court. The jury deliberated four days before delivering the guilty verdicts.
The case falls under federal jurisdiction because the crimes were committed on a military base.
According to documents filed in this case and the evidence at trial:
From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.
After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.
As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple.
None of the children, adoptive and biological, remain in the custody of the defendants.
Carolyn and John Jackson each face a maximum potential penalty of 10 years in prison on each of the counts on which they were convicted, as well as a maximum $250,000 fine for each count. Sentencing is scheduled for Oct. 13, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s convictions. He also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock, and the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorneys Melissa L. Jampol and Joseph B. Shumofsky of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Carolyn Jackson: Rubin Sinins and Herbert Waldman Esqs., Springfield
John Jackson: David Holman and Carol Gillen Esqs., Assistant Federal Public Defenders, Newark
New Jersey Brothers Convicted of Shipping $1 Million Worth of Stolen CarsRead the Press Release
CAMDEN, N.J. – Two New Jersey men were convicted today for their roles in a large-scale conspiracy to ship stolen luxury cars to Hong Kong and elsewhere, U.S. Attorney Paul J. Fishman announced.
Andrew Clarke, 44 of Irvington, New Jersey, and Llewellyn Clarke, 42 of North Plainfield, New Jersey, were convicted on all four counts of a superseding indictment charging them each with one count of conspiracy to transport stolen motor vehicles and three counts of transportation of stolen motor vehicles in interstate and foreign commerce. They were convicted following a three-week trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for about three hours before returning the guilty verdicts.
According to documents filed in in this case and evidence presented at trial:
The stolen car exportation ring was investigated by a multi-agency task force led by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The investigation revealed that the Clarkes were purchasing stolen luxury cars from thieves operating in northern New Jersey and New York. The Clarke brothers then recruited other conspirators to “re-tag” those cars, or have fraudulent vehicle identification numbers placed on the cars to mask the fact that they were stolen, and then had false title documents produced for those cars in New Jersey and Georgia. After the fake documents were created, the Clarkes shipped several of those stolen cars, valued at nearly $1 million, from New Jersey to Hong Kong, while other cars were shipped to Georgia, Maryland and elsewhere. Once overseas or out-of-state, the stolen cars were then re-sold, some to unsuspecting buyers who later learned that their vehicles were in fact stolen.
Both defendants were detained pending their sentencing, which is scheduled for Oct.15, 2015. Both defendants face up to 35 years in prison as a result of their convictions.
U.S. Attorney Fishman credited special agents of ICE HSI, under the leadership of Executive Associate Director Peter Edge and Acting Special Agent in Charge Kevin Kelly, and the N.J. State Police, under the direction of Superintendent Col. Rick Fuentes, for the investigation leading to today’s convictions. He also thanked U.S. Customs and Border Protection; the Waterfront Commission of New York Harbor; Essex County Prosecutor Carolyn Murray, Middlesex County Prosecutor Andrew Carey, Hudson County Prosecutor Esther Suarez, and Union County Acting Prosecutor Grace H. Park, the Essex and Hudson County Sheriff’s Departments, the Newark Police Department, the U.S. Coast Guard Investigative Service, the Port Authority of New York and New Jersey, the New Jersey Motor Vehicle Commission, the Georgia Department of Revenue, and the Maryland State Police for their roles.
The government is represented by Assistant U.S. Attorney José R. Almonte and James M. Donnelly of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Andrew Clarke: Brian O’Malley Esq., Haddon Heights, New Jersey
Llewellyn Clarke: Paul Sarmousakis Esq., Avalon, New Jersey
Mill Creek Man Charged with Importing Drug Paraphernalia and Trafficking in Counterfeit GoodsRead the Press Release
A Mill Creek, Washington man was arrested today on a criminal complaint charging him with importing drug paraphernalia and trafficking in counterfeit goods following a multi-year investigation by Homeland Security Investigations, announced U.S. Attorney Annette L. Hayes. JAE SEON YOON, (AKA: Jason YOON), 55, is the president or vice-president of multiple companies doing business in Washington State: J&J, Inc. (d/b/a “Top Wholesale, Inc.”), Smomax, Inc. (d/b/a “346 Glass Pipe/Master Trading”) and Three People Corp. (d/b/a/ “Cigar USA”). The criminal complaint alleges YOON imported and distributed drug paraphernalia and other goods with counterfeit markings that made them appear to be from established suppliers. YOON allegedly used stickers with Seahawks and other NFL team logos to increase the price of the drug paraphernalia he sold. YOON was arrested this morning as part of a search of three properties where law enforcement believes the counterfeit goods were being stored. YOON will appear in U.S. District Court in Tacoma at 2:30 Wednesday July 8, 2015.
According to the criminal complaint, YOON imported drug paraphernalia from China, sometimes via Canada, by marking them as vases, laboratory glassware, or oil and vinegar dispensers. Multiple shipments were seized by law enforcement. While the items were made in China, they were falsely marked with the logos of companies who manufacture similar goods in Germany and Canada. YOON also imported e-cigarettes and chargers which bore counterfeit Underwriters Lab (U/L) markings. U/L is an American worldwide safety consulting and certification company that provides safety standards for electrical devices and components. YOON’s companies then sold the counterfeit items to small “mom and pop” type retail stores.
The criminal complaint describes how YOON also imported counterfeit Seahawks logo stickers to stick on items to increase their value, and how he trafficked in “Hello Kitty” logo items despite being served with a cease and desist letter by the registered trademark owner.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from U.S. Customs and Border Protection (CBP), the Washington State Liquor and Cannabis Control Board, and the Food and Drug Administration (FDA) Office of Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Marci Ellsworth.
Midlothian Man Sentenced to Four Years in Prison for Conspiring to Distribute Anabolic SteroidsRead the Press Release
RICHMOND, Va. – Carl E. Macchiarulo, 44, of Midlothian, Virginia, was sentenced today to 48 months in prison, followed by three years of supervised release for conspiring to distribute and possess with intent to distribute anabolic steroids. Macchiarulo was also fined $10,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division; and David McGinnis, Acting Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS), made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
Macchiarulo pleaded guilty on April 8, 2015. According to court documents, Macchiarulo operated an illegal steroid distribution business known as CK Labs out of his home in Midlothian, Virginia, between December 2012 and September 2014. In operating the business, Macchiarulo imported raw steroid powders and pills from China and other foreign countries, manufactured finished steroid products at his home, and distributed steroids to his customers through the mail. Macchiarulo advertised his business on various internet sites known to serve as a marketplace for the distribution of anabolic steroids. During the course of the conspiracy, Macchiarulo imported at least 16 kg of raw steroid powders and thousands of steroid pills, and distributed steroid products to customers located in over 30 states, including to at least one amateur athlete. As part of the plea agreement, Macchiarulo agreed to forfeit $163,455 in U.S. currency that was seized by law enforcement as proceeds of the conspiracy.
This case was investigated by the FBI’s Richmond Division and the USPIS. Assistant U.S. Attorneys Dominick S. Gerace and Erik S. Siebert prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15CR00050.
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Maryland Man Federally Indicted for Three Bank Robberies in PennsylvaniaRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Wayne Lee Brennan, 40, of Fort Howard, Maryland was indicted by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Brennan with three counts of bank robbery.
According to United States Attorney Peter Smith, the Indictment alleges that Brennan robbed three South Central Pennsylvania banks between June and September 2014: Santander Bank, Hanover; PNC Bank, Hanover; and PNC Bank, East York. At each bank, Brennan allegedly handed the teller a note demanding money but did not display a firearm. Approximately $5,000 was taken in the three robberies.
This case was investigated by the Federal Bureau of Investigation, the West Manheim Township Police Department, the Hanover Borough Police Department, and the Springettsbury Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Marina Developer Sentenced to 60 Months in Federal Prison for Defrauding the Village of Riverdale of over $370,000Read the Press Release
CHICAGO – A real estate developer who defrauded the Village of Riverdale of over $370,000 in public funds was sentenced today to 60 months in federal prison.
JOHN THOMAS, 52, of Chicago, owned and controlled Nosmo Kings LLC, which entered into an agreement with Riverdale to develop property along a marina in 2012. Only a portion of the funds were actually used for legitimate construction work. Thomas misappropriated $372,182 for his own personal use after creating and submitting fraudulent invoices for construction work that was never performed.
Thomas pleaded guilty to one count of wire fraud in May 2014. In addition to the five-year sentence, U.S. District Judge James B. Zagel ordered restitution of $372,182.
“John Thomas is a serial con man,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “Within months after release from probation from another federal conviction, the defendant set out to defraud the Village of Riverdale through the use of the village’s Tax Increment Financing program,” Harjani said.
Nosmo Kings entered into a TIF agreement with Riverdale in February 2012. Per the agreement, Thomas was required to submit documentation identifying completed construction expenses, including invoices and checks paid to vendors. Thomas created and submitted false invoices for non-existent companies and for companies that never performed work at the marina. For instance, one of the invoices requested reimbursement of $25,750 for construction supplies from a company that was actually a currency exchange to which Thomas owed money. Thomas used other TIF funds to pay personal expenses and the rent on his apartment.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Assistant United States Attorney Sunil Harjani.
Madison Woman Pleads Guilty in Scheme that Caused $558,857 Fraudulent Income Tax RefundRead the Press Release
BIRMINGHAM -- A Madison woman pleaded guilty today in federal court to theft of government property and money laundering as part of a scheme to obtain fraudulent tax refunds, including one for $558,857, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and FBI Special Agent in Charge Roger C. Stanton.
ANGELIQUE B. HARRIS, 49, entered her guilty plea before U.S. District Judge R. David Proctor. Through a related civil action, she forfeited a 2013 Lexus ES350 luxury automobile worth about $45,000 that she bought with some of the criminal proceeds. Harris' sentencing date has not been set.
A federal grand jury indicted Harris in October. She pleaded guilty to the indictment's charge that she, with the aid of others not named in the indictment, stole U.S. Treasury refunds between February 2013 and February 2014.
Harris also pleaded guilty to money laundering for using proceeds of a fraudulent October 2013 federal income tax refund of $558,857 to purchase the luxury Lexus from a Huntsville dealership. The IRS paid the refund on a tax return fraudulently filed in the name of a couple, identified in the indictment as "P. and A.O." The refund was deposited into an account Harris opened at a Huntsville bank, according to the indictment.
The maximum penalty for theft of government property and money laundering is 10 years in prison and a $250,000 fine.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield is prosecuting.
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Liberty Man Sentenced to 15 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
Tracy J. Yost, 44, of Liberty, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
On Dec. 4, 2014, Yost pleaded guilty to receiving child pornography over the Internet.
Based upon an investigation of persons using a peer-to-peer file-sharing program, investigators executed a search warrant at Yost’s residence on April 5, 2013, and seized several computer hard drives. Forensic examiners found several videos of child pornography on one of the hard drives. According to court documents, Yost was also involved in a sexually exploitative interaction with a minor.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lewisburg men get federal prison time in heroin casesRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that United States District Judge Irene C. Berger sentenced two Lewisburg men to federal prison in heroin cases today. The sentences were handed down in Beckley.
Harry Franklin Huffman II, 26, was sentenced to 27 months’ imprisonment for use of a communication facility to facilitate a felony. Huffman pleaded guilty in March, admitting that on September 23, 2014, he used a telephone in Lewisburg to help set up a drug transaction with a confidential informant. Shortly after that phone conversation, Huffman distributed heroin to the informant.
Kip Aaron Sears, 26, was sentenced to 15 months’ imprisonment for use of a communication facility to facilitate a felony. Sears also pleaded guilty in March. He admitted that on September 30, 2014, he used a telephone in Lewisburg to set up a drug transaction with an informant. Later that day Sears met with the informant and distributed a quantity of heroin.
These cases were prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down the spread of heroin and opiate painkillers in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Leader of International Prescription Drug Ring Sentenced to 15 Years in PrisonRead the Press Release
LONDON - The leader of a large-scale drug trafficking organization, which brought prescription drugs from Mexico to eastern Kentucky and northern Tennessee for nearly 15 years, has been sentenced to 180 months in federal prison.
On July 2nd, U.S. District Judge Gregory F. Van Tatenhove sentenced 60 year-old Donald Lee King, of Speedwell, Tenn., for operating a continuing criminal enterprise to distribute a controlled substance. Under federal law, King must serve at least 85 percent of his prison sentence; and following his release, he will be under the supervision of the U.S. Probation Office for five years. King has also forfeited nearly $75,000 in cash, multiple firearms, vehicles, and other property.
King admitted that, from around 1996 until September of 2013, he developed a large drug distribution network in which others, under his direction, made monthly trips to Texas to obtain large quantities of Alprolazam (Xanax). There, they obtained the drugs from conspirators who were receiving the drugs from a supplier in Mexico. The pills were then transported back to Kentucky and distributed in Bell County, Ky., and Claiborne County, Tenn. Alprozolam is a controlled substance typically used to treat anxiety.
Six co-defendants have previously pleaded guilty and been sentenced for their roles in the conspiracy.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Joseph P. Reagan, Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration (DEA), jointly made the announcement today.
The investigation was conducted by the DEA. Assistant U.S. Attorney W. Samuel Dotson represented the U.S. Attorney’s Office in this case.
Landover Man Sentenced to 11 Years in Prison for Armed Robbery ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Evan Anthony Peek-Austin, age 39, of Landover, Maryland, to 11 years in prison, followed by five years of supervised release, for conspiring to commit the robbery of a drug dealer, for using and brandishing a firearm during a crime of violence, and for carjacking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on April 11, 2014, Peek Austin and his co-conspirators Shawn Delonte Allen and Joel Varela Linares, entered the victim’s residence and awaited his arrival. As the victim arrived home, Allen approached the victim from behind and forced him at gunpoint into the residence. After zip-tying the victim’s hands, Austin, Linares and Allen questioned the victim about the location of drugs and drug proceeds. The robbers thought the victim was in possession of heroin imported from Guatemala or proceeds from heroin sales. Austin, Allen, and Linares each had a handgun and threatened to kill the victim if he did not produce the drugs or drug proceeds. While questioning the victim, Allen brandished his gun. When the victim claimed that he did not have drugs or drug proceeds, Linares placed a knife to the victim’s neck and Allen struck the victim in the head with a handgun. Allen also heated a metal spoon and placed the hot spoon on the victim’s wrists, demanding the victim tell them the location of the drugs and money.
Austin and his co-conspirators move the victim to the basement where Austin secured the victim’s feet with plastic zip ties. Allen again heated a metal spoon and placed the hot spoon on the victim’s hands and face, while Austin, Allen and Linares continued to demand that the victim tell them the location of the drugs and money. The victim finally told Austin and his co-conspirators that his American friend had the drugs and money and the robbers allowed the victim to call his friend, who was, in fact, a Special Agent with Homeland Security Investigations. The victim arranged to meet with the agent and told Austin and his co-conspirators that his friend would have approximately 10 kilograms of heroin.
Allen and Linares instructed the victim to drive them to the meeting location in Beltsville, Maryland. Linares told the victim that Austin would remain at the victim’s home to wait for the victim’s family and that Austin would harm the victim’s family if the victim did not comply with their instructions. Austin later met up with Allen, Linares and the victim at the meeting location. Once the HSI agent arrived, the victim met the agent and told him that Austin and his co-conspirators were going to kill him. As the HSI agent and the victim left, Allen got out of the car and brandished his gun. Linares entered another vehicle and pursued the agent’s car until he was stopped by Prince George’s County Police officers. Meanwhile, Austin and Allen fled the meeting location in a Honda Prelude and were pursued by law enforcement. They eventually ran away and Allen was subsequently apprehended by police. Austin approached two people in a pick-up truck, brandished his gun and carjacked the truck. Austin drove away in the truck, but was shortly trapped in the area by a gate. Austin then got out of the truck and ran. Austin was later caught by police.
A subsequent search of the Honda Prelude, which was registered to Austin, recovered $5,000 in cash, a black ski mask, black hat, black pellet gun, black single strap backpack containing zip ties and white gloves, and a wallet containing Austin’s identification documents.
Shawn Delonte Allen, age 40, of Waldorf, Maryland and Joel Varela Linares, age 25, of Washington, D.C., previously pleaded guilty to their roles in the robbery. Allen was sentenced to 150 months in prison and Linares is scheduled to be sentenced on August 18, 2015 at 10:30 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kelly O. Hayes, who prosecuted the case.
Lake Geneva Resident Charged in Second Fraud IndictmentRead the Press Release
United States Attorney James L. Santelle announced today that a two-count indictment was handed down Tuesday charging Todd Dyer, age 51, a resident of Lake Geneva, Wisconsin, with one count of wire fraud and one count of money laundering. The wire fraud count carries a maximum penalty of 20 years in prison and the money laundering count carries a maximum penalty of 10 years imprisonment.
Dyer was convicted in federal court in 1999 with charges related to his operation of a Ponzi scheme. He was sentenced to 70 months imprisonment for that conduct. Dyer and three others were charged on June 9 with running a separate scheme to defraud that resulted in various criminal counts. In that indictment, Dyer was charged in 31 counts.
According to the current indictment, Dyer defrauded a Missouri individual who was seeking funding to build a manufacturing plant. The plant was budgeted to cost $25 million. Dyer obtained $75,000 from this individual as a result of false representations and promises that Dyer had investors who could fund the entire $25 million cost. According to the indictment, Dyer had no such investors available and used the entire $75,000 for personal purposes.
The case was investigated by agents from the Internal Revenue Service Criminal Division, and agents the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Joseph R. Wall and Benjamin W. Proctor.
The public is cautioned that criminal charges do not constitute evidence of guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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KCK Man Indicted for CarjackingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for carjacking.
Stephen D. Bagley, 25, of Kansas City, Kan., was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Bagley stole a 2008 Nissan Altima at gunpoint on June 22, 2014. Bagley allegedly brandished a Glock .40-caliber pistol during the carjacking. Bagley, who has been convicted of a felony, allegedly was in possession of ammunition.
Bagley is charged with one count of carjacking, one count of using a firearm during a crime of violence and one count of being a felon in possession of ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jenkintown Payday Lender Pleads Guilty to RICO ConspiracyRead the Press Release
PHILADELPHIA - Adrian Rubin, 58, of Jenkintown, PA, pleaded guilty today to conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (“RICO”), for the operation of a “payday lending” business that violated the usury laws of Pennsylvania and other states. Rubin also admitted to conspiracy to commit mail fraud and wire fraud, and two counts of mail fraud. U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for October 28, 2015. Rubin faces a possible advisory sentencing guideline range of at least 10 years in prison with a statutory maximum sentence of 65 years in prison, three years of supervised release, a fine of up to $1 million, and a $400 special assessment.
Between 1998 and 2012, Rubin owned, controlled, financed, and/or worked for multiple businesses that issued short-term loans, commonly known as “payday loans.” Rubin conspired with other people to evade state usury laws and other restrictions on payday loans by engaging in a series of deceptive business practices that included: (a) paying a federally-insured bank, which was not subject to state laws, to pretend that it was the payday lender; (b) relocating his operations to a state considered “usury friendly;” and (c) paying an Indian tribe to pretend that it was the actual payday lender as part of a scheme to have the tribe claim that “sovereign immunity” prevent application of state usury laws and other regulations.
Rubin and his co-conspirators also went to great lengths to hide Rubin’s personal involvement in the payday lending business because he had a criminal record. Rubin, with the knowledge of his co-conspirators, incorporated his payday businesses in the names of his father-in-law and a family friend and then forged the signatures of those people on company documents. In total, Rubin and his co-conspirators reaped tens of millions of dollars from the defendant’s payday lending activities, much of which stemmed from the collection of fees that were usurious in Pennsylvania and elsewhere.
Rubin also admitted helping his two sons with their own multi-million-dollar telemarketing scam that duped more than 70,000 people into buying a credit card http:/www.justice.gov/usao-edpa/pr/trio-charged-selling-worthless-credit-cards. The Platinum Trust card was falsely marketed as a general-purpose credit card that customers could use to buy merchandise over the Internet and improve their credit. Blake and Chase Rubin pleaded guilty and are awaiting sentencing.
This case was investigated by the FBI, the United States Postal Inspection Service, and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Joel M. Sweet.
Investment Company Executives Indicted for $1.5 Billion Ponzi SchemeRead the Press Release
The president and chief executive officer and two former Asia-based executives of a Las Vegas investment company were indicted today for their roles in an alleged $1.5 billion Ponzi scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Division made the announcement.
“The defendants allegedly preyed on thousands of unsuspecting Japanese victims to enrich themselves by operating a billion-plus dollar Ponzi scheme,” said Assistant Attorney General Caldwell. “This prosecution shows that the Criminal Division will pursue not only those who victimize American citizens, but also those who use the U.S. as a home base to defraud victims abroad.”
“Investment fraud and other financial fraud cases are a high priority for the U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden. “These defendants are accused of using a Nevada corporation to conduct their $1.5 billion fraud scheme and falsely telling thousands of overseas victims that their investments would be safely held and managed by an independent, third-party escrow agent in Nevada. Fraudulent ruses and schemes perpetrated by Nevadans using Nevada corporations and entities will continue to be addressed by this office.”
“These indictments are a reminder of the FBI’s determination to identify, investigate and bring to justice those who are committing financial crimes against innocent consumers,” said Special Agent in Charge Bucheit. “We are appreciative of the continued support we receive from our international, federal, state and local law enforcement partners.”
Edwin Fujinaga, 68, of Las Vegas; Junzo Suzuki, 66, of Tokyo; and Paul Suzuki, 36, of Tokyo, were charged in an indictment with eight counts of mail fraud and nine counts of wire fraud. Fujinaga also is charged with three counts of money laundering. The indictment seeks from all three defendants forfeiture of the proceeds from the alleged crimes.
Fujinaga was the president and CEO of Las Vegas-based MRI International Inc. (MRI). Junzo Suzuki previously was MRI’s executive vice president for Asia Pacific, and Paul Suzuki previously was the company’s general manager for Japan operations. MRI purportedly specialized in “factoring,” whereby the company purchased accounts receivable from medical providers at a discount, and then attempted to recover the entire amount, or at least more than the discounted amount, from the debtor.
According to allegations in the indictment, from at least 2009 to 2013, Fujinaga and the Suzukis fraudulently solicited investments from thousands of Japanese residents, and MRI currently owes investors over $1.5 billion. Specifically, the indictment alleges that Fujinaga and the Suzukis promised investors a series of interest payments that would accrue over the life of the investment and that would be paid out along with the face value of the investment at the conclusion of the investments’ duration. The defendants allegedly solicited investments by, among other things, promising investors that their investments would be used only for the purchase of medical accounts receivable (MARS) and by representing that investors funds would be managed and safeguarded by an independent third-party escrow company.
The indictment further alleges that MRI operated as a Ponzi scheme, wherein the defendants used new investors’ money to pay prior investors’ maturing investments. According to the indictment, the defendants also allegedly used investors’ funds for purposes other than the purchase of MARS, including paying themselves sales commissions, subsidizing gambling habits, funding personal travel by private jet, and other personal expenses.
The charges contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI’s Las Vegas Division. Significant assistance was provided by the U.S. Securities and Exchange Commission, the Criminal Division’s Office of International Affairs and Japanese authorities. This case is being prosecuted by Assistant Chief Albert B. Stieglitz Jr. and Trial Attorney Melissa Aoyagi of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada.
If you believe you are a victim of this offense, please click on the following link for more information: justice.gov/usao-nv/united-states-v-edwin-fujinaga-junzo-suzuki-and-paul-suzuki-mri.
MRI Indictment
Investment Company Executives Indicted for $1.5 Billion Ponzi SchemeRead the Press Release
WASHINGTON – The president and chief executive officer and two former Asia-based executives of a Las Vegas investment company were indicted today for their roles in an alleged $1.5 billion Ponzi scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Division made the announcement.
“The defendants allegedly preyed on thousands of unsuspecting Japanese victims to enrich themselves by operating a billion-plus dollar Ponzi scheme,” said Assistant Attorney General Caldwell. “This prosecution shows that the Criminal Division will pursue not only those who victimize American citizens, but also those who use the U.S. as a home base to defraud victims abroad.”
“Investment fraud and other financial fraud cases are a high priority for the U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden. “These defendants are accused of using a Nevada corporation to conduct their $1.5 billion fraud scheme and falsely telling thousands of overseas victims that their investments would be safely held and managed by an independent, third-party escrow agent in Nevada. Fraudulent ruses and schemes perpetrated by Nevadans using Nevada corporations and entities will continue to be addressed by this office.”
“These indictments are a reminder of the FBI’s determination to identify, investigate and bring to justice those who are committing financial crimes against innocent consumers,” said Special Agent in Charge Bucheit. “We are appreciative of the continued support we receive from our international, federal, state and local law enforcement partners.”
Edwin Fujinaga, 68, of Las Vegas; Junzo Suzuki, 66, of Tokyo; and Paul Suzuki, 36, of Tokyo, were charged in an indictment with eight counts of mail fraud and nine counts of wire fraud. Fujinaga also is charged with three counts of money laundering. The indictment seeks from all three defendants forfeiture of the proceeds from the alleged crimes.
Fujinaga was the president and CEO of Las Vegas-based MRI International Inc. (MRI). Junzo Suzuki previously was MRI’s executive vice president for Asia Pacific, and Paul Suzuki previously was the company’s general manager for Japan operations. MRI purportedly specialized in “factoring,” whereby the company purchased accounts receivable from medical providers at a discount, and then attempted to recover the entire amount, or at least more than the discounted amount, from the debtor.
According to allegations in the indictment, from at least 2009 to 2013, Fujinaga and the Suzukis fraudulently solicited investments from thousands of Japanese residents, and MRI currently owes investors over $1.5 billion. Specifically, the indictment alleges that Fujinaga and the Suzukis promised investors a series of interest payments that would accrue over the life of the investment and that would be paid out along with the face value of the investment at the conclusion of the investments’ duration. The defendants allegedly solicited investments by, among other things, promising investors that their investments would be used only for the purchase of medical accounts receivable (MARS) and by representing that investors funds would be managed and safeguarded by an independent third-party escrow company.
The indictment further alleges that MRI operated as a Ponzi scheme, wherein the defendants used new investors’ money to pay prior investors’ maturing investments. According to the indictment, the defendants also allegedly used investors’ funds for purposes other than the purchase of MARS, including paying themselves sales commissions, subsidizing gambling habits, funding personal travel by private jet, and other personal expenses.
The charges contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI’s Las Vegas Division. Significant assistance was provided by the U.S. Securities and Exchange Commission, the Criminal Division’s Office of International Affairs and Japanese authorities. This case is being prosecuted by Assistant Chief Albert B. Stieglitz Jr. and Trial Attorney Melissa Aoyagi of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada.
If you believe you are a victim of this offense, please click on the following link for more information: justice.gov/usao-nv/united-states-v-edwin-fujinaga-junzo-suzuki-and-paul-suzuki-mri
Ida Grove Man Charged with Methamphetamine ConspiracyRead the Press Release
Nathan Paulsen, 28, from Ida Grove, Iowa, has been charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. The charges are contained in an Indictment filed on June 17, 2015, in United States District Court in Sioux City.
The Indictment alleges that, from about 2012 through June 2015, Paulsen conspired to distribute 500 grams or more of methamphetamine mixture; and on or about June 6, 2014, he possessed with intent to distribute 500 grams or more of methamphetamine mixture.
If convicted on all charges, Paulsen faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $200 in special assessments, and at least five years of supervised release following any imprisonment.
Paulsen appeared on June 26, 2015, in federal court in Sioux City and was held without bond. Paulsen’s next appearance for trial is set for August 3, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Ida County Sheriff’s Office, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-4038.
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Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
ESMIN ESPINOZA-ERAZO, age 25, a citizen of Honduras who currently resides in Hammond, Louisiana, was sentenced today after previously pleading guilty to a one-count Indictment for illegal use of a Social Security Number, announced U. S. Attorney Kenneth Allen Polite, Jr. today.
U.S. District Judge Kurt D. Engelhardt sentenced ESMIN ESPINOZA-ERAZO to 27 months imprisonment followed by 3 years of supervised release, a $2,500 fine, and a $100 special assessment.
According to the Indictment, on or about July 16, 2013, ESMIN ESPINOZA-ERAZO submitted a social security number that did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana identification card. Based on that false submission, an employee with the Department of Motor Vehicles issued ESMIN ESPINOZA-ERAZO a Louisiana identification card.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Harrisburg Man Indicted for 14 Central Pennsylvania Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man was indicted by a federal grand jury in Harrisburg on charges of committing 14 bank robberies in 4 central Pennsylvania counties from November 2014 through February 2015.
According to United States Attorney Peter Smith, Andre Mosley, age 47, was charged with robbing 14 financial institutions in Dauphin, Cumberland, Franklin and York Counties from late 2014 through February of 2015. The total amount taken is estimated at approximately $52,000. The institutions were:
Members 1st Federal Credit Union, Harrisburg
Fulton Banks, two Harrisburg branches
Mid-Penn Bank, two Harrisburg branches
M&T Bank, Harrisburg
Patriot Federal Credit Union, Chambersburg
PNC Bank, Carlisle
Members 1st Federal Credit Union, Carlisle
Citizens Bank, Highspire
Fulton Bank, Hummelstown
Santander Bank, Red Lion
Northwest Savings Bank, York
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation’s Violent Crimes Task Force, the Harrisburg Police Department, the Pennsylvania State Police and local and municipal police departments in the communities where the financial institutions were located. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Federally Indicted for Drug and Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyler Brookin-Jones, 24, of Harrisburg, Pennsylvania, was indicted by a federal grand jury in Harrisburg. The indictment charges Brookin-Jones with distribution of a controlled substance and possession of a firearm by a convicted felon.
According to United States Attorney Peter Smith, the charges against Brookin-Jones are a result of allegations that Brookin-Jones distributed cocaine base, also known as “crack cocaine,” on two occasions in Harrisburg in April of 2015. Law enforcement officers later found Brookin-Jones in possession of a stolen firearm.
This case is being investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenville Man Sentenced for Drug ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced RANDALL STREETER, 38,of Greenville, North Carolina, to 141 months in prison and 6 years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin, cocaine and crack cocaine. STREETER previously pled guilty to these charges on March 10, 2015.
The Greenville Regional Drug Task Force used a confidential informant to buy heroin from STREETER on three occasions in May 2014. After the last purchase on May 29, 2014, detectives arrested STREETER and found STREETER in possession of heroin, crack cocaine and Percocet pills. The investigation revealed that STREETER was responsible for trafficking 9.12 grams of heroin, 70 grams of cocaine, 1 gram of crack cocaine and 2 Percocet pills. STREETER faced an enhanced sentence due to his status as a career offender based on his prior convictions. STREETER’S prior felony convictions include two counts of conspiracy to commit armed robbery, indecent liberties with a child, possession of cocaine and two counts of selling cocaine.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Glen Dale, WV man convicted of selling oxycodoneRead the Press Release
WHEELING, WEST VIRGINIA – Jacob Kessler, 25, of Glen Dale, West Virginia, was convicted of oxycodone trafficking in federal court today, United States Attorney William J. Ihlenfeld, II announced.
An investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Kessler sold oxycodone on multiple occasions in 2013, including a sale in February of 2013 near West Virginia Northern Community College.
Kessler pled guilty today to one count of “Distribution of Oxycodone within 1,000 feet of a Protected Location.” He faces up to forty years in prison and a fine of up to $2,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
U.S. Senior District Court Judge Frederick P. Stamp, Jr., presided.
Four Plead Guilty to Oxycodone DistributionRead the Press Release
DONALD FONTENOT, age 61; JOSEPH POUNDS, age 47; EDGAR POUNDS, age 65; and HOUSTON COTTON, age 67; residents of Bogalusa, Louisiana, each pled guilty today to multiple federal charges of selling Roxicodone 30mg tablets to an undercover Drug Enforcement Administration agent, announced U. S. Attorney Kenneth Allen Polite, Jr. Roxicodone is a branded formulation of oxycodone, a prescription-only Schedule II drug controlled substance and a highly addictive and abused semi-synthetic opioid.
According to court documents, DEA conducted the undercover drug purchases as part of an investigation into reports of widespread illegal street sales of Roxicodone pills in and around the City of Bogalusa. The investigation showed that Roxicodone 30mg tablets were being sold by pill traffickers for approximately twenty-five to thirty dollars ($25-30) per tablet. Agents further learned that many of these sellers were patients or close associates of patients of Clinic A, an unregistered pain management clinic operating as a ‘pill mill,’ dispensing Roxicodone prescriptions in exchange for cash outside the scope of professional medical practice and not for a legitimate medical purpose. Clinic A changed locations multiple times during the investigation, operating at times in the New Orleans area and in Kiln, Mississippi, and also changed names on paper, although no signage was ever posted outside the clinic stating the clinic’s name or otherwise indicating that a medical practice was operating therein.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for October 14, 2015. Each defendant faces a sentence of up to twenty years imprisonment per count. Five other defendants are charged in the Indictment, and trial is scheduled for July 27, 2015.
U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Four More Waco Area Aryan Brotherhood Members and Associates Sentenced to Prison for Role in Methamphetamine Distribution OperationRead the Press Release
In Waco, a federal district judge sentenced four Aryan Brotherhood (AB) members and associates to federal prison for their roles in a methamphetamine distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
This afternoon, United States District Judge Walter S. Smith sentenced:
- Henry David Walker (aka “Stalker”), age 52, of Temple, TX, to 211 months imprisonment followed by five years of supervised release and ordered him to pay a $2,000 fine;
- Jose Rodriguez, age 25, a resident alien living in Dallas, to 120 months imprisonment followed by three years of supervised release and ordered him to pay a $1,000 fine;
- Vicky Kay Levy, age 52, of Belton, TX, to 70 months imprisonment followed by three years of supervised release and ordered to pay a $1,000 fine; and,
- Ronnie Knepler, age 54, of Belton, to 60 months imprisonment followed by four years of supervised release and ordered to pay a $1,000 fine.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
To date, 29 individuals have been sentenced in connection with this investigation to imprisonment ranging from 21 months to 35 years in federal prison. Sentencings for three co-defendants are pending. Sylvia O’Neal, age 41, of Temple, is scheduled to be sentenced on August 5, 2015. Amanda Petrie, age 35, of Temple, is set for 1:00pm on August 12, 2015. Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 2, 2015.
All of the defendants named above pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Robert Eaton also pleaded guilty to one count of possession of a firearm during a drug trafficking crime and one count of felon in possession of a firearm. David Henry Walker also pleaded guilty to two counts of felon in possession of a firearm. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation. Both remain in federal custody awaiting jury selection and trial scheduled for August 17, 2015, before Judge Smith. Cooper and Voerhis are charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine and face between five and 40 years imprisonment upon conviction.
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
Four Men Sentenced for the Armed Robbery of Armored Truck EmployeesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Antonio Lamar Cooper, age 28, and Juwan Armarni Watkins, age 22, both of Washington, D.C., yesterday to 241 months in prison, and 210 months in prison, respectively, for interfering with interstate commerce by the armed robbery of employees who were transporting money in an armored truck, and using a firearm during the robbery. On July 6, 2015, Judge Hazel sentenced Maurice Lorenzo Foreman, age 24, of Oxon Hill, Maryland, and Eugene Robert Watkins, age 23, of Washington, D.C., to 255 months in prison, and 14 years in prison, respectively, for the same crimes.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to their plea agreements and court documents, on January 15, 2014 the defendants drove a stolen vehicle to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well. The defendants, all or some of whom were wearing masks and brandishing firearms, robbed the employees of $72,106.54 in cash, $4,028.81 in checks, and personal property.
During their escape, a citizen who witnessed the robbery followed the defendants from the scene and called 911 while in pursuit. The defendants realized that the witness was following them and shot at the witness, hitting the windshield and body of the witness’ vehicle several times. During that shooting, the witness was struck in the face by glass and/or bullet fragments.
According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner, Michael T. Packard and William D. Moomau, who prosecuted the case.
Former Security Officers Union Local President Charged with FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Harrisburg charging the former president of the United Government Security Officers of America (UGSOA) Local 304 with stealing almost $67,000 in union funds during an eleven month period that he held the office.
According to United States Attorney Peter Smith, on over a hundred occasions between December 15, 2009 and November 16, 2010, Howard Royal, age 50, of Steelton, Pennsylvania, abused his position as the union president to make fraudulent unauthorized electronic transfers and withdrawals of $66,989.02 of the labor organization’s money. UGSOA represents security officers in state government agencies throughout Pennsylvania. Local 304 is headquartered in Harrisburg.
The investigation was conducted by U.S. Department of Labor and prosecution was assigned to Assistant United States Attorney Peter Hobart.
The government filed a plea agreement together with the Criminal Information. The agreement is subject to the approval of the court.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Wire Fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former President of Townsend Controls Inc. Sentenced to Prison for Failing to Pay over $3.3 Million in Federal Employment Taxes and InterestRead the Press Release
A Burbank, Washington, businesswoman was sentenced yesterday to serve more than three years in prison following her February 2015 conviction of 10 counts of failing to pay over federal employment taxes to the Internal Revenue Service (IRS) after a five-day jury trial in U.S. District Court for the Eastern District of Washington, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael C. Ormsby of the Eastern District of Washington.
Maria Elizabeth Townsend, 39, was sentenced by U.S. District Court Judge Thomas O. Rice to serve 40 months in prison to be followed by three years of supervised release, and ordered to pay $3,327,124.49 in restitution to the IRS for employment taxes due and owing plus interest for her 10 counts that she was convicted of in the indictment, a $1,000 special assessment and $8,048.49 in prosecution costs. At the conclusion of yesterday’s sentencing hearing, Judge Rice remanded Townsend to the custody of the U.S. Marshals Service.
“Holding business owners accountable who willfully evade their employment tax obligations to line their own pockets is among the Tax Division’s highest priorities,” said Acting Assistant Attorney General Ciraolo. “These offenders, who not only steal from the United States, but also take advantage of honest competitors, will be prosecuted to the fullest extent of the law, and like Ms. Townsend, will face incarceration and substantial financial penalties.”
“The sentence imposed in this case reflects the seriousness of ‘white collar’ crime and that those accused of failing to pay over payroll taxes deducted from their employee’s pay checks to the IRS will be fairly and justly held accountable for their criminal conduct,” said U.S. Attorney Ormsby. “This case is yet another example of the commitment of the U.S. Attorney’s Office to prosecute aggressively fraud cases in the Eastern District of Washington. IRS-Criminal Investigation is commended for its tireless efforts in thoroughly investigating this case.”
“Employers who do not withhold employment taxes are not only cheating the government, they are cheating their own employees and creating financial problems for them,” said Chief Richard Weber of IRS-Criminal Investigation. “Ms. Townsend chose to ignore her duty to timely file and pay employment taxes and now has to pay the consequences. Investigating employment tax crimes remains one of IRS-CI’s highest priorities, keeping the playing field level for all businesses in the United States who obey the law and pay their taxes.”
According to information disclosed in court documents and at trial, Townsend was the president and majority shareholder of Townsend Controls Inc. (TCI), a Pascoelectrical contractor. Over time, TCI grew from a small company of 15 employees to more than 150 employees by 2008. The majority of TCI’s employees were members of Local 112 of the International Brotherhood of Electrical Workers Union (Local Union 112). Townsend was responsible for TCI’s operations and finances, and was required to file the Employer’s Quarterly Federal Tax Returns (IRS Forms 941) and pay over to the IRS the company’s federal income, social security and Medicare taxes, known as Federal Insurance Contribution Act (FICA) taxes, that were withheld from the wages of TCI’s employees. For 16 tax quarters, between Oct. 1, 2005, and Sept. 30, 2009, Townsend withheld $3,361,246 in federal employment taxes from the wages of Local Union 112 TCI employees, as well as TCI’s non-union employees, and failed to pay over those taxes due and owing to the IRS. In addition to failing to pay over the taxes due and owing, Townsend also did not file any Forms W-2 for her employees for 2007 and 2008 with the Social Security Administration.
Between April 2007 and September 2009, rather than pay the accumulating employment taxes due to the IRS, Townsend authorized the disbursement of more than $31 million in TCI funds to pay vendors and other business and personal expenses. Specifically, using TCI’s funds, Townsend paid TCI’s vendors and employees; paid a dividend of approximately $200,000 to one of her partners who co-signed a business loan; disbursed $300,000 towards the payment of her joint personal income tax obligations; disbursed more than $260,000 in funds to family members; and spent $22,000 to construct a pool at her residence, $30,000 to purchase a boat, $30,000 to purchase a Cadillac Escalade, $42,982 to purchase a Jeep Commander, $14,850 to purchase a timeshare at Walt Disney World and to fund various physical improvements to TCI’s headquarters.
During court proceedings, a psychiatrist for Townsend testified that she was suffering from multiple psychiatric disorders that paralyzed her when it came to being able to pay over the quarterly employment taxes to the IRS, despite receiving quarterly notices from the IRS that taxes were due and owing. At sentencing, Judge Rice credited the testimony of the psychiatrist who testified for the government and commented that in every other aspect of her life, Townsend was functioning, which included paying the company’s state tax obligations.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney George J.C. Jacobs III of the Eastern the District of Washington and Trial Attorney Lisa L. Bellamy of the Tax Division, who are prosecuting the case.
Former North Carolina House of Representative Sentenced for Theft from A Non-ProfitRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, 51, of Kinston, North Carolina, was sentenced to 24 months imprisonment followed by 2 years of supervised release. The sentence relates to his theft and embezzlement of hundreds of thousands of dollars from a non-profit of which he served as the Executive Director. Additionally, LAROQUE was ordered to pay $300,000 in criminal restitution to the U.S. Department of Agriculture (USDA) and was fined $5,000.
On January 26, 2015, LAROQUE pled guilty to one count of theft, embezzlement, and misapplication of $150,000 in USDA funds that had been loaned to East Carolina Development Company (“ECDC”), a nonprofit organization based in Kinston, North Carolina. LAROQUE served as Executive Director of ECDC, which was created to provide loans to small rural businesses using federal funds. LAROQUE used his fiduciary position as head of the non-profit to steal and embezzle the federal funds. As part of his plea, LAROQUE agreed to pay back $300,000 in criminal proceeds to the USDA.
According to the Indictment in this case, LAROQUE accomplished his $300,000 theft through four disbursements made by ECDC under the guise of loans to LAROQUE’s wholly-owned company, LaRoque Management Group (LMG). A review of bank records established that such funds were funneled through LMG and then used for LAROQUE’S personal benefit, including his investment in an ice skating rink in Greenville and the purchase of rental property in Kinston.
On June 7, 2013, after a three-week trail, a jury found LAROQUE guilty on each of the twelve counts. Later, the court granted a new trial based on an issue regarding a juror’s internet research during deliberations. The guilty plea came less than a week prior to the second trial.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, and the Federal Bureau of Investigation. Assistant United States Attorneys, Dennis M. Duffy and Adam F. Hulbig prosecuted the case.
Former Murray County Judge Sentenced to Five Years in Federal PrisonRead the Press Release
ROME, Ga. – Former Murray County, Georgia, Chief Magistrate Judge Bryant L. Cochran has been sentenced to federal prison for orchestrating the false arrest of a woman who had been sexually propositioned by Cochran, for tampering with a witness, for sexually assaulting a county employee, and for illegally searching a county employee’s personal cell phone.
“Cochran completely abused the trust given to him by the good citizens of Murray County,” said Acting United States Attorney John A. Horn. “Cochran used the power of the bench to victimize a citizen seeking justice and to exploit his staff. There is no greater breakdown in the justice system than when the judge himself violates other citizens’ rights to simply advantage himself.”
“This sentencing concludes a lengthy investigation that not only ended the career of former Murray County Chief Magistrate Judge Cochran, but also the careers of two Murray County law enforcement officers,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “While the criminal actions of these individuals are disheartening, in the end, truth and justice prevailed.”
“Being in a position to uphold and enforce the law does not mean you are above the law,” said Vernon Keenan, Director, Georgia Bureau of Investigation. “The GBI will continue to work with the FBI and the U.S. Attorney's office to investigate and hold accountable those who are involved in corruption, regardless of their position.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: From January 1, 2004, to August 15, 2012, Bryant Cochran served as the Chief Magistrate Judge in Murray County, Georgia.
In that position, on April 9, 2012, Cochran met with a female citizen regarding a routine legal matter. During the meeting, Cochran made inappropriate sexual advances towards the citizen, including an offer to trade sex for a favorable legal ruling. By mid-July 2012, the allegations of Cochran’s sexual misconduct towards the citizen had become public and gained significant media coverage. In response, Cochran called at least six local and state police officers providing them with a so-called “tip” – that the citizen carried drugs in her vehicle. Cochran also encouraged several of the police officers to stop the citizen because pulling her over would assist Cochran and would dissipate the heat caused by her complaint.
In a further effort to discredit the citizen, Cochran conspired with Clifford J. Joyce (who was Cochran’s tenant) to have the citizen framed for drug possession. Specifically, on or about August 12, 2012, Joyce planted a metal tin containing five packets of methamphetamine under the fender of the citizen’s car.
Two days later, on August 14, 2012, Murray County Sheriff’s Office Deputy Joshua Greeson (who has since been convicted of witness tampering) conducted a traffic stop on a car occupied by the citizen. During the traffic stop, several officers and a police drug dog searched the car for approximately ten minutes – but did not find any drugs. Thereafter, Captain Michael Henderson, who is Cochran’s cousin and who has also been convicted of witness tampering, had an approximately two-minute telephone conversation with Cochran. Following that call, Henderson told an officer at the scene that according to his information; the citizen hid her drugs in a magnetic box under the left, rear tire well. Upon receiving that information, Greeson found the metal box magnetically attached to the car in that precise location. Inside the box, Greeson recovered five small packets containing methamphetamine. Greeson then told the citizen that he had recovered drugs from her car. At that point, the citizen stated that she had been set up by Judge Cochran or Joyce. Despite this, Greeson arrested the citizen and transported her to jail.
On August 15, 2012, the day after the arrest, Cochran resigned his position as Murray County’s Chief Magistrate Judge. On August 22, 2012, Joyce admitted to law enforcement officers that he planted drugs – after which the local District Attorney dismissed the charges against the woman. Finally, in an apparent effort to cover up the framing of the woman, Cochran tried to persuade a witness to provide false information to law enforcement officers.
As the Chief Magistrate Judge, Cochran also sexually assaulted a Murray County court employee and unlawfully searched the personal cellular telephone of another Murray County employee.
On May 13, 2014, a federal grand jury indicted Cochran, 45, of Chatsworth, Georgia for: (1) conspiracy against rights; (2) deprivation of rights under color of law, (3) conspiracy to distribute a controlled substance, and (4) tampering with a witness. The trial of Cochran began on December 2, 2014, and on December 11, 2014, the jury returned guilty verdicts on all counts (after one day of deliberations).
Bryant L. Cochran was sentenced to five years in prison, followed by three years of supervised release, and 100 hours of community service.
This case also resulted in the following convictions:
- On December 13, 2013, Clifford J. Joyce, of Murray County, Ga., was sentenced to one year, six months in prison for conspiring to distribute a controlled substance.
- On October 30, 2013, Michael Henderson, of Murray County, Ga., was sentenced to one year and one day in prison for tampering with a witness.
- On September 25, 2013, Joshua Greeson, of Murray County, Ga., was sentenced to 10 months in prison for tampering with a witness.
This case was investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and William L. McKinnon, Jr. prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
Former Military Contractor Sentenced to 54 Months in Prison for Paying Bribe to Army Officer During Iraq WarRead the Press Release
A former military contractor who ran two Kuwaiti companies during the Iraq War was sentenced today to 54 months in prison for paying a $15,000 bribe to a lieutenant in the Army National Guard in exchange for the award of a contract. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania made the announcement.
George H. Lee, 71, of Philadelphia, was sentenced by U.S. District Judge Joel H. Slomsky of the Eastern District of Pennsylvania.
In connection with his guilty plea, Lee admitted that, as the president and chief executive officer of American Logistics Services (ALS), a Kuwaiti company providing supplies to the U.S. military in Iraq, he paid a $15,000 bribe to former Lieutenant Markus E. McClain in exchange for favorable official action in the awarding of an extension of a lucrative bus contract to ALS. Specifically, Lee admitted that, in August 2004, several of his employees met with former Lieutenant McClain at Camp Arifjan, Kuwait, and offered McClain $15,000 and a Rolex watch in exchange for former Lieutenant McClain’s assistance in getting the contract extension to ALS. Former Lieutenant McClain ultimately accepted the bribe payment.
During the sentencing hearing, the court also made specific findings that Lee directed the payment of over $1 million in bribes to other Army personnel.
Former Lieutenant McClain previously pleaded guilty to one count of accepting a gratuity, and will be sentenced on Oct. 23, 2015. In addition, Lee’s son, Justin Lee, previously pleaded guilty to one count of conspiracy to commit bribery and four counts of bribery for his role in the scheme, and is scheduled to be sentenced on Oct. 29, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Defense Criminal Investigative Service and the U.S. Department of Homeland Security Immigration and Customs Enforcement, and previously was investigated by the Office of the Special Inspector General for Iraq Reconstruction. The case is being prosecuted by Trial Attorneys John Keller and Richard Evans of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Office of the Eastern District of Pennsylvania.
Fitchburg Man Sentenced for Attempting to Take Delivery of over 500 Pounds of MarijuanaRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today that Todd Burke, 52, of Fitchburg, Massachusetts, was sentenced today to 28 months in prison by the United States District Court. The court’s sentence was less than the otherwise applicable guideline of 46 months based on the court’s findings that Burke did not profit from his criminal activity, that he was unlikely to recidivate, and that he lacked a criminal history.
Burke pleaded guilty on March 28, 2015, to attempted possession of marijuana with intent to distribute.
According to documents filed in federal court, federal agents located a pallet of boxes that contained approximately 263 kilograms (approximately 579 pounds) of marijuana in Vermont in September of 2014. Agents learned that the marijuana was scheduled to be delivered to a business in Peterborough, New Hampshire. Burke was arrested on September 24, 2014, after he traveled to Peterborough and attempted to take possession of the marijuana. Agents later recovered additional quantities of marijuana and hashish at Burke’s residence in Fitchburg.
In addition to the 28 months of incarceration, Burke was sentenced to serve three years of supervised release after completion of his prison sentence. During the period of supervised release, Burke’s behavior will be monitored by the United States Probation and Pretrial Services Office. Burke also agreed to forfeit his interest in a piece of real estate in Fitchburg to the United States.
This case was investigated by Drug Enforcement Administration, the Fitchburg Police Department and the Peterborough Police Department. It was prosecuted by Assistant United States Attorney John J. Farley.
Fifth Monroe County Defendant Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a fifth Monroe County defendant pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, in connection with a methamphetamine-trafficking ring.
According to United States Attorney Peter J. Smith, Anthony Ianuale, age 43, of Sciota, admitted to aiding the distribution of methamphetamine in the Monroe County area in 2014.
Ianuale was one of seven persons indicted by a federal grand jury in April 2014, after an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department.
Previously, Scott Borushak, age 51, Emmanuel Tucker, age 39, both of Stroudsburg, and Fred Baumgartner, age 34, of Kresgeville, pleaded guilty and admitted to participating in the trafficking. Jeannine Altemose, age 53, of Stroudsburg, previously entered a guilty plea and admitted to allowing methamphetamine to be distributed and stored in her residence. The charges against the remaining defendants are currently pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal and Local Law Enforcement Execute Search Warrants at Large Scale Commercial Marijuana Cultivation Facilities on Tribal LandsRead the Press Release
SACRAMENTO, Calif. — Earlier today, special agents with the Bureau of Indian Affairs (BIA) and the Drug Enforcement Administration (DEA), assisted by other federal and state agencies and the Modoc County Sheriff’s Office, conducted a search of two large-scale marijuana cultivation facilities located on federally recognized tribal lands at the Alturas Indian Rancheria and the XL Ranch in Modoc County, United States Attorney Benjamin B. Wagner announced. At both sites, law enforcement seized a total of at least 12,000 marijuana plants and over 100 pounds of processed marijuana. Other than contraband marijuana and items of evidentiary value, no tribal property was seized, and no federal charges are pending.
The search warrants are part of an ongoing investigation relating to the financing and management of the commercial marijuana-cultivation projects. The search warrant affidavits were unsealed today. While it is generally the policy of the U.S. Attorney’s Office to decline commenting upon ongoing investigations, exceptions are sometimes made when a matter has received substantial publicity and there is a need to inform the community regarding law enforcement actions taken in furtherance of particular public interests. The marijuana grows in question have received substantial attention in Modoc County, as has the U.S. Department of Justice’s guidance relating to marijuana cultivation on tribal lands.
The cultivation facility at the Alturas Indian Rancheria was located within the tribe’s former Event Center, within approximately 100 yards of the tribe’s publicly operated gaming facility, the Desert Rose Casino. The facility on the XL Ranch was immediately adjacent to Highway 395 and the banks of the Pit River, and it consisted of 40 newly constructed greenhouse structures, each of which was capable of accommodating approximately 1,000 marijuana plants, and an additional gable-roofed structure that boosted the square footage of roof-covered structures by another 50 percent. Both of the grow operations, which appear to have been operating in conjunction with each other, were well in excess of the locally enacted marijuana cultivation limits applicable to county land. The volume of marijuana that the XL facility alone was capable of producing, estimated at approximately 40,000-60,000 plants, far exceeds any prior known commercial marijuana grow operation anywhere within the 34-county Eastern District. According to tribal representatives, all of the marijuana cultivated at both facilities was intended to be distributed off tribal lands at various unidentified locations. As indicated in the search warrant affidavits, the investigation to date indicates both operations may have been financed by a third-party foreign national.
The United States Attorney’s Office follows Department of Justice guidelines in exercising its prosecutorial discretion and evaluating the need for investigative and enforcement action with respect to potential violations of federal law. The investigation of the cultivation facilities searched today indicates that both are commercial marijuana cultivation projects operated with the intent to transport large quantities of marijuana off tribal lands for distribution at various locations yet to be identified by the tribes. These facts raise multiple federal enforcement concerns, including the diversion of marijuana to places where it is not authorized and potential threats to public safety, both of which are listed priorities in Department of Justice guidelines. These concerns are only heightened when the activity occurring off tribal lands is not subject to effective state or local regulation.
Consistent with Department of Justice guidelines and the federal government’s trust relationship with recognized tribes, the U.S. Attorney’s Office consulted with members and representatives of both tribes on multiple occasions before today’s action. The U.S. Attorney’s Office reminded the tribes that the cultivation of marijuana is illegal under federal law and that anyone engaging in such activity did so at the risk of enforcement action. The U.S. Attorney’s Office also expressed concern that large-scale commercial marijuana grows on tribal lands have the potential to introduce quantities of marijuana in a manner that violates federal law, is not consistent with California’s Compassionate Use Act, and undermines locally enacted marijuana regulations. The U.S. Attorney’s Office stated that this potential was a concern for local law enforcement throughout the Eastern District and potentially warranted federal action. search warrant (1.63 MB)
Farmington Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Michael Graham, 42, of Farmington, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to being a felon in possession of firearms and ammunition.
Graham was charged in an indictment on Aug. 26, 2014, with being a felon in possession of firearms and ammunition on Feb. 9, 2014 in San Juan County, N.M. Graham was prohibited at the time from being in possession of firearms or ammunition because he had previously been convicted of accessory to bringing contraband into a jail, aggravated assault, and being a felon in possession of a firearm.
During today’s proceedings, Graham pled guilty to the indictment under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Graham admitted that on Feb. 9, 2014, in Farmington, he possessed a loaded pistol with an obliterated serial number. Graham admitted knowing that as a convict felon, he was prohibited from possessing firearms or ammunition.
At sentencing, Graham faces a statutory maximum penalty of ten years in federal prison followed by up to three years of supervised release. Graham remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Former Upper Arlington Financial Advisor Pleads Guilty to Defrauding InvestorsRead the Press Release
COLUMBUS – Jason W. Cox, 39, now of Dublin, Ohio pleaded guilty to two counts of money laundering, two counts of mail fraud, and one count of wire fraud relative to a scheme to defraud his clients, one of which was an impaired adult, of the funds they had invested through him as their financial advisor.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the plea entered into today before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, the defendant used his position as a financial advisor with a national financial services company at their Upper Arlington office to defraud an impaired adult and other victims.
The impaired adult had been introduced to Cox by her father and was told by her father that Cox would be her financial advisor and that he was a person she could trust to manage her money after her father was no longer around to do so. After the victim’s father died, Cox devised and carried out schemes to defraud the impaired adult, resulting in the loss of her residence and approximately $ 400,000 in assets over the course of 18 months.
Cox would cause the sale of a fund in the victim’s accounts and then wire the funds to her bank or mail a check to her that would be deposited into her account. He would then convince the victim to give him cash or a check in an amount equal to or slightly less than the amount transferred. These amounts were frequent and were generally in thousands of dollars.
“She believed that she and Cox were business partners even though she was unclear what that business was,” Assistant United States Attorney Deborah A. Solove said. “Since she has little concept of the value of money or the relative amounts changing hands, she thought that the money she agave him and the money he gave her was somehow a normal thing to do.”
Cox convinced a second victim to invest some of the money the victim transferred from his 401k after being laid off. Cox asked the victim to invest $60,000 with a guaranteed 10 percent rate of return. The victim agreed to invest $10,000 after Cox sent him the agreement in writing in his employer’s business envelope. Although the victim received his principal and the interest eventually, Cox was fired when this came to light.
The defendant defrauded a third client, an elderly woman, whose adult daughters were handling her financial affairs, whom he paid back with the impaired adult’s money.
Cox was arrested on December 11, 2014 and indicted on January 8, 2015.
“Jason Cox took advantage of an impaired individual for his own financial gain, which is reprehensible,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime.”
Money laundering carries a maximum sentence of 10 years in prison and a $250,000 fine. Mail fraud and wire fraud are crimes punishable by up to 20 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the IRS Criminal Investigation Division, and Assistant U.S. Attorney Deborah A. Solove, who is prosecuting the case.
Executives of Panamanian Corporation and Aviation Company Arrested in Multi-Million Dollar Money Laundering StingRead the Press Release
Michael J. Dodd, also known as “Michael Stanley,” Kenneth Ardell Landgaard, and James Robert Shipman, Jr. were arrested today on charges that they conspired to launder over two million dollars of proceeds from what they thought to be a penny stock fraud scheme. The money was, in fact, provided to the defendants by an undercover law enforcement agent who posed as a criminal stock promoter as part of a sting operation. Defendants Landgaard and Shipman were arrested after flying to an airport in New York on a private jet to take possession of $2,200,000 in cash they had agreed to launder through banks in Panama and Belize. The defendants had already laundered $400,000 in cash previously provided by the undercover agent. Dodd was arrested a few hours later at a Manhattan restaurant where he expected to meet with the undercover agent.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Shantelle P. Kitchen, Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and Raymond R. Parmer Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI).
“As charged in the criminal complaint, these defendants agreed to transport millions of dollars of stock fraud proceeds on private jets to Panama and then engage in a series of financial transactions. They did so with the intention of laundering the money, evading federal tax and banking laws, and lining their own pockets,” stated Acting United States Attorney Currie. “Today’s arrests have grounded these defendants, and will serve as a warning to others who are similarly inclined. We are committed to closing fraudulent offshore safe havens and prosecuting those who seek to abuse the financial markets to enrich themselves.”
“As alleged, the defendants willingly entered a scheme to transport more than $2 million of stock fraud profits out of the United States using private jets and financial transactions in exchange for a 13 to 15 percent fee. The FBI is committed to working with our law enforcement partners to investigate and bring those who seek to evade federal tax and banking laws to justice.” stated FBI Assistant Director-in-Charge Rodriguez.
“Conspiring to launder millions of dollars on a private jet may have seemed like a great idea to evade law enforcement but we have proven this method does not fly,” said HSI New York Special Agent-in-Charge Parmer. “HSI and its partners will continue to investigate and prosecute those who attempt to conceal and launder illicit proceeds, no matter what the method.”
“Although it is not primarily thought about from this perspective, consider how money laundering erodes our nation's tax system,” said IRS-CI Special Agent-in-Charge Kitchen. “This is why money laundering investigations are important to the Internal Revenue Service and why we work with our law enforcement partners to dissect all types of complex money laundering schemes, including those with international ramifications.”
According to the complaint unsealed this afternoon and other documents filed in the Eastern District of New York, the defendants used private jets and off-shore bank accounts in Panama to launder cash for an undercover FBI agent who posed as a corrupt stock promoter. In his dealings with the defendants, the undercover agent represented himself to be a middleman working with corrupt stock brokers who artificially inflated prices for worthless stock in exchange for high commissions. In exchange for a 13% to 15% fee, the defendants agreed to launder $2,600,000. Immediately prior to their arrest earlier today, Landgaard and Shipman accepted $2,200,000 from the undercover agent, which they believed to be proceeds from the penny stock fraud. In conversations which were recorded by the FBI, the defendants explained in detail the measures they took to avoid detection of their money laundering scheme by law enforcement. Dodd insisted that the undercover agent download and use encryption software for online chats and voice communications. Landgaard insisted that the cash be provided in expensive Louis Vuitton duffel bags, and Shipman explained their reasoning: “You know why they do that? Because cops can’t get the authority to buy a Louis Vuitton bag, it’s too expensive … they can’t get the authorization to buy a Louis Vuitton bag. And if you think about it, it’s very smart.” Landgaard and Shipman also insisted that the undercover agent buy a “throwaway” or “burner” phone on which to speak to them about the scheme.
The defendants are scheduled to be arraigned on Thursday, July 9, 2015 before a United States Magistrate Judge at the federal courthouse in Brooklyn. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the men face a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Jack Dennehy is in charge of the prosecution. Assistant United States Attorneys Brian Morris and Karin Orenstein of the Office’s Civil Division will be responsible for the forfeiture of assets.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendants:
Name: Michael Dodd, also known as "Michael Stanley"
Age: 65
Panama City, Panama
Name: Kenneth Landgaard
Age: 46
Alexandria, Minnesota
Name: James Robert Shipman, Jr.
Age: 64
Hollywood, Florida