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8 June 2015
Former Pittsburg State Official Sentenced for Wire Fraud, Money LaunderingRead the Press Release
WICHITA, KAN. – A former director of the masters of business administration program at Pittsburg State University was sentenced Monday to 18 months in federal prison for wire fraud and money laundering, U.S. Attorney Barry Grissom said. He was ordered to pay $148,430 in restitution.
Michael Muoghalu, 61, Pittsburg, Kan., pleaded guilty to one count of wire fraud and one count of money laundering. In his plea, he admitted the crimes occurred while he was responsible for managing the graduate student exchange program between Pittsburg State University and schools in Nigeria.
Muoghalu and an associate in Nigeria created fictitious documents and presented them to Pittsburg State representing that certain Nigerian students had completed undergraduate work and were eligible to take part in the university’s Nigerian exchange student program.
Pittsburg State required the Nigerian students to pay a deposit at the time they were initially accepted into the program. Later, the university would refund a portion of the student’s deposit. After the refund was authorized, Muoghalu falsely represented to Nigerian students that they must pay him or his associates a fee for representing them in the admission process.
Grissom commended IRS Criminal Investigation, the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Parochial Vicar Pleads Guilty to Child Exploitation ChargesRead the Press Release
PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, pleaded guilty today to all counts contained in a superseding information charging child exploitation. Haynes, a former parochial Vicar, pleaded guilty to using the Internet to entice a minor to engage in sexual conduct, transfer of obscene material to a minor, distribution of child pornography, possession of child pornography, and destruction or concealment of evidence. A sentencing hearing is scheduled for September 10, 2015. Haynes faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life, possible fines, and at least five years up to a lifetime of supervised release.
According to court documents, around 2010, Haynes posed as a 16-year old girl named “Katie” on a teen dating website. As “Katie,” Haynes would meet minor girls online and allegedly request that they take and send sexually explicit pictures. Haynes is also charged with distributing other images and videos of children being sexually assaulted over the Internet in 2014, again posing as “Katie.”
The case was investigated by the FBI in conjunction with the Chester County Criminal Investigative Division. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.
Former Bellevue Resident Whose Drug Manufacturing Sparked Explosion and Fire Sentenced to Nine Years in PrisonRead the Press Release
The man who touched off a devastating Bellevue apartment fire with his illegal hash oil manufacturing was sentenced today in U.S. District Court in Seattle to nine years in prison, announced U.S. Attorney Annette L. Hayes. DAVID RICHARD SCHULTZ, II, 33, was using highly explosive butane gas to make hash oil in the Hampton Greens Apartment complex on November 5, 2013. The gas exploded and numerous people in the apartment complex were injured fleeing the fire. One of them, a former Mayor of Bellevue, died following treatment for injuries sustained while trying to escape the building. SCHULTZ was arrested nine months later in a California motel, again with the explosive gas used to make hash oil. At sentencing U.S. District Judge James L. Robart said, “We need to educate the public that the legalization of marijuana in the State of Washington is not unlimited and it does not include the manufacturing of homemade hash oil.”
“In just the last year, we have charged a dozen people with the dangerous and illegal manufacture of butane hash oil (BHO),” said U.S. Attorney Annette L. Hayes. “This case tragically demonstrates why this conduct must be stopped. BHO extraction operations are like the meth labs we have worked so hard to eradicate from our communities. Among other things, they involve the unauthorized use of dangerous solvents, and especially when located in homes and apartment buildings, pose a serious risk of death and property damage as so disastrously happened in this case.”
According to records filed in the case, three people were charged in connection with the Bellevue explosion and fire on November 5, 2013. Former Bellevue Mayor Nan Campbell was hospitalized for a broken pelvis she suffered trying to escape the flames. She later died following complications after her hospitalization. Two other apartment residents suffered shattered bones as they had to jump from their upper level apartments. In all the fire caused $2 million in property damage.
In court today, one of Nan Campbell’s daughters, Anne Campbell Spangler told the court about the loss of her vibrant and involved mother because of a selfish and thoughtless act. Patty Campbell read a letter from another victim of the explosion who was unable to travel to attend the court hearing. The letter describes how the young middle school teacher had to jump from a third floor balcony to escape the flames, shattering her bones – leaving her legs “like Legos.” The young woman described her month in a nursing home, her ongoing pain, and how she will never be able to run or play soccer again. The fire destroyed her belongings including irreplaceable scrapbooks and childhood photos.
Prosecutors had asked for the maximum sentence allowed by law: ten years in prison.
Two other defendants, Daniel James Strycharske, 29, and Jesse D. Kaplan, 32, will be sentenced in July. The two men rented the apartment and allowed SCHULTZ to set up the BHO manufacturing equipment in their space. The men planned to sell the BHO for profit. All three men suffered injuries in the explosion.
This case was investigated by multiple local and federal agencies, including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, and the Bellevue Police and Fire Departments.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Former Banker in Great Bend Sentenced for Bank FraudRead the Press Release
WICHITA, KAN. - A former loan officer for a bank in Great Bend was sentenced Monday to six months in prison followed by six months home detention for bank fraud, U.S. Attorney Barry Grissom said. In addition, he was ordered to pay $124,000 in restitution and $50,000 in a personal forfeiture judgment.
Brian W. Harrison, 56, Great Bend, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted the crime occurred during the time from 2004 to 2012 when he was a loan officer for Farmer’s Bank and Trust in Great Bend.
His duties included reviewing, approving and disbursing loans. In furtherance of a scheme to defraud the bank, he made or caused to be made false statements to the bank to hide the poor performance of various loans he made. His false statements were intended to deflect questions from bank officers about problems with his loans. He falsified credit and loan applications, promissory notes and security agreements on behalf of a purported debtor without the debtor’s proper authority.
Grissom commended the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and Assistant U.S. Attorney Aaron Smith for their work on the case.
“Vigorous criminal law enforcement by SIGTARP and our partners leaves the banking industry safer than we found it,” said Christy Romero, Special Inspector General for TARP (SIGTARP).
Five Men Charged in Federal Court with Attempted Commercial Sex TraffickingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that five men have been charged with Attempted Commercial Sex Trafficking after responding to on-line advertisements. The U.S. Department of Homeland Security Investigations, along with the South Dakota Internet Crimes Against Children Task Force, conducted an on-line undercover operation to identify persons who attempt to purchase sex acts with children.
Jose Joaquin Oxlaj, age 26, of Guatamala, was indicted on May 5, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 11, 2015, and pled not guilty to the Indictment.
Nathanuel Walter Downs, age 27, of Sioux City, Iowa; Benjamin Lyle Iverson, age 25, of Sioux Falls; Lance Eugene Hunter, Jr., age 29, of Little Rock, Iowa; and Scott Robert Larson, age 29, of Sioux Falls, were indicted on June 2, 2015, and made their initial appearances before U.S. Magistrate Judge Veronica L. Duffy on June 3 and 4, 2015. Each of the men pled not guilty to the Indictment.
There is a mandatory minimum sentence of 10 years imprisonment, with a maximum sentence of life, a $250,000 fine, supervised release of not less than 5 years and up to life, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and each man is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the cases.
Oxlaj was remanded to the custody of the U.S. Marshals Service pending trial. Iverson was returned to the custody of Minnehaha County where he is facing state charges for assaulting a law enforcement officer. Downs, Larson and Hunter were released on bond. Trial dates have not been set.Federal Court Prohibits Florida Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court has barred a Tampa, Florida, man from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order, to which Octavio Cruz consented, was signed by U.S. District Judge Elizabeth A. Kovachevich of the Middle District of Florida. The order also bars the business Cruz was operating, Advantage Accounting Corp., from continuing to prepare tax returns.
In August 2014, the United States filed a complaint to enjoin Cruz and Advantage Accounting Corp. from preparing returns for others. According to the complaint, Cruz prepared returns that unlawfully understated income tax liabilities and overstated refunds by fabricating or exaggerating deductions and tax credits his customers were not eligible to take. Cruz’s practices included fabricating Schedule C (Profit or Loss From Business) losses for non-existent businesses and falsely claiming child care and residential energy credits for which the customers were not eligible and did not incur. The suit alleges that Cruz also prepared returns that falsely claimed American Opportunity Credits for taxpayers who did not incur qualified education expenses or go to college. Altogether, the government alleged that loss to the U.S. Treasury from Cruz’s activities may be in the millions of dollars.
The injunction requires Cruz to provide the government with a list of all customers for whom he has prepared federal tax returns or claims for refund since Jan. 1, 2012.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairbanks Priest Sentenced to 10 Years in Prison for Child Sex CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Clint Michael Landry, 58, of Fairbanks, Alaska, was sentenced on Friday, June 5, 2015, by Chief United States District Court Judge Ralph R. Beistline to 10 years in prison to be followed by a lifetime period of supervised release for Attempted Enticement of a Minor, in violation of 18 U.S.C. § 2422(b).
At the time of the offense, the defendant was employed as a priest with the Catholic Diocese in Fairbanks, Alaska. He had been in that position since June 2011.
According to the filed plea agreement and sentencing memoranda in the case, in May 2014, the defendant was caught using a work computer to receive images of child pornography through his Yahoo email account. A search of the computer found multiple sexually-explicit Instant Messages (IM) between the defendant and others believed to be located in the Philippines. In many of these IMs, the defendant is negotiating with a Filipino coconspirator about viewing sexually explicit conduct involving minors through webcams and Skype communications.
Between June 2013, and May 2014, the defendant engaged in negotiations with individuals in the Philippines for the purpose of viewing online sex shows. The defendant communicated with at least eight different Yahoo accounts for the purpose of viewing live videos through Skype or other streaming services of minors engaged in sexually explicit conduct. In at least three of these communications, the defendant sought access to sex shows involving children younger than 11 years old.
• On June 13, 2013, the defendant communicated with a coconspirator, asking “[c]an you show me young boys[?]” He went on to ask, “what handsome young boys do you have?” When told that the available “young boy” was 10 years old, the defendant’s response was “ok,” and he inquired “how much.” The defendant then attempted to offer 1600 Philippine pesos for online access to the child, or approximately $35.
• On July 26, 2013, the defendant initially resisted an offer to view an 11-year-old girl. However, when the only other option offered by the defendant’s coconspirator was an 18-year-old male, the defendant “ask[ed] for your young show,” and said that he would “send money tomorrow.”
• On August 7, 2013, the defendant wrote, “I like to see you boy or girl because they are cute. Only see on yahoo.” When told by his coconspirator that he had children available who were “10 and 8 yrs old,” the defendant replied, “I send you some western union tomorrow.”
In a message dated May 18, 2014, the defendant communicated directly with a person in the Philippines he believed to be a minor. During the chat, the individual said that it was his 16th birthday, and asked the defendant if he wanted to see a picture of the minor’s penis. The defendant replied, “yes.” The conversation continued with the defendant and the minor negotiating how much money the defendant would send to the minor in exchange for producing and transmitting through the Internet the live visual depiction of the minor engaged in sexually explicit conduct. The defendant ultimately drove to a Western Union branch in Fairbanks and wired $55 to the minor in order to entice him to perform the requested online sex show.
In addition, the defendant received images of child pornography through the Internet. On May 19, 2014, the defendant negotiated with a Yahoo user for child pornography. The defendant was told by the Yahoo user to send money for the images. The defendant requested from the Yahoo user “boy pics,” and wrote, “give me pics…boys and girls.” Soon after, the Yahoo user sent 12 emails with image and video files attached. The image and video files showed prepubescent girls and boys engaged in sexually explicit conduct, including sadistic and masochistic conduct.
At sentencing, Judge Beistline commented on the fact that child exploitation and pornography offenses like the defendant’s victimize children throughout the world, and the United States’ laws are a “desperate attempt” to put an end to the child pornography trade. “These children are pawns [who] have nothing else but to sell their bodies,” said Judge Beistline, and the victims “carry the burden [of their abuse] with them forever, for a lifetime.”
The defendant’s sentence, to include lifetime supervision that would include restrictions on his internet access, polygraph examinations, sex offender treatment, and lifetime sex offender registration, was driven by a desire to “deter” the defendant, to insure that he would never again hurt a child. “You are going to be watched forever,” said Judge Beistline, “you are never acting out again, never doing anything again to hurt children.” Judge Beistline was also troubled by the fact that the defendant “had a position of respect in the community” and that he violated the trust that his parish had placed in him.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Fairbanks Drug Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
Anchorage, Alaska — U.S. Attorney Karen K. Loeffler announced that Etienne Q. Devoe, 42, of Fairbanks, Alaska, was sentenced today by Chief United States District Judge Ralph R. Beistline to 126 months in prison to be followed by a five year term of supervised release for conspiring to distribute cocaine and heroin, and conspiring to launder the proceeds from the sale of those drugs.
According to the evidence at trial, Devoe was a drug dealer located in Fairbanks, Alaska. Between May 2, 2013, and June 13, 2013, law enforcement captured phone calls and text messages between Devoe and his co-conspirator, Steven N. Taylor. In those calls, Devoe and Taylor discussed their ongoing drug trafficking relationship. As part of that relationship, Taylor supplied cocaine and heroin to Devoe for distribution in and around the Fairbanks area. Devoe paid for those drugs by sending Taylor money through a checking account at a local bank.
On June 20, 2013, Fairbanks police responded to shooting at a rented house on Gillem Way. Devoe was found hiding in an upstairs bedroom closet at the residence, which he shared with his girlfriend. Also located in the residence were drug trafficking supplies, including packaging materials and an adulterant commonly used to cut cocaine prior to its resale.
This is Devoe’s second federal conviction for a drug trafficking offense. In February 2012, Devoe was found in possession of approximately six ounces of cocaine, along with packaging material. He was convicted of Possession of Cocaine with the Intent to Distribute and sentenced to 57 months imprisonment. The case number for that matter is 4:14-cr-00002-RRB.
At sentencing, Judge Beistline told the defendant it was “time to grow up,” commenting on the defendant’s long criminal history, which includes four convictions for domestic violence offenses, three convictions for driving-related offenses, two prior drug convictions, and a conviction for giving false statements to law enforcement. Judge Beistline also noted that the defendant has “no legitimate work history, and . . . eight children raised by other people.” There is “no indication [in your past] of a desire to obey the law or become a positive member of the community,” said Judge Beistline.
The sentence was also driven by the need to punish the defendant for the harm caused by his drug dealing. On several occasions, Judge Beistline commented on the fact that the defendant’s drug dealing “prey[ed] on others,” and “destroy[ed] the community.” The sentence of more than 10 years in federal prison was intended “to protect the public from drug dealers” like the defendant.
Devoe was indicted on June 16, 2014. Other defendants named in the Indictment include Taylor, James Brown, Sr., Leonard D. Charles, Shawn Cortez Cloyd, Timothy W. Northcutt, Joshua J. Haynes, Gabrielle P. Haynes, and Joseph E. Irving. Those defendants have been sentenced as follows:
Defendant
Crime of Conviction
Sentence
Joseph E. Irving
Pled guilty to money laundering conspiracy
21-months imprisonment, three years supervised release
Gabrielle P. Haynes
Pled guilty to drug conspiracy
18-months imprisonment, three years supervised release
Leonard D. Charles
Pled guilty to drug conspiracy
60-months imprisonment, five years supervised release
James Brown, Sr.
Pled guilty to drug conspiracy
56-months imprisonment, five years supervised release
Sean Cortez Cloyd
Pled guilty to drug conspiracy
36-months imprisonment, five years supervised release
Timothy W. Norcutt
Pled guilty to drug conspiracy and money laundering
72-months imprisonment, five years supervised release
Steven N. Taylor
Pled guilty to drug conspiracy and money laundering
Not yet sentenced
Joshua J. Haynes
Pled guilty to drug conspiracy
Not yet sentenced
“Drug trafficking is a harmful business,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigations. “Those who profit from the manufacturing and distribution of illicit substances will attract the vigilant watchful eye of IRS Special Agents who will use their unique financial investigative skills to dismantle criminal enterprises lurking in our communities.”
“It is time for Etienne Devoe to reap the legal consequences for his continued disregard for the law,” said DEA Acting Special Agent in Charge Douglas James. “As a result of his illegal actions, he has received over 10 years in prison, a fitting punishment for the crimes he has committed.”
The case was the product of an investigation by multiple law enforcement agencies, to include the Drug Enforcement Administration, the Internal Revenue Service, the FBI Safe Streets Task Force, Anchorage Police Department, Fairbanks Police Department, Alaska State Troopers, and the University of Alaska, Fairbanks Police. Assistant U.S. Attorneys Kelly Cavanaugh, Kyle Reardon, and Timothy Edmonds prosecuted the case.
Enbridge Must Restore Environment Injured by 2010 Pipeline Rupture and Oil Spill in Michigan’s Kalamazoo RiverRead the Press Release
The United States filed today a proposed consent decree that will resolve claims of federal, state and tribal resource trustees for natural resource damages (NRD) caused by the 2010 rupture of Enbridge’s Line 6B pipeline in Michigan that resulted in one of the largest inland oil spills in U.S. history. Under the proposed settlement, several Enbridge affiliates will be responsible for completing numerous natural resource restoration projects along the Kalamazoo River and will pay an additional sum of nearly $4 million to fund additional restoration projects, reimburse natural resource damage assessment costs of federal and tribal trustees and support ongoing restoration planning activities of natural resource trustees.
“This settlement will restore natural resources affected by the 2010 spill – one of the largest inland spills in our history – and compensates the public for natural resource losses resulting from the spill,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “By requiring restoration and monitoring, along with funding for the federal, state and tribal trustees, this settlement will go a long way toward correcting the injuries to injured natural resources along the Kalamazoo River.”
Trustees reached the NRD settlement in conjunction with a separate settlement that resolves related state law claims of the state of Michigan against Enbridge relating to the July 2010 spill. The state settlement was filed May 12 in the circuit court for Calhoun County, Michigan. The NRD settlement, which was filed in federal court today, provides funding to the federal, state and tribal trustees to conduct natural resource restoration, reimburses assessment costs spent by the federal and tribal trustees and incorporates requirements from the state settlement for Enbridge to conduct restoration and monitoring. More details on the NRD settlement can be found at www.fws.gov/midwest/es/ec/nrda/MichiganEnbridge/.
The state settlement provisions that will also be enforceable under the NRD settlement include commitments by Enbridge to perform work to restore or compensate for injuries to injured natural resources along the Kalamazoo River, at an estimated cost of at least $58 million. Thus, the two settlements combined result in estimated expenditures of at least $62 million to resolve natural resource damages. In addition, the state settlement required Enbridge to implement a number of measures pursuant to state response action authorities and to pay the state for its costs of oversight of cleanup and restoration. The state of Michigan settlement announcement and details can be found at www.michigan.gov/oilspill.
The NRD settlement addresses Enbridge’s liability for natural resource damages under the Oil Pollution Act (OPA) and Michigan’s Natural Resources and Environmental Protection Act. The NRD settlement provides for habitat improvement projects to address injuries to aquatic organisms, fish, reptile, mammals and birds, as well as for enhancements to public access and use of the Kalamazoo River for recreational, educational and cultural purposes. The trustees are proposing to implement the following projects with funding from the NRD settlement:
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Replace undersized culverts, remove existing obstacles to water flow and increase floodplain capacity in two tributaries to the Kalamazoo River;
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Control Eurasian water milfoil and otherinvasive species, within the Fort Custer State Recreation Area to provide improved habitat for warm water fisheries;
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Restore 175 acres of oak savanna uplands in Fort Custer State Recreation Area;
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Track and protect turtle reproduction in the impacted area of the Kalamazoo River;
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Restore wild rice beds in suitable areas along the Kalamazoo River;
- Document the historic use and knowledge of natural resources by members of the Match-E-Be-Nash-She-Wish Band of the Pottawatomi Indians (Gun Lake Tribe) and the Nottawaseppi Huron Band of the Potawatomi to guide restoration and stewardship.
The NRD settlement also incorporates certain requirements from the state’s settlement with Enbridge, including requirements to:
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Restore and monitor the 320 acres of wetlands affected by the spill and response activities;
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Permanently restore, create or otherwise protect at least 300 additional acres of wetland habitat in compensation for wetland losses;
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Evaluate stream function within the restored areas of Talmadge Creek and perform additional actions as needed;
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Conduct monitoring and restoration activities related to the removal of large woody debris during the spill response;
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Fund the state of Michigan to monitor fish contamination, fish populations and the health of stream bottom communities along Talmadge Creek and the Kalamazoo River.
Enbridge has already implemented additional projects that relate to losses of natural resources:
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Created the Kalamazoo River Community Recreational Foundation including a $2.5 million endowment to assure perpetual care of these projects
Removed the dam at Ceresco on the Kalamazoo River and restored over 2.5 miles of river channel that was previously impounded.
“Working together, the natural resource trustees are using the settlements in tandem to develop a big-picture, comprehensive plan to restore natural resources,” said Deputy Regional Director Charlie Wooley for the Midwest Region of the U.S. Fish and Wildlife Service. “This cooperative approach will enhance our ability to return to the public the natural resources lost due to the spill.”
The trustees are asking for public comment on a draft Damage Assessment and Restoration Plan/Environmental Assessment (DARP/EA) developed to inform the public about the harm caused by the pipeline rupture and the proposed restoration projects described above to address these injuries and losses. This draft DARP/EA is now available for public review and comment at www.fws.gov/midwest/es/ec/nrda/MichiganEnbridge/, along with the consent decree for the NRD settlement filed in federal court at www.justice.gov/enrd/consent-decrees.
Settlement of the state law claims and the natural resource damages claims do not affect or alter Enbridge’s other liabilities or obligations under OPA or the Clean Water Act (CWA).
Enbridge’s Lakehead Line 6B pipeline ruptured near Marshall, Michigan, on July 25, 2010, discharging oil into the environment. Enbridge discharged significant additional oil from Line 6B during two attempts to restart the ruptured pipeline on July 26, 2010. Oil discharged from Line 6B entered Talmadge Creek and ultimately extended approximately 38 miles down the Kalamazoo River. The oil impacted over 1,560 acres of stream and river habitat as well as floodplain and upland areas, injuring birds, mammals, reptiles and other wildlife. The river was immediately closed to the public and sections remained closed for several years, reducing recreational and tribal uses of the river.
For more information on the cleanup of the 2010 pipeline discharges, visit www.mi.gov/oilspill and www.epa.gov/enbridgespill.
The natural resource trustees in this case include the Michigan Department of Environmental Quality, the Michigan Department of Natural Resources, the Michigan Department of the Attorney General, the U.S. Fish and Wildlife Service, the National Oceanic and Atmospheric Administration, the Nottawaseppi Huron Band of the Potawatomi Tribe and the Match-E-Be-Nash-She-Wish Band of the Pottawatomi Indians (Gun Lake Tribe).
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District Man Pleads Guilty to Sexually Assaulting Woman in Early-Morning Attack Near Meridian Hill ParkRead the Press Release
WASHINGTON - Glen Green, 23, of Washington D.C., pled guilty today to a charge of first-degree sexual abuse for a recent sexual assault that took place near a park in Northwest Washington, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Green pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a 19-year prison sentence. Upon release, Green would be required to register as a sex offender for the remainder of his life. The Honorable Rhonda Reid Winston scheduled sentencing for Aug. 21, 2015.
According to the government’s evidence, the attack occurred just before 7 a.m. on April 21, 2015. That morning, the victim was jogging in Meridian Hill Park. When she finished, she began walking back home. She was wearing headphones and did not notice the defendant, who began following her from behind on foot. Green got steadily closer to the victim as she got closer to her home. As the victim turned into an alleyway near 14th and Chapin Streets NW, Green grabbed her from behind and began dragging her behind a dumpster.
The victim struggled to free herself, demanding repeatedly that the defendant let her go. Green, who is much larger than the victim, told her not to make this more difficult than it had to be. Then, as the victim continued to struggle, he punched her in the face. Green dragged the victim behind a dumpster in the alleyway, forced her to remove her pants and underwear, and sexually assaulted her. Afterwards, he demanded money from the victim. She handed over her iPod and the defendant fled the area, warning the victim not to move until he had left.
The victim returned home and called 911. After police responded, she was transported to Washington Hospital Center, where medical care providers documented numerous injuries on her body.
Detectives from the Metropolitan Police Department’s Sexual Assault Unit responded to the scene and immediately commenced an investigation. They canvassed the area and located witnesses who were nearby when the assault occurred and provided a description of the assailant. Moreover, they quickly identified and recovered surveillance video capturing Green fleeing the area. Portions of that video were disseminated to the public through news outlets and other media requesting the public’s assistance in identifying the suspect.
Soon thereafter, the police began receiving calls identifying the defendant as the individual seen fleeing in the surveillance video. Green was located and arrested on the evening of April 22, 2015, one day after the sexual assault occurred.
In announcing the plea, Acting U.S. Attorney Cohen and Chief Lanier commended the work performed by detectives from the Metropolitan Police Department’s Sexual Assault Unit. They acknowledged the work of the Forensic Services Division of the U.S. Secret Service, which assisted in processing the surveillance video. They also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist D’Yvonne Key, Criminal Investigator John Marsh, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, they commended the work of Assistant U.S. Attorney Jason Park, who is prosecuting the case.
Correctional Officer Sentenced to Prison for Identity Theft and Wire FraudRead the Press Release
Jacksonville, Florida – United States District Judge Timothy Corrigan today sentenced Harold Walbey, III to four years and three months in federal prison for identity theft and wire fraud. As part of his sentence, the Court also entered a money judgment in the amount of $110,756, the proceeds of the offenses. Walbey pleaded guilty on December 18, 2014.
According to court documents, beginning in 2010 and continuing through May 2012, Walbey, in his capacity as a correctional officer at the John E. Goode Pre-trial Detention Facility (PTDF), stole the personal identifying information of unknowing inmates that were housed at the facility. As a part of this scheme, Walbey maintained a notebook that contained 49 names, Social Security numbers, and dates of births of prisoners that were incarcerated at the PTDF. Once this information was stolen, fraudulent debit card accounts and W-2 forms were created in the inmates’ names, and fraudulent tax return were then electronically filed. From 2010 through 2012, Walbey filed tax returns in 38 different prisoners’ names, claiming more than $250,000 in fraudulent refunds. He received $110,756 in proceeds as a result of his involvement in this crime.
This case was investigated by the Jacksonville Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Malisa Chokshi.
Construction Service Company Owner Pleads Guilty to Fraud Conspiracy and Tax Violation Involving Contract with the New York Power AuthorityRead the Press Release
The owner of a Bardonia, New York, construction service company pleaded guilty to conspiring to defraud the New York Power Authority (NYPA) and filing a false tax return, the Department of Justice, the IRS and the New York State Inspector General announced today.
According to the two-count felony charge filed in U.S. District Court of the Southern District of New York in White Plains today, Thomas Delaney, owner of Over Rock Construction LLC, participated in a scheme to defraud NYPA. In October 2009, Over Rock was awarded a five-year, $3 million contract to perform landscaping, snow removal and masonry work at NYPA’s administrative facility in White Plains. To generate cash for those involved in the scheme, Delaney, with the assistance of his co-conspirators, submitted fraudulent certified payroll statements and invoices to NYPA for reimbursement for individuals who performed no services (“no show” employees) on behalf of Over Rock at NYPA. Between 2009 and 2012, the false and fraudulent overcharges paid by NYPA to Over Rock totaled more than $400,000. Delaney also pleaded guilty to filing a false and fraudulent tax return which substantially understated his income.
“The defendant cooked the books twice – first so he could defraud the New York Power Authority and then again to avoid paying taxes he owed,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The division will continue to work with our partners at the FBI, IRS and the New York Inspector General to bring to justice those who corrupt a public bidding process for their own personal gain.”
“Today we see yet another scheme involving fraudulent payroll statements and invoices that were used to pad the pockets of devious individuals,” said Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office. “Along with the announcement of this guilty plea comes a reminder that the FBI will continue to work with our partners in rooting out fraud to both public and private companies.”
“This contractor defrauded the State on multiple occasions, repeatedly billing the New York Power Authority for workers who never showed up and by paying significantly less taxes than he owed,” said New York State Inspector General Catherine Leahy Scott. “Today's guilty plea serves to reinforce my office's ongoing commitment to protect the integrity of the contracting process across all state agencies and authorities. I would like to thank our federal law enforcement partners in this matter and look forward to continuing our work with them to hold accountable any corrupt entities or individuals.”
“IRS Criminal Investigation is committed to ensuring that everyone pays their fair share of taxes,” said Special Agent in Charge Shantelle P. Kitchen of the IRS Criminal Investigation New York Field Office. “To that end, we will investigate individuals who willfully conceal income to reduce or eliminate their own tax obligations, effectively increasing the burden on honest taxpayers.”
Delaney pleaded guilty to a fraud conspiracy charge that carries a maximum penalty of 20 years in prison, three years of supervised release and a $250,000 fine. Delaney also pleaded guilty to subscribing to a false tax return, which carries a maximum penalty of three years in prison and a $100,000 fine. The maximum fines for each of these charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
These charges arose from an investigation initiated by the New York State Inspector General and is part of an ongoing joint federal and state investigation of bid rigging, fraud and tax-related offenses in the award of contracts at NYPA’s facility in White Plains. The investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FBI, the IRS Criminal Investigation and the New York State Office of the Inspector General. NYPA is cooperating with the investigation. Anyone with information on bid rigging or other anticompetitive conducted related to the award or performance of municipal and state contracts should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/contact/newcase.html.
Colorado Man Sentenced for Drug ConspiracyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Denver, Colorado, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 3, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Vincent Rios, age 32, was sentenced to 87 months in federal prison, followed by 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Rios pled guilty to the charge on December 17, 2014. The charge related to Rios conspiring with others to distribute 50 grams or more of methamphetamine in the District of South Dakota in 2014.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rapid City Police Department, the South Dakota Highway Patrol, the South Dakota Division of Criminal Investigation, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Rios was immediately turned over to the custody of the U.S. Marshals Service.
Cleveland man guilty of conspiracy, last of 60 convicted for bringing heroin to Cleveland from Atlanta and ChicagoRead the Press Release
A Cleveland man was convicted of conspiracy to possess with intent to distribute heroin and related charges following a week-long trial.
Keith Ricks, 33, is scheduled to be sentenced by U.S. District Judge Christopher Boyko on Sept. 14. He faces a potential sentence of life in prison.
Ricks is the last of 60 people to be found guilty in federal court for their roles in a conspiracy to bring heroin from Chicago and Atlanta and sell it throughout Greater Cleveland between 2011 and 2013.
Ricks and others obtained heroin from suppliers in Atlanta and transported the drugs to Cleveland by mail or car. Ricks and others also pooled their money to obtain heroin from Atlanta. Ricks then distributed the heroin to other traffickers in Cleveland, according to trial testimony and court documents.
Ricks, Maceo Moore, Leamon Shephard and others also planned and committed burglaries and robberies from other drug dealers, customers, and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs, and to collect drug debts, according to trial testimoney.
The men then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin. They identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. They sometimes used firearms or zipties to restrain victims, according to trial testimony and court documents.
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl, and Matthew B. Kall, following a multi-year investigation by the Northern Ohio Law Enforcement Task Force (NOLETF).
The NOLETF is a longstanding multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The investigation was assisted by the Hotel Interdiction Team, another HIDTA initiative composed of members of the FBI, Cuyahoga County Sheriff’s Office, Homeland Security Investigations, and police departments from Broadview Heights, Brooklyn, Brook Park, and Independence.
Cedar Rapids Woman Pleads Guilty to Stealing from the Government and Using Another’s Identity to File a Fraudulent Tax ReturnRead the Press Release
A woman who unlawfully used another person’s identity to file a fraudulent tax return and steal money from the government pled guilty today in federal court in Cedar Rapids.
Gwendolyn Murray, 35, from Cedar Rapids, Iowa, was convicted of one count of theft of government property and one count of aggravated identity theft.
At the plea hearing, Murray admitted she, without lawful authority, used another person’s name, social security number, and signature on a fraudulent tax return she filed in January 2012. Murray further admitted she then stole from the government by cashing the refund check, worth more than $6,000, issued in March 2012 as a result of the fraudulent tax return.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Murray remains free on conditions of release previously set. Murray faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of twelve years’ imprisonment, a $500,000 fine, $200 in special assessments, and four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-0015.
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Cedar Rapids Man Pleads Guilty to Distributing Heroin Resulting in Serious Bodily InjuryRead the Press Release
A man who distributed heroin to a user who nearly died from an overdose pled guilty today in federal court in Cedar Rapids.
Marcus DeJohn Wallace, age 19, from Cedar Rapids, Iowa, was convicted of distribution of heroin resulting in serious bodily injury.
At the plea hearing, Wallace admitted that on February 24, 2015, he distributed $50 worth of heroin to a person in the parking lot of a business on Edgewood Road. He also admitted that the person to whom he had sold the heroin took that heroin to a nearby vehicle, where another person was waiting in the driver’s seat. Both the driver and passenger used the heroin Wallace had sold, and both individuals immediately overdosed and lost consciousness after using the heroin. The driver’s head slumped forward to the point that the driver’s head hit the steering wheel, activating the horn. A passerby heard the horn honking, saw the two unconscious individuals inside the vehicle, and called 911. When paramedics arrived, the passenger was able to be revived without medical intervention. The driver’s head was down (chin to chest), skin was blue, and respirations were labored. The driver was totally unresponsive until paramedics repositioned the driver’s head to open the airway. Wallace admitted that without medical intervention by the paramedics, the driver was at a substantial risk of anoxic brain injury and death as a result of using the heroin Wallace distributed.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Wallace remains in custody of the United States Marshal pending sentencing. Wallace faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime term of supervised release following any imprisonment.
The case is being investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00025-LRR.
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Carrick Cocaine Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
PITTSBURGH – A Pittsburgh resident has been sentenced in federal court to 70 months’ incarceration, followed by five years of supervised release, on his conviction of violating of the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Antwon Lamar Richards, 29.
According to information presented to the court, from October 2013 to April 2014, in the Western District of Pennsylvania and elsewhere, Richards conspired with others to distribute and possess with the intent to distribute over two kilograms of cocaine. In addition, on Oct. 22, 2014, Richards possessed with intent to distribute a quantity of cocaine.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Richards.
California Man Sentenced for Credit Card Fraud for Installing Skimming Devices in Gas PumpsRead the Press Release
BOISE – Vachik Babayan, 42, of Tujunga, California, was sentenced today to 11months and 25 days in prison for access device fraud for possessing fifteen or more unauthorized credit card account numbers, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Babayan to pay a $10,500 fine, to pay restitution in the amount of $9,999, and to serve three months of home detention and three years of supervised release following his release from prison.
According to the plea agreement, Babayan travelled to Idaho on two separate occasions for the purpose of installing, and aiding and abetting the installation of, credit card account number skimmers in gas station pumps, in both Caldwell, Idaho, and Idaho Falls, Idaho. The skimmers diverted the electronic communication of credit card information from the normal course of wires and circuits within the pump, and recorded the credit card information, including name and account number, which Babayan later planned to retrieve.
On December 24, 2012, Babayan installed a credit card skimmer in a gas station in Caldwell, Idaho. Prior to its discovery by gas station employees, the skimmer collected the account information of approximately 91 account holders who swiped their cards at the targeted pump. The skimmer also captured Babayan’s own credit card information, as he used his card to test the installation. Babayan returned to the same gas station on January 8, 2013, intending to retrieve the skimmer and the captured account information. However, on December 28, 2012, the gas station discovered the skimmer and turned it over to the Secret Service.
On February 20, 2013, Babayan rented a U-Haul van in Idaho Falls, Idaho. Babayan used this van to block security cameras at gas stations in Idaho Falls while installing credit card skimmers in gas pumps at various Idaho Falls gas stations. On February 21, 2013, a total of seven skimmers were recovered at three gas stations in Idaho Falls. Babayan installed and aided and abetted in the installation of these skimmers. Prior to discovery, these skimmers captured names and account numbers from approximately 66 credit card transactions, including Babayan’s account information.
“This case demonstrates how vigilant cooperation between federal and local law enforcement, and local businesses, protects Idaho consumers from credit card fraud and other violations of financial security,” said Olson.
The case was investigated by the United States Secret Service, the Caldwell Police Department, the Boise Police Department, the Mountain Home Police Department, the Boise County Sheriff’s Office, the Idaho Falls Police Department, and the Glendale California Police Department as part of the Los Angeles Electronic Crimes Task Force.
California Man Sentenced to 10 Years in Prison for Coercing 15-Year-Old Reno Girl for SexRead the Press Release
RENO, Nev. – A California man who used internet chat rooms to solicit a 15-year-old Reno girl for sex, and then traveled to Reno where he was arrested after attempting to have sex with her, was sentenced today to 10 years in federal prison, 15 years of supervised release and ordered to pay a $5,000 fine, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Nicholas Ponh Suon, 41, of Norwalk, Calif., was sentenced in Reno by U.S. District Judge Miranda M. Du. Suon pleaded guilty in January to one count of enticement of a minor to engage in illegal sexual activity and agreed to the forfeiture of his property used in the crime, including his vehicle and cellular telephone.
“There are persons trolling the Internet 24 hours-a-day looking for innocent children to harm,” said U.S. Attorney Bogden. “This case demonstrates that criminals will travel across state lines to physically harm children, and are not only having online conversations or trading sexually explicit photographs. Thanks to the dedication and skills of these investigators and prosecutors, we are able to identify, arrest and successfully prosecute these dangerous predators.”
According to the court records, beginning as early as November 2013 and continuing until August 2014, Suon engaged in a series of internet chat and text message conversations with a 15-years-old Reno girl, which were intended to persuade and entice the girl to engage in sexually explicit conduct with Suon. The conversations were engaged in using different smart phone applications, including “Tango” and “Skout.” On Aug. 29, 2014, Suon traveled to Reno from California in order to meet the girl and to have sex with her. Suon was arrested outside the girl’s home after he attempted to engage in sexual intercourse with her in his vehicle.
The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham. It was investigated by the Washoe County Sheriff’s Office and the FBI, and 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."
Butler County Woman Pleads Guilty to Stealing $1.2 Million from Presbyterian ManorsRead the Press Release
WICHITA, KAN. – A Butler county woman Thursday became the second person to plead guilty to a federal charge of stealing more than $1.2 million from Presbyterian Manors of Mid-America, U.S. Attorney Barry Grissom said. The Wichita-based company owns assisted living centers in Kansas and Missouri.
Lori A. Shryock, 50, Augusta, Kan., pleaded guilty to one count of mail fraud. Shryock’s husband and co-defendant, Brent A. Shryock, 44, Augusta, Kan., pleaded guilty last month and is scheduled for sentencing Aug. 6.
In their pleas, they admitted the crime occurred while Brent Shryock was employed as information systems director for PMMA. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.
Brent Shryock created four fictitious companies, two of which were called Innovative Software Solutions and LGR Technologies. He directed payment to be mailed to those companies at post office boxes. Lori Shryock opened the two post office boxes where the checks were mailed. Either Brent or Lori Shryock would retrieve the payments and deposit them into the Shryocks’ personal accounts. The resulting loss to PMMA totaled $1.2 million.
Lori Shryock is scheduled for sentencing Aug. 24. She faces a penalty of up to 20 years in federal prison and a fine up to $250,000.
Grissom commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Birmingham Store Owner Pleads Guilty to Food Stamp and Tax FraudRead the Press Release
BIRMINGHAM -- The owner of a Southside Birmingham grocery store pleaded guilty today in federal court to food stamp and tax fraud totaling more than $1.6 million, announced U.S. Attorney Joyce White Vance, U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox, and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
SUFYAN HAZEM SALEH, 33, of Birmingham, pleaded guilty before U.S. District Judge R. David Proctor to one count of tax fraud and one count of food stamp fraud. As part of his plea, he agreed to pay restitution of $498,470 to the IRS and $1,125,772 to the USDA, which administers the food stamp program under the name Supplemental Nutrition Assistance Program, or SNAP. Saleh is scheduled for sentencing Sept. 10.
Saleh owns the now closed City Supermarket at 1531 13th Place South, a convenience grocery story that was authorized by USDA to accept food stamp benefits, according to his indictment and plea agreement. A federal grand jury indicted Saleh in August 2014. The indictment remained sealed until Saleh's arrest in February.
Individuals in the SNAP program receive benefits from the USDA on an electronic benefit transfer card, which functions like a debit card. Saleh pleaded guilty to redeeming EBT SNAP benefits for cash, which is prohibited, between January 2010 and December 2011. Of the approximate $1.9 million City Supermarket redeemed in EBT SNAP benefits during that period, the USDA estimated that $1,125,772 was food stamp fraud, according to Saleh's plea.
Saleh also pleaded guilty to tax fraud for under reporting to the IRS his 2009 and 2010 income received from redeeming SNAP benefits. Saleh did not report about $1.6 million in income from food stamp redemption for the two tax years, resulting in a tax loss of about $498,470, according to his plea.
The maximum penalty for the tax fraud is three years in prison and a $250,000 fine. The maximum penalty for food stamp fraud is five years in prison and a $250,000 fine.
Saleh recently was arrested on unrelated state charges of food stamp fraud.
The USDA-OIG and IRS-CI investigated the federal case, which Assistant U.S. Attorney Pat Meadows prosecuted.
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Bakersfield Arrest Leads to 11-Year Prison Sentence for Methamphetamine TraffickingRead the Press Release
FRESNO, California – Raul Canchola Farias, 40, of Pacoima, was sentenced today by U.S. District Judge Anthony W. Ishii to 11 years and three months in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Farias was arrested on November 5, 2013, after a California Highway Patrol officer stopped his vehicle on Highway 99 in Bakersfield and found over 21 pounds of methamphetamine secreted in the vehicle.
This case was the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney prosecuted the case.
18 Defendants Indicted for Drug Trafficking Out of a Silver Spring Housing Complex and District Heights Music StudioRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned two indictments charging 18 defendants with conspiring to distribute cocaine and heroin, and possession with intent to distribute the drugs. The indictments were returned on June 3, 2015 and unsealed today upon the arrest of the defendants, and the execution of search warrants at 29 residences and two businesses.
The first indictment charges 14 defendants in connection with drug trafficking operations conducted primarily at or near the housing complex in the 14000 block of Bel Pre Drive, Silver Spring. The second indictment charges four defendants with drug trafficking operations conducted primarily at or near a music studio located in the 7900 block of Cryden Way, District Heights, Maryland.
The indictments 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 J. Thomas Manger of the Montgomery County Police Department; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.
“An intensive investigation of drug dealing and related violence in the vicinity of Bel Pre Square yielded these allegations that much of the criminal activity in the area is related to an organized group of drug dealers,” said U.S. Attorney Rod J. Rosenstein. “Working together, local and federal authorities can help bring safety and security to Maryland neighborhoods by prosecuting criminals who deal drugs and foment violence. Surveillance and wiretaps were essential to gather the evidence.”
U.S. v. Frederick Davis, et al., No. 15-CR- 00317
According to the four count indictment and court documents, the FBI and Montgomery County Police Department identified a crack cocaine and heroin distribution operation led by defendant George Gee. Gee and his distribution network primarily operated in Bel Pre Drive housing complex and the surrounding area from at least June 2014 to June 3, 2015. They allegedly used the housing complex as an open-air drug market where traffickers routinely conducted hand-to-hand drug transactions. Gee allegedly directed and supplied several local drug distributors operating in the housing complex and conducted hand-to-hand drug transactions with local distributors. Drugs and drug proceeds were stored at the residences of some of the defendants.
The following defendants are charged in this indictment with conspiring to distribute cocaine base (crack), five kilograms or more of cocaine, and heroin:
Frederick J. Davis, age 31, of Gaithersburg, Maryland,
William T. Fergerson, a/k/a “Fats,” age 42, of Silver Spring, Maryland,
George Earl Gee, age 37, of Beltsville, Maryland,
Tiki Harmon, age 42, of Burtonsville, Maryland,
Amir Bey-Jones, a/k/a “Meano,” age 41, of Silver Spring,
Keenan Jones, age 54, of Silver Spring, Jovan Brian Lancaster, a/k/a “Juvie,” age 30, of Maryland,
Greg Milden, age 40, of Cliffside, New Jersey,
Joseph Miles, age 62, of Westerport, Maryland,
Brandon Richardson, age 30, of Silver Spring,
Alfonso Salazar, age 38, of Maryland,
Ryan Snowden, age 30, of Laurel, Maryland
Sonya Darby Thomas, a/k/a “Peaches,” age 37, of Gaithersburg, and
Rayvon Walls, age 25, of Indian Head, Maryland.
Gee, Snowden, Richardson, Salazar and Miles are also charged with possession with intent to distribute controlled substances. The indictment seeks forfeiture of $400,000.
U.S. v. Vincent Collins, et al., No. 15-CR-00316
According to the two count indictment and court documents, the FBI and the Montgomery County Police Department identified a heroin and cocaine distribution operation led by Anthony Niles. Niles primarily operated out of a music studio in Districts Heights. Niles allegedly directed and/or supplied several local drug distributors operating in Prince George’s County and the surrounding area from at least February 2015 to June 3, 2015. The indictment charges the following defendants with conspiring to distribute heroin and cocaine:
Vincent Collins, age 36, of Oxon Hill, Maryland,
Sierra Lynch, age 37, of Beltsville, Maryland,
Anthony Niles, age 36, of Bowie, Maryland, and
Abdul Hakim Sauda, age 30, of Laurel, Maryland.
Niles and Sauda are also charged with possession with intent to distribute heroin and cocaine.
According to court documents, Harmon and Snowden worked at a barber shop on Old Columbia Pike in Burtonsville where they stored drugs and drug proceeds. The indictment seeks forfeiture of $280,000.
All 18 defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Gee, Snowden, Richardson, Salazar, Miles, Niles and Sauda also face a maximum sentence of 20 years in prison for distributing drugs. The initial appearances of the defendants are scheduled to begin this afternoon at 2:00 p.m. in U.S. District Court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation. Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who are prosecuting the case.
10th Street Gang Member Sentenced on Racketeering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jairo Hernandez, 26, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations Conspiracy (RICO Conspiracy) and to possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 71 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorneys Joseph M. Tripi and John M. Alsup, who handled the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As part of his involvement in the gang, Hernandez possessed firearms, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
Hernandez is one of 44 defendants convicted on this case.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation.
5 June 2015
Wildwood, New Jersey, Man Admits Role as ‘Straw Buyer’ in Scheme to Fraudulently Obtain $445,141 MortgageRead the Press Release
CAMDEN, N.J. – A Wildwood, New Jersey, man today admitted defrauding a financial institution as part of a mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood area, U.S. Attorney Paul J. Fishman announced.
Daniel Cardillo, 51, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
John Leadbeater, 58, of Kearny, New Jersey, and others identified homes in Wildwood and Wildwood Crest, New Jersey. Leadbeater and others would then recruit straw buyers, including Cardillo, to purchase those properties at inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans.
Cardillo and others were able to deceive a bank into providing Cardillo a $445,141.61 loan for the purchase of 620 West Burk Avenue, Unit 102, in Wildwood. Cardillo submitted a fraudulent loan application prepared by other conspirators that contained false information about his income, assets and intended use of the property.
The conspiracy charge to which Cardillo pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Cardillo’s sentencing is scheduled for Sept. 14, 2015.
Leadbeater pleaded guilty to a superseding indictment charging him with conspiracy to commit wire fraud on March 9, 2015. His sentencing is scheduled for Sept. 14, 2015.
U.S. Attorney Fishman credited special agents from the FBI”s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS - Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Jonathan Larsen in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Justin T. Loughry, Camden
Wichita Man Sentenced to 10+ Years for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Friday to 130 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Earnest Bland, 50, Wichita, pleaded guilty to one count of distributing child pornography. In his plea, he admitted that in May 2014 he used a computer to access a peer-to-peer file sharing network. He shared images of child pornography that were available to other users on the Internet. Some of the child victims in the photos were under 10 years of age. A detective with the Wichita Police Department Force downloaded the files from Bland’s computer.
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Washington Man Ordered to Forfeit over $278K and Sentenced to More Than Six Years in Prison for Meth CrimeRead the Press Release
MISSOULA – The U.S. Attorney’s Office for the District of Montana announces that Mark Irvin Roberts, 50, of Newport, Washington, was sentenced on June 4, 2015, to over six years in prison and to forfeit more than $278,000 in connection with his federal conviction for conspiring to distribute methamphetamine. Chief District Court Judge Dana Christensen sentenced Roberts to 78 months in prison, five years of supervised release, and $5,000 in restitution, in addition to forfeiting $278,370 in connection with the offense.
Roberts entered his guilty plea to conspiracy to distribute methamphetamine on February 19, 2015. In an offer of proof, Assistant United States Attorney Tara Elliott told the Court that on February 5, 2013, two co-defendants went to Idaho and purchased two ounces of methamphetamine from Roberts. The co-defendants returned to Montana with the methamphetamine and were eventually apprehended. One of the co-defendants had been purchasing methamphetamine from Roberts for approximately six weeks. One of the co-defendants bought approximately eight ounces of methamphetamine from Roberts for redistribution in Montana.
On February 9, 2013, a deal was set up to purchase additional methamphetamine from Roberts. Roberts traveled to Montana to deliver the methamphetamine, but was intercepted by law enforcement. Three ounces of methamphetamine was recovered from Roberts. Laboratory analysis was conducted on the two ounces purchased from Roberts, and the results showed more than 50 grams of pure methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force and Homeland Security Investigations.
Veteran Affairs Employee and Vendor Charged with FraudRead the Press Release
BOSTON – An employee of the Department of Veteran Affairs Medical Facility in West Roxbury, Mass., and a vendor to that facility were charged today in connection with a scheme to profit from equipment that was ordered by the facility but never delivered.
James Muldoon, 47, of Pembroke, Mass., was indicted on three counts of wire fraud, and Phillip Wentworth, 59, of Middleborough, Mass., was charged by an Information with one count of wire fraud.
The charging documents allege that from Oct. 31, 2012, through Oct. 7, 2014, Muldoon, in his position in the Clinical Engineering Department of the Veteran Affairs Medical Facility (VA), and Wentworth engaged in a scheme to defraud the VA by creating false purchase orders and invoices for equipment that was never delivered to the facility. Muldoon, who was responsible for the maintenance and information technology support of various medical equipment used to treat the veterans served at the facility, created the false purchase orders. He then sent them to Wentworth who, under the name of his business M3S Computer Services, submitted invoices corresponding to the purchase orders even though no equipment was provided to the VA. Muldoon paid the invoices on behalf of the VA using his government-issued credit card, and Wentworth and Muldoon then divided between them the proceeds of their scheme. It is alleged that, on 82 occasions, Muldoon paid Wentworth and his company a total of $222,242 using his government-issued credit card.
The charging statute provides for each count a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Reaches Settlement with Day Camp to Ensure Equal Access for Disabled ChildrenRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with Winnewald Day Camp (Winnewald) in Lebanon, New Jersey, to resolve allegations that Winnewald refused to accommodate a child in its summer camp in 2014 because the child had diabetes, U.S. Attorney Paul J. Fishman announced today.
This matter stems from a complaint from the parent of an 11-year-old boy with Type I diabetes. Title III of the ADA prohibits discrimination on the basis of disability, including diabetes, by places of public accommodation.
According to the complaint:
Winnewald expelled the boy from its summer camp because the boy had diabetes and the camp refused to provide proper diabetes care management.
Under the settlement agreement, Winnewald has agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from its summer camp program. Winnewald also agreed publish on its website a statement of its policy on the prohibition of disability discrimination and provide mandatory training on the ADA and its prohibition of disability discrimination to all of its employees who work in the summer camp. Winnewald will also pay a $5,000 civil penalty to the U.S. Treasury.
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities, including diabetes, are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are also obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Michael E. Campion of the U.S. Attorney’s Office Civil Division in Newark.
U.S. Attorney Charges Serra Nissan General Manager with Defrauding ManufacturerRead the Press Release
BIRMINGHAM - Federal prosecutors today charged the general manager of Serra Nissan with conspiracy to defraud Nissan North America through its dealership incentive programs, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
The U.S. Attorney’s Office filed a one-count information in U.S. District Court charging that RANDY D. VISSER, 45, of Vestavia Hills, directed officers of the Birmingham dealership to falsify sales reports submitted by wire to the manufacturer so Serra Nissan could receive incentive payments it did not earn. Prosecutors also filed a plea agreement with Visser, in which he acknowledges the conspiracy charge and states his intention to plead guilty.
The charge against Visser follows last month's grand jury indictment of Serra Nissan's controller, Kimberly H. Branch. The 16-count indictment of Branch includes conspiracy and wire fraud charges based on the same scheme to defraud Nissan North America by falsely reporting to the manufacturer that certain cars were sold at Serra Nissan when they were sold at another Serra dealership.
The conspiracy charge against Visser charges that, between March 2013 and April 2013, Visser directed other employees at Serra Nissan to create false documents reporting vehicles sold at Serra Visser Nissan in Cullman as sold at Serra Nissan in Birmingham. The process, known as "pooling sales," occurs when a dealer owns or is associated with more than one dealership and attributes sales from one dealership to another in order to meet sales incentive levels that each dealership would not reach on its own.
At all times relevant to the charged offense, Visser owned 49 percent of Serra Visser Nissan. His wife owned 2 percent and her father, Anthony Serra, owned 49 percent, according to Visser's information and plea agreement. Serra owns 50 percent of Serra Nissan and his daughter owns the other 50 percent, according to the documents.
Visser and others in the conspiracy fraudulently claimed 15 vehicle sales for Serra Nissan, causing Nissan North America to overpay the dealership $64,800 in incentives, according to the charges.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine.
FBI and IRS-CID investigated the case, which Assistant U.S. Attorneys Amanda S. Wick and Jennifer S. Murnahan are prosecuting.
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Two Sentenced to Prison for Stock Manipulation SchemeRead the Press Release
Two men who manipulated penny stocks, and then laundered the proceeds by purchasing precious metals, were sentenced to prison today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. ALEXANDER HAWATMEH, 25, of Salem, Oregon was sentenced to five years in prison for securities fraud in a scheme that netted him more than $1.7 million. CHRISTOPHER MROWCA, 25, was sentenced to three years in prison for conspiracy to commit securities fraud. At HAWATMEH’s sentencing hearing U.S. District Judge Ronald B. Leighton said, “This sentence is driven by the corrosive effect that these actions have done to our financial institutions.”
“The stock manipulation in this case adversely impacted individual victims, and undermined the integrity of the financial markets,” said U.S. Attorney Annette L. Hayes. “An even playing field is essential to the ongoing viability and success of American financial markets. This blatant criminal activity undercuts trust in those markets by promoting a sense that the system is rigged against honest investors.”
According to records filed in the case, between December 2011 and April 2012, CHRISTOPHER MROWCA, ALEXANDER HAWATMEH and other co-conspirators engaged in a scheme to make it appear that a particular penny stock was being actively traded. During this period, the men accounted for 85% of the trades in ISM International, Inc. (ticker symbol “ISML”), a company related to a purported flea market business in Florida. The conspirators allegedly engaged in “matched trades” where one sold shares and the other bought shares to make it appear investors were interested in the company. In fact the ISML penny stock had little value and no business that would generate real revenue or income. In addition to the trades to make it appear there was interest in the stock, the men sent fraudulent and misleading “blast” e-mails via promotional websites and email addresses under their control with the intent of increasing demand for the ISML stock. The blast emails enticed other unknowing investors to buy the stock – then the men sold their shares, earning a profit of more than $223,000. MROWCA and HAWATMEH then engaged in a scheme to launder the proceeds of the illegal stock manipulation scheme by passing the money through third party accounts and the purchase of gold and silver bars.
HAWATMEH admits manipulating three other penny stocks for significant profit. He and a co-conspirator manipulated Allied Products Corporation (ticker symbol “ADPC”), resulting in more than $94,000 in profits which he shared with Tovy Pustovit, a defendant in a related case; HAWATMEH made $425,141 in profits manipulating trading in Aden Solutions, Inc. (ticker symbol “ADSU”), and he made $1,272,281 in profits trading Riverdale Oil & Gas, Inc. (ticker symbol “RVDO”).
MROWCA has agreed to forfeit $244,000 in profits from the ISML stock manipulation. HAWATMEH has forfeited approximately $700,000 in assets and will be responsible for a money judgment of about $1 million with credit for amounts already paid to the Securities and Exchange Commission (SEC).
Pustovit pleaded guilty last month and is scheduled to be sentenced September 14, 2014. A fourth defendant charged in the scheme, Mikhail Galas, 25, is scheduled to be sentenced June 26, 2015.
The case is being investigated by the FBI. The Securities and Exchange Commission (SEC) is conducting a parallel civil investigation. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Katheryn Kim Frierson.
Two More Friends Sentenced for Impeding Boston Marathon Bombing InvestigationRead the Press Release
BOSTON – Two more friends of convicted Boston Marathon bomber, Dzhokhar Tsarnaev, were sentenced today in U.S. District Court in Boston for their role in impeding the Boston Marathon bombing investigation.
Robel Phillipos, 21, of Cambridge, was sentenced this afternoon to three years in prison and three years of supervised release, and ordered to report to the Bureau of Prisons on July 24, 2015. In October 2014, Phillipos was found guilty by a federal jury of two counts of making false statements to law enforcement in a terrorism investigation. Azamat Tazhayakov, 21, of New Bedford, was sentenced this morning to 42 months in prison and three years of supervised release. Tazhayakov was convicted by a federal jury in July 2014 of conspiring to obstruct justice and obstructing justice with the intent to impede a terrorism investigation. Tazhayakov is a national of Kazakhstan who was temporarily living in the United States on a student visa while attending the University of Massachusetts Dartmouth (UMass). At the time of his arrest his visa had been revoked.
“These cases represent an often-overlooked, but significant part of the investigative and judicial process: cooperation with law enforcement authorities. At a time when public safety was in peril, Mr. Tazhayakov and Mr. Phillipos repeatedly chose to obstruct justice when they could have assisted authorities,” said United States Attorney Carmen M. Ortiz. “That week truth was a matter of life and death. The defendants plainly made the wrong decision, with disastrous consequences.”
“Azamat Tazhayakov and Robel Phillipos could have done the right thing and told the FBI what they knew. Instead, they repeatedly impeded the investigation when they could have assisted our investigation into a deadly terror attack,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.
On Tuesday, June 2, 2015, Dias Kadyrbayev, 21, another friend of convicted Boston Marathon bomber, Dzhokhar Tsarnaev, was sentenced to six years in prison. In August 2014, Kadyrbayev pleaded guilty to conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation.
On the evening of April 18, 2013, after the release of the photographs to the public of the Boston Marathon bombers, Kadyrbayev, Tazhayakov and Philipos entered Dzhokhar Tsarnaev’s dormitory room at UMass where Kadyrbayev removed Tsarnaev’s laptop and a backpack containing fireworks from which “gunpowder” appeared to have been removed, a jar of Vaseline, and a laptop computer.A month before the bombing, Tsarnaev had told Tazhayakov that it would be good to die as shaheed (martyr) and that he knew how to build a bomb. Tsarnaev also identified specific ingredients one could use to make a bomb, including “gunpowder.”
During the early morning hours of April 19, 2013, while Tazhayakov and Kadyrbayev were monitoring the manhunt for the Tsarnaevs on television, Kadyrbayev discussed getting rid of the backpack containing the fireworks. Tazhayakov agreed with Kadyrbayev that they should get rid of it. After this conversation, Kadrybayev placed Dzhokhar Tsarnaev’s backpack in a garbage bag and placed it in a dumpster outside their New Bedford apartment. The FBI recovered the backpack on April 26, 2013, after 30 agents spent two days searching a landfill in New Bedford.
Between April 19, 2013 and April 26, 2013, Phillipos was interviewed five times by investigators conducting the Boston Marathon bombing investigation and during each of those interviews Phillipos lied. At the conclusion of the fifth interview, Phillipos finally admitted that he did go into Tsarnaev’s dormitory room on the evening of April 18, 2013, and that Kadyrbayev removed evidence from Tsarnaev’s room.
U.S. Attorney Ortiz and SAC Lisi of the FBI made the announcement today. This investigation was conducted by the FBI’s Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. Homeland Security Investigations in Boston, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service’s Criminal Investigations in Boston, provided assistance with this investigation.
The case was prosecuted by Assistant U.S. Attorneys John A. Capin and B. Stephanie Siegmann of Ortiz’s Anti-Terrorism and National Security Unit.
Three More Defendants Sentenced to Prison Terms for Multi-Million Dollar Theft of Pre-Retail Medical ProductsRead the Press Release
Three additional Miami-area residents were recently sentenced to prison terms in connection with violations of the Safe Doses Act, pursuant to provisions under Title 18, United States Code, Section 670, which prohibit theft of “pre-retail” medical products. A total of eight defendants have been convicted in connection with a cargo theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and David W. Bourne, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigation (FDA-OCI), Miami Field Office, made the announcement.
Jorge Nimer Rolo, 48, Lazaro Martinez, a/k/a “Fat Laz,” 45, and Antonio Ramirez, a/k/a “Tony Bodega,” 54, were recently sentenced to prison terms in connection with a scheme to steal pre-retail medical products, including more than $2.2 million worth of Mucinex cough medicine and $550,000 worth of Similac baby formula, as well as other merchandise.
According to the indictment and documents filed in court, as part of an organized theft ring, 44 pallets of Similac were stolen by the defendants and their co-conspirators from a distribution site in Fort Worth, Texas, and more than 18,000 cases of Mucinex were pilfered from a tractor-trailer truck in Richland, Mississippi. These pre-retail medical products, medical products that had not yet been made available for retail purchase by a consumer, were then transported by members of the cargo theft ring to South Florida, stored in various locations, and offered for sale to brokers and retailers in and around Miami-Dade County. The defendants worked together to sell and distribute the stolen cargo. The stolen products were originally intended for sale at Wal-Mart and Walgreens stores and other retailers in the Southeastern United States.
Nimer Rolo was a broker who financed a range of stolen cargo in South Florida and elsewhere, including stolen baby formula, computers and electronics, perfume, and women’s lingerie, valued at more than $2.3 million. Nimer Rolo was sentenced to 108 months imprisonment by U.S. District Judge Joan A. Lenard on May 29, 2015. Nimer Rolo previously pleaded guilty on March 18, 2015, to one count of conspiracy to receive and sell stolen goods valued at $5,000 or more, involving a pre-retail medical product, as well as one count of money laundering, involving a pre-retail medical product.
Martinez and Ramirez were brokers who obtained stolen product from others and sold portions of the stolen cargo. Martinez was a co-owner of Tadeo Supermarket in Miami where stolen cargo was sold, and he acted as a buyer and re-seller of stolen cargo with others, including Ramirez. Ramirez and Martinez pleaded guilty before U.S. District Judge Robert N. Scola on March 3, 2015, to a one count information charging conspiracy to receive and sell stolen goods valued at $5,000 or more. Ramirez was sentenced by Judge Scola on May 27, 2015, to a total of 36 months imprisonment, including 24 months imprisonment in connection with this case and 12 months imprisonment for a supervised release violation. Martinez was sentenced to 18 months imprisonment on May 18, 2015.
Previously, Ivan Manuel Valle, 34, of Miami, Daniel Martinez Zamora, 45, of Homestead, Raul Nick Garcia, 52, of Surfside, Ali Saleh, 35 of Miramar, and Jesus Mariano Gutierrez, 51, of Miami, were convicted in connection with this same scheme to steal pre-retail medical products. Garcia and Zamora were each sentenced to 48 months imprisonment by Judge Lenard on September 22, 2014; Valle was sentenced to 60 months and Gutierrez was sentenced to 30 months, on August 28, 2014; and, Saleh was sentenced to 34 months on September 4, 2014. The defendants all previously pleaded guilty before Judge Lenard.
The Safe Doses Act, passed by Congress in November, 2012, created a new offense, 18 U.S.C. § 670, which prohibits 1) stealing, or obtaining by fraud or deception, any pre-retail medical product; 2) knowingly and falsely making, altering, forging, or counterfeiting the labeling or documentation of a pre-retail medical product; 3) knowingly possessing or transporting a stolen or fraudulently-obtained pre-retail medical product; and, 4) buying or otherwise obtaining an expired or stolen pre-retail medical product with intent to defraud. The Act also contains enhanced penalties for money laundering offenses involving the proceeds of violations of the Act. Products such as baby formula and cold medicine are covered by the Act.
U.S. Attorney Wifredo A. Ferrer stated, “Theft and the illegal sale of pre-retail medical products present a risk to public safety. The significant sentences that have been handed down by the Courts, against participants in the cargo theft scheme, tell us all that consumer protection is of utmost importance.”
“FDA sets high quality standards for the safety and nutritional quality of infant formulas because these products are consumed during a critical time in a child’s development; once this product is diverted from the protected supply chain, consumers can no longer be assured of its safety or wholesomeness,” said David W. Bourne, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to protect the public health by bringing such criminals to justice.”
Mr. Ferrer commended the investigative efforts of the FBI and FDA-OCI, as part of the Miami Major Theft Task Force. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Man Sentenced to 82 Months in Prison for Attempting to Travel to Syria to Join ISILRead the Press Release
Michael Todd Wolfe aka Faruq, 24, of Austin, Texas, was sentenced this afternoon by U.S. District Court Judge Sam Sparks of the Western District of Texas to serve 82 months in federal prison for attempting to provide material support to a designated foreign terrorist organization, announced Assistant Attorney General for National Security John Carlin, Acting U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In June 2014, Wolfe pleaded guilty to the charge, admitting that from August 2013 to June 17, 2014, he planned to travel to the Middle East to provide material support to the Islamic State of Iraq and the Levant (ISIL). Wolfe previously acknowledged that he applied for and acquired a U.S. passport, participated in physical fitness training, practiced military maneuvers and made efforts to conceal his communications about his plans to travel overseas to engage in violent jihad. Wolfe also purchased airline tickets so that he could travel to Europe to meet an FBI undercover employee, whom the defendant then believed would facilitate travel to Syria through Turkey. In furtherance of his attempt to provide material support to ISIL, Wolfe travelled to Houston and was apprehended on June 17, 2014, on the jet-way, as he attempted to board a flight to Toronto, Canada. His ticketed itinerary had him traveling through Iceland and arriving in Copenhagen, Denmark, on June 18, 2014. He then planned to make his way to Syria to join with ISIL and engage in the armed conflict. Wolfe has remained in federal custody since his arrest.
The case was investigated by the agencies comprising the Central Texas JTTF, which include the FBI; Internal Revenue Service-Criminal Investigation; U.S. Citizenship and Immigration Services; U.S. Army Intelligence; Austin Police Department; Round Rock, Texas, Police Department; Killeen, Texas, Police Department; University of Texas Police Department; Travis County, Texas Sheriff's Office; Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
The case was prosecuted by Assistant U.S. Attorneys Gregg N. Sofer and Michael Galdo of the Western District of Texas, and Trial Attorneys Josh Parecki and Michael Dittoe of the National Security Division’s Counterterrorism Section.
Three Extradited to Mississippi to Face Federal Fraud ChargesRead the Press Release
Gulfport, Miss – Two individuals have been extradited from South Africa and one from Canada in a case that includes defendants in California, Wisconsin, Indiana, and New York, to face charges on a nine-count federal indictment filed in the Southern District of Mississippi involving various internet fraud schemes, announced U.S. Attorney Gregory K. Davis.
The indictment alleges numerous complex financial fraud schemes over the internet, including romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial, and credit card account take-overs.
The case is alleged to have begun as early as 2001. The investigation was initiated in October, 2011 by Homeland Security Investigation agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the target of a romance scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars. Other schemes discovered by the investigation include advance check schemes where a victim receives a check and is asked to deposit it then send money by Western Union, MoneyGram or prepaid credit cards to another person, only to find out later the check is not valid.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty
INFORMATION FOR VICTIMS AFFECTED BY THE SCHEMES:
1. If you believe you were the victim of criminal fraud committed by any of the defendants, possibly using the below email addresses and/or names, please go to http://www.justice.gov/usao-sdms/scams and complete the questionnaire.
Email Addresses Used:
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
Names Used:
Richard Wasser Adeline Piper
Glenn Sattelberg Folly Edwards
Samuel Maxwell Stacy Adams
Regina Darwin Justin Worsham
Marlon Chase Karen Robinson
Dickson Jones Mark Miller
Kimberly Faye Mark Smith
Lorene M. Garrett John Gervino
Mark Gentile Sarah Powell
Kevin Smith Anita Lauren
The information you provide through the questionnaire regarding your experience may be helpful in the criminal investigation and prosecution of this case. A law enforcement agent may contact you with additional questions or to request documents you may have received or submitted during your dealings with these individuals. To access the questionnaire please go to http://www.justice.gov/usao-sdms/scams and input the password scams.
Please note that submitting the questionnaire is NOT a substitute for consulting with your own attorney to determine what actions and remedies may be available to you through civil litigation.
2. You may access the website for the U.S. Attorney’s Office for the Southern District of Mississippi: http://www.justice.gov/usao-sdms to obtain more information on the case or the court proceedings. You may also obtain information at http://justice.gov/largecases/.
3. If you have any questions related to this matter that are not addressed at the above websites, you may contact the government at the email address [email protected].
The Department of Homeland Security, Homeland Security Investigations and the United States Postal Inspection Service are investigating this fraud. The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, along with Robert Tully of the Organized Crime Gang Section.
Supplier of Heroin to Drug Trafficking Organization IndictedRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment today against a supplier of narcotics to a large-scale drug trafficking organization for conspiring to distribute heroin and cocaine in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Shannon, a/k/a “Cuzzo,” 36, of Jersey City, New Jersey, is charged in a five-count indictment with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of unlawful possession of a firearm, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property.
In March 2014, 20 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon allegedly supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the individuals charged, 15 have pleaded guilty.
According to documents filed in this case:
Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey. The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the narcotics to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged the heroin and cocaine and prepared it for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.
To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California.
Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.
Shannon was initially charged by criminal complaint on March 20, 2014, and was arrested that day.
The conspiracy count with which Shannon is charged carries a minimum potential penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. The possession of controlled substances count with which Shannon is charged carries a minimum potential penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. The unlawful possession of a firearm count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, and the possession of a firearm in furtherance of a drug trafficking offense count carries a minimum potential penalty of five years in prison and a maximum of life in prison, which must be served consecutive to any sentence imposed in connection with the underlying drug trafficking offenses. The engaging in a monetary transaction in criminally derived property count carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Edward Bertuccio Esq., Toms River, New Jersey
Stillwater Man Sentenced for Role in Large Shoplifting RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Terry Stewart, 35, of Stillwater, NY, who was convicted of engaging in a racketeering conspiracy, was sentenced to 55 months in prison by U.S. District Judge Richard J Arcara. The defendant was also ordered to pay $671,183.25 in restitution to retail chains.According to Assistant U.S. Attorney Anthony M. Bruce, who handled the case, Stewart was part of an organized shoplifting ring that stole hundreds of thousands of dollars in merchandise, including breast pumps, whitening strips, cross stitch and needlepoint kits, electric toothbrushes, thumb drives, pet supplements, razors, and tool sets from big box stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops and Wegmans. The merchandise was then sold to co-defendant Rico Vendetti for 25¢ on the dollar. The merchandise was then sold by Vendetti on eBay for about half of its retail value, primarily to out-of-state customers. The defendant alone supplied Vendetti with about $700,000 in stolen merchandise over a period of several years.
Rico Vendetti was arrested along with Arlene Combs, Albert Parsons, and Donald Griffin, all of Rochester, NY, an charged with the felony murder in the death of 78-year old Homer Marciniak during the course of a home invasion robbery at Marciniak’s home in Medina, NY in July, 2010. Vendetti has been convicted for his role in the murder and is awaiting sentencing.
Also charged in the case are Brandon Meade and Dayon. Meade has been convicted. Charges are pending against defendants Shaver, Combs, Parsons, and Griffin. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sixth Smuggler Sent to Prison in Massive Stash House Case in HoustonRead the Press Release
HOUSTON – The final man arrested in connection with the March 2014 discovery of more than 100 illegal aliens in an area stash house has been ordered to federal prison, announced United States Attorney Kenneth Magidson.
Benjamin Granados-Lupian, 32, pleaded guilty approximately one month after his arrest. He was convicted of conspiracy to harbor and transport illegal aliens and use of a firearm during and in relation to a crime of violence as were co-conspirators Jose Aviles-Villa, 32, Antonio Barruquet-Hildeberta, 46, Jonathan Solorzano-Tavila, 30, Jose Cesmas-Borja, 26, and Eugenio Sesmas-Borja, 20. All of the smugglers are from Michoacan, Mexico.
Today, U.S. District Judge Melinda Harmon, handed Granados-Lupian a sentence of 63 months in federal prison for the conspiracy charge. He also received a consecutive 60-month sentence for the use of a firearm, resulting in a total sentence of 123 months of federal imprisonment. Aviles-Villa, Barruquet-Hildeberta, Solorzano-Tavila, Sesmas-Borja and Cesmas-Borja were previously sentenced by U.S. District Judge Lee Rosenthal to terms between 111 and 123 months. As illegal aliens, they are all expected to face deportation proceedings following release from prison.
The stash house was discovered on March 19, 2014, on Almeda School Road in Houston with 115 illegal aliens inside.
The convicted smugglers admitted they obtained substantial profits as a result of the conspiracy. They had established networks who brought the aliens into the U.S. illegally across the Southwest border. The illegal aliens were then held in stash houses while the smugglers arranged payment of remaining smuggling fees from their families.
While in the stash house, the conspirators seized the victim aliens’ clothes, shoes, phones and other possessions. The conspirators used guns, paddles, tasers and other equipment to control and prevent the illegal aliens from escaping from the stash house. They also guarded the aliens with guns displayed in plain view and threatened to kill them by shooting them in the back of the head if they tried to escape.
In one specific instance, the conspirators contacted the mother of one of the stashed aliens and told her to pay an additional $13,000 for the victim and her two children. She was advised that if she did not pay, they would “make her family disappear and make her family pay.”
Granados-Lupian will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations with the assistance of the Houston Police Department. Assistant United States Attorney (AUSA) Julie Searle and Special AUSA Rick Bennett are prosecuting.
Six Charged in Health Care Fraud Scheme Targeting MedicaidRead the Press Release
CHARLOTTE, N.C. – Six members of a health care fraud ring that targeted Medicaid by submitting approximately $10 million in fraudulent reimbursement claims have been charged with health care fraud conspiracy, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Filed criminal bills of information charge Wanda Marie Webb, 65, and Lachanda Clotier Parks, 40, both of Charlotte; Alexander Bass, 41, and Torrey Darnell Moton, 44, both of Fuquay-Varina, N.C.; Jacqueline Priscilla Ford, 34, of Fayetteville, N.C; and D’Marcus Antonio White, 25, of Baton Rouge, Louisiana with one count of health care fraud conspiracy. Webb and Ford pleaded guilty in Court earlier today. Parks, Moton, Bass and White previously entered their guilty pleas.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents, admissions reflected in the filed plea agreements and statements made in court, at various times between October 2012 and August 2013, unindicted conspirators #1 (CC#1) and #2 (CC#2) conspired with Webb, Parks, Bass, Moton, Ford and White to defraud Medicaid by filing false claims for payment for mental and behavioral health services to Medicaid recipients which were never actually provided. According to court records, the network of conspirators executed the fraud through a number of mental and behavioral health services companies, including “United Rehabilitation Services” (URS) in Erwin, N.C., which was owned and operated by Bass and Moton.
Court records show that Bass and Moton agreed to pay CC#1 $4,000 per month in exchange for coordinating the filing of fraudulent claims to Medicaid on behalf of URS. At the direction of CC#1, Bass and Moton also paid CC#2, who operated as the scheme’s patient-recruiter, to collect Medicaid beneficiary numbers which were then used to file the false claims. Court records indicate that between January and July 2013, CC#1, Bass and Moton filed over $1.1 million in fraudulent claims, and Medicaid paid out approximately $400,000 directly to Bass and Moton.
According to plea documents and other court filings, the network of conspirators generated fake documents to support the fraudulent claims and in case Medicaid ever audited the providers for the claimed services. White, Ford and Parks generated fictitious paperwork, which included fake intake sessions, fake clinical assessments and fabricated therapy notes. At the direction of CC#1, White’s role, among other things, was to organize on spreadsheets the information of the non-existent mental health problems and treatment plans for the Medicaid recipients, to reflect which fake services were allegedly rendered to each recipient, court records show.
Court records also indicate that during the relevant time period, Webb, a licensed and Medicaid-approved psychologist, agreed to allow CC#1 to use her Medicaid provider number to submit the fraudulent reimbursement claims, listing Webb as the attending clinician. Court records show that Webb kept approximately 68% of the Medicaid reimbursements, and paid 25% to CC#1 and 7% to other individuals responsible for processing the fake claims. According to court records, just in the month of August 2013, using Webb’s Medicaid provider number, the conspirators submitted approximately $239,175 in false claims, of which $79,338.74 was paid out to Webb directly.
The health care fraud conspiracy charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
The investigation, which is ongoing, is being handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
Related Prosecutions
Four other defendants previously admitted to their involvement in the Medicaid fraud scheme. In late 2014, Aliya Boss, Zaria Davis Humphreys, Kino Williams and Sakeenah Davis each pleaded guilty to one count of health care fraud conspiracy and currently await sentencing. (Please visit: http://www.justice.gov/usao-wdnc/pr/charlotte-woman-pleads-guilty-conspiracy-defraud-medicaid-more-43-million to view WDNC’s press release related to those prosecutions).
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Seven Southern Illinois Residents Charged with Methamphetamine and Heroin OffensesRead the Press Release
Seven southern Illinois residents were indicted on June 2, 2015, in a two-count indictment, charging conspiracy to manufacture and distribute methamphetamine and conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Paula L. Summers, 61, and Randall A. Miller, 25, both of Percy, Justin Ogle, 32, of Steeleville, Christopher R. Pelate, a/k/a "Critter," 34, of Willisville, and Brian T. Lane, a/k/a "Squirrel," of Marissa, are charged with conspiracy to manufacture and distribute methamphetamine. The indictment alleges that the methamphetamine offense occurred between 2013 and May 2015, in Perry, Jackson, and Randolph Counties. Summers, along with Larry D. Rice, 27, and Amanda J. Reeves, 25, both of Percy, are charged with conspiracy to distribute heroin. The indictment alleges that the heroin offense occurred between 2013 and May 2015 in Perry and Randolph Counties.
Miller, Pelate, Rice, and Reeves made their initial appearances in federal court in Benton on June 4, 2015. They are currently being held without bond pending June 9, 2015, detention hearings. Summers, Ogle, and Lane are scheduled to make their initial appearances in federal court on June 5, 2015. The case has been set for an August 10, 2015, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the methamphetamine and heroin offenses carry penalties of a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County States Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Rosebud Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance was sentenced on June 1, 2015, by U.S. District Judge Roberto A. Lange.
Lawrence Bordeaux, age 31, was sentenced to 21 months in custody, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. He will also forfeit $1,200 seized during his arrest.
Bordeaux was indicted by a federal grand jury on June 10, 2014. He pled guilty on March 3, 2015.
The conviction arose from a March 2014 traffic stop on the Rosebud Reservation, when Bordeaux did not have a driver’s license and was suspected of being under the influence. When a police service dog indicated twice on the vehicle, Bordeaux was patted down and placed in the patrol car. Officers found three rolled bundles of money that totaled $1,200 in Bordeaux’s pocket, and a digital scale and a marijuana cigarette in his vehicle. During the booking process, Bordeaux admitted he had hidden some plastic baggies on his person. These baggies contained a white powder residue. When Bordeaux was escorted to the shower room, he pulled out three more containers that contained 7.48 grams of methamphetamine. Bordeaux admitted that he had been distributing methamphetamine, mainly in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bordeaux was immediately turned over to the custody of the U.S. Marshals Service. # # #
Registered Sex Offender Sentenced to Twenty-Five Years for Distribution and Receipt of Child PornographyRead the Press Release
A Lebanon, Illinois, man, who was already a registered sex offender, was sentenced in federal district court on June 4, 2015, for Distribution and Receipt of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ryan Scott Richards, 41, was sentenced to 25 years in federal prison, to be followed by a ten year term of supervised release. Richards pled guilty to the charges on January 14, 2015. Richards was also ordered to pay a fine of $1,250.
The violations occurred from approximately January 11, 2014 to March 5, 2014, in St. Clair County, Illinois.
"We hope that such a long and well-deserved sentence will send a message to those who seek to prey upon children." noted United States Attorney Wigginton. "The harm these predators do is vast, and it lasts for lifetimes of not only the direct victims, but those who must deal with these images."
According to a factual stipulation filed at the time of the plea, on January 11, 2014, an investigator with the Illinois Attorney General’s Internet Crimes Against Children (ICAC) Task Force was doing an online investigation, and downloaded four images and a movie from a computer, later linked to Richards, a registered sex offender with two prior state convictions for sex offenses involving children. The movie downloaded from Richards’ computer depicted a nine year old female, who has been identified in numerous other investigations, engaged in sex acts with an adult male and a dog.
The ICAC Task Force executed a search warrant at Richards’ residence on March 5, 2014. At the time, Richards was downloading child pornography. Forensic analysis reviewed that Richards had a collection of 264,293 child pornography pictures and 1,821 movies.
At sentencing, the Court referenced a victim impact statement from the parent of the child in the film which expressed the constant anxiety the child experiences due to the ongoing dissemination of her images on the internet.
"I would like to acknowledge the dedication and professionalism of the officers and forensic examiners who are members of our ICAC task force," United States Attorney Wigginton stated. "The psychological burdens of investigating crimes which involve movies and images of children being subjected to sexual assault, degradation, and humiliation leave lasting effects on the men and women who investigate these crimes. Their work involves constant exposure to violent and disturbing crime scene images, and through prior investigations they have learned the personal experiences of these victims whose images are constantly traded on the internet."
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."
The case was investigated by the Illinois Attorney General’s Internet Crimes Against Children Task Force, with the support of the St. Clair County State’s Attorney’s Office. The case was prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Port St. Lucie Resident Pleads Guilty to Preparing False Tax Returns for Himself and his ClientsRead the Press Release
A Port St. Lucie resident pled guilty to preparing false tax returns for himself and his clients.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jean Pedro Jean Baptiste, 55, pled guilty to two counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and four counts of assisting in filing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Baptiste was a paid tax return preparer who owned and operated JP and Sons Enterprises in Delray Beach, Florida. For tax years 2008 and 2009, Baptiste prepared individual income tax returns for customers using false income and deduction figures. Baptiste claimed deductions and credits for items that he knew the taxpayers were not entitled to take including, false Schedule C items and false Earned Income Credits, Additional Child Tax Credits, and First Time Home Buyer Credits. Baptiste failed to review the tax returns in detail with his clients and then electronically filed them for the taxpayers.
Baptiste also filed false Form 1040 income tax returns for himself for tax years 2008 and 2009. The 2008 tax return falsely claimed a First Time Home Buyer Credit, and the 2009 tax return falsely claimed an Additional Child Tax Credit, an Earned Income Credit, and falsely stated Schedule C income, gross receipts and sales. As a result, Baptiste received an inflated and unmerited tax refund payment.
The total loss to the United States is approximately $558,000.
Baptiste is scheduled to be sentenced by U.S. District Court Judge Robin L. Rosenberg on August 18, 2015 at 10:30 a.m. At sentencing, Baptiste faces a maximum of 3 years in prison per count.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port Charlotte Man Sentenced to Life in Sexual Exploitation CaseRead the Press Release
Fort Myers, Florida – Senior United States District Judge John E. Steele has sentenced Quinton Paul Handlon (44, Port Charlotte) to life in federal prison for producing and possessing child pornography and for coercing and enticing a minor to engage in sexual activity. Handlon was found guilty by a jury on October 9, 2014.
According to evidence presented at trial, Handlon sexually abused a family member over an approximately four-year period, while she was between the ages of 11 and 15. He provided the girl with money and other items in exchange for sexual activity. Handlon took sexually explicit photographs of the child, filmed her engaged in sexual activity with him, and coerced her to take photographs and videos of herself for his sexual gratification. A search warrant executed at Handlon’s residence recovered the electronic devices containing the victim’s images and videos.
This case was investigated by the Charlotte County Sherriff’s Office and the Federal Bureau of Investigation’s Child Exploitation Unit. It was prosecuted by Assistant United States Attorneys Tama Koss Caldarone and Stacie B. Harris.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Pawley’s Island Contractor Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
Contact Person: William E. Day, II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Marlon Davis Weaver, age 55, of Pawley’s Island, South Carolina was sentenced in federal court in Florence, for conspiracy to launder money, a violation of 18 U.S.C. § 1956(h). United States District Judge R. Bryan Harwell imposed a sentence of 12 months and 1 day incarceration after granting the government’s motion for a reduced sentence based on assistance Weaver had provided in the prosecution of others. The Judge also ordered Weaver to pay $1,200,000 in restitution and to serve 3 years supervised release.
Evidence presented at the change of plea hearing established that Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC. In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95. Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project. SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond. SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company. He provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses. Reflected on this financial statement was Weaver’s investment in a company, Gold & Silver, LLC., and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.
On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT. Weaver backdated documents to make it appear that he had transferred his interest in these assets to his daughters on September 1, 2009, prior to defaulting on the project, when in fact Weaver remained in control of the assets at all times. Weaver mailed these fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others. These documents were received by SafeCo on or about 12/18/2009.
Gold & Silver, LLC. was an investment business owned and operated by Archie Evans, which invested in the futures market. To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter, Jena Weaver, prior to SafeCo incurring losses, Evans agreed to back date documents to reflect that Weaver’s investment was transferred to her September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.
Weaver hired Attorney Thad Viers to represent him in the civil case filed against him by SafeCo. Weaver informed Viers that he was trying to hide his assets from SafeCo. On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000. Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000. Only the $10,000 check was payment for the retainer fee. The $490,000 was money that Weaver was attempting to conceal from SafeCo. The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it. Viers deposited the $490,000 cashier’s check into his operating account on 12/4/2009, then immediately wrote a check to Archie Evans Ministries for $400,000. The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver. The difference of $90,000, Viers was to deposit into his campaign account. Viers was running for election for a seat in the United States House of Representatives, and wanted his competitors to believe that he had a lot of support so they would drop out of the race. After earning approximately $30,000 in legal fees, Viers returned the remainder of the money to Weaver.
On January 21, 2010, BEJ, LLC. was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo. The marina was sold in February 2010 and Weaver received approximately $501,000. Weaver laundered these funds through several bank accounts to include a bank account set up in the name BEJ, LLC. Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed. This cash was given to Archie Evans in increments which Evans structured into his bank accounts to avoid a regulatory bank filing.
In January 2011, Thaddaeus Viers set up a trust account at Weaver’s request and agreed to have funds wired or deposited into the account by Evans. Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver. Each withdrawal authorized by Viers was for $10,000 or more. Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 regulatory bank filing reporting requirement, ranging from $7,500 to $9,500. Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, to structure deposits into Evan’s bank accounts. This cycle of the banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s bank account on behalf of Weaver which was sourced by Evans’ bank account. Of the amount credited, $375,000 was proceeds from the sale of the marina. Weaver hid a total of 1.2 million dollars of assets he had pledged to SafeCo and SafeCo ultimately lost more than 7 million dollars as the result of issuing bonds to Weaver. Evans was previously sentenced to 7 years imprisonment and Viers is awaiting sentence for his involvement as a coconspirator.
The case was investigated by agents of the Internal Revenue Service and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Pawan Kumar Jain Arraigned on Superseding Indictment Adding New Charges of Unlawfully Dispensing Prescription Drugs and Health Care Fraud Resulting in DeathsRead the Press Release
ALBUQUERQUE –Pawan Kumar Jain, 62, of Las Cruces, N.M., was arraigned this morning in Las Cruces federal court on a 114-count superseding indictment which alleges that, among other crimes, Jain’s over-prescribing of opioid pain medication resulted in the deaths of four patients. Jain entered a not guilty plea this morning to the superseding indictment; he remains in custody pending trial. The filing of the superseding indictment was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Jain initially was charged in a 111-count indictment filed on April 16, 2014. The indictment charged Jain with 61 counts of unlawfully dispensing controlled substances and 50 counts of healthcare fraud. The superseding indictment, which was filed on May 20, 2015, adds two new counts of the unlawful dispensing of controlled substances resulting in death and a new count of healthcare fraud resulting in death, for a total of 63 dispensing charges and 51 healthcare fraud charges. According to the superseding indictment, Jain allegedly committed the offenses charged between April 2009 and June 2010, in Doña Ana County, N.M. During that period, Jain was a licensed physician with a neurology subspecialty who operated a pain management medical practice in Las Cruces. Jain’s medical license was suspended in June 2012 and subsequently revoked in Dec. 2012 by the New Mexico Medical Board.
Each of the 63 dispensing charges in the superseding indictment alleges that Jain unlawfully dispensed prescription painkillers, primarily Oxycodone and methadone, to patients outside the usual course of medical practice and without a legitimate medical purpose. The maximum statutory penalty for a conviction on each of the 63 dispensing charges is 20 years in prison and a $1,000,000.00 fine.
The 51 healthcare fraud charges allege that Jain engaged in a scheme to defraud two health care benefit programs, Medicare and Medicaid, by causing claims to be submitted for payment for prescription medications he dispensed to patients outside the usual course of medical practice and without legitimate medical purpose. The maximum statutory penalty for a conviction on each of the health care fraud charges is ten years in prison and a $250,000.00 fine.
Seven counts in the superseding indictment, Counts 1 through 7, expose Jain to enhanced sentencing because the criminal conduct charged allegedly resulted in the deaths of four patients. Those Counts contain the following allegations:
- Counts 1 and 2 – that Jain’s unlawful dispensing of prescription painkillers, 270 tablets of methadone (10 mg), and fraudulent conduct in late Nov. 2009, resulted in the death of a patient identified by the initials “M.E.B” on Dec. 25, 2009.
- Counts 3 and 4 – that Jain’s unlawful dispensing of prescription painkillers, 120 tablets of oxycodone (30 mg), and fraudulent conduct on July 27, 2010, resulted in the death of a patient identified by the initials “N.D.” on July 29, 2010.
- Count 5 – that Jain’s unlawful dispensing of prescription painkillers, 90 tablets of morphine sulfate (60 mg), in June 2010, resulted in the death of a patient identified by the initials “R.B.” on Aug. 14, 2010.
- Counts 6 and 7 – that Jain’s unlawful dispensing of prescription painkillers, 180 tablets of oxycodone (30 mg), and fraudulent conduct on June 14, 2010, resulted in the death of a patient identified by the initials “T.B.” on June 18, 2010.
The enhanced penalty for a conviction on each of Counts 1, 3, 5 and 6, which allege the unlawful dispensing of a controlled substance resulting in death, is a statutory mandatory minimum 20 years in prison and a maximum of life in prison.The enhanced statutory maximum penalty for a conviction on each of Counts 2, 4 and 7, which allege healthcare fraud resulting in death, is life imprisonment.
This case was investigated by the DEA’s Tactical Diversion Team in El Paso, Texas and the FBI’s Healthcare Fraud Unit with assistance from the New Mexico Medical Board and the New Mexico Board of Pharmacy. The case is being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
Owner and Operator of Yonkers Construction Company Sentenced in Manhattan Federal Court for $800,000 Income and Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TARIQ TAHIR, the owner and operator of DNS Construction Corporation, was sentenced today in Manhattan federal court to a term of five years of probation and $883,730.52 in restitution for committing two counts of tax fraud by failing to pay over $800,000 in income taxes and payroll taxes from 2006 to 2008. TAHIR pled guilty in March 2015 before United States District Judge Andrew L. Carter, Jr., who imposed today’s sentence.
According to the criminal information, other documents filed in Manhattan federal court, and statements made at related court proceedings:
TAHIR owned and operated a Yonkers-based construction company named DNS Construction Corporation (“DNS”). From 2006 through 2008, TAHIR engaged in two tax fraud schemes in order to avoid paying over $800,000 in income taxes and payroll taxes that were due and owing by DNS. To execute the first scheme, TAHIR cashed checks at multiple check-cashing businesses in Manhattan and Brooklyn, rather than depositing those checks into the bank accounts of DNS, so that he could conceal DNS’s true revenues from state and federal tax authorities. To carry out the second scheme, TAHIR paid DNS’s employees primarily in cash so that he would be able to omit these salary payments from DNS’s federal tax returns without detection by tax authorities. By failing to report these payments, TAHIR underpaid the federal payroll taxes due and owing by DNS during this period.
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In addition to the term of probation, TAHIR, 67, of Yonkers, New York, was ordered to pay $771,710.32 in restitution to the IRS and $112,020.20 in restitution to the New York State Department of Taxation and Finance.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation Division. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
Norfolk Man Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
Agents recovered high-purity methamphetamine, cocaine and crack cocaine
NORFOLK, Va. – Isaac Deleon Nevares, 51, of Norfolk, pleaded guilty today to drug conspiracy and firearm charges.
Nevares was indicted by a federal grand jury on April 8, 2015. According to court documents, ATF conducted a series of controlled purchases of cocaine, “crack” cocaine, and handguns from Nevares’s co-defendant Anthony Tillman Quinones, whom Nevares supplied with the drugs. After executing search warrants on multiple residences involved in the drug-trafficking conspiracy, agents were led to a house that Nevares used to store drugs. There, they recovered over one kilogram of high-purity methamphetamine, 400 grams of cocaine, 270 grams of crack cocaine, and two handguns and a semiautomatic rifle. Tillman Quinones, who was indicted with Nevares, pleaded guilty to drug trafficking conspiracy and firearms charges on May 19.
Nevares will face a maximum penalty of life in prison when he is sentenced on October 2, 2015, by Chief Judge Rebecca Beach Smith of the U.S. District Court for the Eastern District of Virginia. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard.
This case was investigated by the ATF with the assistance of the Norfolk Police Department. Assistant U.S. Attorney Andrew C. Bosse is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-38.
New York Business Owner Sentenced to Prison for Failure to Pay Employment TaxesRead the Press Release
A Dix Hills, New York, resident and business owner was sentenced to serve more than one year in prison today in the Eastern District of New York for employment tax fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
“Business owners that use ‘off the books’ payrolls cheat the U.S. Treasury and take unfair advantage of honest competitors who follow the law and pay their taxes,” said Acting Assistant Attorney General Ciraolo. “Today’s sentence sends a clear message that the Justice Department is aggressively pursuing and holding accountable those who willfully fail to collect and pay employee withholdings, social security and other required federal employment taxes.”
Eric Anderson was sentenced to serve 18 months in prison by U.S. District Judge Arthur D. Spatt. In addition to prison time, Anderson was ordered to serve three years of supervised release and to pay $1,080,222 in restitution to the Internal Revenue Service (IRS). Anderson paid $50,000 towards restitution at his sentencing today.
According to court documents, Anderson owned three construction companies located in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. From 2006 through 2008, the defendant used a commercial check cashing service to cash more than $10.5 million in checks paid to his construction companies representing gross receipts of the businesses. Anderson used a portion of the cash to pay his employees “under the table” wages. As the owner, Anderson was responsible for his companies’ finances and tax obligations. From 2006 through 2008, Anderson failed to collect or pay over to the IRS the employment taxes that were due quarterly on his employees’ cash wages.
Anderson also used a portion of the cash from his businesses for his own personal use. He concealed much of his income from the IRS by filing false corporate and individual federal income tax returns in certain years and failing to file tax returns in other years. In total, Anderson’s actions caused a tax loss of more than $1 million to the IRS.
On June 9, 2014, Anderson pleaded guilty to willfully failing to collect and pay over to the IRS employment taxes.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mark Kotila and Jeffrey Bender of the Tax Division, who prosecuted the case. She also thanked the U.S. Attorney’s Office of the Eastern District of New York for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Hampshire Woman Pleads Guilty to Health Care FraudRead the Press Release
CONCORD, N.H. – Misty Maciejewski, 35, of Northfield, has pleaded guilty in United States District Court for the District of New Hampshire to health care fraud, that involved the theft of more than $29,000 from the United States Department of Veterans Affairs Health Administration, announced Acting United States Attorney Donald Feith.
The Veterans Health Administration pays for more than 8.7 million honorably discharged to receive medical treatment and other benefits for their service related injuries and illnesses at VA and non-VA medical facilities. To obtain these benefits, a veteran submits an application to the VHA. In this document, the veteran is required to state the dates of her military service and combat duty, and a description of her service related illness or injury.
In an application for health benefits Maciejewski submitted to the VHA on October 3, 2012, she falsely claimed to be a veteran of the U.S. Army and that she was honorably discharged after serving in combat. The application was mistakenly approved by the VHA due to an administrative error.
While living in Massachusetts after the application was approved, Maciejewski fraudulently received VHA benefits totaling $8,154.58 which were paid to a half-way house in Boston and applied to medical services she received from the VA hospital in Boston.
After Maciejewski moved to Northfield in July 2013, she fraudulently received VHA benefits totaling $21,287.55 which were paid to non-VA medical services providers and applied to medical services she received from the VA hospital in Manchester.
“Veteran benefits programs exist to provide services needed by those who have put on the uniform in defense of our country,” Acting U.S. Attorney Donald Feith stated.“Our office will continue to work with the Department of Veterans Affairs to identify, investigate, and prosecute those who seek to defraud these programs and thus deprive true veterans of the funds they need.”
Maciejewski is schedule to be sentenced on September 28, 2015. She is facing up to 10 years in prison and a maximum fine of $250,000.
The case was investigated by the Department of Veterans Affairs, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Robert Kinsella.