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5 June 2015
Navy Base Newport Employee Convicted of Driving to Endanger Death Resulting in Death of Navy Police Detective Frank LemaRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today found Alan Bradley, 53, of Middletown, R.I., guilty of driving to endanger death resulting in the death of Newport Navy Detective Frank Lema in September 2013, announced United States Attorney Peter F. Neronha; Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to the government’s evidence, Bradley, who was a civilian production employee on Navy Base Newport, was operating a Navy vehicle on the base on September 26, 2013, when he struck and killed Detective Lema. Lema was standing outside of the Navy public safety building with a fellow Navy law enforcement officer when he was struck. After striking Detective Lima, Bradley’s vehicle continued to travel another 200 feet before stopping on an embankment.
According to the government’s evidence, on at least six occasions between February 2011 and July 2013, Bradley’s personal physician warned Bradley not to drive because he was a risk to both himself and others due to a seizure disorder. The evidence also showed that Bradley was involved in a serious single car crash in 2011in Middletown in which his young son was a passenger. Bradley attributed his seizure disorder as a contributing factor to the cause of that accident.
“As the jury found today, because of the defendant’s reckless and entirely unnecessary operation of a motor vehicle, with full knowledge that he was endangering the safety of others, Detective Lema is no longer with us today. While I know that today’s verdict can do nothing to ease the Lema family’s loss, I hope that it does provide some sense that justice has been done,” said United States Attorney Peter F. Neronha. “I want to thank the NCIS agents and the Rhode Island State Police Accident Reconstruction Unit, and First Assistant United States Attorney Stephen Dambruch, for their outstanding work in bringing this challenging case to a successful conclusion.”“On behalf of the United States Navy and the Navy Base Newport community, it is my sincere hope that today’s verdict provides the family of Detective Frank Lema some measure of comfort knowing that the person responsible for the untimely and tragic death of Detective Lema is being held accountable,” commented Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service. “Our thanks to the United States Attorney’s Office, in particular First Assistant United States Attorney Stephen Dambruch, and the Rhode Island State Police for their efforts working side-by-side with agents from NCIS to bring this investigation and prosecution to a successful conclusion.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "There can be no verdict or sentence that can change what occurred on September 26, 2013, but our system of justice has spoken and the defendant will be held accountable for his actions. On behalf of the men and women of the Rhode Island State Police, we commend the dedication and diligence of the Naval Criminal Investigative Service Agents, members of the State Police Accident Reconstruction Unit and prosecutors from the United States Attorney's Office for their dedication to justice."
Operating a motor vehicle in reckless disregard of the safety of others resulting in the death of another person is punishable by a statutory penalty of up to 10 years in federal prison followed by up to 3 years supervised release and a fine of up to $5,000.
U.S. District Court Judge Mary M. Lisi, who presided over the trial, is scheduled to sentence Alan Bradley on September 17, 2015.
The case is being prosecuted by First Assistant United States Attorney Stephen G. Dambruch.
The case was investigated by Naval Criminal Investigative Service, with the assistance of the Rhode Island State Police.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Morgantown man sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Andre J. Anderson, 34, of Morgantown, West Virginia, was sentenced to one year and one day in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Valley Drug and Violent Crime Task Force revealed that Anderson sold nearly 500 grams of cocaine in Morgantown, West Virginia. Anderson pled guilty in January 2015 to one count of “Distribution of Cocaine.”
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Monmouth County, New Jersey, Man Sentenced to 79 Months in Prison for Operating $20 Million Ponzi SchemeRead the Press Release
Sentence to be Served Consecutively to 41-Month Sentence for Florida Bank Robbery
TRENTON, N.J. – A Colts Neck, New Jersey, man who defrauded dozens of investors was sentenced today to 79 months in prison for operating a $20 million Ponzi scheme out of his Fair Haven, New Jersey office and Miami residence, U.S. Attorney Paul J. Fishman announced.
Louis J. Spina, 58, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
In August 2014, Spina pleaded guilty to robbing a bank in Coral Gables, Florida, in May 2014, while on pre-trial release on the New Jersey fraud charge. On Oct. 22, 2014, he was sentenced to 41 months in prison for that offense. His New Jersey sentence will be served consecutively.
According to documents filed in this case and statements made in court:
Between August 2010 and November 2013, Spina collected $20 million from 42 investors and deposited the funds into the LJS bank account. Spina admitted he solicited victims to invest through his business, LJS Trading LLC. After receiving the funds, Spina provided each investor with a note specifying a guaranteed monthly rate of return, typically ranging from nine to 14 percent.
Over the course of the scheme, Spina only transferred $9.5 million of the investor funds into a trading account. He used the remaining $10.5 million to pay the investors’ monthly interest payments, return portions of some investors’ principals, and to pay for his own personal expenses, including car purchases, luxury apartment rental payments, and a $400,000 donation to a private university.
Spina admitted he lied to investors about the status of their funds, telling them they were making large gains despite the fact he lost all of the $9.5 million that was actually invested. When certain investors became suspicious, he reassured them by sending misleading screen shots of their account balances that reflected only temporary gains, not the total daily losses. In addition, Spina was able to defraud his investors out of an additional $1.7 million by fabricating a story about a wealthy individual planning to buy LJS, which he told them would result in a 14 to 30 percent return on their investment. Altogether, Spina’s scheme cost investors a total of $12.7 million.
In addition to the prison term, Judge Thompson sentenced Spina to three years of supervised release, ordered him to forfeit $818,000 in seized assets and ordered him to pay $12.7 million in restitution to the victims.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; and the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli in Newark, with investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Mitchellville Man Sentenced to 33 Years in Prison for Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, late yesterday to 33 years in prison, followed by 10 years of supervised release, for conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. Judge Chasanow had previously entered an order requiring Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with Anthony Tatum and others to distribute cocaine. The drugs were often sold in different locations in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland.
In late 2010, law enforcement received information that Tatum was the source of supply of cocaine to a cooperating source and that Ford-Bey was providing Tatum and others with kilogram quantities of cocaine. Between April 2011 and January 2012, U.S. Park Police conducted undercover purchases of a total of 308 grams of crack cocaine from co-conspirator Terrin Anderson. Anderson drove a vehicle registered to Ford-Bey to make some of the deliveries. As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions. Agents observed Ford-Bey providing conspirators with drugs in exchange for cash.
On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes was arranged. On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland. A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location. Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away. Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.
Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC. On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items. Agents were unable to locate Ford-Bey. A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun. Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.
Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend. A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.
On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey and co-conspirator Anthony Tatum had been identified as visiting. Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine. Latent fingerprints recovered from the heat sealers were identified as belonging to Ford-Bey and Tatum.
In an effort to disguise and hide their drug proceeds, Ford-Bey, Tatum and others created numerous business entities, which had little, if any, legitimate business. They set up bank accounts in the names of each business and deposited their drug proceeds into those business accounts. Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled. Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Land Rover vehicle for $65,749. Ford-Bey also purchased jewelry and used the drug proceeds to pay rent for his apartment and for travel expenses, among other things.
The government contends that over the course of the conspiracy Ford-Bey distributed approximately 1,710 kilograms of cocaine.
Four defendants, including Ford-Bey were convicted federally for their participation in the conspiracy. Co-conspirators Terrin Tamal Anderson, age 29, of Waldorf, Maryland, and David Allen Jones, age 40, of District Heights, Maryland, previously pleaded guilty and were sentenced to 12 years in prison and 45 months in prison, respectively. Anthony Torrell Tatum, age 36, of Arlington, Virginia, also pleaded guilty and is scheduled to be sentenced on July 7, 2015.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Mission Woman Sentenced for Misprison of A FelonyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Misprison of a Felony was sentenced on June 1, 2015, by U.S. District Judge Roberto A. Lange.
Chelsea Larvie, age 21, was sentenced to six months in custody with credit for six months served, one year of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $8,638.31 in restitution.
Larvie was indicted for Misprison of a Felony by a federal grand jury on December 9, 2014. She pled guilty on March 2, 2015.
On or about August 26, 2014, Larvie was aware burglary and larceny offenses had been committed at the Todd County government building by her friends, but she concealed her knowledge of the felony offenses from law enforcement authorities investigating the matter, as well as misled authorities.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Larvie was immediately turned over to the custody of the U.S. Marshals Service.
Miami-Dade County Resident Convicted of Causing the Filing of False Currency Transaction ReportsRead the Press Release
After a four-day trial, a federal jury convicted Geovanys Guevara, 41, Hialeah, of three counts of causing the filing of false reports of cash payments over $10,000 received in a trade or business, specifically Form 8300, with the Treasury Department, for the purpose of evading reporting these payments to the Treasury Department, in violation of Title 31, United States Code, Sections 5324(b)(2) and (d)(2).
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Key, Chief, Opa-locka Police Department, and J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), made the announcement.
As shown at trial and in court documents, Guevara purchased three cars in the names of another individual at a Miami-Dade car dealership: a Ferrari involving cash in the amount of $95,000, a Lamborghini involving cash in the amount of $20,000, and a Rolls Royce involving cash in the amount of $50,000. Because Guevara used a straw buyer on the paperwork, his actions caused the car dealership to file Form 8300 that contained material omissions and misstatements of fact concerning the true identity of the person from whom the currency was received. Federal law requires every non-financial trade and business to file a Form 8300 with the Treasury Department to report cash payments received over $10,000 during a transaction or two or more related transactions.
At sentencing, which is currently set for August 27, 2015 at 10:00 A.M. before Senior Judge James Lawrence King, Guevara faces a maximum term of 30 years in prison.
Mr. Ferrer commended the investigative efforts of the South Florida Financial Crimes Strike Force, with special commendation to IRS-CI, the Opa-locka Police Department, and the MDPD. The case is being prosecuted by Assistant U.S. Attorneys Elijah A. Levitt and Timothy Abraham.
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.
Maryland man convicted of lying to obtain bank loanRead the Press Release
MARTINSBURG, WEST VIRGINIA – Montgomery Joseph Isner, 47, of Capital Heights, Maryland, was convicted of bank fraud in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Isner misrepresented himself as the owner of a parcel of real property in Berkeley County, West Virginia in order to fraudulently obtain a loan in the amount of $60,000.
Isner pled guilty to one count of “False Statement on Loan Application.” He faces up to 30 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.Maryland Man Sentenced to Ten Years in Prison for Shooting Pregnant GirlfriendRead the Press Release
WASHINGTON – Terrell Bringier, 26, of Lanham, Md., was sentenced today to a 10-year prison term for shooting his then-pregnant girlfriend in the stomach last fall and causing her to lose their unborn child, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bringier pled guilty on Jan. 2, 2015, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 15, 2014, Bringier and the victim were on a telephone call arguing over the custody of their unborn child, at which point the defendant told the victim that he would be coming to her apartment with his gun. The victim was approximately five months pregnant. Once Bringier arrived at the victim’s residence in Northeast Washington, shortly after noon, he attempted to gain entry. The door was locked, however, and the victim refused to open it. Bringier and the victim began arguing through the door, and at some point, he threatened to kick open the door if the victim did not open it within five seconds. After counting two seconds out loud, Bringier fired one round at close range into the door, striking the victim in the abdominal region.
An ambulance arrived on scene, and the victim was transported to the hospital. According to the doctors who treated her, the bullet had gone through the stomach before coming to rest in the victim’s left hip region. She would ultimately learn that the fetus was not viable inside or outside the womb, and soon thereafter, she lost her fetus.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Troy Griffith, Victim/Witness Advocate Shawn Slade, and Assistant U.S. Attorney Danny Nguyen, who investigated and prosecuted the matter.
Maryland Man Pleads Guilty to Setting Fire to Ex-Girlfriend's Apartment Building in Southeast WashingtonRead the Press Release
WASHINGTON – Joseph F. Brown, 42, of Bladensburg, Md., pled guilty today to charges of arson and second-degree burglary for intentionally setting fire to his ex-girlfriend’s apartment building earlier this year, Acting U.S. Attorney Vincent H. Cohen Jr. announced.
Brown entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Yvonne M. Williams is to sentence him on July 31, 2015. Brown faces a statutory maximum of 15 years of imprisonment as well as a potential fine.
According to the government’s evidence, on April 4, 2015, Brown went to visit his ex-girlfriend at her apartment in the 3200 block of 11th Place SE. At approximately 1 a.m., she asked Brown to leave. Shortly after she asked him to leave, she heard a loud explosion by her front door. She looked out the window and saw Brown running out of her building with his sleeve on fire. She also saw flames and smoke coming through her front door. She then saw Brown pull in front of her apartment building, blow the horn in his car, and drive away.
A witness also had seen Brown running out of the building with his sleeve on fire. The witness heard Brown yell, “How do you like that?” Brown also shouted profanities toward his ex-girlfriend’s window. Shortly after the incident, Brown sent her a text message that read, in relevant part, “you worried bout me setting your building on fire..you lucky it wasn’t you..”
All four of the apartments in the building were occupied, and all had to be evacuated. Several young children were among the residents who had to evacuate. No one was injured.
Firefighters with the District of Columbia Department of Fire and Emergency Medical Services arrived shortly thereafter and saw smoke and flames coming from the front of the building. After the fire was extinguished, a fire investigator responded to the scene and conducted a complete origin and cause fire scene investigation. The investigation revealed that the fire was incendiary--that is, intentionally set--using gasoline as an accelerant.
The building was deemed uninhabitable, and the residents were forced to relocate as a result of the arson. Brown was arrested May 13, 2015, and has been in custody ever since.
In announcing the plea, Acting U.S. Attorney Cohen praised the work of those who investigated the case from the D.C. Fire and Emergency Medical Service’s Fire Investigations Unit. He also expressed appreciation for the assistance of the U.S. Marshals Service and the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocates Maria Shumar and Elsa Resendiz and Paralegal Specialist Erica Vample.
Finally, he commended the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the matter.
Marshall County man sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Thaddeus Emrys Richardson, 30, of McMechen, West Virginia, was sentenced to 21 months in prison for crack cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Richardson was discovered in possession of crack cocaine in Ohio County, West Virginia in August 2014 during an investigation led by the Wheeling Police Department.
Richardson pled guilty in March 2015 to one count of “Possession with Intent to Distribute Cocaine Base.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Man Sentenced for Child Exploitation OffensesRead the Press Release
SYRACUSE, NEW YORK – A Cayuga County man was sentenced in federal court today on charges that he used the Internet to attempt to entice minors to engage in unlawful sexual conduct with him, and for his possession of child pornography, announced United States Attorney Richard S. Hartunian.
Robert J. Stachura, 45, of Sterling, New York was sentenced by United States District Judge Hon. David N. Hurd to serve concurrent terms 135 months in federal prison for enticement of minors and possession of child pornography. His sentence of incarceration will be followed by 20 years of supervised release, and his conviction will require Stachura to register as a sex offender.
As a part of his earlier guilty plea, Stachura admitted that he had posted several explicit ads on Craigslist soliciting minors to meet him for sexual conduct, and to smoke marijuana with him. When one of his posts was answered by an undercover investigator from the Cayuga County Sheriff’s Office, Stachura arranged to meet with whom he believed to be two teens, 15 and 13 years old, for sex. Instead, Stachura was arrested by the Cayuga County Sheriff’s Office, after which he was found to be in possession of 43 video files and 3 images of child pornography on computers seized in the investigation.
Stachura’s arrest was the result of an investigation by the Cayuga County Sheriff’s Office, with the assistance of the Federal Bureau of Investigation and the Northeast Cyber Forensic Center at Utica College. He was prosecuted by Assistant U.S. Attorney Lisa Fletcher, who can be reached as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood Marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Maine Woman Sentenced for Bank and Credit Card FraudRead the Press Release
CONCORD, NEW HAMPSHIRE – Vicki Trudell, of Lebanon, Maine, was sentenced in United States District Court for the District of New Hampshire to twelve months in prison and two years of supervised release for bank and credit card fraud. Trudell was also ordered to pay restitution of $183,963.75, announced Acting United States Attorney Donald Feith.
Based on documents on file with the court, Trudell admitted that between December 2010 and December 2011 she served as a bookkeeper for a small New Hampshire business of six to eight employees. During that period, Trudell issued unauthorized checks to herself and engaged in unauthorized use of the business’ debit card to convert company funds to her personal use. Trudell’s thefts were discovered when the business hired a financial controller to oversee the business finances, at which time Trudell’s thefts were discovered and the matter was referred to state authorities and ultimately to federal authorities. Trudell pled guilty to the charges on February 20, 2015.
The case was investigated by the Hampton Police Department, the United States Postal Inspection Service and the United States Secret Service. This case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Luzerne County Woman Sentenced to Prison for Money Laundering Conspiracy and Obstruction of JusticeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christina Strom, a Luzerne County woman, was sentenced to one year and one day in prison by Third Circuit Court of Appeals Judge Thomas I. Vanaskie, sitting by designation as a judge of the United States District Court for the Middle District of Pennsylvania.
According to United States Attorney Peter Smith, Christina Strom, age 42, of Dallas, Pennsylvania, pleaded guilty in January of 2006 to charges of money laundering conspiracy and obstruction of justice. Strom was sentenced to prison for her role in laundering tens of thousands of dollars in cash proceeds of crimes committed by her then boyfriend, Hugo Selenski, and for obstructing the investigation into the murders of Michael Kerkowski and Tammy Fassett. Hugo Selenski and Paul Weakley were convicted of the murders and are presently serving life sentences. Strom testified against Selenski in his state court trial as part of her agreement to cooperate with the government. Her cooperation was a major factor in the government’s position that the sentence should be below the applicable federal sentencing guidelines and in the sentence imposed by Judge Vanaskie.
The investigation was conducted by the Pennsylvania State Police, detectives of the Luzerne County District Attorney’s Office, agents of the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys William S. Houser and John Gurganus prosecuted the case.
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Lubbock Construction Company Owner Sentenced to 16 Months in Federal Prison on Fraud and False Statements ConvictionRead the Press Release
LUBBOCK, Texas — The owner and operator of a construction company in Lubbock, Texas, was sentenced today following his guilty plea last year to an information charging one count of fraud and false statements, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Brian Ritter was sentenced to 16 months in federal prison by U.S. District Judge Sam R. Cummings, and he was ordered to surrender to the Bureau of Prisons on July 10, 2015.
According to a final judgment of forfeiture entered in the related civil forfeiture case, Ritter must forfeit a total of $366,246.57 seized by the government, as well as eight firearms and 274 rounds of ammunition that were also seized.
According to the factual resume filed in the case, Ritter owns and operates Brian Ritter Construction, Inc. in Lubbock. In 2011, Ritter cashed 63 checks, totaling approximately $213,493.16 that his business had received for payment for services. The currency was stored in Ritter’s residence until he decided to deposit the funds in 2012 and 2013.
The factual resume further states that while Ritter timely filed his federal income tax return for 2011, he willfully omitted income of approximately $213,493.16, knowing he made a materially false statement with regard to his income.
According to the complaint for forfeiture in rem filed in the related civil case, beginning on January 25, 2012 and continuing through May 4, 2012, Ritter made 33 structured currency deposits, totally $275,200 into an account, in the name of Brian Ritter Construction, Inc., at First Capital Bank of Texas. All of these structured deposits were in even dollar amounts, such as $6,000; $8,000; $9,000; and $9,500 and 28 of the 33 cash deposits were single deposits, that is, one deposit made each day. Between February 1, 2012, and May 4, 2012, five structured currency deposits, totaling $9,950.00, were made into another account, in the name of The Ritter Family Trust, at First Capital Bank of Texas.
In March 21, 2013, pursuant to a seizure warrant, agents with Internal Revenue Service (IRS) Criminal Investigation (CI) seized $186,146.57 contained in an account, in the name of Brian Ritter Construction, Inc., at First Capital Bank of Texas.
That same day, according to the complaint, IRSCI agents executed a search warrant at the Ritter residence in Lubbock, and seized a bag containing $180,100 in cash, bundled in $10,000 increments, from Brian and Ginger Ritter’s bedroom closet. During the execution of this search warrant, agents also discovered numerous syringes and bottles containing liquids, confirmed later by the Drug Enforcement Administration’s laboratory as anabolic steroids. Next to the steroids were ledgers and logs appearing to outline an individual’s steroid use. Agents also seized eight firearms and 274 rounds of ammunition.
IRS-CI investigated the case. Assistant U.S. Attorney Brian Poe prosecuted.
Kenner Check Cashers and their Four Businesses Indicted on Money Laundering and Tax ChargesRead the Press Release
Two residents of Kenner, Louisiana, and four businesses were indicted yesterday for conspiracy to commit money laundering, announced United States Attorney Kenneth A. Polite and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. According to the Indictment, the defendants conspired to launder money for others by cashing fraudulently obtained tax refund checks, filing misleading reports with government agencies regarding these transactions, and comingling the proceeds with their business activities, including by purchasing real estate in other businesses’ names.
The Indictment charges SUSANTHA WIJETUNGE, a/k/a VJ, age 51; MANULA WIJETUNGE, a/k/a Manu, age 47; VJ DISCOUNT, INC.; VJ AND MANU PROPERTIES, LLC; VJ AND MANU PROPERTIES, II, LLC; and VJ AND MANU PROPERTIES, III, LLC with conspiracy to commit money laundering. SUSANTHA WIJETUNGE, MANULA WIJETUNGE, and VJ DISCOUNT, INC. were further charged with filing materially false Currency Transaction Reports (“CTRs”), failing to file CTRs, and failure to file Foreign Bank Account Reports (“FBARs”). In addition, SUSANTHA WIJETUNGE and MANULA WIJETUNGE were charged with criminal tax offenses related to their individual federal income tax returns and VJ DISCOUNT, INC.’s corporate tax return.
According to the allegations in the Indictment, defendants SUSANTHA WIJETUNGE and MANULA WIJETUNGE owned VJ DISCOUNT, INC., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. As part of their business, the defendants were required to maintain an Anti-Money Laundering Program and to file CTRs for any transaction or set of transactions by or on behalf of a single individual that resulted in either cash in or cash out totaling more than $10,000 during any one business day. According to the Indictment, SUSANTHA WIJETUNGE, MANULA WIJETUNGE, and VJ DISCOUNT, INC. cashed fraudulently obtained tax refund checks for multiple individuals, for which they charged an inflated check cashing fee. As alleged in the Indictment, the defendants concealed their cashing of fraudulently obtained tax refund checks by filing materially false CTRs and by failing to file CTRs as required by law.
If convicted, the defendants face a statutory maximum term of twenty years in prison for the money laundering conspiracy charge; a statutory maximum term of ten years in prison for each count of failure to file CTRs, filing false CTRs, and failure to file FBARs; and a statutory maximum term of three years of imprisonment for each count of filing a false tax return. They also face fines, forfeiture, and restitution if convicted.
U.S. Attorney Polite and Acting Assistant Attorney General Ciraolo reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U. S. Attorney Polite and Acting Assistant Attorney General Ciraolo commended special agents of Homeland Security Investigation and IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Hayden Brockett, Michael Hatzimichalis, and Karen Quesnel of the Tax Division and Assistant U.S. Attorney David Haller, who are prosecuting the case.
Susantha and Manuela Wijetunge; VJ Discount, et al Indictment (2.72 MB)
Jury Convicts South Florida Artist in $4 Million Counterfeit Currency ConspiracyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jean Phineas Losier (41, Wellington) guilty of conspiracy to deal in counterfeit Federal Reserve notes. He faces up to five years in federal prison. A sentencing date has not yet been set.
According to the trial testimony and court documents, Losier began manufacturing a specific United States counterfeit note (designated by the United States Secret Service as D23548 and D23548A) in 2008. Over the ensuing years, he engaged in a substantial counterfeit relationship with co-defendant Mercury Thompson, and others, to sell and pass the counterfeit $100 and $50 notes. Losier operated alone in the manufacturing process. Using laser printer and toner technology, and an elaborate bleaching and re-printing process, he stripped the ink from genuine $1 bills and then manufactured counterfeit $100 and $50 bills on the remaining paper.
On January 14, 2014, Secret Service agents executed search warrants at a Wellington apartment where Losier had manufactured the notes. The agents seized manufacturing devices and also located bleached genuine $1 Federal Reserve notes, chemicals and chemical residue, as well as other indicators of high volume bleaching. Detailed molds and templates, reflecting the image of genuine United States security watermarks, were located inside the residence. Losier, an artist, had etched the watermark molds.
Forensic analyses of the seized electronic media and counterfeit notes revealed Losier’s detailed manufacturing process, including images of the notes at virtually every stage of the manufacturing process. Investigators were able to forensically match the electronic devices to counterfeit $100 bills seized at various stores in the Jacksonville area during April and May 2010, including bills seized from the St. Johns Towns Center. The forensic comparison of the images also matched $4,200 of counterfeit $100 notes seized from a rental vehicle in which Thompson was present on July 12, 2012, and $10,000 in $100 counterfeit notes that another individual purchased from Losier on January 10, 2014.
According to Secret Service forensic examiners, the value of the known counterfeit notes (D23548 and D23548A) passed in the Southern and Middle Districts of Florida since late 2008 is more than $3.5 million. The known amount passed worldwide exceeds $4.3 million. After Losier’s arrest on January 14, 2014, the passing of these designated counterfeit notes ceased almost entirely.
Mercury Thompson (39, Delray Beach) previously pleaded guilty for his role in this case, and is currently awaiting sentencing.
This case was investigated by the U.S. Secret Service, the Jacksonville Sheriff’s Office, the Delray Beach Police Department, the Boynton Beach Police Department, and the Boca Raton Police Department. The United States Attorneys’ Offices for the Middle and Southern Districts of Florida participated in this investigation and prosecution. Assistant United States Attorneys Michael Coolican and A. Tysen Duva are prosecuting the Middle District of Florida case.
Losier also faces counterfeit manufacturing charges in the Southern District of Florida. After his sentencing in the Middle District of Florida, he will be transferred to the Southern District to face those charges.
Jeffrey Cohen Pleads Guilty to Wire Fraud, Aggravated Identity Theft, False Statements to Insurance Regulators and Obstruction of Justice in Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – After four days of trial, Jeffrey Brian Cohen, age 39, of Reisterstown, Maryland, pleaded guilty late today, to wire fraud, aggravated identity theft, making false statements to an insurance regulator, and obstruction of justice.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.
U.S. Attorney Rod Rosenstein stated, “Jeffrey Cohen carried out a massive fraud scheme for which he finally will be held accountable.”
According to his plea agreement, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity). Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity. Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events. Both companies operated in several states, including Maryland. From 2008 through 2012, Indemnity insured more than 3,000 policyholders, and collected over $100 million in premiums.
The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups had the ability to pay claims.
Cohen admitted that he obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of Indemnity-DC and Indemnity based on financial ratings, financial audits, and insurance regulatory approvals that Cohen fraudulently obtained. Beginning in January 2008, and continuing until the fall of 2013, Cohen defrauded insurance policyholders and prospective insurance policyholders in order to obtain more than $100 million in insurance premiums, by falsely representing the financial status of Indemnity-DC, Indemnity, and other Cohen controlled entities to insurance policyholders, prospective insurance policyholders, the rating agency A.M. Best, to independent auditors, the DC Insurance Commissioner, and the Delaware Insurance Commissioner.
Specifically, Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances. Cohen transmitted some of these false documents to A.M. Best in order to obtain financial ratings for Indemnity-DC and Indemnity that were not based on the companies’ true financial condition. Cohen then touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also transmitted false and fraudulent emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false. Cohen used the name and identity of a bank official to create a false bank confirmation.
To conceal the true financial condition of the companies, Cohen transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also made false statements to representatives of the Delaware Insurance Commissioner in June 2012.
The Delaware Insurance Commissioner instituted civil proceedings against the Cohen companies in June 2013. In October 2013, two attorneys referred Cohen’s criminal offenses, including the false statements to an insurance regulator offense to which he’s pleading guilty, to federal authorities. On February 20, 2014, Cohen threated one of the attorneys who had referred his case in an effort to prevent the attorney from communicating with federal law enforcement concerning the crimes Cohen committed in the operation of his insurance companies.
Cohen faces a maximum sentence of 20 years in prison for each of the wire fraud and obstruction of justice counts, 15 years in prison for making false statements to an insurance regulator, and a mandatory two years, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for August 6, 2015, at 10:00 a.m. Cohen remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.
Jefferson County Man Convicted on Methamphetamine Related ChargesRead the Press Release
A Jefferson County man was convicted on June 2, 2015, on methamphetamine related charges following a two day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Robert A. Tate, 31, of Mt. Vernon, Illinois, was convicted following a two day jury trial on both counts in a federal indictment. Count 1 charged that from February 2013, until on or about June 2014, in Jefferson County, Tate knowingly conspired to manufacture methamphetamine. Count 2 charged that on March 31, 2014, in Jefferson County, Tate knowingly and intentionally distributed methamphetamine.
With respect to each Count, Tate faces up to 20 years in federal prison, up to $1,000,000 fine, and supervised release of at least 3 years.
Sentencing is scheduled for August 5, 2015, at the United States Courthouse in Benton, Illinois.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on June 3, 2015, and entering pleas of Not Guilty were:
- ALLEN JOSEPH HARN, a 23-year-old resident of Miles City, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking crime. If convicted of the most serious charges contained in the indictment, HARN faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. PACER Case Reference. 15-56
- COLTON WAYNE NEAL, a 24-year-old resident of Lodge Grass, appeared on charges of possession of a firearm not registered in national firearms registration and transfer record. If convicted of the charge contained in the indictment, NEAL faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-52
Appearing before U.S. Magistrate Johnston in Great Falls on June 2, 2015 and entering pleas of Not Guilty were:
- JAMES LEROY EMERSON, a 66-year-old resident of Browning, appeared on charges of theft of federally provided welfare benefits by fraud, federal welfare assistance fraud, and theft from an Indian tribal organization. If convicted of the most serious charges contained in the indictment, EMERSON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the US Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-22
- CLORECE FAYE KICKING WOMAN, a 55-year-old resident of Browning, appeared on charges of theft of federally provided welfare benefits by fraud, and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, KICKING WOMAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the US Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-22
Appearing before U.S. Magistrate Ostby in Billings on June 1, 2015 and entering pleas of Not Guilty were:
- JOSHUA LEE HELM, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, HELM faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force, Drug Enforcement Administration and Homeland Security Investigations. PACER Case Reference. 15-57
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
ICE, US Marshals arrest 27 international fugitives with InterpolRead the Press Release
WASHINGTON — Twenty-seven criminal foreign fugitives with active Interpol alerts were arrested across the United States this week by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the U.S. Marshals Service (USMS).
Those arrested are from 13 different countries and wanted for crimes abroad. Of the 27, five are wanted for homicide, two for kidnapping, one for raping a child and one for human sex trafficking.
“Criminals who create mayhem here in the United States or abroad should understand that law enforcement is a global partnership,” said ICE Director Sarah R. Saldaña. “We will find them, and we will bring them to justice.”
Arrests occurred nationwide in nine states during the three-day sweep, which took place Tuesday through Thursday. Those arrested fell squarely into the agency’s enforcement priorities, which ICE officers prioritize and enforce every day.
“The arrest of these foreign fugitives should send a strong message to anyone attempting to avoid prosecution for their crimes here in the U.S. or abroad,” said USMS Director Stacia Hylton. “Our men and women were relentless in their effort to locate and apprehend these criminals. We hope our effort gives victims a sense of comfort in knowing these individuals are no longer on the streets.”
“Information-sharing 24 hours, seven days a week, 365 days a year among U.S. law enforcement agencies like ERO and the USMS, along with the 189 other Interpol member countries and Interpol Washington, ensures transnational criminals have no place to hide,” stated Interpol Washington Director Shawn A. Bray. “By facilitating the sharing of this information with our law enforcement partners, together, we will continue to enhance safety and security for U.S. citizens and the global community.”
Arrests included:
- On June 2, ERO arrested Nelson Garcia Orellana, 30, and his brother Jorge Garcia Rivera, 23, both natives of El Salvador, in Trenton, New Jersey, and Alexandria, Virginia, respectively. They are wanted by authorities in their home country for kidnapping and are the subjects of Interpol Red Notices.
- On June 2, ERO arrested Gabriel Collado Gonzalez, 40, a native of Nicaragua, in Miami. Gonzalez is wanted by authorities in his home country for embezzlement and criminal conspiracy and is the subject of an Interpol Red Notice.
- On June 2, ERO arrested Raul Ortiz Henriquez, 40, a native of El Salvador, in Santa Fe Springs, California. Henriquez is wanted by authorities in his home country for rape of a minor. In November 2013, Henriquez grabbed his victim by her arms and forced her into a van he was driving while she was leaving school. He drove away, parked, beat her in the chest and raped her. He is the subject of an Interpol Red Notice.
The following individuals are all the subject of Interpol Red Notices and remain at-large:
- Juan Chicas Ramos, 56, a native of El Salvador, is wanted by authorities in his home country on an Interpol Red Notice for homicide
- Lisandro Medina Gamez, 33, a native of El Salvador, is wanted by authorities in his home country on an Interpol Red Notice for fraud
The ICE National Criminal Analysis and Targeting Center (NCATC) provided critical investigative support for this operation, including criminal and intelligence analysis from a variety of sources. The NCATC provides comprehensive analytical support to aid the at-large enforcement efforts of all ICE components.
ICE credits the combined efforts of the U.S. National Central Bureau-Interpol Washington, the U.S. Marshals Service, the U.S. Department of State Diplomatic Security Service, U.S. Citizenship and Immigration Services, and U.S. Customs and Border Protection.
Members of the public who have information about these fugitives are urged to contact ICE by calling the toll-free ICE tip line at 1-866-347-2423 or internationally at 001-1802-872-6199. They can also file a tip online by completing ICE’s online tip form.
Since Oct. 1, 2009, ERO has removed more than 720 foreign fugitives from the United States who were sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with HSI’s Office of International Operations, foreign consular offices in the United States, and Interpol to identify foreign fugitives illegally present in the United States.
Honduran Man Guilty of Illegally Reentering the United States After Three Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Carlos Peres-Ovando, of Honduras, pled guilty today in United States District Court for the District of New Hampshire to illegally reentering the United States after having been previously deported. Peres-Ovando was sentenced to time served and will once again face deportation.
Documents filed with the United States District Court established that Peres-Ovando was working at the El Tapatia restaurant in Merrimack, New Hampshire. Agents with the Bureau of Immigration and Customs Enforcement located Peres-Ovando at the restaurant on March 25, 2015. Peres-Ovando initially denied that he was Carlos Peres-Ovando, but subsequently admitted his true identity and citizenship to the agents. A fingerprint comparison identified Peres-Ovando as having previously been deported in 2006 from Texas, in 2013 from Louisiana, and in 2014 from Texas.
The case was investigated by the Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega prosecuted the case.
Harrisburg Man Pleads Guilty to Distribution and Possession of Cocaine and HeroinRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Nicholas Rivera, age 41, of Harrisburg, Pennsylvania pleaded guilty today to felony drug trafficking before United States District Court Chief Judge Christopher C. Conner in Harrisburg. Rivera pled guilty to a superseding information that charged him with distribution and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, the charges against Rivera were a result of Rivera selling cocaine and heroin to an undercover officer in Harrisburg on five occasions beginning in March 2014 through May 2014.
This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Dauphin County Drug Task Force. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor. A sentencing date has not yet been set.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenwood-area woman charged with two counts of healthcare fraudRead the Press Release
Fraud totaled over $500,000 for alleged therapy for her child
Indianapolis – United States Attorney Josh J. Minkler announced today federal charges against a woman who allegedly defrauded two insurance companies of over $500,000 for services that were supposed to be administered to her child. Rebekah Duncan, 36, was charged with two counts of healthcare fraud.
“Defrauding insurance companies has impact on all of us,” said Minkler. “Waste and abuse cause higher premiums and diminished services and those who choose to abuse the system will face federal prosecution.”
From September 2010 through June 2013, Duncan submitted forms to her insurance company for applied behavioral analysis therapy (ABA) to be administered to her child in their home. The forms required a physician’s signature authorizing the treatment every six months. Duncan allegedly forged the physician’s signature and submitted them fraudulently for 40 to 50 hours of ABA therapy per week. The therapist Duncan claimed was providing the services was her mother, who had no license or training to administer the therapy. The fraud totaled nearly $270,000 from the first insurance provider who stopped the payments in July 2013.
From July 2013 to April 2015, Duncan continued the scheme. She submitted invoices and copies of checks from her child’s therapist, who was again, her mother, with no services being provided. The checks that Duncan claimed she wrote to the therapist were never debited from her bank account. Duncan received over $246,000 in reimbursement from the second insurance provider.
This investigation was conducted by the Federal Bureau of Investigation.
“The investigation of health care fraud by both providers and individual recipients is a priority for the FBI,” said W. Jay Abbott, Special Agent in Charge of the Indianapolis FBI. “In this particular case, the welfare of the private industry, in addition to government sponsored programs, was the focus of the FBI in partnership with the victim companies.”
According to Assistant United States Attorney Cindy Cho who is prosecuting this case for the government, Duncan could face up to ten years on each count if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until convicted in federal court.
Georgia Woman Handed Down Six-Year Sentence for False Tax Refund ConspiracyRead the Press Release
ASHEVILLE, N.C. – On Thursday, June 4, 2015, U.S. District Judge Martin Reidinger sentenced a Georgia woman to 72 months in prison for conspiring with others to file over 1,000 false tax returns and collecting more than $3.5 million in fraudulent tax refunds, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Yolanda Tiess Kitson, 35, of Hephzibah, Ga. was also sentenced to three years of supervised release and was ordered to pay more than $3.9 million as restitution.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division; and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join Acting U.S. Attorney Rose in making today’s announcements.
According to court records and court proceedings, Kitson conspired with Senita Dill and Ronald Jeremy Knowles to file fraudulent tax returns using the personal information of more than 1,000 veterans and their family members which Kitson had stolen through her job as a contractor at the Eisenhower Army Medical Center at Fort Gordon in Augusta, Ga. Kitson obtained the personal information from patient records and passed it to her sister, Dill. Using that information, Dill and Knowles filed over 1,000 false tax returns and received over $3.5 million of stolen U.S. Treasury funds. Dill and Knowles were previously sentenced to 324 and 70 months in prison, respectively, for their roles in the conspiracy. (Please visit: http://www.justice.gov/usao-wdnc/pr/polk-co-couple-sentenced-false-tax-refund-conspiracy to view WDNC’s press release related to those prosecutions).
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Judge Reidinger also sentenced yesterday James Wesley Hills, II, 36, of Houston Texas, to serve 45 months in prison and three years of supervised release for making false claims against the United States and aggravated identity theft. He was also ordered to pay over $60,000 in restitution. According to court documents and the sentencing hearing, Hills gained access to personal identifying information of customers of Primerica, a financial products company, and between 2010 and 2011 he used the stolen information to file fraudulent tax returns. Hills filed at least 38 false tax returns in this manner and collected over $50,000 of stolen U.S. Treasury funds.
IRS-CI and USPIS investigated Kitson’s case. Hills’ investigation was also handled U.S. Secret Service.
Assistant U.S. Attorney Don Gast of U.S. Attorney’s Office in Asheville prosecuted both cases.
Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud Conspiracies at Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges against David Wedean were filed on April 27, 2015, in the U.S. District Court of the Northern District of Georgia in Atlanta. According to court documents, from at least as early March 2007 and continuing at least until August 2011, in Fulton County, Georgia, and from at least as early as August 2007 and continuing at least until September 2011, in DeKalb County, Georgia, Wedean conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Fulton and DeKalb Counties. Wedean was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton and DeKalb properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“The defendant conspired with other real estate investors to profit by defrauding mortgage holders and property owners,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “This case, which is the eighth prosecution so far against defendants for rigging public foreclosure auctions in Georgia, demonstrates the Division’s continuing commitment to rooting out corruption and fraud in real estate markets around the country.”
The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Fulton and DeKalb County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The FBI, in working with the U.S. Department of Justice’s Antitrust Division, continues to address the unlawful bid rigging seen in Georgia’s real estate foreclosure auctions,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “The guilty plea of Mr. Wedean, a Georgia based real estate investor, not only illustrates the problem but also how the federal government will aggressively pursue those engaged in this criminal activity.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine in an amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
Including Wedean, eight cases have been filed as a result of the ongoing investigation being conducted by Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Frewsburg Man Pleads Guilty to Possession of Child PornographyRead 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 Jeffrey Paden, 47 of Frewsburg, NY, pleaded guilty to possession of child pornography, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorneys Aaron J. Mango and Scott S. Allen, Jr., who are handling the case, stated that on September 20, 2007, the defendant knowingly possessed over 600 images of child pornography which were stored on his personal computer. Paden obtained these images over the internet. Some of the images depicted prepubescent minors or minors less than 12 years of age.
The plea is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation Child Exploitation Task Force which includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Sentencing is scheduled for September 21, 2015 at 11:00 a.m. before Judge Wolford.
Four Georgia Residents Sentenced for Wire Fraud SchemeRead the Press Release
PITTSBURGH – Four Georgia residents have been sentenced in federal court by United States District Judge Nora Barry Fischer, United States Attorney David J. Hickton announced today.
Darrell Jerome Ryles, 56, of Dalton, Ga., was sentenced to 48 months incarceration followed by four years supervised release and restitution in the amount of $67,806.00, on his conviction of wire fraud conspiracy and aggravated identity theft. According to the information presented to the court, Ryles and others conspired to steal identities of other persons and inmates at correctional centers in Georgia which were used to electronically file unauthorized federal tax returns between 2010 and 2012. The tax returns sought tax refunds which were paid to Ryles and other conspirators in the false tax return scheme.
Beverly J. McHenry, 57, of Rome, Ga., was sentenced to probation for five years and restitution in the amount of $92,742.11, on her conviction of wire fraud conspiracy; Astrid P. Perry, 37, of Summerville, Ga., was sentenced to time served of 15 months incarceration, plus three years supervised release and restitution in the amount of $37,416.74 on her conviction of wire fraud conspiracy; and Heather A. Smith, 26, of Summerville, Ga., was sentenced to probation for five years and restitution in the amount of $98,331.41 on her conviction of wire fraud conspiracy. According to the information presented to the court, McHenry, Perry and Smith conspired to use stolen identities to file false federal 2010 and 2011 federal income tax returns requesting refunds payable to conspirators into banks and credit unions in Pittsburgh and Georgia.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation, for the successful prosecution of these defendants.
Former Union Officials Plead Guilty to EmbezzlementRead 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 Betty Martin, 54, and Duane Rush, 44, both of Buffalo, NY, pleaded guilty to bank fraud before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 30 years in prison and $1,000,000 fine.Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that between 2006 and 2013, Martin served as the President, and Duane Martin served as the Vice President, of the Transportation Aides of Buffalo Union, also known as “TAB,” a public employees union, comprised of school bus aides employed by the City of Buffalo.
While serving as union officers, Martin stole approximately $61,746 of union funds, and Rush stole approximately $59,683 in union funds from the union’s M&T bank account. The two accomplished these thefts through the use of an M&T Bank debit card, drawn on the union’s bank account, to pay for personal expenditures; by withdrawing cash from the account for personal use; and by writing checks from the union account to themselves. TAB’s treasury was funded by dues paid by union members.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation and the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office.
Sentencing is scheduled for September 21, 2015 before Judge Wolford.
Former Metropolitan Bank Director Gets 12 Years in Prison for Misapplying Bank FundsRead the Press Release
PITTSBURGH - A former bank director was sentenced in federal court to 144 months of imprisonment to be followed by five years of supervised release, and $9,934,159.41 in restitution, on his conviction on nine counts of misapplication and theft of funds by a bank director, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Michael P. Bernick, 51, of Pittsburgh, Pa.
According to the evidence presented at trial, Bernick, a Director of the Metropolitan Savings Bank, formerly located in Pittsburgh’s Lawrenceville section, embezzled and misapplied in excess of $350,000 from the bank between January 2005 and March 2006. Donna Shebetich, Bernick’s girlfriend and the former Director and Vice President of Metropolitan, provided him with nine monetary disbursements from the bank’s checking account in the form of seven cashier’s checks and two wire transfers payable to Bernick, himself, or to financial institutions used to pay off his loans.
Bernick did not complete any loan applications, sign notes, or provide security for the monetary advances. Metropolitan’s procedures required that all advances be approved by the Board of Directors. Neither Bernick nor Shebetich sought the authorization from the Board of Directors, either before or after the advances were extended. Bernick’s thefts jeopardized the soundness of the bank and ultimately caused the failure of Metropolitan on Feb. 2, 2007. Shebetich is currently serving a six-year term of imprisonment for filing false quarterly reports with the FDIC, which further secreted Bernick’s conduct.
Assistant United States Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of Bernick.
Former Long Island Legislator Sentenced to Three Months’ Imprisonment and Three Months’ Home Confinement for Stealing More Than $2 Million from Client of His Former Law FirmRead the Press Release
David Denenberg, a former New York attorney and former Nassau County Legislator, was sentenced today before U.S. District Judge Joanna Seybert at the federal courthouse in Central Islip to three months’ imprisonment and three months’ home confinement for defrauding a former client of over $2 million. Denenberg previously pleaded guilty to eight counts of mail fraud in connection with this fraud scheme.
Today’s sentencing was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Mr. Denenberg stole his client’s money and violated his oath as a member of the bar. Today’s sentence should serve as a reminder that in our nation, no one is above the law,” stated Acting U.S. Attorney Kelly T. Currie.
“Denenberg diverted funds from his client’s checkbook into his own pockets through the false representation of legal services. Today we remind everyone of our commitment to identify those who misuse their position to take advantage of unsuspecting consumers; those responsible will not go unpunished,” stated FBI Assistant Director-in-Charge Rodriguez.
As detailed in the defendant’s guilty plea allocution and court filings, between November 2006 and June 2014, Denenberg was a partner in the Garden City law firm Davidoff Hutcher & Citron LLP (DHC), formerly Davidoff Malito & Hutcher LLP (DMH), and sent fraudulent bills to a client for legal services that he never rendered. The client, a corporation based in Port Washington, New York, relied on Denenberg’s false billings and paid DHC/DHM $2,265,004.46.
During the same time period, Denenberg also sent fraudulent expense billings to the client for purported expenses incurred in furtherance of the legal representation, which expenses were never incurred, totaling $126,071.43.
In all, the client paid DHC/DHM $2,342,607.64 for legal services never rendered and expenses never incurred. Denenberg has made full restitution to the client.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Lara Treinis Gatz is in charge of the prosecution.
The Defendant:
DAVID DENENBERG
Age: 51
Merrick, New York
E.D.N.Y. Docket No. 14-CR-594 (JS)
Former JBLM Soldier Sentenced to 25 Years in Prison for Skyping Rape of Young ChildRead the Press Release
A former active duty military member from Joint Base Lewis-McChord (JBLM) was sentenced today in U.S. District Court in Tacoma to 25 years in prison and lifetime supervised release for Production of Child Pornography, and Distribution of Child Pornography, announced U.S. Attorney Annette L. Hayes. JOSEPH THOMAS FRENCH, 29, who resided in Florida prior to enlisting in the Army, was arrested in February 2014 and pleaded guilty March 12, 2015. At the sentencing hearing U.S. District Judge Ronald B. Leighton said, “This is a very serious and tragic offense…An offense that should be punished heavily.”
“Words cannot adequately express the horror of the conduct at issue in this case,” said U.S. Attorney Annette L. Hayes. “Beyond the abuse itself, the fact that some people used technology to watch the conduct while it was on-going – without doing anything to stop it – is a fact that cannot be forgotten or ignored.”
According to records filed in the case, a young child disclosed to her parent in February 2014, that FRENCH had repeatedly raped her from the age of seven. The abuse occurred between September 2012 and July 2013. The rapes occurred on JBLM property and FRENCH recorded some of the assaults. Further, FRENCH committed some of the assaults while other people watched the rapes via Skype. Within days FRENCH was arrested and has been in state or federal custody ever since.
The case was investigated by the FBI and the Washington State Patrol’s Missing and Exploited Children Task Force. The case was prosecuted by Assistant United States Attorney Kate Vaughan.
Former Elementary School Janitor Sentenced for Illegal Use of the InternetRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Enticement of a Minor Using the Internet was sentenced on June 3, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Casey James Godfrey, age 30, was sentenced to serve 20 years in federal prison, followed by 20 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Between July 2013 and January 2014, at Rapid City, Godfrey used the Internet to entice a 13 year-old female and a 15 year-old female to email him several photographs of them in various stages of undressing, to include nude and partially nude photos. At the time of his arrest, Godfrey was working as a janitor at Pinedale Elementary School.“This sentence sends a strong message,” said Seiler. “Preventing the sexual exploitation and abuse of children is a top priority of our office, and the 20-year federal prison term that was handed down should reinforce that there will be severe criminal consequences for Internet predators.”
The investigation was conducted by the Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Godfrey was immediately turned over to the custody of the U.S. Marshals Service.
Five Lawyers in Manhattan U.S. Attorney’s Office Recognized at Annual U.S. Attorney Awards CeremonyRead the Press Release
PREET BHARARA, the United States Attorney for the Southern District of New York, announced that the Department of Justice held its 31st annual Executive Office for United States Attorneys (EOUSA) Director’s Awards Ceremony yesterday, during which 160 award recipients from 31 districts were recognized for their dedication to carrying out the mission of the Department of Justice. Among the award recipients were Assistant U.S. Attorneys Howard S. Master, Andrew D. Goldstein, Robert W. Yalen, Tara M. La Morte, and Arastu K. Chaudhury from the U.S. Attorney’s Office for the Southern District of New York. Attorney General Loretta Lynch and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson presided at yesterday’s ceremony in the Great Hall at the Robert F. Kennedy Department of Justice Building in Washington, D.C.
In her prepared remarks, Attorney General Lynch told the attendees: “Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers. These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause.”
Manhattan U.S. Attorney Preet Bharara said: “This year’s Director’s Award winners were recognized for their commitment to justice. They spearheaded cases that recouped hundreds of millions of dollars defrauded from New York City, protected the nation’s environment by holding a major polluter financially liable, and secured legally guaranteed pension benefits for City employees who served in the nation’s armed forces. Their efforts exemplify the tradition of excellence of this Office, and I congratulate them for these well-deserved honors.”
Howard S. Master and Andrew D. Goldstein are recognized for their investigation and prosecution of the CityTime case, the largest municipal fraud and kickback scheme in history. Through a dogged investigation that involved tracing payments through more than 150 foreign and domestic accounts, poring through hundreds of thousands of emails and project documents, interviewing more than 100 witnesses, and securing cooperation from two key insiders, Mr. Master and Mr. Goldstein were able to prove that the City of New York’s project manager and an executive of one of the nation’s largest government contractors defrauded the City, collected tens of millions of dollars in kickbacks, and laundered their proceeds through an intricate web of corrupt subcontractors and shell accounts. The prosecution resulted in eight convictions, a deferred prosecution agreement with the contractor, and record forfeitures of over $550 million.
Robert W. Yalen is recognized for his outstanding work representing the United States in the bankruptcy proceeding of Tronox, Inc., which resulted in two extraordinary environmental settlement agreements, including one for $5.15 billion that constitutes the largest recovery of funds for environmental clean-up ever by the Department of Justice. Through these settlement agreements, the Kerr-McGee Corporation was compelled to pay for 85 years of environmental contamination across the nation, a legacy that Kerr-McGee had attempted to evade though a fraudulent conveyance of assets. Mr. Yalen showed extraordinary negotiation, litigation, and case management skills by overseeing the creation of five environmental clean-up trusts; serving as lead counsel for the United States in a complex fraudulent conveyance matter; coordinating with the Environment and Natural Resources Division, seven client agencies, 22 states, and the Navajo Nation; and representing the United States in negotiations with the defendants and the Tronox estate.
Tara M. La Morte and Arastu K. Chaudhury are recognized for their extraordinary performance in a class-action lawsuit against the City of New York, culminating in a settlement providing monetary and injunctive relief to all employees of the City who have served their country in the armed forces. In the wake of 9/11, thousands of City service-member employees were deployed around the world, often multiple times and for substantial duration. However, the City refused to calculate the service members’ pensionable earnings in accordance with USERRA, the law designed to protect against discrimination on account of military service. The City’s policies caused these service members to receive fewer pension benefits than they would have received but for serving their country. Beating back the defendants’ numerous aggressive attempts to avoid any liability, Ms. La Morte and Mr. Chaudhury obtained full monetary recovery for all service-member employees, as well as significant policy changes to ensure that the City acts lawfully going forward.
* * *
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Federal indictment, arrests disrupt Pleasants County methamphetamine manufacturing operationRead the Press Release
WHEELING, WEST VIRGINIA – Multiple individuals have been arrested pursuant to a federal indictment stemming from a methamphetamine manufacturing operation based in Pleasants County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
A federal grand jury returned an indictment earlier this week charging Donald William Butler, 56, Bonnie Jean Butler, 54, Garland Samuel Butler, 50, Travis Michael Butler, 21, Samuel Scott Butler, 23, all of Saint Marys, West Virginia, and Kate Lynn Baker, 20, of Friendly, West Virginia, with manufacturing methamphetamine.
The defendants utilized a residence in Pleasants County to manufacture methamphetamine over an extended period of time. They also were repeatedly discovered in possession of medications containing pseudoephedrine, a common ingredient in methamphetamine.
All six defendants are charged with one count of “Methamphetamine and Pseudoephedrine Conspiracy,” for which they each face up to 20 years in prison and a fine of up to $1,000,000.
Donald and Bonnie Butler are each further charged with: • One count of “Maintaining Drug-Involved Premises - Aiding and Abetting,” for which they each face up to 20 years in prison and a fine of up to $250,000, and
• One count of “Possession of Material used in the Manufacture of Methamphetamine - Aiding and Abetting,” for which they each face up to 10 years in prison and a fine of up to $250,000.Garland and Travis Butler are each further charged with four counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” They each face up to 20 years in prison and a fine of up to $250,000 on each of the four counts.
Kate Baker is further charged with four counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine,” and one count of “Attempt to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” She faces up to 20 years in prison and a fine of up to $250,000 on each of the five counts.
Samuel Butler is further charged with three counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $250,000 on each of the three counts.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins is prosecuting the case on behalf of the government. The West Virginia State Police and the Pleasants Count Sheriff’s Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Finds Fort Worth Man Guilty of Interfering with Southwest Airlines Flight CrewRead the Press Release
AMARILLO, Texas — Following a four-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted a Fort Worth, Texas, man on the felony offense of interference with a flight crew, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The jury deliberated less than three hours before convicting Zachary Marshall Ziba, 25, on the charge that was outlined in an indictment returned in February 2015 in Amarillo. Ziba, who will remain on bond, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The government presented evidence at trial that on January 18, 2015, Ziba was on Southwest Airlines Flight 958 from Denver, Colorado, to Dallas. During that flight, Ziba intimidated a flight attendant and a flight crewmember by being disruptive, disobedient and by screaming profanities. The flight was diverted to Amarillo so that law enforcement could remove Ziba from the flight.
The FBI, the Amarillo Police Department and Rick Husband Amarillo International Airport Police investigated. Assistant U.S. Attorneys Joshua Frausto and Timothy Hammer are prosecuting the case.
Federal Court Prohibits Nevada Tax Preparer from Preparing Returns Containing Foreign Earned Income ExclusionRead the Press Release
A federal court has barred a North Las Vegas, Nevada, woman and her business from preparing federal tax returns that contain or involve foreign earned income and from promoting the exclusion of foreign earned income to others, the Justice Department announced today.
The civil injunction order, to which Sheila Bunting consented, was entered by U.S. District Judge James C. Mahan of the District of Nevada. The injunction also bars Bunting’s business, 5 Star Tax LLC, from continuing to prepare tax returns that contain or involve foreign earned income, and from promoting the exclusion of foreign earned income to others.
According to the complaint, Bunting inappropriately attempted to exclude foreign earned income from the calculation of her customers’ federal tax liabilities, which understated her customers’ correct tax liabilities or inflated improper refunds. Typically, U.S. citizens may exempt some foreign earned income from the calculation of gross income if they are present in a foreign country for at least 330 full days out of 12 consecutive months. This period can be waived when the Secretary of the Treasury determines, after consultation with the Secretary of State, that individuals were required to leave a foreign country due to war, civil unrest or other conditions that preclude the normal conduct of business, among other things. In implementing this waiver provision, each year the Secretary of the Treasury publishes a list of countries that have been determined eligible for waiver requests. According to the suit, Bunting disregarded the published list of waiver-eligible countries in filing the exclusion of foreign earned income on behalf of her customers.
The injunction requires Bunting to provide a list of customers that identifies by name, social security number, address, e-mail address, telephone number and tax periods, all persons for whom she has prepared federal tax returns or claims for refund since Jan. 1, 2012, that reference foreign earned income.
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.
Eagle Butte Man Sentenced for Felony Child Abuse and Aiding and AbettingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Felony Child Abuse and Aiding and Abetting was sentenced on May 29, 2015, by U.S. District Judge Roberto A. Lange.
Francis Swan, age 25, was sentenced to 30 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On or about October 18, 2014, the defendant’s 20-month-old son died as a result of blunt force trauma to the child’s head. Two months prior, Swan and Jordyn Blue Coat, his wife and co-defendant, had regained custody of their baby from a Mobridge couple who had been taking care of him since his birth. He was a difficult baby who frequently cried and was hard to console. This became difficult for the mother, and to some extent, for Swan. During the last two months of his life, the child was abused, tortured, and cruelly punished by Jordan Blue Coat for his fussy behavior.
After the child’s death, an autopsy found that he had died from blunt force trauma to his skull, which caused a subdual hemorrhage and in turn led to bilateral cerebral brain failure. But in addition to the head trauma, the child had multiple burns, contusions, abrasions, and injuries all over his body, which included chronic and acute bone fractures.
While Swan did not cause these injuries, he exposed the child to this physical abuse by the child’s mother and also failed to seek medical attention and treatment for the child’s many injuries, including the bone fractures.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Department of Social Services, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Swan was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
District Man Sentenced to More Than 43 Years in Prison for Attacking Woman in Her HomeRead the Press Release
WASHINGTON – Demarco Myles, 21, was sentenced today to 43 years and three months in prison on numerous charges, including assault with intent to kill while armed, attempted first-degree sexual abuse while armed, and mayhem while armed, stemming from an attack in which he forced his way into a woman’s apartment, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Myles, of Washington, D.C., pled guilty in January 2015 to a total of 10 charges in the Superior Court of the District of Columbia. For one of the 10 offenses – attempted first-degree sexual abuse while armed - he entered what is known as an Alford plea. Under such a plea, the defendant does not admit the allegations, but agrees that the government has enough evidence to secure a conviction. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Myles will be placed on 20 years of supervised release. Myles also will be required to register as a sex offender for the rest of his life.
“This home invasion was calculated and brutal,” said Acting U.S. Attorney Cohen. “After Demarco Myles forced his way into the victim’s apartment, he tried to rape her and stabbed her repeatedly in the eyes and face. The people of the District of Columbia are safer with the perpetrator of this monstrous attack behind bars.”
According to the government’s evidence, in the early afternoon hours of Oct. 26, 2012, Myles gained entry to a secured apartment building in Northeast Washington. Once inside, he was able to take the elevator by riding with a tenant, who had a card-key to the elevator.
After getting off the elevator, Myles began knocking on doors. When he got to the victim’s apartment, she opened her door a crack to see who was knocking. Myles forced his way inside, knocking her to the floor. She began screaming, and Myles brandished a knife, held it to her throat, and ordered her to stop or he would kill her. He then forced the victim into her bathroom, where he attempted to rape her at knifepoint. Before he could, however, the victim fled into her bedroom and tried to shut herself inside a walk-in closet. Myles overpowered her, forcing his way into the closet, where he began stabbing, kicking and punching the victim.
By the time he finished, Myles had stabbed the victim more than 20 times, including in both eyes, her face and neck, and on her arms and legs. Myles left her lying on her floor, bleeding and unconscious, with life-threatening wounds. He then stole items from her apartment and left.
The victim, remarkably, regained consciousness, crawled across her floor to her phone and was able to call 911. The police and ambulance crew were able to get to the victim before she bled to death. She spent the next several weeks in a hospital, undergoing several surgeries, but survived. As a result of the wounds that Myles inflicted, the victim has had to undergo months of physical therapy and still suffers some limitations.
After the attack, the Metropolitan Police Department (MPD) posted footage from the apartment building’s security camera, trying to determine who committed this attack. Following up on investigative leads, MPD secured a search warrant for Myles’s home, where they recovered items that he stole from the victim’s apartment, as well as a pair of his pants that were covered in blood. DNA testing established that the blood on his pants belonged to the victim.
Myles has been in custody since his arrest on Nov. 3, 2012.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of members of MPD’s Sexual Assault Unit, Criminal Investigations Unit, and Fifth District, who investigated the case. He also expressed appreciation for the support of Kristina Rose, Deputy Administrator of the Department of Justice’s Office for Victims of Crime. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel, D’Yvonne Key, and Joyce Arthur; Jelahn Stewart, Chief of the Victim/Witness Assistance Unit; Victim/Witness Advocates Melissa Milam and Elsa Resendiz; David Foster, La June Thames and Katina Adams-Washington, also of the Victim/Witness Assistance Unit; Information Technology Specialist Jeanie Latimore-Brown; Intelligence Specialist Sharon Johnson; Legal Intern Allison Denton, and Criminal Investigators Steve Cohen and Durand Odom. He also commended the work of Assistant U.S. Attorneys Elizabeth Trosman, Chrisellen Kolb, and Elizabeth Danello of the Appellate Section, for assistance on legal issues, and Assistant U.S. Attorney Colleen Kennedy, for assistance on mental health-related issues. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Andrea Hertzfeld, John L. Hill and Peter V. Taylor, who investigated and prosecuted this case.
District Man Sentenced to 28 Years in Prison for Armed Home Invasion in Northeast WashingtonRead the Press Release
WASHINGTON – Gregory Gantt, 21, of Washington, D.C., was sentenced today to 28 years in prison for his role in an armed home invasion that took place in October 2013 in Northeast Washington, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
Gantt pled guilty in August 2014, in the Superior Court of the District of Columbia, to charges of conspiracy to commit a crime of violence while armed, first-degree burglary while armed, first-degree theft, tampering with physical evidence, and second-degree burglary. He was sentenced by the Honorable William M. Jackson. Upon completion of his prison term, Gantt will be placed on five years of supervised release.
According to the government’s evidence, Gantt and his accomplices, who were wearing ski masks, carried out the crimes at about 2:30 a.m. on Oct. 3, 2013. They saw a taxicab dropping off the victim in the 5700 block of Blaine Street NE. They followed the victim into his home. Once inside, they held the victim, the victim’s fiancé, and the victim’s mother at gunpoint for approximately 40 minutes while they ransacked the home and stole various items. Those items included cash, electronics, and the fiancé’s engagement ring, which the fiancé unsuccessfully tried to hide from the defendants during the burglary.
Gantt and the other assailants left the home in two vehicles that belonged to the victims and deposited the proceeds from the burglary inside a vacant home on Raleigh Street SE. Worried that the police might recover fingerprints from the vehicles they had stolen, the men then drove the vehicles into a field adjacent to an elementary school on Alabama Avenue SE, set the vehicles on fire, and retreated on foot to the vacant home on Raleigh Street SE.
Gantt was wearing a GPS tracking device in connection with his supervised release in an unrelated robbery case. Members of the Metropolitan Police Department (MPD) used data generated by that device to track the defendants to the home on Raleigh Street SE. The police barricaded the residence and ultimately arrested the defendants, including Gantt, in or near the residence. The police also recovered most of the proceeds of the burglary, along with several ski masks, from the Raleigh Street home. The police did not recover the engagement ring.
Two others are serving prison terms for their roles in the various crimes, and a third is awaiting sentencing. Andre Townsend, 20, of Washington, D.C., pled guilty to armed robbery, first-degree burglary, tampering with physical evidence, and unlawful entry and was sentenced in August 2014 to eight years in prison. Darnell Mason, 22, of Washington, D.C., was found guilty by a jury of obstruction of justice and related actions he took following the armed home invasion; he was sentenced in February 2015 to 22½ years in prison. Shareem Hall, 21, of Washington, D.C., pled guilty to charges of conspiracy to commit a crime of violence while armed, first-degree burglary while armed, first-degree theft, tampering with physical evidence, and second-degree burglary. He has not yet been sentenced.
In announcing today’s sentence, Acting U.S. Attorney Cohen praised the work of the detectives and officers who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham and Antoinette Sakamsa, Litigation Technology Specialists Aneela Bhatia and Leif Hickling, witness advocates Jim Brennan and Jennifer Clark, and former intern Harris Davidson. Finally, Acting U.S. Attorney Cohen acknowledged the efforts of Assistant U.S. Attorneys Ben Schrader and Karen Seifert, who investigated and prosecuted the case.
Developer Who Falsified Loan Documents Submitted to Westsound Bank Sentenced to Five Years in Prison for Bank Fraud and Filing False Tax ReturnsRead the Press Release
A King County man who fled to Moldova, in Eastern Europe before being indicted by a federal grand jury for loans fraudulently obtained from Westsound Bank, was sentenced today in U.S. District Court in Seattle to five years in prison, announced U.S. Attorney Annette L. Hayes. ALEKSANDR KRAVCHENKO, 36, pleaded guilty in March 2015 to conspiracy to commit bank fraud and filing a false income tax return. His wife, GALINA KRAVCHENKO, 35, was sentenced to just over five months in prison and one year of supervised release following her plea to filing a false income tax return. The couple profited from a mortgage fraud scheme in which ALEKSANDR KRAVCHENKO submitted phony loan applications to Westsound Bank. GALINA KRAVCHENKO acted as the real estate agent in the scheme earning large commissions on the fraudulent sales. ALEKSANDR KRAVCHENKO’s plea agreement estimates the loss amount on the bank fraud scheme at more than $10 million, and the tax loss on the false returns at more than $370,000. Chief U.S. District Judge Marsha J. Pechman imposed three years of supervised release on ALEKSANDR KRAVCHENKO.
According to records filed in the case, the KRAVCHENKOs were indicted in May 2009 for an extensive bank fraud scheme involving straw buyers and false statements on mortgage applications. According to facts admitted in the plea agreements, ALEKSANDR KRAVCHENKO had his wife GALINA, a real estate agent, locate real property that was available for purchase. ALEKSANDR KRAVCHENKO then recruited otherwise unqualified buyers to participate in purchasing and building on the properties. ALEKSANDR KRAVCHENKO submitted false and fraudulent construction loan applications and related documents to Westsound Bank, thereby causing Westsound Bank to make unsound loans. A portion of the fraudulently-obtained loan proceeds were diverted for ALEKSANDR KRAVCHENKO’s personal use and benefit, and to further the fraud scheme. GALINA KRAVCHENKO made substantial real estate commissions on the deals. ALEKSANDR KRAVCHENKO submitted 55 loan packets to Westsound Bank worth $49 million. Ultimately the bank suffered a $10.7 million loss on the loans and was closed by regulators on May 8, 2009.
Aware of the investigation, but before the indictment was returned, the two KRAVCHENKOs fled the U.S. and went to Moldova where ALEKSANDR KRAVCHENKO retains citizenship. The two were out of the reach of U.S. law enforcement until December 2014, when GALINA KRAVCHENKO was returned to the U.S. based on an extradition warrant. GALINA KRAVCHENKO had been arrested in Moldova in September 2014 for having false Moldovan and Russian travel documents. ALEKSANDR KRAVCHENKO returned to the U.S on February 23, 2015 to resolve the criminal charges.
The court has ordered ALEKSANDR KRAVCHENKO to make restitution of $10,759,722 for the bank fraud scheme and $370,541 for filing a false tax return. GALINA KRAVCHENKO has also been ordered to pay back the $370,541 in tax loss caused by filing a false tax return.
The case was investigated by the FBI, the Federal Deposit Insurance Corporation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Thomas Woods.
Delaware County Man Sentenced to over 11 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced June 4, 2015 to over 11 years in federal prison.
Paul LeClere, age 51, of Hopkinton, Iowa, received the sentence after a February 6, 2015 guilty plea to one count of possession of child pornography. At the guilty plea hearing, LeClere admitted that he knowingly possessed child pornography.
LeClere was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. LeClere was sentenced to 135 months’ imprisonment and fined $10,000. A special assessment of $100 was imposed, LeClere was ordered to make $4,000 in restitution, and he must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Scott County Sheriff’s Office, the Davenport Police Department, the Delaware County Sheriff’s Office, the Dubuque County Sheriff’s Office, the Clinton County Sheriff’s Office, and Homeland Security Investigations.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-2054.
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Dealer for Atlantic City “Dirty Block” Gang Sentenced to 54 Months in Prison in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, N.J., man was sentenced today to 54 months in prison for engaging in a conspiracy to distribute heroin with several members of the “Dirty Block” criminal street gang – several of whom were convicted after a six-week jury trial in January – which used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Ronald Davis, a/k/a “Black,” 29, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Davis acted as a dealer, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court, in Atlantic City. Davis was arrested on March 26, 2013.
In addition to the prison term, Judge Irenas sentenced Davis to six years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s guilty plea.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Stanley O. King Esq., Woodbury, New Jersey
Dallas Man Sentenced to 189 Months in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Keith Renard Simon, 20, who admitted committing several armed robberies of businesses in the Dallas area in November 2013, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 189 months in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In October 2014, Simon pleaded guilty to three counts of interference with commerce by robbery. Co-defendant Lorenza Anzley, 21, pleaded guilty at the same time to the same offenses, and co-defendant James Montreal Tyson, 19, pleaded guilty to one count of the offense. Anzley was sentenced last month to 189 months in federal prison and ordered to pay $16,560 in restitution. Tyson was sentenced in October 2014 to 46 months in federal prison and ordered to pay $5,570 in restitution.
According to documents filed in the case, Simon, Anzley and Tyson admitted committing the November 11, 2013, robbery of Walgreens, located at 1060 West Camp Wisdom Road in Dallas. Simon brandished a dangerous weapon during this robbery.
Simon and Anzley admitted committing the November 23, 2013, robbery of Metro PCS, located at 2614 Martin Luther King Jr. Boulevard in Dallas. During that robbery, Simon and Anzley entered the store at approximately 3:15 p.m., with the intent to rob it. Simon produced a dangerous weapon, pointed it at two employees, and he and Ansley jumped over the counter. They demanded money and ordered the employees to get on the floor. When Anzley could not get the register open, he struck one of the employees in the face and back of the head with the weapon.
Simon and Anzley also admitted committing the November 24, 2013, robbery of Metro PCS, located at 2864 South Buckner Boulevard in Dallas. During this robbery, Simon brandished a dangerous weapon and struck one of the store’s employees with it.
While Simon and Anzley were not charged with additional robberies, Simon stipulated to their roles in two additional robberies: the November 20, 2013, robbery of Family Dollar, located at 2683 Cedar Crest Boulevard in Dallas and the November 29, 2013, robbery of Metro PCS, located at 9625 Plano Road in Dallas. During this Family Dollar robbery, Simon and Anzley ordered the store employees and customers to the floor at gunpoint. During this Metro PCS robbery, Simon pointed a dangerous weapon at employees, demanded money, and then ordered them into the back room.
The FBI and the Dallas Police Department investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
Cherry Creek Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on June 1, 2015, by U.S. District Judge Roberto A. Lange.
Joshua Hale, age 24, was sentenced to 24 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hale was indicted by a federal grand jury on December 9, 2014. He pled guilty to the Indictment on March 26, 2015.
The conviction arose from a February 6, 2014, incident when Hale became upset at the victim for not supporting him and backing him up during an earlier altercation. Hale assaulted the victim with his fist, striking him several times in the face and head, until the victim was knocked unconscious. As a result of the assault by Hale, the victim received two fractures of his facial bones, and numerous stitches to both the inside and outside of his lip.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Mikal Hanson and Jay Miller prosecuted the case.
Hale was immediately turned over to the custody of the U.S. Marshals Service.
Chelsea Man Pleads Guilty in Fraudulent Driver's License SchemeRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in connection with a scheme to produce fraudulent identification documents.
Edwin Amaurys Parra Suarez, 38, pleaded guilty to one count of conspiracy to produce false identification documents. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 9, 2015.
From December 2012 through December 2013, Parra bribed a corrupt Massachusetts Registry of Motor Vehicles (RMV) clerk to issue Massachusetts driver’s licenses to individuals who were not eligible to receive them. Acting as a broker, Parra sent his purported clients to the Revere RMV to submit their application materials to the corrupt clerk. In exchange for payment ranging from $100 to $1,000 from Parra, the clerk agreed to overlook the fact that the clients lacked the necessary immigration documents to qualify for a Massachusetts driver’s license. During the course of the scheme, Parra and his co-conspirators produced at least 29 Massachusetts driver’s licenses in this way.
This plea is the most recent development in a series of investigations involving identity theft and public corruption at the RMV. The clerk, Alexander Brewer, was sentenced in April 2014 to two years of probation, and he voluntarily forfeited the $60,000 he fraudulently obtained to produce fake licenses. Another co-conspirator of Brewer’s, Leonel Sanchez, was sentenced in January 2015 to 26 months in prison after pleading guilty to aggravated identity theft.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater, restitution and forfeiture. 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; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Caseyville Man Pleads Guilty to Stealing Funds from Railroad Retirement BoardRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Harold French, 52, of Caseyville, Illinois, pled guilty to charges that he stole disability benefits from the United States Railroad Retirement Board.
Facts revealed in Court were that, from May 2009 through June 2012, French fraudulently obtained monies belonging to the U.S. Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive occupational disability benefits. In this way, French illegally obtained over $82,000.00.
The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release. The district court set sentencing for September 30, 2015.
The case was investigated by agents of the U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board's Office of Inspector General by calling 1.800.772.4258 or by e-mailing a complaint or information to: [email protected]
Christian D. Shelton Found Guilty by Jury TrialRead the Press Release
FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Christian D. Shelton, 38, of Fort Wayne, Indiana, was found guilty on June 4, 2015, by jury trial, of maintaining a drug-involved premises, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.
According to the evidence presented at trial, in November 2012, detectives with the Fort Wayne Police Department obtained a search warrant and in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed that warrant at Shelton’s home on Gaywood Drive, Fort Wayne, Indiana. At Shelton’s home, officers located marijuana, two firearms, and other evidence of drug dealing.
Sentencing for Shelton will be scheduled at a later date by a separate court order. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.
This case was the result of an investigation by the Fort Wayne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This trial was handled by Assistant United States Attorney Anthony W. Geller.
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Bunnell Company Owner Pleads Guilty to Theft of Employee Retirement FundsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Andrea Lynn McCarthy (63, Volusia County) has pleaded guilty to embezzlement from an employee benefit plan. She faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, McCarthy is an owner of Truss Systems, LLC, a truss manufacturing business in Flagler County. She embezzled all of the funds from the business’ corporate profit sharing plan and unlawfully used the pension funds to pay personal and other unrelated corporate expenses. She used some of the funds to pay personal investment obligations in another unrelated company she co-owns. The corporate profit sharing plan was a federally protected plan under the Employee Retirement Income Security Act (ERISA).
In 2009, Truss Systems was having financial issues. In order to make the company’s payroll, pay vendors, satisfy the company’s mortgage payments, and pay financial obligations of her unrelated company, McCarthy made 15 separate and illegal electronic funds transfers from the company’s profit sharing plan’s account. This embezzlement, totaling $111,625.00, was accomplished by electronically transferring funds from the plan’s account to the company’s operating account. McCarthy then wrote checks from the operating account to cover personal and business obligations. She depleted the employees’ profit sharing account.
This case was investigated by United States Department of Labor. It is being prosecuted by Assistant United States Attorney Mark B. Devereaux.
Buffalo Man Pleads Guilty to Making A False StatementRead 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 David Zaniewski, 42, formerly of Buffalo, NY, now residing in Collegeville, Pennsylvania, pleaded guilty to making a false statement in a bankruptcy proceeding before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that in July 2007, the defendant obtained a charge card from American Express. During an approximately three week time frame, Zaniewski charged in excess of $119,000 to the card. Charges included airfare, hotels, furniture, cemetery plots, gift cards, and foreign currency.
In September, 2007, the defendant took the American Express charge card to Bert’s Bike Store, in Orchard Park, NY, where he and a store representative engaged in a transaction involving approximately $36,000 worth of purchases charged to the credit card. However, instead of merchandise, Zaniewski received cash.
The defendant never made any payments to American Express to offset the charges. In May, 2008, Zaniewski filed a bankruptcy petition in the Western District of New York, and attempted to discharge all of his debt with American Express through the bankruptcy process.
In connection with his bankruptcy proceedings, the defendant was placed under oath and asked questions about his bankruptcy petition, including his debts with American Express. During the proceedings, the defendant made materially false statements, including statements that he did not recall the nature of his fraudulent transactions at Bert’s Bike Store in September 2007.
The plea is the culmination of an investigation by the Federal Bureau of Investigation. The matter was referred by the U.S. Trustee Program’s office in Buffalo, NY.
Sentencing is scheduled for September 30, 2015 before Judge Arcara.
Baltimore Gun Trafficking Investigation Nets Five DefendantsRead the Press Release
Baltimore, Maryland – Following an investigation of firearms trafficking in Baltimore City, a federal grand jury has indicted five defendants in three separate cases, on firearms related charges including: unlawful possession of an unregistered firearm; possession of a firearm and/or ammunition by an illegal alien, possession and sale of a stolen firearm and being a felon in possession of a firearm. The indictments were returned on June 3, 2015, and unsealed upon the arrest of the defendants.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
“These cases resulted from an intensive ATF investigation of firearms trafficking in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Federal agents are working with police and prosecutors to stop the flow of guns into Baltimore.”
According to their indictments David Boj-Perez, a/k/a “David Salomon Boj,” and “Daniel,” age 31; Estelle Julia Lewis, age 28; and Philip Samuel Simmons, age 39, all of Baltimore, illegally possessed an unregistered firearm, specifically, a sawed-off 12 gauge shotgun. They each face a maximum sentence of 10 years in prison.
In a separate indictment, Kevin Mauricio Guzman Rivera, age 21, and Raymond Escobar, a/k/a “Ray,” age 35, both of Baltimore, are charged with possession of a firearm by an illegal alien, and being a felon in possession of a firearm, respectively, in addition to drug conspiracy and related charges. Rivera faces a maximum sentencing of 10 in prison for possession of a firearm by an illegal alien. Escobar also faces a maximum of 10 years in prison for being a felon in possession of a firearm. Rivera and Escobar also face a maximum sentence of 20 years in prison for possession with intent to distribute controlled substances, and for the drug conspiracy.
The defendants had an initial appearance in U.S. District Court in Baltimore. Boj-Perez and Escobar are detained. Rivera was already in custody and remains detained. Simmons and Lewis were detained pending detention hearings scheduled for Monday, June 8, 2015.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, HSI-Baltimore, and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.