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Tuesday 21 April 2015
Bowling Green, Armed Career Criminal Pleads Guilty to Conspiracy to Possess and Distribute Marijuana and Cocaine, and Possession of A Firearm by A Convicted FelonRead the Press Release
BOWLING GREEN, Ky. – A Bowling Green armed career criminal pleaded guilty to several charges today in U.S. District Court, including conspiracy to possess and distribute marijuana, cocaine and cocaine base, possession of a firearm by a convicted felon, and maintaining a residence for the purpose of distributing controlled substances, announced Acting United States Attorney John E. Kuhn, Jr.
Antwain Santez Sweatt pleaded guilty before U.S. District Court Judge Greg N. Stivers this morning to five charges in a seven count superseding indictment from December 10, 2014. According to the plea agreement, between June and July 2014, in Warren County, Kentucky, Sweatt knowingly conspired with others to possess with intent to distribute and distribute marijuana, cocaine and cocaine base. Further, Sweatt admitted to renting 834 Victoria Street, in Bowling Green, for the purpose of distributing or using controlled substances. Finally, Sweatt admitted to knowingly possessing a Jiminez Arms, 9 millimeter pistol and ammunition, after having been convicted of a crime punishable by imprisonment for more than one year.
On March 10, 1997 Sweatt was sentenced to 7 years in prison for trafficking in a controlled substance and possession of a controlled substance. On February 3, 2003, Sweatt was sentenced to 10 years in prison for trafficking in a controlled substance and 15 years in prison for disarming a police officer and resisting arrest.
Sweatt faces a combined minimum term of 15 years in prison, a combined maximum term of life imprisonment, a combined maximum fine of $3,750,000, and supervised release of at least three years and up to any number of years, including life, which the Court may specify. Sweatt is scheduled for sentencing before Judge Stivers on July 14, 2105, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) the Bowling Green Police Department, and the Bowling Green/Warren County Drug Task Force.
Bonners Ferry Man Pleads Guilty to Violent ATM Theft in McCallRead the Press Release
BOISE — Matthew Taber Annable, 40, formerly of Bonners Ferry, Idaho, pleaded guilty today to bank larceny by use of a dangerous weapon and conspiracy to commit bank larceny, U.S. Attorney Wendy J. Olson announced. Sentencing is set for June 10, 2015, before U.S. District Judge Edward J. Lodge.
According to court documents, on January 10, 2014, Annable and his co-defendant Nathan Paul Davenport, aiding and abetting each other, broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. The indictment alleges that Davenport possessed, carried, used, and discharged a firearm, specifically a Ruger semiautomatic rifle, in connection with the offense. Davenport admitted that he used the rifle to shoot at pursuing McCall police officers. Annable was aware that Davenport shot at pursuing officers because Davenport and Annable communicated over an open cell phone connection during the larceny. During Davenport’s heist from the ATM, Annable drove about nearby waiting to pick up Davenport in an escape vehicle. As part of the conspiracy, the indictment charged both men with other ATM larcenies committed against Idaho Banking Company in Boise and Meridian on January 5, 2014, and a string of ATM larcenies in December, 2013 and January, 2014, which occurred in Wyoming, Colorado, Utah, as well as in Idaho.
Davenport pleaded guilty on March 30, 2015, to bank larceny by use of a dangerous weapon, use of a deadly weapon in the commission of a felony crime, and conspiracy to commit bank larceny. He will be sentenced on June 22, 2015.
Annable and Davenport were arrested without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men were in custody on the Wyoming charges prior to being transported to Boise on the Idaho charges. In the District of Wyoming, both men pleaded guilty to single counts of ATM theft and aiding and abetting and each received a fourteen month prison sentence.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of conspiracy to commit bank larceny is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years supervised release.
The case was investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Boise Man Sentenced to Five Years in Prison for Weapons ChargeRead the Press Release
BOISE – Anton Philip Raider, 23, of Boise, Idaho, was sentenced today to five years in prisons followed by five years of supervised release for possession of firearms in furtherance of a drug trafficking crime, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Raider to forfeit four firearms, and ordered that his federal sentence run concurrently to his state sentencing for aiding and abetting second degree murder.
According to court proceedings, a search warrant was served at the defendant’s residence located on West Red Maple Drive, Boise, Idaho. The warrant was issued in state court as part of an investigation into a double homicide that occurred the night before. The defendant was found to be in possession of approximately three pounds of marijuana, which was located in a safe in the defendant’s bedroom closet. Raider admitted to knowingly and intentionally possessing the marijuana with the intent to distribute it to others. Also found in the defendant’s closet were four firearms and miscellaneous rounds of ammunition. Raider admitted that he knowingly possessed the firearms in furtherance of his drug trafficking crime.
The case was investigated by the Boise Police Department and the Drug Enforcement Administration.
Attorney General Statement on Retirement of Michele LeonhartRead the Press Release
Attorney General Eric Holder released the following statement on the retirement of Drug Enforcement Administration Administrator Michele Leonhart:
“Michele Leonhart, the Administrator of the Drug Enforcement Administration, informed me today of her decision to retire. She will depart the agency in mid-May.
“I want to express my appreciation to Michele, not only for her leadership of the DEA since 2007, but also for her 35 years of extraordinary service to the DEA, to the Department of Justice and to the American people. As a Baltimore City Police Officer shortly after her college graduation, she stood on the front lines of our nation’s fight against crime. As a career DEA Special Agent, she initiated and contributed to law enforcement actions from major drug investigations to international conspiracy cases. And as the first woman ever to reach the rank of Special Agent in Charge, she was a trailblazer for equality and an inspiration to countless others. She has devoted her life and her professional career to the defense of our nation and the protection of our citizens, and for that, I am deeply grateful.
“The agents and employees of the DEA are some of the finest law enforcement officers in the world. They are committed to upholding American rights and liberties, dedicated to the rule of law, and devoted to the cause of justice. Every day, these remarkable men and women put their lives on the line – in communities across the United States and around the world – to safeguard our way of life. And they do so at a time of increasingly complex challenges and constantly evolving threats.
“Michele has led this distinguished agency with honor, and I have been proud to call her my partner in the work of safeguarding our national security and protecting our citizens from crime, exploitation and abuse. Over the past decade, under her leadership, there have been innumerable instances of the DEA dismantling the most violent and most significant drug trafficking organizations and holding accountable the largest drug kingpins around the world. Going forward, I have no doubt that the women and men of the DEA will continue to perform their duties with the utmost integrity, professionalism and skill – and I wish my good friend Michele all the best as she embarks on this next chapter in what is a remarkable life.”
Atlanta Man Sentenced to More Than 8 Years in Prison for Role in Counterfeit Check ConspiracyRead the Press Release
RICHMOND, Va. – Damion Latoras Foster, 34, of Atlanta, Georgia, was sentenced today to 97 months in prison, followed by 5 years of supervised release, on charges of conspiring to commit bank fraud and aggravated identity theft. He was also ordered to pay restitution in the amount $37,308.95.
Foster pleaded guilty on January 7, 2015. According to court documents and evidence presented at the trial of co-defendant Rasheeda McConnell, Foster was part of a group that stole business checks from commercial mailboxes and used them to make counterfeit checks. The group then recruited people to cash the checks from areas where homeless or unemployed persons would congregate. The check-cashers received a small sum of cash for cashing counterfeit checks made payable to them. The remaining proceeds went to the recruiters. Foster was responsible for printing the counterfeit checks that were cashed by the check-cashers. Foster’s fingerprints were found on a laptop computer, stolen checks, and other items shipped from a Richmond FedEx store on February 6, 2014, the date co-defendants Brandon Jermaine Johnson and Devante Carson were arrested. Forensic analysis of the laptop computer revealed digital images of counterfeit checks created using stolen business checks as exemplars. Foster’s fingerprints were also found on counterfeit checks passed in Kansas City, Missouri and Sioux Falls, South Dakota. He was arrested at a hotel in Jacksonville, Florida, on September 16, 2014, and found in possession of a computer, scanner, printer, check stock, and business checks apparently stolen from the U.S. Mail.
Five other co-defendants in this case pleaded guilty and have been sentenced to prison terms as follows: Jeffrey Keith Barnes, II, 7 ½ months; Devante Carson, 33 months; Christopher Eugene Pope, 15 months; Kevin Lavon Smith, 9 months; Brandon Jermaine Johnson, 96 months. Another co-defendant, Rasheeda McConnell, was convicted by a jury and sentenced to serve 60 months.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; David M. McGinnis, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the sentencing by U.S. District Judge John A. Gibney.
This case was part of Operation Homeless, a nationwide initiative being conducted by the U.S. Postal Inspection Service and U.S. Attorney’s Offices to aggressively prosecute groups who recruit the homeless and indigent to cash counterfeit checks. It was investigated by the United States Postal Inspection Service, United States Secret Service, Chesterfield County Police Department, and Henrico County Police Department as members of the Metro-Richmond Identity Theft Task Force. Prosecutions for the Task Force are handled by the U.S. Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Virginia Assistant Attorney General and Special Assistant U.S. Attorney Charles A. Quagliato and Assistant U.S. Attorney Michael C. Moore are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-28.
Akron woman charged with making false statements to get disability paymentsRead the Press Release
Allison A. Thompson, 49, of Akron, Ohio, was indicted today by a federal grand jury for making false statements to obtain federal disability benefits, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that the defendant submitted false statements in connection with the application for and receipt of compensation, benefit, and payment under the Federal Employees’ Compensation Act in 2012 and 2013.
The United States Postal Service Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s applicable U.S. Sentencing Guidelines range, prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man faces several charges related to child pornographyRead the Press Release
David T. Beiter, 54, of Akron, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, transferring obscene material to a juvenile and enticement, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that from on or about February 9, 2015 through on or about March 19, 2015, Beiter knowingly used a device connected to the Internet, to attempt to persuade, induce, entice and coerce a 12-year-old girl to engage in illegal sexual activity with him. The indictment also charges that on or about February 9, 2015, Beiter used a facility and means of interstate commerce, that is, a device connected to the Internet, to knowingly attempt transfer obscene matter, that is, a visual depiction purportedly of his ejaculating penis, to an individual who he knew had not attained the age of 16 years, that is, 12-year‑old girl. The indictment also charges that from on or about February 1, 2014, through on or about March 20, 2015, Beiter knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Lastly, the indictment charges that on March 20, 2015, Beiter possessed a computer that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron, Ohio and Richmond, Virginia Offices of the Federal Bureau of Investigation, and the Middlesex County (Virginia) Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Monday 20 April 2015
U.S. Attorney Appoints New Community Outreach SpecialistRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III has appointed Louis Goggans as the Community Outreach Specialist and Public Information Officer for the U.S. Attorney’s Office, Western District of Tennessee.
Prior to joining the U.S. Attorney’s Office, Goggans was an award-winning reporter for an alternative weekly newspaper, The Memphis Flyer. While at the publication, he covered an array of topics including crime, health, education, nonprofit agencies, paternity fraud, poverty, and music.
Goggans won awards in the investigative reporting category at the 64th Annual Green Eyeshade Awards (the nation's oldest regional journalism contest) for his feature articles on the unsolved murder of former NBA star Lorenzen Wright and human trafficking in the Mid-South.
Goggans is a native of Chattanooga, TN, and graduate of the University of Memphis (U of M). He received a Bachelor of Arts in Journalism. While enrolled, he wrote for the university’s student newspaper, The Daily Helmsman. He is also the former president of the U of M’s Association for Black Journalists.
In making the appointment, U.S. Attorney Stanton said: "We are very pleased to have Louis join the U.S. Attorney's Office. He is a highly talented and well-respected journalist who has a distinguished record of community engagement through innovative media outreach efforts."
Three Additional Defendants Plead Guilty in Connection with Sex Trafficking SchemeRead the Press Release
Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere
Today, three additional defendants pleaded guilty in connection with a sex trafficking scheme operated out of the Riviera Motel in New Orleans, Louisiana, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
Defendants Duane Phillips, 29, and Christopher Williams, 30, both of whom are residents of Memphis, Tennessee, each pleaded guilty today to conspiring to commit sex trafficking of adult victims by force, fraud and coercion in New Orleans and elsewhere. Defendant Anthony Ellis, 26, also of Memphis, pleaded guilty to one count of conspiring to commit sex trafficking of adult victims and one count of transportation for purposes of prostitution.
“The Department of Justice will not tolerate trafficking in human beings, and will continue to relentlessly pursue justice on behalf of vulnerable members of our society, whether they are migrants from beyond our borders or whether they are young women from our own communities,” said Principal Deputy Assistant Attorney General Gupta. “We will continue in our steadfast determination to hold accountable those who use force and coercion to exploit other human beings.”
“These defendants recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in the heinous crime of sex trafficking that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Homeland Security Investigations’ (HSI) New Orleans Field Office. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
Two defendants have previously pleaded guilty in connection with the case. On June 25, 2014, defendant Zacchaeus Taylor pleaded guilty to sex trafficking conspiracy and to Transportation for Purposes of Prostitution. On March 4, 2015, Laquentin Brown pleaded guilty to the same charges. Each face a maximum of five years on the conspiracy count and a maximum of 10 years on the transportation for prostitution count.
On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a Second Superseding Indictment charging defendants Phillips, Williams and Ellis, along with additional defendants Granville Robinson and Laquentin Brown, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. The Second Superseding Indictment also charged defendant Kanubhai Patel, who was the former owner of the Riviera Motel, with benefitting financially from the sex trafficking conspiracy. Defendant Taylor was charged separately on March 28, 2014. Of the seven defendants charged in connection with the sex trafficking scheme, five have entered guilty pleas. An indictment is merely an accusation and defendants are innocent until proven guilty beyond a reasonable doubt.
During their respective plea hearings and in their respective court filings, defendants Phillips, Williams and Ellis admitted that they, along with co-defendants Robinson and Brown, all of whom are from Memphis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. Williams admitted intentionally trying to impregnate women to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents. To enforce the rules, Phillips, Williams and Ellis each admitted that they and their co-conspirators used a variety of punishments, including withholding food, forcing the victims to engage in additional commercial sex acts, as well as physical assaults. Williams noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers. Phillips, Williams and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities, and would monitor each other’s victims when a co-conspirator was incarcerated. Phillips, Williams, Ellis and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.
At sentencing, defendant Ellis faces a maximum sentence of 10 years on the transportation for prostitution charge and a maximum sentence of five years on the conspiracy charge. Defendants Phillips and Williams each face a maximum sentence of life imprisonment for the sex trafficking conspiracy.
This case was investigated jointly by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS), with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Three Additional Defendants Plead Guilty in Connection with Sex Trafficking SchemeRead the Press Release
WASHINGTON – Today, three additional defendants pleaded guilty in connection with a sex trafficking scheme operated out of the Riviera Motel in New Orleans, Louisiana, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
Defendants Duane Phillips, 29, and Christopher Williams, 30, both of whom are residents of Memphis, Tennessee, each pleaded guilty today to conspiring to commit sex trafficking of adult victims by force, fraud and coercion in New Orleans and elsewhere. Defendant Anthony Ellis, 26, also of Memphis, pleaded guilty to one count of conspiring to commit sex trafficking of adult victims and one count of transportation for purposes of prostitution.
“The Department of Justice will not tolerate trafficking in human beings, and will continue to relentlessly pursue justice on behalf of vulnerable members of our society, whether they are migrants from beyond our borders or whether they are young women from our own communities,” said Principal Deputy Assistant Attorney General Gupta. “We will continue in our steadfast determination to hold accountable those who use force and coercion to exploit other human beings.”
“These defendants recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in the heinous crime of sex trafficking that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Homeland Security Investigations’ (HSI) New Orleans Field Office. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
Two defendants have previously pleaded guilty in connection with the case. On June 25, 2014, defendant Zacchaeus Taylor pleaded guilty to sex trafficking conspiracy and to Transportation for Purposes of Prostitution. On March 4, 2015, Laquentin Brown pleaded guilty to the same charges. Each face a maximum of five years on the conspiracy count and a maximum of 10 years on the transportation for prostitution count.
On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a Second Superseding Indictment charging defendants Phillips, Williams and Ellis, along with additional defendants Granville Robinson and Laquentin Brown, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. The Second Superseding Indictment also charged defendant Kanubhai Patel, who was the former owner of the Riviera Motel, with benefitting financially from the sex trafficking conspiracy. Defendant Taylor was charged separately on March 28, 2014. Of the seven defendants charged in connection with the sex trafficking scheme, five have entered guilty pleas. An indictment is merely an accusation and defendants are innocent until proven guilty beyond a reasonable doubt.
During their respective plea hearings and in their respective court filings, defendants Phillips, Williams and Ellis admitted that they, along with co-defendants Robinson and Brown, all of whom are from Memphis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. Williams admitted intentionally trying to impregnate women to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents. To enforce the rules, Phillips, Williams and Ellis each admitted that they and their co-conspirators used a variety of punishments, including withholding food, forcing the victims to engage in additional commercial sex acts, as well as physical assaults. Williams noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers. Phillips, Williams and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities, and would monitor each other’s victims when a co-conspirator was incarcerated. Phillips, Williams, Ellis and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.
At sentencing, defendant Ellis faces a maximum sentence of 10 years on the transportation for prostitution charge and a maximum sentence of five years on the conspiracy charge. Defendants Phillips and Williams each face a maximum sentence of life imprisonment for the sex trafficking conspiracy.
This case was investigated jointly by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS), with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Duane Phillips Factual Basis Christopher Williams Factual Basis Anthony Ellis Factual Basis
Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, tax preparer with an office in Essex County, New Jersey, was arrested today on charges of aiding and abetting in the filing of two dozen false tax returns, U.S. Attorney Paul J. Fishman announced.
Darlene Covington, 31, of Hillside, New Jersey, was indicted by a federal grand jury on April 10, 2015, and charged with 24 counts of aiding and abetting in the filing of false tax returns. She made her initial appearance today before U.S. Judge Joseph A. Dickson in Newark federal court and was released on $75,000 unsecured bond.
According to the documents filed in the case and statements made in court:
Covington worked as a tax preparer for KCJ Financial Corp., a tax preparation business in Irvington, New Jersey. During 2009 and 2010, Covington filed 24 false tax returns for tax years 2008 and 2009, using false information and personal identification information without the knowledge, consent or permission of the individuals named in the tax returns. Covington then applied for refund acceleration loans from financial institutions for each of the fraudulent refunds and earned a portion of each loan she secured. The refunds were given to a third party.
The false filing charges with which Covington is charged each carry a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and investigators of the U.S. Attorney’s Office with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sharon Ashe.
The charges in the indictment are mere accusations and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
St. Peters Man Sentenced on Bank Fraud ChargesRead the Press Release
St. Louis, MO –MARK AVALOS, St. Peters, Missouri, was sentenced to five years of probation and ordered to pay $497,000 in restitution after pleading guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store (TMS) in 2008. In imposing sentence today, United States District Judge Henry E. Autrey noted Avalos’ cooperation in the criminal investigation into the collapse of TMS in 2008.
TMS was a major mortgage brokering business which, by 2008, had offices in four states and hundreds of employees. Jason Rauschelbach and John York were the owners of TMS. Each of them pled guilty to a criminal conspiracy charge. Rauschelbach is presently serving a 24-month sentence and York is awaiting the designation of a prison facility where he will serve the 21-month sentence he received earlier this month. Court records relating to each of those cases showed that Rauschelbach and York took significant distributions from TMS, even as the business was failing and falling delinquent in paying over in excess of $600,000 in federal employment taxes. TMS also funded the purchase of assets, such as a ranch in Breckenridge, Colorado; an airplane; a condominium at the Lake of the Ozarks and several boats, all of which were owned by entities controlled by Rauschelbach and York.
Avalos was the controller of TMS. He pled guilty to a bank fraud charge relating to his involvement in a check kite in which the First Bank of the Lake lost approximately $850,000. The record showed that Avalos made only his salary at TMS and did not share in the distributions and asset purchases which benefitted Rauschelbach and York.
This case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation, HUD-Office of Inspector General, the Department of Labor-Office of Inspector General, the DOL Employee Benefits Security Administration and the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney’s Office.
St. Louis Man Sentenced to 10 Years in Prison for Two Bank RobberiesRead the Press Release
Altonio G. Graves, 39, of St. Louis, Missouri, was sentenced today in the U.S. District Court to 10 years in prison on two counts of Conspiracy to Commit Bank Robbery, two counts of Bank Robbery, and one count of Felon in Possession of a Firearm in connection with the robbery of Laclede Community Credit Union in Alton, IL, on February 11, 2013, and the robbery of People’s Bank and Trust in Altamont, IL, on February 26, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced. Following his prison sentence, Graves will be on federal supervised release for 3 years. Graves was also ordered to pay restitution in the amount of $5,684. Graves has been in custody since February 26, 2013.
Documents filed in U.S. District Court establish that on February 11, 2013, Graves entered the Laclede Community Credit Union in Alton, Illinois wearing a long black women’s wig, a black hat, and a black trench coat to disguise his appearance. Graves told the teller he had a gun, handed her a plastic grocery bag and a note demanding money. The teller placed $5,684 in the bag and Graves left the credit union with the money. Graves fled the area in a vehicle driven by his female co-defendant and was not immediately apprehended.
On February 26, 2013, Graves entered the People’s Bank and Trust in Altamont, Illinois wearing a long black women’s wig, a dark trench coat and a black hat with earflaps to disguise his appearance. Graves handed the teller a plastic grocery bag and a note which stated: "This is a robbery, I have a gun and I will use it." The teller placed $7,390 in the bag and Graves left the bank with the money. Graves fled the area in a white Chrysler vehicle being driven by the same female co-defendant. Illinois State Police officers located the suspect vehicle on the interstate and attempted a traffic stop. The female driver refused to stop and fled from the officer in speeds in excess of 120 mph until she lost control of the vehicle and crashed into a ditch. During a search of Graves and the vehicle, officers located the $7,390 in United States currency taken from the bank. Also during the search of the vehicle, officers recovered a loaded .45 caliber semi-automatic pistol behind the glove box. Graves was a previously convicted felon, having been convicted of the offense of Second Degree Murder in 1998.
The female co-defendant driver, Annalise McGee, 28, of St. Louis, MO, has also pleaded guilty and is awaiting her sentencing.
The case was investigated by the Alton Police Department, Altamont Police Department, the Illinois State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Six Minnesota Men Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
Four Defendants Arrested in Minneapolis; Two Arrested in San Diego
A criminal complaint was filed today charging six Minnesota men with conspiracy and attempt to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).
Zacharia Yusuf Abdurahman, 19, Adnan Farah, 19, Hanad Mustafe Musse, 19, and Guled Ali Omar, 20, were arrested in Minneapolis yesterday. Abdirahman Yasin Daud, 21, and Mohamed Abdihamid Farah, 21, were arrested yesterday in California after driving from Minneapolis to San Diego.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Andrew M. Luger of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division made the announcement.
“The six defendants charged in the complaint allegedly planned to travel to Syria as part of their conspiracy to provide material support to ISIL,” said Assistant Attorney General Carlin. “One of the National Security Division’s highest priorities is to identify, disrupt, and hold accountable those who provide or attempt to provide material support to designated foreign terrorist organizations. I would like to thank the many agents, analysts, and prosecutors who are responsible for this investigation and the charges in this case.”
“As described in the criminal complaint, these men worked over the course of the last 10 months to join ISIL,” said U.S. Attorney Luger. “Even when their co-conspirators were caught and charged, they continued to seek new and creative ways to leave Minnesota to fight for a terror group. I applaud the hard work and tireless efforts of the FBI Minneapolis Division and their colleagues around the country.”
“Preventing acts of terrorism is the FBI's highest priority,” said Special Agent in Charge Thornton. “Disrupting individuals from traveling to join and fight for ISIL is an important part of our counter terrorism strategy. As a result of this investigation and arrests, these six Minnesota men who planned to travel and fight for ISIL will answer these charges in U.S. District Court instead of taking up arms in Syria. The FBI remains committed to ending both recruitment efforts and travel on the part of young people from Minnesota to fight overseas on behalf of terror groups. These arrests today signify this continued commitment.”
According to the criminal complaint and documents filed in court, the FBI has been conducting an investigation for the last 10 months into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all alleged associates and friends of one another.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, U.S. Attorney’s Office of the District of Minnesota and the Counterterrorism Section of the Department of Justice National Security Division. Assistant Attorney General Carlin is also grateful to the U.S. Attorney’s Office of the Southern District of California and the FBI’s San Diego Division for their contributions to the investigation of this case.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Farah et al Criminal Complaint
Six Minnesota Men Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
Four defendants arrested in Minneapolis; two arrested in San Diego
United States Attorney for the District of Minnesota Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, and Assistant Attorney General for National Security John Carlin today announced a criminal complaint charging six Minnesota men with conspiracy and attempt to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). ZACHARIA YUSUF ABDURAHMAN, 19; ADNAN FARAH, 19; HANAD MUSTAFE MUSSE, 19; and GULED ALI OMAR, 20, were arrested yesterday in Minneapolis. ABDIRAHMAN YASIN DAUD, 21, and MOHAMED ABDIHAMID FARAH, 21, were arrested yesterday in San Diego, California.“As described in the criminal complaint, these men worked over the course of the last 10 months to join ISIL,” said U.S. Attorney Luger. “Even when their co-conspirators were caught and charged, they continued to seek new and creative ways to leave Minnesota to fight for a terror group. I applaud the hard work and tireless efforts of the FBI Minneapolis Division and their colleagues around the country.”
“Preventing acts of terrorism is the FBI's highest priority,” said FBI Special Agent in Charge Thornton. “Disrupting individuals from traveling to join and fight for ISIL is an important part of our counter terrorism strategy. As a result of this investigation and arrests, these six Minnesota men who planned to travel and fight for ISIL will answer these charges in U.S. District Court instead of taking up arms in Syria. The FBI remains committed to ending both recruitment efforts and travel on the part of young people from Minnesota to fight overseas on behalf of terror groups. These arrests today signify this continued commitment.”The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
“The six defendants charged in the complaint allegedly planned to travel to Syria as part of their conspiracy to provide material support to ISIL,” said Assistant Attorney General Carlin. “One of the National Security Division’s highest priorities is to identify, disrupt, and hold accountable those who provide or attempt to provide material support to designated foreign terrorist organizations. I would like to thank the many agents, analysts, and prosecutors who are responsible for this investigation and the charges in this case.”
“I want to commend the work of the FBI's Joint Terrorism Task Force who worked countless hours in support of our law enforcement partners in Minnesota,” said U.S. Attorney for the Southern District of California Laura E. Duffy. “We are satisfied that because of these arrests, we have furthered our mission to safeguard national security by preventing individuals from joining ISIL, a foreign terrorist organization that threatens to induce our youth into committing violence against foreigners and U.S. citizens alike.”
According to the criminal complaint and documents filed in court, for the last ten months, the Minneapolis Division of the FBI has been conducting an investigation into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Among the co-conspirators are ABDULLAHI YUSUF and ABDI NUR, both of whom were originally charged by criminal complaint in November 2014, and HAMZA AHMED, who was indicted in February 2015.
ABDI NUR boarded a flight on May 29, 2014, bound for Turkey and has not returned to the United States. He called a relative on June 6, 2014, from a telephone number bearing the country code for Turkey, “90”. NUR told his relative that he had reached his destination and that he would not be calling again. This same telephone number was used three weeks later by another man who traveled from the Twin Cities to Syria to join ISIL.
According to the criminal complaint and documents filed in court, on June 3, 2014, a person identified in court documents as Y.J., purchased both a round-trip ticket from JFK International Airport to Istanbul, Turkey, and a bus ticket from Minneapolis to New York. He departed JFK on June 9, 2014, for Istanbul. He has not returned to the United States. On June 25, 2014, Y.J. called a family member, also using the same Turkish telephone number referenced previously.
According to the criminal complaint and documents filed in court, OMAR tried to travel on November 6, 2014, on a flight from Minneapolis/St. Paul International Airport to San Diego, California. Before he could board the flight, OMAR was stopped at the airport in Minnesota and not allowed to board. OMAR had planned previously to leave the United States in May 2014 to join ISIL, but later abandoned his immediate plans to travel after being confronted by his family.
According to the criminal complaint and documents filed in court, between November 6 and November 8, 2014, M. FARAH, MUSSE, ABDURAHMAN, and previously indicted co-conspirator HAMZA AHMED, traveled by bus to New York City. M. FARAH, MUSSE and ABDURAHMAN were stopped before boarding international flights from JFK to various destinations in Southeastern Europe in an attempt to travel to Syria to join ISIL.
According to the criminal complaint and documents filed in court, after the failed attempts to travel in November 2014, MUSSE, M. FARAH, ABDURAHMAN, and OMAR were joined in their discussions by DAUD, A. FARAH, and a seventh person, who was also a confidential human source (CHS). Members of this group discussed a plan to obtain false passports for another attempt to leave the United States for Syria. The CHS later informed OMAR that he had obtained a source for forged passports in San Diego, California.
According to the criminal complaint and documents filed in court, between March 30 and April 9, 2015, several of the defendants provided photographs and cash payments to the CHS for use in obtaining their fake passports.
According to the criminal complaint and documents filed in court, at approximately 8:15 p.m. on April 17, 2015, M. FARAH, DAUD and the CHS left Minneapolis in DAUD’s vehicle, bound for San Diego, California.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
Defendant Information:
ZACHARIA YUSUF ABDURAHMAN, 19
Columbia Heights, Minn.
Charges:- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
ADNAN FARAH, 19
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
MOHAMED ABDIHAMID FARAH, 21
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
HANAD MUSTAFE MUSSE, 19
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
GULED ALI OMAR, 20
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Silver Spring Man Indicted for Allegedly Distributing Acetyl Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, on charges of distributing a controlled substance analogue resulting in death, possession with intent to distribute a controlled substance analogue, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. The indictment was returned today.
The indictment 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; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the four count indictment and court documents, on January 4, 2015, Nazari allegedly distributed acetyl fentanyl, a controlled substance analogue that he represented to be heroin, to an individual who subsequently died as a result of using the substance. As part of the investigation into that death a search warrant was obtained for Nazari’s residence. The indictment alleges that on January 7, 2015, Nazari possessed acetyl fentanyl with the intent to distribute it, and illegally possessed a .380 caliber handgun.
Nazari faces a mandatory minimum sentence of 20 years and up to life in prison for distribution of acetyl fentanyl with death resulting; a maximum of 20 years in prison for possession with intent to distribute a controlled substance analogue; a minimum of five years, consecutive to any other sentence, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime; and up to 10 years in prison for being a felon in possession of a firearm. No court appearance has been scheduled. Nazari is currently detained on related state charges.
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 DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who are prosecuting the case.
San Jose Priest Charged with Bank Fraud and Tax EvasionRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Hien Minh Nguyen on bank fraud and tax evasion charges, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez. The indictment filed in the federal district court was unsealed today.
From 1994 to present, Nguyen, 55, was employed as a priest by the Diocese of San Jose. As an employee with the Diocese, Nguyen held various positions including Director of the Vietnamese Catholic Center (VCC), also known as Trung Tam Cong Giao (TTCG), and Vicar for Vietnamese Ministry. According to the indictment, from 2005 through 2011, Nguyen also had sole signature authority on the VCC bank account maintained at Bank of America.
During church services from 2005 through 2008, Nguyen requested that parishioners make donations to the VCC. Parishioners wrote checks payable to the VCC or TTCG and gave those checks to Nguyen. As part of the bank fraud scheme, Nguyen caused the checks to be deposited into his personal bank account at Wells Fargo Bank. The indictment alleges Nguyen endorsed the checks with his signature under the false pretense or misrepresentation that his employer authorized him to make such endorsements and deposits.
The indictment further alleges that Nguyen also willfully attempted to evade income taxes for the years 2008, 2009, 2010 and 2011 by underreporting his taxable income by $337,516, $376,500, $335,456, and $93,012, respectively. This resulted in additional tax due of $349,952.00. In the indictment, Nguyen is charged with fourteen counts of bank fraud, in violation of 18 U.S.C. § 1344(2); and four counts of tax evasion, in violation of 26 U.S.C. § 7201.
Nguyen was arrested in Ft. Lauderdale, Florida on Saturday morning, April 18, 2015. He made his initial appearance this morning in federal court in Ft. Lauderdale, Florida. His next court appearance is scheduled for April 21, 2015, at 3:00 p.m. before the U.S. Magistrate Judge Lurana S. Snow in federal court in Ft. Lauderdale, Florida.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory sentence of thirty years in prison and a fine of $1,000,000 for each count of bank fraud, in violation of 18 U.S.C. § 1344; and five years in prison and a fine of $250,000 for each count of tax evasion, in violation of 26 U.S.C. § 7201. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
San Antonio Businessman Sentenced to Federal Prison for Bank Fraud and Failure to File Income Tax ReturnRead the Press Release
In San Antonio today, 38-year-old businessman Marcus A. Garza was sentenced to 30 months in federal prison and ordered to pay over $680,000 restitution for defrauding several financial institutions announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
According to court records, Garza owned multiple companies including: Auto nSure, a company which sold insurance policies underwritten by other insurance companies to the general public; Liberty Pre-Owned Cars and Trucks; Marcus Garza Enterprises, LLC, which handled payroll matters for all of the defendant’s business concerns; and, eTax Express, Inc., a tax return preparation business. On March 24, 2014, Garza pleaded guilty to one count of bank fraud and one count of failure to file an income tax return. By pleading guilty, Garza admitted that from 2005 to 2009, he provided false income tax returns and other documentation showing his income and credit worthiness to lenders in order to secure hundreds of thousands of dollars in loans and lines of credit, many of which subsequently went into default. Garza also admitted that he failed to file an income tax return for calendar year 2006.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
Romanian Native in Large-Scale ATM Skimming Scheme Extradited to the United States to Face ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain will make his initial court appearance today following his extradition to face charges that he participated in a large-scale lucrative ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 29, will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson on a six-count indictment charging him with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and conspiracy to possess access device-making equipment. The other two individuals charged on the indictment, Alin Dumitru Carabus and Ionut Vasile Ciurba-Stana, have been apprehended in Spain and requests for extradition are pending.
According to documents filed in this case and other cases and statements made in court:
Mate participated as a high-level member of an extensive scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme was organized by Marius Vintila, 31, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million, and affected thousands of bank customers. Vintila and Bogdan Radu designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs, and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. After the account information was stolen, it was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.
The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals have been charged in connection with this scheme, 12 have pleaded guilty, and one individual, Dinu Horvat, was recently convicted after a week-long trial. Marius Vintila, the ringleader of the scheme, pleaded guilty
Marius Vintila, 31, previously pleaded guilty in February 2015 to bank fraud conspiracy and aggravated identity theft charges. Bogdan Radu, 30, pleaded guilty to bank fraud conspiracy and aggravated identity theft charges in February 2014. Dinu Horvat, 28, Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, participated in the scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca, and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco, and Hadzalic pleaded guilty to bank fraud conspiracy. And Horvat was convicted at trial of bank fraud conspiracy, aggravated identity theft, conspiracy to possess 15 or more access devices, and conspiracy to possess access device-making equipment.
For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias, and Leusca each to 57 months in prison and Franco and Pendus each to 33 months in prison. Hadzalic received a sentence of 34 months in prison, Apetrei received a sentence of 24 months in prison, and Cotiga received a sentence of 26 months in prison. Vintila, Causevic, Radu, Revesz, and Horvat are pending sentencing.
Mate is charged with four counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
1
Conspiracy to Commit Bank Fraud
Thirty years in prison
$1 million
4
Aggravated Identity Theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to Possess Fifteen or More Counterfeit Access Devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Conspiracy to Possess Access Device-Making Equipment
Seven and one-half years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
Defense counsel: Angelo Servidio Esq., Nutley, New Jersey
Rochester Man Pleads Guilty to Bank RobberyRead 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 James Bloom, 32, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Edward H. White, who is handling the case, stated that the defendant robbed four banks:
• January 6, 2014, Key Bank, 2929 Union Road, Cheektowaga, NY.
• January 30, 2014, Key Bank, 4248 Delaware Avenue, Tonawanda, NY
• February 10, 2014, Citizens Bank, 2040 George Urban Boulevard, Depew, NY.
• February 14, 2014, First Niagara Bank, 3488 Amelia Drive, Orchard Park, NY.During each robbery, Bloom handed the teller a note referencing explosives. One note read “I’m wired and ready to blow.”
The plea is the culmination of an investigation by the Federal Bureau of Investigation, the Cheektowaga Police Department, under the direction of Chief David Zack, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, and the Orchard Park Police Department, under the direction of Mark Pacholec.
Sentencing is scheduled for July 30, 2015 at 1:00 p.m. before Judge Arcara.
Portland Pimp Sentenced to 12 Years for Sex-Trafficking Case Involving Two Minor VictimsRead the Press Release
PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Antonio Vernell Porter, 28, of Portland, to 12 years in prison, followed by ten years of supervised release, for sex trafficking of a minor. Defendant pled guilty to one of three counts in October 2014.
According to court documents, the criminal conduct took place in 2009 and continued into early 2010. Although initially charged as a single-victim case in December 2012, law enforcement located a second victim while the initial case was pending. The government filed a superseding indictment in 2014 to add this second victim and two additional counts of sex trafficking. In an interview with police, the second victim disclosed that she began working for defendant when she was just 15 years old, and that she did so because defendant threatened to harm her family if she did not work for him. She performed dozens of commercial sex acts over several months in Oregon, California, Nevada, and Washington.
In August 2009, officers responded to a report that defendant allegedly struck the victim on the head with a toddler bike and then cut her hand with a knife. Officers could not locate defendant at that time, but three months later, in November 2009, the police again responded to a report that defendant had beaten the victim (then 17) when she refused to “go work” (engage in commercial sex acts). She described defendant as her “pimp” and said he punched her in the face when she refused to get out of his vehicle for work. She explained that defendant would normally drop her off on 82nd Avenue to work, and “anytime I don’t wanna work the street I get a beating.” While police were speaking with P.M., defendant called her cell phone. She put the phone on speaker so the police could hear the conversation. Officers heard defendant tell the juvenile victim that she “better be up on the avenue.”
This case was investigated by the FBI’s Child Exploitation Task Force (CETF), led by two task force detectives from the Portland Police Bureau (PPB). The FBI-sponsored CETF partners with local law enforcement agencies to combat the commercial sexual exploitation of children in the area. Partners include the Portland Police Bureau, Tigard Police Department, Beaverton Police Department, and Vancouver Police Department, who work closely with prosecutors from both the U.S. Attorney’s office and Multnomah County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
Owner of Home Health Care Agency Admits Fraud, Bribery and Other ChargesRead the Press Release
NEWARK, N.J. – The owner of a home health agency today admitted her role in a $7 million scheme to defraud Medicaid and engage in bribery, money laundering, and tax evasion, U.S. Attorney Paul J. Fishman announced.
Irina Krutoyarsky, 61, Springfield, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information that charged her with conspiracy to commit health care fraud, bribery, conspiracy to commit money laundering, and tax evasion.
According to documents filed in this case and statements made in court:
Krutoyarsky owned HHCH Health Care Inc., of Linden, New Jersey, which provided home health aides and health care services to New Jersey residents. Home health aides visit patients at their homes and provide a variety of health care services, such as assistance with eating, dressing, and grooming. These home health aide services were subsidized under the N.J. Medical Assistance Program (Medicaid).
Krutoyarsky and her conspirators defrauded Medicaid by submitting false documents to the N.J. Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Krutoyarsky also fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. Home health aides sometimes gave cash kickbacks to patients who were also participating in the scheme. Federal agents introduced a cooperating witness (CW), posing as a prospective home health aide to Krutoyarsky. During one meeting in January 2012, Krutoyarsky and another conspirator meet with the CW to discuss having him join the scheme to defraud Medicaid. In explaining the scheme, Krutoyarsky explained that they would fraudulently bill Medicaid to obtain “free money [from the] Government.”
Krutoyarsky hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. Krutoyarsky and her conspirators then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
Krutoyarsky defrauded Medicaid out of $7 million. She directed certain home health aides to establish checking accounts at a bank near HHCH’s office and then took control of their checkbooks. After Medicaid paid the claims and transferred the funds into HHCH accounts, Krutoyarsky then transferred portions of the money into the aides’ accounts and used the money to purchase, maintain, and pay for real property in New Jersey, New York, Florida; purchase personal property for her own use and benefit; and pay for personal expenses for her own use and benefit and the use and benefit of her family.
Krutoyarsky also bribed an employee of the N.J. Department of Labor (NJDOL), who was working in an undercover capacity with federal agents. In mid-2010, the NJDOL received a complaint that Krutoyarsky was not paying overtime wages to her employees and commenced an investigation. The department demanded Krutoyarsky produce certain HHCH records. Realizing that providing these records would reveal the Medicaid fraud scheme, Krutoyarsky paid approximately $10,000 in a cash bribe to the employee for the purpose of obstructing and unlawfully influencing the NJDOL investigation. The employee, however, was wearing a recording device and recorded Krutoyarsky making the bribe payment on video.
In May 2011, Krutoyarsky paid a second cash bribe of approximately $15,000 to the employee for the purpose of obstructing and unlawfully influencing a second NJDOL investigation related to one of Krutoyarsky’s conspirator’s companies. This bribe payment was also captured on video.
Between 2007 and 2011, Krutoyarsky cheated the IRS out of $907,150 in taxes due and owing to the United States. She sent home health aides to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH. A conspirator cashed these checks at check-cashing businesses in New Jersey and equally divided the cash with Krutoyarsky. Krutoyarsky also issued HHCH checks to “no show” employees, who then wrote personal checks back to Krutoyarsky. On her corporate tax returns, she falsely characterized these payments as legitimate business deductions, thus reducing her business’ corporate taxes.
The counts of conspiracy to commit health care fraud, bribery and money laundering each carry a maximum potential sentence of 10 years in prison, and the count of tax evasion carries a maximum potential sentence of five years in prison. All counts are also punishable by a fine of $250,000. As part of the plea agreement, Krutoyarsky will be ordered to pay a $7 million forfeiture money judgment to the United States and will forfeit several homes and properties in New Jersey, New York, and Florida, as well as hundreds of thousands of dollars seized from her bank accounts or bank accounts that she controlled. Krutoyarsky’s sentencing is scheduled for Sept. 14, 2015.
As other defendants, the charges and allegations contained in the complaint are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; Acting N.J Attorney General John J. Hoffman; N.J. State Comptroller Marc Larkins; Division Director Mark Anderson, Office of the State Comptroller, Medicaid Fraud Division; New Jersey Division of Consumer Affairs, under the direction of Acting Director Steve C. Lee; the N.J. Board of Nursing; the N.J. Department of Labor, under the direction of Commissioner Hal Wirth; U.S. Department of State-Bureau of Diplomatic Security; and the Marlboro Police Department, under the direction of Chief Bruce Hall, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys V. Grady O’Malley, Peter Gaeta, and Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Edward V. Sapone Esq., New York
Orchard Park Man Pleads Guilty to Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Gary Wannamacher, 50, of Orchard Park, NY, pleaded guilty today before U.S. District Court Judge Elizabeth A. Wolford, to health care fraud. The charges carry a maximum sentence of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated the defendant is the owner of Spring Creek Athletic Club in Springville, NY. Between January 2009 and December 31, 2012, Wannamacher submitted fraudulent claims to private health insurance companies for reimbursement of health programs offered at the athletic club that were not actually attended by the beneficiaries listed in the claims.
For instance, as part of the Silver Sneakers program, members of certain insurance companies could attend programs at the athletic club for no charge. When members attended, the athletic club was allowed to submit a claim for reimbursement to the insurance companies. The defendant submitted claims for reimbursement for programs not actually attended by members including claims for individuals who were out of town on the date of the claim form or who had recently had major surgery and did not attend the gym following the surgery.
The Government also contends that the defendant submitted claims for reimbursement for programs supposedly attended by two individuals after the dates of their deaths.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Western New York Health Care Fraud Task Force which includes the New York State Attorney General’s Office–Medicaid Fraud Control Unit, New York State Department of Financial Services, U.S. Department of Health and Human Services–Office of Inspector General–Office of Investigations, U.S. Department of Labor-Office of Inspector General, U.S. Department of Veterans Affairs, and U.S. Food and Drug Administration.
Sentencing is scheduled for September 21, 2015 at 10:00 a.m. before Judge Wolford.
Officer and Co-Defendant Arrested in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – Noel Pena, 29, a Rio Grande City Police Department investigator, has been arrested and made his initial appearance on charges of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. Also charged is Hector Salinas-Hinojosa, 21, of Roma.
Salinas-Hinojosa was arrested April 17, 2015, upon the filing of a criminal complaint. Pena, of Rio Grande City, was taken into custody the following morning. They both made their initial appearances today before U.S. Magistrate Judge Dorina Ramos in McAllen. They will remain in custody pending a detention hearing set for Thursday at 11:00 a.m. before Judge Ramos.
“These arrests illustrate the ability of law enforcement agencies to leverage their individual resources to work together and achieve justice,” said Mark Dawson, Deputy Special Agent in Charge, Homeland Security Investigations (HSI). “While we take no pleasure in arresting a fellow law enforcement officer, HSI, along with our law enforcement partners, are committed to keeping our communities safe by conducting robust joint investigations, and following those investigations wherever they lead.”
The criminal complaint alleges Pena and Salinas-Hinojosa conspired to provide a ‘fake’ police report to an undercover officer who was acting as a cocaine trafficker. The undercover “cocaine trafficker” claimed to need assistance in stealing the majority of a 10-kilogram cocaine load he was holding for the drug cartels. On April 9, 2015, Salinas-Hinojosa and Pena met with the undercover officer and agreed to provide the ‘fake’ police report to make it appear that 10 kilograms of cocaine had been seized by law enforcement, according to the charges. In exchange they were allegedly supposed to be paid $10,000. The complaint alleges that at the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
The scheme alleged in the complaint involved Pena, as an investigator assigned to the Starr County High Intensity Drug Trafficking Area Task Force, being tipped off to the location of the cocaine. He would then stage a law enforcement operation.
On April 11, 2015, two kilograms of cocaine was left at a stash house location in Garceno. After being ‘tipped’ off the location, Pena allegedly proceeded to the residence and ‘found’ the cocaine and then obtained a search warrant to seize it. Subsequently, on April 17, 2015, Salinas-Hinojosa provided the ‘fake report’ to the undercover officer and was paid the remaining $5,000.
The charges are the result of investigation conducted by HSI, Drug Enforcement Administration, Texas Department of Public Safety and FBI with assistance from the Texas Rangers. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Oakland Man Sentenced for Counterfeit Media Scheme in FresnoRead the Press Release
FRESNO, Calif. —Emilio Perez-Solis, 39, of Oakland, was sentenced today to three years and 10 months in prison, for conspiring to sell counterfeit CDs and DVDs, United States Attorney Benjamin B. Wagner announced.
According to court documents, Perez-Solis used a building in a rural area of Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. On Feb. 21, 2014, the building was searched and found to contain approximately 70,000 counterfeit music CDs and movie DVDs.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Fresno County Sheriff’s Office. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty prosecuted the case.
Docket #: 1:14-cr-042 LJO
Navajo Man from Gallup Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Manuel Tsosie, 37, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a child sexual abuse charge. Under the terms of his plea agreement, Tsosie will be sentenced a term of incarceration not to exceed 33 months followed by a term of supervised release to be determined by the court. Tsosie will be required to register as a sex offender after completing his prison sentence.
Tsosie was arrested on June 3, 2014, on an indictment alleging the he sexually abused a child under the age of 12 years on a date between April 1, 2013 and Sept. 30, 2013. The indictment alleged that Tsosie violated the young victim in a location within the Navajo Indian Reservation in McKinley County, N.M.
During today’s hearing, Tsosie entered a guilty plea to a felony information charging him abusive sexual contact. In entering his guilty plea, Tsosie admitted that he intentionally touched the victim’s genitals at a residence located within Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI. The case is being prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Monticello Man Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
A man who attempted to entice a minor to engage in criminal sexual activity pled guilty today in federal court in Cedar Rapids.
Colton Rickels, age 19, from Monticello, Iowa, was convicted of one count of attempted enticement of a minor.
At the plea hearing, Rickels admitted that, in October 2014, he used the Internet to attempt to persuade, induce, entice, or coerce a 12-year-old female to engage in sexual activity.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Rickels was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Rickels faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Monticello Police Department, and the Cedar Rapids Police Department.
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 15-20.
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Modesto Woman Sentenced for Tax Fraud ConspiracyRead the Press Release
FRESNO, Calif. — Christine Rose Caraway, 34, of Modesto, was sentenced by Senior United States District Judge Anthony W. Ishii to two and a half years in prison for conspiring to submit false claims to the IRS, United States Attorney Benjamin B. Wagner announced. Caraway was also ordered to pay over $60,000 in restitution to the IRS.
According to court documents, from December 2010 to May 2011, Caraway and her former spouse Heath Lee Roberson obtained personal identifying information from over 40 individuals. Caraway and Roberson then used this information to generate false tax returns and submitted them to the IRS. They funneled the tax refunds into accounts they controlled. Roberson was sentenced on July 21, 2014, to two years and nine months in prison.
This case was the product of an investigation by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Michael G. Tierney prosecuted the case.
Docket #: 1:13-cr-342 AWI
Mineral County man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tony Allen Redman, 31, of Keyser, West Virginia, was convicted today in federal court of cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Redman conspired with other associates to sell cocaine in Mineral County, West Virginia. Specifically, Redman permitted his residence to be utilized for the purpose of unlawfully storing and distributing cocaine.
Redman pled guilty today to one count of “Aiding and Abetting the Maintenance of a Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jarod Douglas prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Men Sentenced to Prison for Kidnapping Conspiracy and Thefts from Delivery Drivers and WarehousesRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas men who stole controlled substances and designer goods from warehouses and delivery drivers, and conspired to kidnap and rob a pharmaceutical delivery van driver, were sentenced on Friday, April 17, 2015, to eight, 10, and 16 years in prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Alexander Del Valle Garcia, 42, was sentenced to 96 months in prison, Julio De Armas Diaz, 55, was sentenced to 130 months in prison, and Alexis Torres Simon, 46, was sentenced to 192 months in prison. The three men were convicted by a jury in May 2014 of one count of conspiracy to interfere with commerce by robbery in addition to one count of conspiracy to commit theft from interstate shipment. Garcia was also convicted of one count of making a false statement to the FBI. Diaz was also convicted of one count of making a false statement to the FBI and three counts of theft from interstate shipment. Simon was also convicted of one count of felon in possession of a firearm and three counts of theft from interstate shipment.
“We regularly use federal laws to prosecute persons who use guns and violence to commit robberies and thefts in our community,” said U.S. Attorney Bogden. “Not only were these defendants committing thefts and planning a violent robbery, but they were selling stolen controlled substances causing additional harm to the community.”
According to the court records and evidence introduced at trial, beginning no later than about October 2012 and continuing to April 8, 2013, Diaz and Simon broke into warehouses, storage facilities, and delivery vans, and stole designer handbags and controlled substances and sold the goods for their own financial gain. The defendants broke into warehouses by cutting through warehouse doors, and broke into delivery vans and other vehicles that had been left unsupervised in commercial parking lots. Between April 7 and April 8, 2013, Diaz, Simon and Garcia conspired to kidnap and rob a delivery van driver with a firearm in order to obtain control and possession of the van containing controlled substances. On April 8, Garcia falsely told FBI agents that he was driving a friend to apply for a job the morning of his arrest and that gloves and duct tape found in the car he was driving belonged to the registered owner of the vehicle. On April 8, Diaz falsely told the FBI that he had no knowledge of a Beretta 9mm firearm recovered that day from the trunk of his vehicle, when he knew that the firearm had been placed in the trunk to be used that day in the planned robbery and theft of the van driver.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Daniel R. Schiess.
Martinsburg man charged in heroin deathRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Jose Roberts, 62, of Martinsburg, appeared in federal court today for an Arraignment and Detention Hearing on charges that heroin sold by Roberts caused the death of a female victim, United States Attorney William J. Ihlenfeld, II, announced.
The female victim died after using heroin allegedly purchased from Roberts in Berkeley County, West Virginia in May 2014. Earlier this month, a federal grand jury returned an indictment charging Roberts with:
• One count of “Aiding and Abetting Distribution of Heroin – Death and Serious Bodily Injury,” for which he faces between twenty years and life in prison and a fine of up to $1,000,000.00,
• One count of “Distribution of Heroin,” for which he faces up to twenty years in prison and a fine of up to $1,000,000.00, and
• One count of “Possession with Intent to Distribute Heroin,” for which he faces up to twenty years in prison and a fine of up to $1,000,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Roberts is currently scheduled for trial on May 26, 2015.
Assistant U.S. Attorney Jarod Douglas is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office are leading the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Madison Man Sentenced for Cocaine DistributionRead the Press Release
Clevis Holmes, 31, from Madison, Illinois, was sentenced on April 17, 2015, in federal district court, in East St. Louis, Illinois, on one count of cocaine distribution, one count of heroin distribution, and one count of aiding and abetting the distribution of "crack" cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Holmes was sentenced to a 188 month prison term, 4 years of supervised release, fined $600, and ordered to pay a $300 special assessment. Court proceedings revealed that Holmes sold approximately 28 grams of cocaine on March 20, 2014, 10 grams of heroin on April 3, 2014, and 42 grams of "crack" cocaine on April 8, 2014, in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF) and prosecuted by Special Assistant United States Attorney Shane B. Kelbley.
Madison County Man Sentenced to 10 Years for Heroin ConspiracyRead the Press Release
LEXINGTON — A Madison County man, who was previously convicted of heroin charges, has been sentenced to 10 years in federal prison.
U.S. District Judge Joseph M. Hood sentenced Neal Scott Stone, 39, for conspiracy to distribute heroin, distribution of heroin, possession with intent to distribute heroin, attempt to possess with intent to distribute one kilogram of cocaine, and violating the conditions of his supervised release from a previous crime. Judge Hood also sentenced Stone’s girlfriend, Catherine Leake, 28, to two years in prison for conspiring with Stone. Both defendants must serve at least 85 percent of their prison sentence.
A federal jury convicted Stone of the drug charges in January of this year and found that he conspired to distribute heroin from March 1, 2014 until May 13, 2014. Leake pleaded guilty to the conspiracy offense in January.
According to court documents, in May 2014, Leake distributed heroin, on Stone’s behalf, to another individual at a fast food restaurant in Richmond. Following the transaction, authorities arrested Stone and Leake. After executing a search warrant at Stone’s residence, authorities recovered several items associated with the drug conspiracy, including 71 grams of heroin.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, David Gregory, Chief of Police, Berea, Ky., and Joseph P. Reagan, Special Agent in Charge, DEA, jointly made the announcement.
The investigation was conducted by the Berea Police Department and the DEA. Assistant U.S. Attorney Cindy Rieker prosecuted the case on behalf of the federal government.
MS-13 Member Pleads Guilty in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland –Wilmer Argueta, a/k/a “Chengo,” age 23, of Hyattsville, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including an assault, attempted murder and extortion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to the statement of facts filed with his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. Argueta and MS-13 members in the Peajes clique and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
Argueta admitted that on January 3, 2010, he and other MS-13 members attempted to kidnap and assault two victims in the area of East-West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.
According to the plea agreement, on January 13, 2011, Argueta attended a Peajes clique meeting with co-defendant Roni Arriola-Palma and other MS-13 members near the Greenbelt Metro Station. Another MS-13 member spoke at the meeting, criticizing members of the clique for not committing enough violent crimes on behalf of MS-13, and encouraging clique members to find rival gang members and commit acts of violence against them.
After the meeting ended, Argueta and other MS-13 members got into a mini-van being driven by Arriola-Palma. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang. Argueta and other MS-13 members attacked the victim and dragged him back into the mini-van, where they continued to assault him. Arriola-Palma drove the mini-van around Hyattsville, eventually parking near a dead end in the vicinity of Chillum Manor Road. After Arriola-Palma stopped the mini-van, Argueta and several other MS-13 members kicked, stabbed and choked the victim. Since the victim was wearing heavy winter clothing, Argueta, Arriola-Palma and other MS-13 members forcefully stripped the victim of all clothing, in order to stab the victim. After the assault, two MS-13 members dragged the victim into the woods, where one of the gang members strangled the victim with his belt. When they returned from the woods, they informed the other members that the victim was dead. Arriola-Palma then drove the group of MS-13 members away from the scene. The victim survived the attack.
From March to November, 2011, members of the Peajes clique threatened to kill a fellow MS-13 gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim. Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and contacted the victim himself on multiple occasions to arrange extortion payments. Argueta picked up payments himself, and sent other MS-13 members, including Arriola-Palma, to pick up extortion payments on his behalf. Argueta also used “Facebook,” “Gmail,” and text messaging to relay the extortion demands to the victim.
According to his plea, from September to November 2011, Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George’s County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. During the conspiracy, Argueta contacted co-defendant Francisco Hernandez from the Prince George’s County Corrections Facility and instructed Hernandez to relay to other MS-13 members that the victim now had a “greenlight” on him. Members of the Peajes Clique of MS-13 acted on this “greenlight,” shooting the victim on November 15, 2011.
Argueta faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for August 4, 2015, at 2:00 p.m. Argueta remains detained pending sentencing.
Francisco Hernandez, age 21, and Roni Arriola-Palma, age 24, both of Hyattsville, previously pleaded guilty for their roles in the racketeering conspiracy and are scheduled to be sentenced at 10:00 a.m. on June 29 and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case
Long Island, New York, Man Sentenced to 25 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Defendant Attempted to Travel to Yemen to Join al-Qaeda Affiliate, Assist Co-Conspirator’s Efforts to Join The Terrorist Group and Destroy Evidence of Terrorism Offenses
Earlier today at the federal courthouse in Central Islip, New York, Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, was sentenced to 25 years in prison following his Sept. 9, 2014, guilty plea to attempting to provide material support to a foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively AQAP), and obstruction of justice.
The sentencing was announced by U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York Police Department (NYPD).
Beginning in the fall of 2011, Zea planned to travel overseas in order to wage violent jihad against the perceived enemies of Islam, which included the government of Yemen and its allies. In furtherance of his plot, on Jan. 4, 2012, Zea boarded a flight at John F. Kennedy Airport (JFK) in Queens, New York, to London, en route to Yemen. Zea was not permitted to travel onward from London, however, and was returned to the United States by British authorities. Zea was interviewed and closely monitored by investigators following his return. Despite being prevented from traveling to Yemen, Zea continued to plot, including by encouraging and supporting his co-conspirator, Justin Kaliebe, who also was planning to travel to fight jihad. In January 2013, Kaliebe was arrested at JFK while attempting to travel to Yemen to join AQAP. Months later, after learning that he too was under investigation, Zea caused electronic media on his computer to be destroyed in an effort to obstruct the investigation. Notwithstanding his efforts, a forensic examination of Zea’s electronic media subsequently conducted by investigators revealed an assortment of violent Islamic extremist materials, including issues of Inspire magazine, part of AQAP’s English-language media operations.
“Marcos Alonso Zea presents a chilling reminder of the danger presented to the United States by homegrown terrorists,” said U.S. Attorney Lynch. “Born, raised and schooled in the United States, the defendant nevertheless betrayed his country by attempting to join al-Qaeda in the Arabian Peninsula, assisting a co-conspirator’s attempt to join that terrorist group, and, after learning he was under investigation, attempting to destroy evidence of his guilt. We will continue to work tirelessly to protect our national security from all enemies, both foreign and domestic.” U.S. Attorney Lynch expressed her grateful appreciation to all the members of the FBI’s Joint Terrorism Task Force and the NYPD’s Intelligence Division for their work on the investigation.
“One of our highest priorities is to protect our country by identifying, disrupting and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations,” said Assistant Attorney General Carlin. “This sentence serves unambiguous notice that attempting to travel abroad to engage in such conduct has significant consequences.”
“The threat from al-Qaeda is real, look no further than Marcos Zea,” said Assistant Director in Charge Rodriguez. “Zea betrayed our country, attempting to first join al-Qaeda. When that failed, he helped others wage jihad. We continue working relentlessly to disrupt the plans of those who look to do us harm.”
“The New York City Police Department will continue to work closely with our federal counterparts to identify and arrest homegrown terrorists like Marcos Alonso Zea, and ensure all extremists bring no harm to American soil, especially here in New York City,” said Commissioner Bratton.
After being arrested in January 2013, Zea’s co-conspirator Kaliebe subsequently pleaded guilty to one count of attempting to provide material support to terrorists and one count of attempting to provide material support to AQAP. Kaliebe is pending sentencing by U.S. District Judge Denis R. Hurley of the Eastern District of New York.
The case is being prosecuted by Assistant U.S. Attorneys Seth D. DuCharme, John J. Durham and Michael P. Canty of the Eastern District of New York, with assistance provided by Trial Attorney Kelli Andrews of the National Security Division’s Counterterrorism Section.
Long Island Man Sentenced to 25 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, was sentenced to 25 years in prison following his September 9, 2014, guilty plea to attempting to provide material support to a foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively AQAP), and obstruction of justice.
The sentencing was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Assistant Attorney General, National Security Division; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
Beginning in the fall of 2011, Zea planned to travel overseas in order to wage violent jihad against the perceived enemies of Islam, which included the government of Yemen and its allies. In furtherance of his plot, on January 4, 2012, Zea boarded a flight at John F. Kennedy Airport (JFK) in Queens, New York, to London, England, en route to Yemen. Zea was not permitted to transit onward from London, however, and was returned to the United States by British authorities. Zea was interviewed and closely surveilled by investigators following his return. Despite being prevented from traveling to Yemen, Zea continued to plot, including by encouraging and supporting his co-conspirator, Justin Kaliebe, who also was planning to travel to fight jihad. In January 2013, Kaliebe was arrested at JFK while attempting to travel to Yemen to join AQAP1. Months later, after learning that he too was under investigation, Zea caused electronic media on his computer to be destroyed in an effort to obstruct the investigation. Notwithstanding his efforts, a forensic examination of Zea’s electronic media subsequently conducted by investigators revealed an assortment of violent Islamic extremist materials, including issues of Inspire magazine, part of AQAP’s English-language media operations.
“Marcos Alonso Zea presents a chilling reminder of the danger presented to the United States by homegrown terrorists. Born, raised, and schooled in the United States, the defendant nevertheless betrayed his country by attempting to join al-Qaeda in the Arabian Peninsula, assisting a co-conspirator’s attempt to join that terrorist group, and, after learning he was under investigation, attempting to destroy evidence of his guilt,” stated U.S. Attorney Lynch. “We will continue to work tirelessly to protect our national security from all enemies, both foreign and domestic.” Ms. Lynch expressed her grateful appreciation to all the members of the FBI’s Joint Terrorism Task Force and the New York City Police Department, Intelligence Division, for their work on the investigation.
“One of our highest priorities is to protect our country by identifying, disrupting, and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations,” said Assistant Attorney General Carlin. “This sentence serves unambiguous notice that attempting to travel abroad to engage in such conduct has significant consequences.”
“The threat from al-Qaeda is real, look no further than Marcos Zea. Zea betrayed our country, attempting to first join al-Qaeda. When that failed, he helped others wage jihad. We continue working relentlessly to disrupt the plans of those who look to do us harm,” stated FBI Assistant Director-in-Charge Rodriguez.
Police Commissioner Bratton said, “The New York City Police Department will continue to work closely with our federal counterparts to identify and arrest homegrown terrorists like Marcos Alonso Zea, and ensure all extremists bring no harm to American soil, especially here in New York City.”
The government’s case is being prosecuted jointly by the Office’s National Security and Cybercrime Section and the Long Island Criminal Division. Assistant United States Attorneys Seth D. DuCharme, John J. Durham, and Michael P. Canty are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the Counterterrorism Section of the Department of Justice.
The Defendant:
MARCOS ALONSO ZEA (a/k/a “Ali Zea”)
Age: 26
Brentwood, New York
___________________________________________________________________________
1 Kaliebe subsequently pled guilty to one count of attempting to provide material support to terrorists and one count of attempting to provide material support to AQAP. Kaliebe is pending sentence by United States District Judge Denis R. Hurley in Central Islip.
Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Kenneth Charles Poston, III, age 37 of Lincoln, Nebraska, was sentenced on April 17, 2015, in Lincoln, Nebraska, to 78 months in prison by United States District Judge John M. Gerrard, for possessing child pornography. Poston’s sentence also requires him to pay restitution totaling $2,000.00, to be on supervised release for ten years after being released from prison, and to register as a sex offender.
In June of 2014 investigators with the Lincoln Police Department became aware of a computer that was sharing files that had been classified as containing child pornography. Further investigation identified the IP address, service provider and the address of Poston. A search warrant was served in August of 2014 and Poston was taken into custody. Forensic examination of the computer equipment removed from Poston’s residence established Poston’s possession of approximately 50,000 images and 399 videos affiliated with child sexual exploitation.
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."
This case was investigated by the Lincoln Police Department.
Lee County Man Sentenced for False Tax Claims and Obstructing the Internal Revenue ServiceRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Ronald Francis Croteau to 56 months in federal prison for filing false tax claims and for obstructing or impeding the administration of the Internal Revenue laws. A federal jury found him guilty on January 22, 2015.
According to testimony and evidence presented at trial, Croteau belonged to a sovereign citizen, anti-government group; claimed to be a member of the Little Shell Pembina Band of North Dakota; and deemed himself to be an ambassador of the Kingdom of Heaven. Between September 2008 and May 2010, he filed 10 false and fraudulent income tax returns claiming refunds totaling more than $3.8 million. These returns were false and fraudulent in that they claimed federal tax withholdings from fraudulent 1099-OID forms purportedly issued to Croteau by financial institutions.
After being notified by the IRS that his income tax returns were frivolous, Croteau continued to file fraudulent income tax returns. In addition, he obstructed the administration of the Internal Revenue laws by filing false liens against IRS employees, submitting fraudulent instruments to the IRS in an attempt to discharge his tax liabilities, and recording false documents with the Lee County Clerk of Court.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Lee County Man Sentenced for False Tax Claims and Obstructing the Internal Revenue ServiceRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Ronald Francis Croteau to 56 months in federal prison for filing false tax claims and for obstructing or impeding the administration of the Internal Revenue laws. A federal jury found him guilty on January 22, 2015.
According to testimony and evidence presented at trial, Croteau belonged to a sovereign citizen, anti-government group; claimed to be a member of the Little Shell Pembina Band of North Dakota; and deemed himself to be an ambassador of the Kingdom of Heaven. Between September 2008 and May 2010, he filed 10 false and fraudulent income tax returns claiming refunds totaling more than $3.8 million. These returns were false and fraudulent in that they claimed federal tax withholdings from fraudulent 1099-OID forms purportedly issued to Croteau by financial institutions.
After being notified by the IRS that his income tax returns were frivolous, Croteau continued to file fraudulent income tax returns. In addition, he obstructed the administration of the Internal Revenue laws by filing false liens against IRS employees, submitting fraudulent instruments to the IRS in an attempt to discharge his tax liabilities, and recording false documents with the Lee County Clerk of Court.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Law Enforcement Officials Receive Awards for Role in Dismantling Drug Ring Led by Kingpin Craig PettiesRead the Press Release
Memphis, TN – Law enforcement officials responsible for the apprehension, prosecution and conviction of former drug kingpin Craig Petties were recognized with awards during the Organized Crime Drug Enforcement Task Force’s (OCDETF) Southeast Region recent annual meeting.
The award presentation took place at the Shelby County Sheriff’s Office Homeland Security Building.
U.S. Attorney Edward Stanton III, along with OCDETF Deputy Director Thomas Padden of Washington, D.C., presented the officials with individual awards for their time-intensive contributions to Operation Petticoat, an extensive investigation that resulted in the conviction of Petties and 40-plus members of his lucrative and violent drug trafficking organization.
Representatives from federal, state, and local law enforcement agencies such as the U.S. Marshals Service, Drug Enforcement Administration, Federal Bureau of Investigation, Memphis Police Department, and U.S. Attorney’s Office were among those receiving awards during the ceremony.
On August 22, 2013, Petties received nine concurrent life sentences in federal prison for charges including murder in aid of racketeering, conspiracy to commit murder for hire, and money laundering.
At the height of his reign, Petties, a native of South Memphis, was responsible for the distribution of hundreds of kilograms of cocaine throughout the southern United States. He was prosecuted by the U.S. Attorney’s Office in the Western District of Tennessee. To date, it’s the largest drug trafficking prosecution in the state.
OCDETF is a Department of Justice Program that seeks to diminish the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Individuals pictured in photo (L to R): Mike Smith - OCDETF; Abe Collins – (Retired) DEA; Scott Leary - U.S. Attorney’s Office; Stephanie Creasy – U.S. Marshals Service; Bob Reich – (Retired) FBI; Lasundra Price – MPD; Therman Richardson – MPD; Frederic Winston – Alcohol, Tobacco, and Firearms; Chris Henry – Internal Revenue Service; Thomas Padden – OCDETF; Edward Stanton – U.S. Attorney’s Office; Jerry Kitchen – U.S. Attorney’s Office.
KC Woman Sentenced for $100,000 Benefits FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for stealing from the government by receiving more than $100,000 in Social Security and other benefits to which she was not entitled.
Glenda Jacobs, 64, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to two years and six months in federal prison without parole. The court also ordered Jacobs to pay restitution to the government.
On Sept. 9, 2014, Jacobs pleaded guilty to theft of government property. Jacobs admitted that, from January 2009 to August 2013, she fraudulently obtained $107,604 in Social Security, unemployment and Supplemental Nutrition Assistance Program (SNAP, also known as food stamps) benefits.
Jacobs filed for Supplemental Security Insurance benefits in 1982 and was found disabled. From 1987 forward, Jacobs worked continuously under a second Social Security number while continuing to draw benefits. Jacobs repeatedly failed to report her employment and earnings to the Social Security Administration. Jacobs admitted that she fraudulently received $93,922 in Social Security benefits.
Jacobs admitted that she fraudulently received $8,869 in federal unemployment benefits from August 2011 through September 2012. Jacobs admitted that she fraudulently collected $4,813 in SNAP benefits from January 2011 to August 2013.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Social Security Administration, Office of Inspector General; the U.S. Department of Agriculture, Office of Inspector General; and the U.S. Department of Labor, Office of Inspector General.
Joyce Allen Sentenced to Serve A Total of 360 Months for Wire Fraud, Mail Fraud and Money Laundering Violations Related to Benchmark Capital, Inc.Read the Press Release
KNOXVILLE, Tenn. – On Apr. 20, 2015, Joyce Allen, 67, of Louisville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve a total of 360 months in federal prison. Allen was immediately taken into custody by the U.S. Marshals Service following the sentencing hearing.
In addition to her prison sentence, Allen was ordered to pay $20,711,371.72 in restitution. Forfeiture of the same cash amount was also ordered by the court. Upon her release from prison, she will be under the supervision of U.S. Probation for three years.
After a September 2014 jury trial, Allen was found guilty of charges contained in a March 2014 superseding indictment against Allen and five other individuals associated with Benchmark Capital, Inc. (Benchmark), a Knoxville business owned by Charles D. Candler. The business purpose of Benchmark was to defraud investors by taking their funds in exchange for worthless and nonexistent investments, and paying a portion of the funds received to earlier investors under the guise of paying dividends, interest and mortgage payments, thereby encouraging new investors to entrust their funds to Benchmark. Details of the scheme are outlined in the superseding indictment on file with the U.S. District Court.
Allen was the president of J. Allen and Associates, Inc., based in Louisville, Tenn. Through this business, she induced individuals to pay funds to her in exchange for annuity investments with Benchmark, knowing that these funds would not be placed with Benchmark or any other company for investments, but converted to personal use by Allen and her other co-conspirators.
The other five individuals named in the superseding indictment pleaded guilty and have been previously sentenced by the U.S. District Court. Candler died in March 2012 before he could be charged in the conspiracy.
U.S. Attorney Bill Killian stated, “We are pleased with this lengthy sentence and the message it sends to others who use or consider using their positions of trust to defraud innocent victims. This case is a good example of how law enforcement agencies working together can bring individuals to justice for their criminal acts.”
"The U.S. Postal Inspection Service is committed to working with our law enforcement partners to ensure the U.S. Mails are not utilized as a tool to defraud victims in these types of Ponzi schemes” said Thomas Noyes, II, Postal Inspector in Charge of the Charlotte Division.
“IRS-Criminal Investigation is committed to unraveling complex fraud and money laundering schemes. We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means," stated Christopher A. Henry, Special Agent in Charge. “Today’s sentencing should send a clear message to those who would consider conducting or participating in these types of fraudulent financial transactions.”
“Money laundering and fraudulent investments have a devastating impact on the community. Those who steal money from victims who are attempting to save money for their future will pay a high price through the criminal justice system,” said Edward Reinhold, FBI Special Agent in Charge, Knoxville Division.
This case was investigated by the Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States at trial.
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Jefferson City Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Robert Fount Mahan, 34, of Jefferson City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On Dec. 30, 2014, Mahan pleaded guilty to being a felon in possession of a firearm. Mahan was traveling westbound on U.S. 54 Highway on Oct. 25, 2012, when a Missouri State Highway Patrol trooper attempted a vehicle stop on the Old Bass Road crossover due to Mahan’s suspicious behavior and the license plate on Mahan’s vehicle being reported as not on file. Mahan instead led the trooper in a vehicle pursuit that reached speeds of 75 to 80 miles per hour on Old Bass Road. Mahan’s vehicle crossed the center line on several occasions. Mahan’s vehicle struck an embankment and crashed into a fence near the Hunter Run intersection. Mahan ran from the vehicle but was apprehended. Troopers found a loaded Hi Point .45-caliber pistol in the vehicle’s center console.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mahan has three prior felony convictions for domestic assault and a prior felony conviction for possession of a controlled substance.
Co-defendant Danielle Christine Orcutt, 33, of Jefferson City, was also sentenced today to one year and one day in federal prison without parole.
Orcutt, who was Mahan’s girlfriend, pleaded guilty to participating in a conspiracy to tamper with evidence so that it could not be used in Mahan’s prosecution. Orcutt admitted that she had twice visited the location where Mahan’s vehicle crashed in search of a purple cloth bag containing methamphetamine. However, troopers had already located the bag prior to Orcutt’s search.
Co-defendant Kenneth Dale Witherell, 28, of Barnett, Mo., was sentenced on March 3, 2015, to three years and six months in federal prison without parole. Witherell pleaded guilty to participating in a conspiracy to distribute methamphetamine and to being a felon in possession of a firearm.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Drug Enforcement Administration and the Cole County, Mo., Sheriff’s Department.
Guilty Plea in Sequoia National Park Marijuana Cultivation ConspiracyRead the Press Release
FRESNO, Calif. —Toribio Cruz-Galvan (Cruz), 29, of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess marijuana with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing of 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. The Yucca Mountain area is in an area generally known for its spring wildflower display. In addition to the growing marijuana plants, park rangers found processed marijuana, a shotgun, and ammunition for various firearms. The marijuana cultivation operation also caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
Cruz remains detained as a flight risk and danger to the community and is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on July 20, 2015. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Docket #: 1:14-cr-225-LJO
Guardians Sentenced for Defrauding Department of AgricultureRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on April 17, 2015, Tim Koropatnicki, 56, and Delyte Koropatnicki, 55, both from Pingree, North Dakota, were sentenced before U. S. District Judge Ralph R. Erickson. Tim Koropatnicki pled guilty to a felony charge of Unauthorized Use of Benefits and Delyte Koropatnicki pled guilty to a misdemeanor offense of Conversion of Public Money, Property, or Records. Judge Erickson sentenced each to a term of eighteen (18) months of supervised probation, $6639.19 in restitution to be paid joint and several to the United States Department of Agriculture, perform 100 hours of community service, and ordered Tim Koropatnicki to pay $100 and Delyte Koropatnicki to pay $25 in special assessments to the Crime Victims’ Fund. As a special condition of probation, Judge Erickson ordered that neither Tim nor Delyte Koropatnicki may serve in any capacity over financial or personal affairs of any person for the duration of their probation. An exception was made for Delyte Koropatnicki to continue guardianship of persons she has maintained a long-standing (longer than 7 years) fiduciary responsibility.
From March 2013 through about May 2013, Tim and Delyte Koropanicki knowingly converted Supplemental Nutritional Assistance Program (SNAP) benefits, a program of the United States Department of Agriculture, which belonged to a client under their guardianship through their company, DKK Guardianship Service; specifically, Tim Koropatnicki changed the personal pin identification number on the card and he and Delyte Koropatnicki then used the client’s Electronic Benefit Transfer (EBT) card, without the client’s knowledge or consent, to purchase groceries and meat for their personal use.
This case was investigated by the United States Department of Agriculture, Office of Inspector General.
Assistant U. S. Attorney Janice Morley prosecuted the case.
Getaway Driver in Wolf Point Casino Robbery Pleads GuiltyRead the Press Release
GREAT FALLS – A Wolf Point man who drove the getaway car in a Fort Peck casino robbery pleaded guilty today. Patrick Beauchamp, 35, was charged with aiding abetting robbery after he planned the robbery with others and served as the getaway driver. He faces up to twenty years in prison, a $250,000 fine, and three years supervised release. Sentencing is set for July 27, 2015 at 11:00 a.m. before U.S. District Judge Brian Morris.
Assistant U.S. Attorney Laura Weiss told the court that on June 12, 2013, Beauchamp and three others drove around Wolf Point and discussed robbing a casino. Beauchamp was driving, and two others got out and went into the Northern Lights casino with weapons and their faces covered. One of the robbers hit a casino employee over the head with an axe handle while the other held customers at bay with a bat. The first robber stole money from the casino and the two ran out to the waiting vehicle driven by Beauchamp. More than $1,340 was stolen from the casino. The group was pulled over moments later. Law enforcement found cash strewn throughout the vehicle, as well as the bat. The axe handle was found on the floor of the casino.
The case was investigated by Fort Peck Tribes Department of Law and Justice Criminal Investigations and the Wolf Point Police Department.
Four Arrested on Firearm Trafficking ChargesRead the Press Release
St. Thomas, USVI- A federal grand jury has returned a 12-count indictment charging Tequan Anthony Joseph, 23, Ja’Moi Khadeem Corraspe, 22, D’Mari Jahcoi Heyliger, 22, and Calvia Lake, 20, with federal and territorial firearm offenses, United States Attorney Ronald W. Sharpe announced today. Joseph was arrested Tuesday, April 14, 2015, in Atlanta, Georgia, and is awaiting transportation to St. Thomas. Corraspe was arrested Tuesday, April 14, 2015, in White Plains, New York, and is also awaiting transportation to St. Thomas. Heyliger was arrested Wednesday, April 15, 2015, on St. Thomas, and is detained pending a detention hearing and arraignment Friday in District Court. Lake was arrested Tuesday, April 14, 2015, on St. Thomas, and was released on bond. Her arraignment also is scheduled Friday in District Court.
According to the indictment, the three men and one woman conspired to unlawfully mail firearms from Florida to St. Thomas. The arrest of the four individuals resulted from a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Postal Inspection Service after the U.S. Postal Inspection Service intercepted some of the packages with firearms.
Joseph is charged with three firearm conspiracy counts, one count of unlawful shipment of a firearm with obliterated serial numbers, and one count of unlawful mailing of a firearm. Heyliger is charged with two firearm conspiracy counts, two counts of possession of a firearm with obliterated serial numbers, and unlawful attempt to receive a firearm. Heyliger also is charged under Virgin Islands law with two counts of possession of a firearm with altered identification marks, and two counts of possession of an unlicensed firearm. Corraspe is charged with three firearm conspiracy counts, and Lake is charged with one firearm conspiracy count.
Conspiracy to unlawfully mail firearms carries a maximum sentence of two years. The other federal offenses carry a maximum sentence of five years. The territorial charge of possession of firearms with altered identification marks carries a mandatory 15-year sentence, and the territorial charge of possession of an unlicensed firearm carries a maximum sentence of five years.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Former U.S. Army Colonel Pleads Guilty to False Statements and Conflict of Interest in Connection with Helicopter Procurement ContractsRead the Press Release
TUSCALOOSA – A former colonel in the U.S. Army pleaded guilty today in federal court for criminal misconduct arising from his duties associated with various helicopter procurement contracts at Redstone Arsenal in Huntsville.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Special Inspector General John F. Sopko for Afghanistan Reconstruction, Deputy Inspector General for Investigations James B. Burch of the Defense Department’s Defense Criminal Investigative Service (DCIS), and Frank Robey, director of the U.S. Army Criminal Investigation Command's (CID) Major Procurement Fraud Unit made the announcement.
NORBERT VERGEZ, 49, formerly of Mesa, Ariz., pleaded guilty before U.S. District Judge L. Scott Coogler to the three counts of a government information filed last week: two counts charging false statements and one count charging conflict of interest. No sentencing date has been set.
“Colonel Vergez placed his own financial ambitions and personal loyalties above his duties as a member of the armed forces,” Vance said. “In doing so, he betrayed the U.S. Army values of honesty, integrity and selfless service, which are hallmarks of military service. This prosecution highlights our commitment to hold responsible those who, by word and deed, corrupt the government contracting process.”
According to his plea agreement, Vergez served from 2010 to 2012 as the program manager for “Non-Standard Rotary Wing Aircraft” (NSRWA), a component of the Army located at Redstone Arsenal, which was responsible for contracts involving certain “non-standard” helicopters, including the Russian-made Mi-17.
Vergez pleaded guilty to three instances of making false statements and using false writings in communicating with the Department of Defense Office of Inspector General (DODIG) in connection with a DODIG audit of a Mi-17 overhaul contract administered in part by NSRWA. One aspect of the audit had to do with the role NSRWA played in certain contract disputes that involved various contractors and subcontractors in the contracting chain, including a third-tier subcontractor known as Avia Baltika Aviation Ltd. (AVB). Vergez admitted in his plea agreement that on two occasions he made or caused his office to make false representations to DODIG that his office had no direct contact with AVB concerning its subcontract on the Northrop Grumman contract, when, as Vergez then knew, he and his direct subordinates at NSRWA had significant direct contacts with AVB related to its subcontract.
Vergez also admitted that on Feb. 1, 2012, he directed a subordinate official to create and sign a document bearing the typed date Dec. 5, 2011, representing that a $3.67 million claim by AVB under the contract was reasonable. As a result of this backdating, it falsely appeared that the subordinate official had approved the $3.67 million payment before directions were given to Northrop to make that payment. That document was then provided to DODIG in response to its requests for supporting documentation surrounding this attempt to have Northrop pay AVB.
According to the plea agreement, Vergez admitted that he engaged in a criminal conflict of interest by taking official acts as a government official to assist a helicopter manufacturing company in negotiating a “foreign military sale” and adjusting a contract so that the company received payment faster than originally agreed upon at a time when Vergez was negotiating future employment with that company.
Vergez further admitted that he made false statements in his “Confidential Financial Disclosure Report,” a government ethics form, for the year 2012, by not disclosing that his wife had received a Rolex wristwatch from the wife of a representative of AVB; that he had accepted an offer of employment with a private company; and that he had received a $30,000 check from that company.
The Special Inspector General for Afghanistan Reconstruction (SIGAR), DCIS, CID and the FBI investigated the case. Department of Justice Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section (on detail from SIGAR) and Assistant U.S. Attorneys Henry Cornelius and Ramona Albin are prosecuting the case.
Former State Legislator Sentenced for Bank FraudRead the Press Release
TOPEKA, KAN. - A former Kansas state legislator was sentenced Monday to 18 months in federal prison for defrauding Farmers and Merchants Bank of Colby, Kan., of more than $460,000, some of which he deposited in his campaign account, U.S. Attorney Barry Grissom said. He also was ordered to pay $461,000 in restitution.
Trent K. LeDoux, 40, Holton, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted he applied for three loans from the bank, falsely representing that he was going to use all the funds to buy cattle that would serve as the collateral for the loans. In fact, he used some of the money to pay off existing debts and to make contributions to his political campaign account.
Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Former Prison Doctor Gets Prison Term for Schemes to Defraud the IRS and the Financial Aid SystemRead the Press Release
PHILADELPHIA - Dennis Erik Fluck Von Kiel, 58, of New Tripoli, PA, was sentenced today to 41 months in prison for schemes to: defraud the IRS and the Department of Health and Human Services out of hundreds of thousands of dollars, get financial aid grants for his four eldest children, file false claims for social security disability insurance, and lie at a bankruptcy proceeding. Von Kiel is the former medical director of Lehigh County Prison. He pleaded guilty on January 12, 2015 to conspiracy to defraud the United States, five counts of attempting to defeat or evade a federal tax, one count of attempting to obstruct the due administration of the internal revenue code, five counts of failure to file tax returns, one count of wire fraud and aiding and abetting wire fraud, one count of perjury in a bankruptcy proceeding, one count of financial aid fraud and aiding and abetting financial aid fraud, and two counts of mail fraud and attempted mail fraud. In addition to the prison term, U.S. District Court Judge Jeffrey L. Schmehl ordered three years of supervised release, restitution to the IRS in the amount of $256,920, to the Department of Health and Human Services in the amount of $262,303.11 to the Department of Education in the amount of $36,314, forfeiture of $165,988.29, and a $1,325 special assessment.
Since 2001, Von Kiel has engaged in a series of illegal schemes which were designed to help him evade creditors, including the Department of Health and Human Services to whom Von Kiel owed hundreds of thousands of dollars in outstanding medical school loans. He tried to defraud the IRS in order to avoid paying more than $200,000 in duly-owed personal income taxes. Von Kiel also lied on applications to the Department of Education for financial student aid for four of his children, which enabled them to receive more than $36,000 in federal Pell Grants for their college educations. Von Kiel tried to file a fraudulent claim for social security disability benefits by falsely claiming that he suffered from post-traumatic stress disorder. He also intentional made a false statement under oath in a bankruptcy proceeding.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. Most of Von Kiel’s schemes involved him pretending to become a minister of a “church” called the International Academy of Lymphology (which later changed its name to the International Academy of Life and then the Christian Forum Assembly), purporting to take a “vow of poverty,” and then claiming that he had no taxable income because his earnings belonged to “church.” Von Kiel convinced his employer that he was exempt from federal tax withholdings and directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church.” Once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then used the money to pay for all of his family’s day-to-day living expenses and to buy some luxury items.
Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014.
The case was investigated by the Internal Revenue Service Criminal Investigations, the FBI, and the Department of Education’s Office of Inspector General. It was prosecuted by Assistant United States Attorney Mark B. Dubnoff.