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2 June 2015
Schuylkill Federal Correctional Institution Inmate Charged with Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a felony Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Dwayne Parker, age 30, today.
According to United States Attorney Peter Smith, Parker was charged with allegedly possessing a homemade weapon in April of 2014, while an inmate at the federal prison.
If convicted, Parker could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill Federal Correctional Institution Inmate Charged with Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a felony Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Dwayne Parker, age 30, today.
According to United States Attorney Peter Smith, Parker was charged with allegedly possessing a homemade weapon in April of 2014, while an inmate at the federal prison.
If convicted, Parker could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill Federal Correctional Institution Inmate Charged in the Assault of Corrections OfficerRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Deshon Thomas, age 40, with allegedly assaulting a federal corrections officer at the Schuylkill Federal Correctional Institution in November 2014, causing bodily injury.
The investigation was conducted by the Federal Bureau of Investigation (FBI). The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Saylorsburg Man Sentenced to Prison for Role in Drug Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Saylorsburg man was sentenced to 10 months in prison today by U.S. District Court Judge Robert D. Mariani in Scranton, Pennsylvania for conspiring with others to distribute illegal drugs in the Monroe-Berks County area in 2011-2013.
According to United States Attorney Peter Smith, the defendant, Stephen Krpata, previously pleaded guilty to participating in the drug conspiracy that was responsible for distributing cocaine, crack cocaine, heroin, and oxycodone.
Krpata was indicted by a federal grand jury in June 2013, as a result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and Berks County Detectives.
Judge Mariani also ordered Krpata to serve three years on supervised release following his prison sentence, and to pay a special assessment of $100.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Santa Fe Man Pleads Guilty to Federal Oxycodone and Marijuana Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ashraf Nassar, 31, of Santa Fe, N.M., pled guilty today in federal court in Albuquerque, N.M., to participation in conspiracies to distribute Oxycodone and marijuana.
Nassar and co-defendants Phillip Anaya, 38, Daniel Trujillo, 32, Krystal Holmes, 29, and Sarah Romero, 36, are five Santa Fe residents charged in Sept. 2013, with participating in an Oxycodone trafficking ring in a 16-count indictment. The indictment subsequently was superseded in Oct. 2013, to include two additional defendants, Clarence Lee Cline, II, 66, and Mary Ann DeStefano, 53, both also of Santa Fe, and adding five new charges including conspiracy to distribute marijuana, manufacturing marijuana and maintaining a place for the purpose of manufacturing marijuana.
Nassar, Anaya, Trujillo, Holmes and Romero were arrested in Sept. 2013 as part of a multi-agency law enforcement operation that included the execution of search warrants at three residences and a business in Santa Fe. The investigation, “Operation High Desert Bash,” was initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, N.M., the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults.
Operation Desert Bash investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming. Officers seized approximately 7300 mg of Oxycodone during the investigation.
Count 1 of the 21-count superseding indictment charged the Nassar, Anaya, Trujillo, Holmes and Romero with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 charged Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, Nassar, Anaya, Trujillo, Holmes and Romero were charged with using telephones to facilitate drug trafficking crimes in Counts 5 through 17. Count 18 charged Nassar, Cline and DeStefano with conspiracy to distribute marijuana. Counts 19 through 21 charged Cline and DeStefano with conspiracy to distribute marijuana, conspiracy to maintain a place for the purpose of manufacturing marijuana and maintaining a place for the purpose of manufacturing marijuana.
During today’s proceedings, Nassar pled guilty to two counts of the superseding indictment; conspiracy to traffic Oxycodone and marijuana. In entering the guilty plea, Nassar admitted that from Dec. 8, 2012 through Sept. 26, 2013, in Santa Fe he received Oxycodone from multiple sources of supply and would in turn provide that Oxycodone to re-distributers and users. Nassar also admitted that from Jan. 2, 2013 through Sept. 23, 2013, he was supplied “high grade” marijuana which he would then redistribute to other lower-level redistributors.
All but one of Nassar’s co-defendants have entered guilty pleas. Anaya pled guilty on Nov. 19, 2014, and was sentenced on April 9, 2015, to 46 months in prison followed by three years of supervised release. Trujillo pled guilty on Jan. 30, 2015, and was sentenced on April 2, 2015, to 18 months in prison followed by three years of supervised release. Romero pled guilty on Oct. 28, 2014, and was sentenced on March 26, 2015, to 18 months in prison followed by three years of supervised release. Holmes pled guilty on May 26, 2015, and DeStefano pled guilty on March 27, 2015, sentencing hearings have yet to be scheduled.
Cline has entered a plea of not guilty and is awaiting trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Rio Rancho Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Leondro Urioste, 31, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., to five years in prison followed by five years of supervised release for his possession of a firearm in furtherance of a drug trafficking crime conviction.
Urioste was arrested on Dec. 8, 2014, and charged in a criminal complaint with being a felon in possession of a firearm on Oct. 16, 2014, in Bernalillo County, N.M. According to the complaint, deputies of the Bernalillo County Sheriff’s Office recovered approximately 14 grams of methamphetamine, drug paraphernalia, and multiple firearms and rounds of ammunition from Urioste’s vehicle following a routine traffic stop. According to court documents, Urioste was prohibited from possessing firearms or ammunition because he previously had been convicted of attempted forgery.
Urioste was subsequently indicted on Dec. 16, 2014, and charged with being a felon in possession of firearms and ammunition, possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. The indictment alleges that the crimes took place on Oct. 16, 2014, in Bernalillo County.
On March 2, 2015, Urioste pled guilty to possessing a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Urioste admitted that on Oct. 16, 2014, he was stopped by deputies of the Bernalillo County Sheriff’s Office and was found to be in possession of methamphetamine and a handgun. Urioste further admitted that the handgun was hidden in his dashboard, and that he possessed the firearm as a tool and in relation to his illegal drug trafficking.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case.
Ringleader of $2.6 Million Tax Refund Check Scam Sentenced to 27 Months in PrisonRead the Press Release
NEWARK, N.J. - The ringleader of a conspiracy that stole $2.6 million in income tax refund checks issued by the United States was sentenced today to 27 months in prison, U.S. Attorney Paul J. Fishman announced.
Raymundo Hernandez, 36, of Bronx, New York, previously pleaded guilty before U.S. District Judge Madeline C. Arleo to an information charging him with conspiracy to steal government funds. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.
Hernandez admitted he knew the checks had been generated by conspirators filing false and fraudulent income tax returns with the IRS in order to obtain refunds to which he was not entitled. He admitted that from November 2010 through October 2012 he recruited and maintained a network of conspirators in the Newark and Bronx areas and distributed fraudulent treasury checks to that network in exchange for payment. Hernandez obtained at least 44 such checks from Luis Pena, 32, of Bronx, who pleaded guilty to his role in the conspiracy in March 2014. Pena had arranged for the fraudulent checks to be sent to a postal route and intercepted by the mail carriers on that route: Gloria Rivera 40, of Bronx, and Lourdes Ortiz, 42, of Bronx, Rivera and Ortiz also entered guilty pleas in March 2014 to their respective roles in the conspiracy.
Hernandez admitted that once he distributed the fraudulent checks, he and his conspirators deposited them into bank accounts, primarily in the names of businesses they controlled and then withdrew large amounts of the proceeds in cash. They used some of the money to purchase cars and gamble at Atlantic City casinos.
The fraudulently cashed checks totaled approximately $2,659,718. Of these deposits, $171,589 was deposited into three bank accounts under Hernandez’ direct control.
In addition to the prison term, Judge Arleo sentenced Hernandez to serve three years of supervised release. Hernandez must pay restitution of $2,659,717.82.
Pena was sentenced to 30 months in prison on Oct. 16, 2014. Rivera was sentenced to six months in prison on Jan. 7, 2015. Ortiz was sentenced to three years of probabtion on Jan. 7, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U. S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli; and special agents of the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Rafael A. Medina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Roy Greenman Esq., Union, New Jersey
Pittsburgh Man Charged in Series of Armed RobberiesRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal laws concerning robbery, use of a firearm, and firearm possession, United States Attorney David J. Hickton announced today.
The 11-count indictment named George Wilson, III.
According to indictment, Wilson committed a series of armed robberies of businesses throughout the Pittsburgh area from November 2014 through December 2014. During that time Wilson committed armed robberies of three stores called “The Exchange” and during one robbery Wilson discharged a firearm. Wilson also committed armed robberies of two Sunoco stations and one Exxon station. Due to a prior conviction for a felony offense, Wilson is prohibited from possessing firearms.
The law provides for a total sentence of not less than 25 years and up to life in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Police Department, the Monroeville Police Department, the Ross Township Police Department, the Penn Hills Police Department and the Wilkins Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Penn Hills Man Sentenced to 10 Years in Prison for Drug and Firearms OffensesRead the Press Release
PITTSBURGH - A Pittsburgh-area resident pleaded guilty to charges of violating federal narcotics and firearms laws, and was subsequently sentenced to 10 years’ imprisonment followed by three years of supervised release, United States Attorney David J. Hickton announced today.
Montay King, a/k/a Tay Loc, 39, pleaded guilty to four counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about Dec. 20, 2012, King possessed with the intent to distribute 1,500 stamp bags of heroin weighing 37 grams, 171 grams of cocaine, and five grams of crack cocaine, while simultaneously possessing two assault rifles and a handgun in furtherance of his drug trafficking crimes. The drugs and firearms were found inside King’s 1998 Ford Expedition parked outside of his residence following searches by the Allegheny County Probation Office and the Allegheny County Sheriff’s Office.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Adult Probation Office, and the Allegheny County Sheriff's Office Fugitive Task Force for the investigation leading to the successful prosecution of King. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Pair Charged in Gun Point Robbery of Grocery StoreRead the Press Release
Davoris Carter and Rodney Williams were charged today by indictment with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence, announced U.S. Attorney Zane David Memeger. The indictment charges that Carter and Williams committed a gun-point robbery of the Garcia Grocery, located at 1327 Dyre Street, in Philadelphia, Pennsylvania, on January 27, 2015. Carter and Williams are also charged with using and carrying firearms during the robbery charged in the indictment.
If convicted of all counts, Carter and Williams each faces a maximum sentence of life imprisonment, with a mandatory seven year minimum sentence, a $500,000 fine, five years supervised release, and a $200 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Plumbing Business Is Sentenced for Davis-Bacon Act ViolationsRead the Press Release
V & V Construction, Inc., d/b/a Vincentini Plumbing, was sentenced in federal court in Omaha, Nebraska, for false statements relating to violations of the Davis-Bacon Act. The Honorable Laurie Smith Camp sentenced the company to a three-year term of probation. The Court imposed a $25,000 fine and ordered restitution in the sum of $138,643.54. V & V Construction was further ordered to cooperate with the United States Department of Labor in a three-year debarment precluding its participation in federal contracts during the three-year ban.
V & V Construction Inc. does business as Vincentini Plumbing. It is a residential and commercial plumbing company located in Omaha, Nebraska. V & V Construction was a sub-contractor for two building projects for the Council Bluffs Public Schools in Council Bluffs, Iowa. The two schools were federally funded projects requiring compliance with the Davis-Bacon Act. V & V Construction was awarded the plumbing and pipe-laying subcontract for both projects.
The Davis-Bacon Act requires that any participant on a qualifying federal contract pay a prevailing wage. Between June 2010 and continuing until July 2011 V & V Construction falsified certified payroll records to the United States Department of Labor stating that they had paid the required prevailing wage. In fact they had paid employees less than the prevailing wage resulting in a $138,643.54 difference between what they certified as wages paid and actual wages paid.
This case was investigated by the United States Department of Labor.
Ohio woman sentenced for defrauding Huntington medical providerRead the Press Release
Huntington, W. Va. - Teresa Lewis, 60, of South Point, Ohio, was sentenced yesterday to a year and a day in federal prison for defrauding the Huntington Retina Center, where she worked, United States Attorney Booth Goodwin announced. Chief United States District Judge Robert C. Chambers imposed the sentence.
From 2012 to 2014, Lewis, working as a billing assistant at the Huntington Retina Center, used her position to gain access to credit cards in the name of the Center and one of its doctors. Lewis used the cards to make more than $52,000 in unauthorized personal purchases. She pleaded guilty in March 2015 to two felony counts of access device fraud.
The Huntington Retina Center provides medical care for vision disorders, eye injuries, and eye diseases. As part of her sentence, Lewis must repay $52,317 to the Center.
The case was prosecuted as part of U.S. Attorney Goodwin’s effort to combat employee theft from West Virginia small businesses. The United States Postal Inspection Service, the Federal Bureau of Investigation, and the Huntington Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
New Jersey Man Sentenced to 30 Months for Role in Illegal Immigration SchemeRead the Press Release
A New Jersey man was sentenced to 30 months in prison for orchestrating an eight-year scheme to falsify employment certifications to facilitate the illegal entry of Indian nationals into the United States and for filing a false tax return.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, Chief Richard Weber of the Internal Revenue Service–Criminal Investigation (IRS-CI) and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
Sandipkumar Patel, 42, of Edison, New Jersey, was sentenced by U.S. District Court Judge William H. Walls of the District of New Jersey. The court also ordered Patel to pay a fine of $50,000, and restitution in the amount of $423,452 to the IRS.
On Sept. 4, 2014, Patel pleaded guilty to a two-count information charging him with conspiring to defraud the United States and subscribing to a false federal income tax return.
According to court documents filed in connection with his plea, from 2001 until 2009, Patel sponsored the visa applications of Indian nationals by falsely claiming that he would provide employment for them in the United States. Patel falsely certified on the visa applications that he would employ the migrants in various technical fields at several New Jersey companies, thereby facilitating their illegal entry into the United States. Over the course of the scheme, migrants paid Patel tens of thousands of dollars for the false certifications. To disguise the scheme, Patel issued payroll checks and other payroll forms. Patel required the migrants to return the proceeds of the payroll checks to him and to further reimburse him for the payroll tax expenses he incurred. Patel used the fraudulent pay stubs and payroll checks to support false applications to extend the visas, and charged the migrants fees for the visa extensions.
As a result of falsely carrying the migrant employees on his payrolls, Patel overstated his payroll expenses on his federal income tax returns by more than $1.4 million over four years, and thereby underreported his tax obligation by over $400,000 for those years.
This case was investigated by the IRS-CI and DSS. The case is being prosecuted by Senior Trial Attorney Hope S. Olds of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael Robertson of the District of New Jersey, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section.
New Britain Bakery Operator Pleads Guilty to Tax FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that MARIAN KOBRYN, 63, of Farmington, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of making a false statement on a federal tax return.
According to court documents and statements made in court, KOBRYN and his wife own and operate Kasia’s Bakery, located on Broad Street in New Britain. Until recently, Kasia’s Bakery routinely operated on a “cash only” basis. During the 2010 through 2013 tax years, KOBRYN diverted a total of $730,860 in cash that the business received, deposited the money into his and his wife’s personal bank accounts, and failed to pay $242,889 in federal taxes on the income.
The investigation revealed that KOBRYN attempted to conceal the diverted cash proceeds by regularly traveling to several branches of Farmington Bank to make cash deposits in amounts under $10,000 in order to evade the bank’s currency transaction reporting requirements.
KOBRYN is scheduled to be sentenced by Senior U.S. District Judge Warren W. Eginton in Bridgeport on August 25, 2015, at which he faces a maximum term of imprisonment of three years and a fine of up to $100,000. KOBRYN also has agreed to pay back taxes and applicable interest and penalties.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Navajo Man Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Berland Thomas, 44, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 24 months in prison followed by three years of supervised release for his involuntary manslaughter conviction.
Thomas was arrested on June 9, 2014, on a criminal complaint charging him with murder. According to the complaint, Thomas allegedly killed a Navajo man by beating him with his fists during an alcohol-fueled fight. The fight occurred on June 6, 2014, on the Navajo Indian Reservation in McKinley County, N.M. Thomas was subsequently indicted on June 24, 2014, and charged with second degree murder.
On Feb. 20, 2015, Thomas pled guilty to an involuntary manslaughter charge and admitted assaulting the victim by striking, beating and wounding him. Thomas acknowledged that the victim died as a result of injuries suffered during the assault.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Muskogee Woman Pleads Guilty to Making False StatementRead the Press Release
The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DENISE WOODARD, age 59, of Muskogee, Oklahoma, pled guilty to an Information charging her with MAKING A FALSE STATEMENT, in violation of Title 18, United States Code, Section 1001(a)(2).
The charge arose from an investigation by the Department of Veterans Affairs, Office of Inspector General.
The Information alleged that on or about February 1, 2012, in the Eastern District of Oklahoma, the defendant did knowingly make and cause to be made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Department of Veteran Affairs, an agency of the United States, in that on a Department of Veteran Affairs form known as "Improved Pension Eligibility Verification Report" DENISE WOODARD stated she was receiving no income, when in truth and fact, as defendant well knew, she was receiving pension benefits from another source.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains on bond pending sentencing.
The statutory range of punishment is up to 5 years imprisonment, a fine of up to $250,000.00 or both.
Assistant United States Attorney Shannon Henson represented the United States.
Morris County, New Jersey, Man Sentenced to Five Years in Prison for Receiving Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Boonton, New Jersey, man was sentenced today to 60 months in prison for using his home computer to download hundreds of images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Lucas J. Reinmann, 36, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of knowingly receiving images of child pornography over the internet. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Reinmann admitted that he downloaded images and videos of child sexual abuse from the internet to his computer using a peer-to-peer file sharing network. He also admitted possessing more than 600 images of child sexual abuse on his computers and USB drives, which were seized from his residence in July 2013.
In addition to the prison term, Judge Wigenton sentenced Reinmann to serve 10 years of supervised release.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly; the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp; and the Boonton Township Police Department, under the direction of Chief Paul C. Fortunato with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office OCDETF Unit in Newark.
Defense counsel: Edward V. Sapone Esq., New York
Member of Decavalcante Crime Family Admits Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra today admitted his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
Nicholas DeGidio, 37, of Union, New Jersey, pleaded guilty before U.S. District Judge William H. Walls, to an information charging him with one count of distribution of more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
DeGidio was arrested and charged by complaint in March 2015, along with nine other members of the DeCavalcante crime family. Between December 2014 and March 2015, in conjunction with other family associates, DeGidio sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
The drug distribution count to which DeGidio pleaded guilty carries a maximum potential penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 29, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the N.J. State Commission of Investigation, under the direction of Executive Director Philip James Degnan; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park.
The government is represented by Senior Litigation Counsel V. Grady O’Malley Sr. and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: Ted Romankow Esq., Springfield, New Jersey
Marshall County Man Sentenced to 18 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
Peoria, Ill. - Chief U.S. District Judge James E. Shadid today sentenced Brian A. Miller, 37, of Varna, Ill., to serve 18 years in federal prison, to be followed by 15 years of supervised release. Miller was convicted following a two-day bench trial, on May 20, 2014, of 22 counts of sexual exploitation of a minor. Miller has remained detained in the custody of the U.S. Marshals Service since August 2013, when he was arrested and charged in a federal criminal complaint.
Evidence the government presented during the trial demonstrated that from at least July 2011 through May 2012, on at least 22 occasions, Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower.
The charges were investigated by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Timothy A. Bass prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Manteca CA Man Pleads Guilty to Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROBERT EDWARD LEE, age 41, of Manteca, California, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE MARIJUANA, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D) and Title 18, United States Code, Section 2, punishable by not more than 5 years imprisonment, a fine of up to $250,000.00 or both.
The Indictment alleged that on or about November 20, 2014, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute less than 50 kilograms of marijuana, a Schedule I controlled substance. Co-defendant NICOLAS TRINIDAD CARMONA, age 29, of Martinez, CA pled guilty May 22, 2015 to the same charge.
The charges are a result from an investigation by the U. S. Customs and Border Protection Aviation Enforcement Agency and the Drug Enforcement Agency.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence report. Sentencing will be scheduled after its completion.
Assistant United States Attorney Shannon Henson represented the United States.
Manhattan U.S. Attorney Charges Two Owners of Real Estate Investment Firm for Defrauding Investors of over $17 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip Bartlett, the Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service, (“USPIS”), and Shantelle P. Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS”), announced today that CARLTON P. CABOT and TIMOTHY J. KROLL – the former Chief Executive Officer and Chief Operating Officer of Cabot Investment Properties LLC (“CIP”), respectively – were arrested for participating in a scheme to defraud investors in numerous CIP-sponsored real estate investments by misappropriating over $17 million to pay for personal and business expenses and covering up their fraud with manipulated financial statements. CABOT and KROLL are expected to be presented and arraigned before U.S. Magistrate Judge Henry B. Pitman later this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Carlton Cabot and Timothy Kroll conspired to defraud investors out of millions of dollars by misappropriating investor funds, in part to pay for personal luxuries, and they falsified financial statements in an attempt to cover their tracks. The investigative work of the Postal Inspection Service and the IRS put an end to the alleged scheme.”
USPIS Inspector-in-Charge Philip Bartlett said: “This is a classic case of greed overcoming honest business practices. These defendants allegedly carried out a scheme to steal from their investors and investor funded properties all to fund a well-heeled lifestyle. Postal Inspectors and their law enforcement partners have no tolerance for this behavior and will spare no resource to bring these criminals to justice.”
IRS Special Agent-in-Charge Shantelle P. Kitchen said: “The investing public should take notice that the cooperation among federal law enforcement agencies, including IRS Criminal Investigation, the Postal Inspection Service and the U.S. Attorney’s Office, offers an assurance that investment fraud schemes will be uncovered and thoroughly investigated, and that the scammers will be prosecuted.”
According to the allegations contained in the criminal complaint unsealed today in Manhattan federal court[1]:
From 2003 through 2012, CIP – which was controlled by CABOT and KROLL – sponsored and oversaw approximately 18 so-called tenants-in-common (“TIC”) securities offerings to investors located all over the United States (collectively, the “TIC Investments” and the “TIC Investors”). A TIC investment is a real estate investment in which investors collectively own a piece of commercial real estate and are entitled to receive a portion of the rental income from the property.
From 2008 through 2012, CABOT and KROLL engaged in a scheme to defraud the TIC Investors by misappropriating funds belonging to the TIC Investments and concealing their misappropriations by providing false and misleading financial reports and other information to the TIC Investors.
According to the representations in the offering prospectuses for the TIC Investments, CIP was only allowed to collect “excess” rental income from the TIC Investments – i.e., any additional money left over after the TIC Investments had paid the operating expenses for the properties and the disbursements due to the TIC Investors. Despite these representations, CABOT and KROLL repeatedly transferred money out of bank accounts belonging to the TIC Investments and into CIP bank accounts that they controlled (the “CIP Operating Accounts”) before the TIC Investments could use the funds to pay for operating expenses and disbursements to the TIC Investors. CABOT and KROLL then used these funds to pay for the following three unauthorized purposes, without the knowledge or authorization of the TIC Investors:
First, CABOT and KROLL caused millions of dollars to be transferred from the CIP Operating Accounts to the bank accounts of TIC Investments that had no available funds to cover their operating expenses and investor distributions. In this way, CABOT and KROLL were able to perpetuate the fraud scheme by propping up failing TIC Investments using funds belonging to other TIC Investments.
Second, CABOT and KROLL used the funds in the CIP Operating Accounts belonging to the TIC Investments to pay for millions of dollars of personal expenses, including expensive cars and rental apartments and private school tuitions.
Third, CABOT and KROLL used the funds in the CIP Operating Accounts belonging to the TIC Investments to pay for CIP business expenses, including an approximately $1,125,651 civil settlement to certain TIC Investors who had sued CABOT, KROLL, CIP, and a CIP subsidiary.
To conceal their misappropriation of TIC Investment funds from the TIC Investors, CABOT and KROLL provided false and misleading financial reports to the TIC Investors that intentionally hid the fact that CIP owed large sums of money to the TIC Investments. KROLL also gave false and misleading information to the TIC Investors about how the TIC Investment funds were managed in order to prevent the TIC Investors from learning the true financial status of their investment.
By in or about the end of 2012, when CIP ceased its day-to-day operations, CIP and its principals, CABOT and KROLL, owed approximately $17 million to the TIC Investments, which has never been repaid.
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For this conduct, CABOT and KROLL are each charged with the following offenses, which carry the maximum prison terms listed below:
Count
Charge
Maximum Prison Term
Count One
Conspiracy to commit securities fraud
Five years
Count Two
Conspiracy to commit wire fraud
20 years
Count Three
Conspiracy to commit money laundering
20 years
Count Four
Securities fraud
20 years
Count Five
Wire fraud
20 years
Count Six
Money laundering
20 years
Count Seven
Illegal monetary transactions
10 years
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
CABOT, 52, of Stamford, Connecticut, and KROLL, 44, of New Hope, Pennsylvania, were arrested earlier this morning at their residences.
Mr. Bharara praised the investigative work of the USPIS and the IRS.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Christian R. Everdell is in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Pleads Guilty to Sexual ExploitationRead the Press Release
PLATTSBURGH, NEW YORK – Heath Powers, 34, of Plattsburgh, NY, pled guilty today to eleven (11) counts of production of child pornography, one (1) count of distribution of child pornography, and one (1) count of possession of child pornography announced United States Attorney Richard S. Hartunian and Federal Bureau of Investigation Special Agent-in-Charge Andrew W. Vale. Sentencing will be October 8, 2015 in Albany before United States District Judge Mae D’Agostino.
In entering his guilty plea, Powers admitted that between June through August 2014 he used a minor to engage in sexually explicit conduct and produced graphic images of that conduct. He also admitted that he possessed and distributed child pornography.
At sentencing, the defendant faces at least 15 years and up to 30 years in prison on each production of child pornography charge; at least 5 years and up to 20 years in prison on the distribution of child pornography charge; and up to 20 years in prison on the possession of child pornography charge. He also faces a fine of up to $250,000, a lifetime term of supervised release and registration as a sex offender.
The case was investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Katherine Kopita.
Man Indicted for Submitting False Information and Documents to FEMARead the Press Release
ALBANY, NEW YORK – Scott A. Clapper, Jr., 30, of Schoharie, was arraigned in U. S. District Court in Albany today before U.S. Magistrate Judge Randolph F. Treece on 13 felony counts of disaster-related fraud, announced United States Attorney Richard S. Hartunian and Edward Nasiatka, Special Agent in Charge of the Department Of Homeland Security’s Office of Inspector General, New York Field Office. The defendant was remanded to federal custody. On each count, Clapper faces a maximum imprisonment term of 30 years, a maximum fine of $250,000, a special assessment of $100, and a maximum term of supervised release of 5 years.
According to the indictment, Clapper made false statements and submitted false documents to the Federal Emergency Management Agency ("FEMA") following Hurricane Irene. At that time, the issuance of a Presidential Disaster Declaration allowed FEMA to pay benefits to residents of certain New York counties who were affected by the hurricane and qualified for benefits under FEMA policies and procedures. Clapper, in connection with his applying for and receiving these benefits, made false statements to FEMA about his monthly rent and where he was residing. The indictment also alleges he submitted fraudulent lease agreements and rent receipts to FEMA.
The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the New York Field Office of the Department Of Homeland Security’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael Barnett.
Luzerne County Couple Charged with Possession and Sale of A Stolen FirearmRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal charges against James Pavlichko, age 29, and Kathryn Teter, age 28, of Nuremberg, Luzerne County, Pennsylvania. The Grand Jury sitting in Scranton returned an Indictment which charges that on April 13, 2015, in Luzerne County, Pennsylvania, Pavlichko and Teter possessed and sold a stolen handgun. The Indictment also alleges that James Pavlichko illegally possessed that same firearm while having the status of a convicted felon.
United States Attorney Peter Smith stated that the charges are the result of an investigation conducted by the Kingston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John Gurganus is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statutes for each offense is 10 years’ imprisonment, a three year term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Louisville Man Charged with Enticement, Production and Possession of Child PornographyRead the Press Release
Thirteen-year-old alleged victim resided in Texas
Defendant is a Louisville high school teacher
LOUISVILLE, Ky. – A Louisville high school teacher and assistant coach with the school’s athletics department was arrested today and appeared before U.S. Magistrate Judge Dave Whalin, charged in a criminal complaint with violating child exploitation laws, announced Acting United States Attorney John E. Kuhn, Jr.
Patrick Newman, age 33, is charged with engaging in unlawful online communications with a 13-year-old male (“John Doe”). The two used social media applications VINE and KIK for their communications. Newman used a means or facility of interstate commerce to knowingly persuade, induce, entice or coerce John Doe to engage in sexual activity for which a person can be charged with a criminal offense. During the online communications, Newman used, persuaded, induced, enticed, or coerced a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct, knowing or having reason to know that such visual depiction would be transported or transmitted using any means or facility of interstate commerce. In addition, Newman is charged with possession of child pornography.
"At this point, the charges relate only to online activity," stated Acting U.S. Attorney John Kuhn. "Law enforcement has no information at present about criminal conduct other than online activity. These very disturbing allegations should underscore how important it is for parents to be aware of their children's internet activity. The Department of Justice is committed to our children’s safety and to prosecuting those who prey on the most vulnerable."
According to the Affidavit attached to the criminal complaint, on January 23, 2015, the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of 12 child pornography videos to VINE (a video sharing website owned by Twitter) and one image, uploaded from the same IP address in Texas, between 12-28-2014 and 12-30-2014.
Further, an investigation by a Texas Police Department revealed that a 13 year-old male had exchanged nude/sexually explicit photographs of himself with an adult male in March, 2015 using KIK messenger. John Doe further described several sexually explicit conversations with the adult male in which sexually explicit photographs and videos were traded between them. John Doe stated the adult male would instruct him to engage in various sexual acts and send videos/photos of the acts to him. John Doe stated that the individual sent him a facial picture and described the man as Caucasian, bald, with a dark beard. According to John Doe, the adult male told him he lived in Oklahoma. An investigation by Texas law enforcement revealed the IP address of the KIK account belonged to Louisville, Kentucky subscriber, defendant Patrick Newman.
A search warrant of Newman’s Louisville home was executed this morning by Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS). Newman was arrested and is currently in the custody of the U.S. Marshals Service. A detention hearing is scheduled before Magistrate Judge Whalin Friday, June 5, 2015 at 1:30pm.
If convicted at trial, Newman faces a mandatory prison term of 15 years and up to and including a life sentence, and up to and including a life period of supervised release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by HSI Louisville Division of the Department of Homeland Security.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
***
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless proven guilty.
Littleton woman arrested for oil investment schemeRead the Press Release
DENVER – Jill M. Evans, age 49, of Littleton, Colorado was arrested last week on charges of wire fraud and money laundering, the United States Attorney’s Office, IRS – Criminal Investigation (IRS CI) and the Federal Bureau of Investigation (FBI) announced. Evans was indicted by a federal grand jury on May 21, 2015. The indictment remained under seal until her arrest on May 27, 2015. Evans appeared on that date in federal court where she was advised of her rights as well as the charges pending against her. She was then ordered released on May 29, 2015, by a U.S. Magistrate Judge on a 50 percent secured bond, where she needs to pay 10 percent of the bond (or $5,000).
According to the indictment, in September 2011 and continuing through May 2015, Evans devised a scheme to defraud at least eight individuals whom she solicited to invest in alleged oil transactions. Evans informed or caused others to inform potential investors that she or one of her companies, Paramount Mortgage or Evcom, had rights or agreements related to the purchase and resale of petroleum products, including diesel oil or jet fuel. She claimed that the oil deals could not be completed until certain fees or other expenses related to the deals could be paid.
Evans falsely told investors they would receive a return on their investment ranging from fifty percent to fifty times their original investment within a matter of days or weeks. She told investors that their funds would be held in an escrow account and would be fully refundable if the oil deal did not close. Evans instructed investors to transfer funds to bank accounts. Some investors’ funds were not used as represented and were also sent to personal bank accounts that Evans controlled. Of those funds transferred to personal accounts she controlled, she used those funds for her own personal expenses.
She would tell investors that oil deals were nearing successful completion and that disbursements of profits were imminent. She sent e-mails attaching fabricated court documents regarding the status of civil litigation purporting to award Evans or related parties substantial sums of money. When the oil deals failed to close, she told investors that she would be able to pay investors from these proceeds.
Furthermore, Evans concealed from investors her December 2011 criminal indictment by a State of Colorado grand jury and her subsequent March 2013 criminal conviction for theft and forgery. Evans’s bond conditions prohibited her from entering into any financial transactions in excess of $1,000, and the terms of her subsequent state sentence prohibited her from investing money, entering into any financial contracts or arrangements, and having access to or control of any funds of any individual.
Evans was charged with eight counts of wire fraud and six counts of money laundering. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000. Included in the indictment is a notice of forfeiture for any property traceable to the money laundering charges alleged in the indictment.
This case was investigated by IRS – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anna K. Edgar.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Littleton Woman Arrested for Oil Investment SchemeRead the Press Release
DENVER – Jill M. Evans, age 49, of Littleton, Colorado was arrested last week on charges of wire fraud and money laundering, the United States Attorney’s Office, IRS – Criminal Investigation (IRS CI) and the Federal Bureau of Investigation (FBI) announced. Evans was indicted by a federal grand jury on May 21, 2015. The indictment remained under seal until her arrest on May 27, 2015. Evans appeared on that date in federal court where she was advised of her rights as well as the charges pending against her. She was then ordered released on May 29, 2015, by a U.S. Magistrate Judge on a 50 percent secured bond, where she needs to pay 10 percent of the bond (or $5,000).
According to the indictment, in September 2011 and continuing through May 2015, Evans devised a scheme to defraud at least eight individuals whom she solicited to invest in alleged oil transactions. Evans informed or caused others to inform potential investors that she or one of her companies, Paramount Mortgage or Evcom, had rights or agreements related to the purchase and resale of petroleum products, including diesel oil or jet fuel. She claimed that the oil deals could not be completed until certain fees or other expenses related to the deals could be paid.
Evans falsely told investors they would receive a return on their investment ranging from fifty percent to fifty times their original investment within a matter of days or weeks. She told investors that their funds would be held in an escrow account and would be fully refundable if the oil deal did not close. Evans instructed investors to transfer funds to bank accounts. Some investors’ funds were not used as represented and were also sent to personal bank accounts that Evans controlled. Of those funds transferred to personal accounts she controlled, she used those funds for her own personal expenses.She would tell investors that oil deals were nearing successful completion and that disbursements of profits were imminent. She sent e-mails attaching fabricated court documents regarding the status of civil litigation purporting to award Evans or related parties substantial sums of money. When the oil deals failed to close, she told investors that she would be able to pay investors from these proceeds.
Furthermore, Evans concealed from investors her December 2011 criminal indictment by a State of Colorado grand jury and her subsequent March 2013 criminal conviction for theft and forgery. Evans’s bond conditions prohibited her from entering into any financial transactions in excess of $1,000, and the terms of her subsequent state sentence prohibited her from investing money, entering into any financial contracts or arrangements, and having access to or control of any funds of any individual.
Evans was charged with eight counts of wire fraud and six counts of money laundering. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000. Included in the indictment is a notice of forfeiture for any property traceable to the money laundering charges alleged in the indictment.This case was investigated by IRS – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anna K. Edgar.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Lawrence, Massachusetts Man Pleads Guilty to Possessing Crack Cocaine and Heroin with Intent to Sell in NashuaRead the Press Release
CONCORD – Acting United States Attorney Donald Feith announced today that Santiago Marino Reyes-Lara, a/k/a Jean Carlos Sotomayor-Venerio, 27, of Lawrence, Massachusetts pleaded guilty today to unlawful possession with the intent to distribute cocaine base (“crack”) and heroin. Reyes-Lara appeared before United States District Court Judge Paul J. Barbadoro to enter his guilty plea.
According to documents that were filed in United States District Court, Reyes-Lara was arrested in Nashua on April 22, 2014 after a vehicle he was operating was found to contain 22 grams of cocaine base (“crack”) and 6.5 grams of heroin. The drugs were hidden in a tire jack.
Reyes-Lara’s arrest was part of a long term investigation by the United States Drug Enforcement Administration’s High Intensity Drug Trafficking Area Task Force and the Nashua and Hudson, New Hampshire Police Departments into the trafficking of cocaine base (“crack”), cocaine and heroin in and around Nashua and Hudson, New Hampshire areas by Lawrence, Massachusetts-based narcotics traffickers. As a result of the four year investigation, sixteen individuals, including Reyes-Lara, were arrested, and approximately $60,000 and multiple vehicles were seized, many of which contained electronic hidden compartments to transport the narcotics into New Hampshire. Narcotics seizures included approximately 1,000 grams of cocaine, 300 grams of heroin, and 200 grams of cocaine base (“crack”).
"Our office will continue to work with local, state and federal law enforcement to identify, investigate and prosecute drug traffickers," stated Acting United States Attorney Donald Feith. "This case demonstrates the excellent results that can be achieved when we combine our resources to take those individuals who would profit from the sale of drugs off the streets."
A sentencing hearing has been scheduled for September 8, 2015. Reyes-Lara faces a maximum sentence of twenty years. He is subject to the advisory sentencing guidelines which will likely generate a sentencing range that is less than twenty years.
Jury Convicts Trio of Public Corruption in Connection with Charter School KickbacksRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted three people of offering and accepting kickbacks as part of a public corruption conspiracy involving a Dayton, Ohio charter school. Two defendants were public officials who ran the school and the other secured a lucrative consulting contract in exchange for bribes to school officials.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Ohio Attorney General Mike DeWine whose office oversees the Ohio Bureau of Criminal Investigation (BCI), and Ohio Auditor Dave Yost announced the verdicts reached today which was returned following a trial that began on May 18, 2015 before U.S. District Judge Algernon L. Marbley.
The jury convicted Shane K. Floyd, 42, Strongsville, Ohio, who served as superintendent of Arise, Arise board chairman Christopher D. Martin, 44, Springfield, Ohio, and Carl L. Robinson, 47, Durham, North Carolina, who operated an educational consulting business called Global Educational Consultants.
According to court testimony, Floyd and Martin solicited and accepted bribes from Robinson in exchange for awarding a lucrative, unbid consulting contract to Global. Arise paid Global $420,919 over 15 months starting in September 2008 at a time when Arise was in a financial crisis unable to pay other vendors and teachers pay and benefits were cut. In exchange for the consulting contract, Robinson paid Floyd and Martin large amounts of cash and other benefits, like an all-expense -paid Las Vegas trip taken by Martin.
All three were convicted of conspiracy, a crime punishable by up to five years in prison, and with federal programs bribery, which is punishable by up to 10 years in prison. In addition, Floyd and Martin were each convicted of one count of making false statements to the FBI, punishable by up to five years imprisonment.
The trio also faces a $420,919 forfeiture, which represents the amount of money derived from the crimes.
A co-defendant, Kristal N. Screven, also known as Kristal Allen, of Dayton, Ohio admitted her role as an Arise board chairman who was bribed by pleading guilty to conspiracy to commit federal programs bribery on May 8, 2015, before U.S. District Judge Marbley.
Arise! Academy was an Ohio Community School, commonly known as a charter school, which operated with federal funds provided through the state of Ohio.
U.S. Attorney Stewart commended the investigation by Special Agents of the FBI and Ohio BCI, who are a part of the FBI’s Public Corruption Task Force, as well as Assistant United States Attorneys Doug Squires and Peter Glenn-Applegate and Special Assistant United States Attorney Kim Robinson, who prosecuted the case.
Jackson Resident Sentenced to Prison for Firearms and Drug TraffickingRead the Press Release
Jackson, Miss – Edward Donnell Ammons, 34, of Jackson, was sentenced by U.S. District Judge Carlton W. Reeves to 188 months in prison for conspiracy to distribute over 100 grams of heroin and 188 months in prison for firearms offenses, announced U.S. Attorney Gregory K. Davis. The sentences will be served concurrently.
Ammons distributed heroin on Earle Street in Jackson, Mississippi, to numerous residents of the Jackson Metro Area. At the time of his arrest, he was found in possession of over 100 grams of heroin and 11 firearms including pistols and assault rifles.
"Thanks to the dedication and hard work of several state and federal law enforcement agencies, another dangerous criminal has been brought to justice," said U.S. Attorney Gregory Davis. "The lethal combination of guns and drugs has no place in society. We will continue to seek out and prosecute those who bring drugs and guns into our Mississippi communities."
This case was investigated by the High Intensity Drug Trafficking Area Task Force headed by the Drug Enforcement Administration with the valuable assistance of the Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Deputy Criminal Chief Darren J. LaMarca.
Interpol: Islamic State Group Gains Support in Africa, AsiaRead the Press Release
United Nations (AP) -- A growing number of extremist groups from Africa to southeast Asia are shifting their allegiance to the Islamic State group, leading to greater risks for "cross-pollination" among conflicts beyond Syria and Iraq, the head of Interpol said Friday.
Jurgen Stock cited this shift as an emerging trend at a U.N. Security Council meeting along with changing travel methods being used by foreign fighters seeking to join groups like the Islamic State and al-Qaida.
Stock was a keynote speaker at a meeting attended by half a dozen ministers including U.S. Secretary of Homeland Security Jeh Johnson to assess progress in implementing a U.S.-sponsored resolution adopted last September requiring all countries to prevent the recruitment and transport of would-be foreign fighters preparing to join extremist groups.
Johnson said the United States will be developing a new passenger data-screening and analysis system within the next 12 months which will be made available to the international community at no cost for both commercial and government organizations to use.
In a report obtained by The Associated Press on April 1, the panel of experts monitoring U.N. sanctions against al-Qaida said the number of fighters leaving home to join al-Qaida and the Islamic State group in Iraq, Syria and other countries has spiked to more than 25,000 from over 100 nations. The panel said its analysis indicated the number of "foreign terrorist fighters" worldwide increased by 71 percent between mid-2014 and March 2015.
Secretary-General Ban Ki-moon said most are young men motivated by extremist ideologies but he called for an examination of the reasons why more women and girls are joining the groups as well. He said he plans to present a plan of action to prevent violent extremism to the General Assembly later this year.
Humane Law Enforcement Awards Presented for Georgia Dog Fighting CaseRead the Press Release
The Humane Society of the United States presented 2014 Humane Law Enforcement Awards to the federal, state, and local agencies responsible for a successful dogfighting case that resulted in the rescue of more than 140 dogs in Georgia. After a four-year long investigation, seven individuals have been prosecuted in connection to the “229 Boys Kennel Club, Inc.” who bred, purchased, sold, and trained American Pit Bull Terriers for the purpose of dogfight gambling.
A special awards ceremony took place June 2, 2015 at the United States Attorney’s Office in the Middle District of Georgia in honor of the cooperative agencies that brought the individuals to justice: the Georgia Bureau of Investigation, Sylvester and Americus Field Offices; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Department of Agriculture Office of Inspector General; the U.S. Marshals Service; and the Albany Police Department. Assistant United States Attorney Julia C. Bowen prosecuted the case on behalf of the Government.
“People who breed animals simply for the sport of killing them show a lack of conscience that is shocking,” United States Attorney Michael Moore said. “These people literally gamble in the flesh and blood of man’s best friend. My office will continue to dismantle any organization in Middle Georgia whose primary objective is to commit criminal conduct through such cruel methods.”
The Humane Society of the United States celebrates the work of law enforcement to crack down on animal fighting, puppy mills, the illegal wildlife trade, poaching, and other forms of cruelty and abuse. Humane Law Enforcement Award recipients exemplify the best of law enforcement in protecting animals from needless violence and harm.
“The Humane Society of the United States recognizes the hard work, dedication and strength of spirit it takes to investigate and prosecute animal cruelty,” said Chris Schindler, manager of animal fighting investigations for The HSUS. “We are grateful for all the agencies who take on these cases, and we are privileged to honor those who stand out among the rest. The agencies involved in bringing down a number of dogfighters in Georgia are commended for their efforts and success.”
Georgia-Based Millard Refrigerated Services to Pay $3 Million Civil Penalty for Ammonia Release That Sickened Workers Responding to Deepwater Horizon Oil SpillRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a final settlement with Millard Refrigerated Services that resolves alleged violations of the Clean Air Act, Emergency Planning and Community Right-to-Know Act and Comprehensive Environmental Response, Compensation, and Liability Act violations for an airborne release of ammonia from Millard’s Theodore, Alabama, facility in 2010. Millard will pay a $3 million penalty for the violations that sickened 152 people responding to the BP oil spill.
“The release of ammonia from Millard's facility created significant health problems,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “This settlement underscores how lapses in environmental management can have serious consequences, and today we are holding Millard accountable for this failure to ensure the safety of its workers and the surrounding community.”
“The Clean Air Act exists to protect all of us from preventable threats to our health and safety, such as what happened in this case,” said Keyon R. Brown, U.S. Attorney for the Southern District of Alabama. “On behalf of the citizens of our district, I commend the hard work of the EPA and the Department of Justice’s Environmental and Natural Resources Division in achieving such a significant settlement that vindicates these interests."
“EPA is serious about holding companies that threaten people’s health and safety accountable,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “It’s imperative that companies that use and store potentially-hazardous materials like ammonia ensure their operations do not pose a health risk to their employees or the public.”
On Aug. 23, 2010, the Millard Refrigerated Service warehouse in Theodore, Alabama, released approximately 32,000 pounds of anhydrous ammonia, to which exposure can be lethal, into the air after refrigeration equipment malfunctioned. The ammonia travelled directly over a site where more than 800 people were working on decontaminating ships responding to the Deepwater Horizon oil spill in the Gulf of Mexico. The Mobile, Alabama, Emergency Management Agency ordered an evacuation of the surrounding area and a one mile shelter in place situation following the ammonia release.
One hundred fifty-two people working at the site and on ships were treated for symptoms of ammonia exposure at hospitals in the Mobile area, four of whom were admitted into intensive care units. One Millard employee sustained injuries after briefly losing consciousness from ammonia inhalation.
During its investigation of the warehouse after the ammonia release, EPA discovered that Millard failed to adequately address a well-known risk for ammonia production systems called hydraulic shock, which can cause catastrophic equipment failures. These failures can lead to hazardous releases of anhydrous ammonia. The company’s failure to address this risk, in addition to other deficiencies in its production and safety systems, amounted to 37 distinct violations of the Clean Air Act’s Risk Management Program and General Duty Clause. These requirements compel companies that store or use potentially-hazardous substances like ammonia to identify the hazards posed by their operation, design and maintain a safe facility and minimize the consequences of any releases that might occur. The company’s failure to immediately report a release of anhydrous ammonia above the reportable quantity to the National Response Center amounted to one CERCLA violation. The company’s failure to immediately report a release of anhydrous ammonia to the local and state emergency planning commissions and to file a follow-up reports for two releases amounted to three EPCRA violations.
EPA also discovered that Millard had two prior smaller ammonia releases caused by hydraulic shock, which should have signaled a need to take steps to prevent a catastrophic release like the one that occurred at the Theodore warehouse. Millard sold the Theodore warehouse facility, which is no longer in operation.
The settlement was entered in the District Court in Mobile, Alabama.
To read the settlement, or for more information about the case, visit: www.justice.gov/enrd/consent-decrees
Four Individuals Indicted on Federal Charges Related to Tax Refund SchemeRead the Press Release
St. Louis, MO – Four individuals participated in a scheme to file false claims for federal tax refunds for tax years 2008 through 2011. The indictment alleges that 93 false federal income tax returns were filed by the defendants as part of a scheme which claimed approximately $335,297 in fraudulent refunds and which caused a loss to the United States government of $184,464.
"An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "The object of these schemes is to defraud the government and the taxpaying public."
ROMEL TOMLIN, with addresses in Grand Prairie, TX and Phoenix, AZ; TYRA TOMLIN, Phoenix, AZ; KEITH HEBB, St. Louis, MO; and JERMAINE IRONS, St. Louis, MO, were indicted by a federal grand jury Wednesday, February 18th. Each defendant was indicted on one felony count of conspiracy to commit wire fraud, three felony counts of theft of public money and four felony counts of aggravated identity theft. The indictment was suppressed until the arrest of all of the defendants. The last defendant to be arrested, Romel Tomlin, appeared for arraignment late Monday afternoon, in St. Louis.
If convicted, the wire fraud conspiracy count carries a maximum penalty of 20 years in prison and each of the theft counts carry a maximum of 10 years in prison. In addition, aggravated identity theft carries a two-year mandatory sentence of imprisonment consecutive to the other counts. All counts carry a fine up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Fort Myers Man Sentenced in Child Pornography Distribution CaseRead the Press Release
Fort Myers, Florida – United States District Judge John E. Steele today sentenced Warren Hamilton (59, Ft. Myers) to 10 years in federal prison for distributing and possessing child pornography. The Court also ordered him to pay a fine of $17,500, serve a life term of supervision, and register as a sex offender following his release from prison. He pleaded guilty on November 18, 2014.
According to court documents, Hamilton used Internet file sharing programs to distribute and receive child pornography. After a search warrant was executed at his residence, he was found to be in possession of approximately 345,000 child pornography images, including those of children involved in bondage. At the time of his arrest, Hamilton was employed as a computer technician in Ft. Myers.
"HSI continues to work relentlessly to protect the most vulnerable members of society, our children," said Susan L. McCormick, special agent in charge of Homeland Security Investigations (HSI) Tampa.
This case was investigated by the Florida Department of Law Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Real Estate Developer and Two Virginia Recruiters Plead Guilty on Eve of Trial to Mortgage Fraud SchemeRead the Press Release
BOSTON – A former realtor/developer and two out-of-state recruiters pleaded guilty yesterday to wire and bank fraud charges in connection with a multi-year, multi-property mortgage fraud scheme in Boston.
Michael David Scott, 51, of Mansfield, Mass., pleaded guilty to 32 counts of wire fraud, 13 counts of bank fraud, and 22 counts of money laundering; Jerrold Fowler, 31, and Thursa Raetz, 40, both of Norfolk, Va., pleaded guilty to two counts of wire fraud. U.S. District Court Judge Richard G. Stearns scheduled Scott’s sentencing for Aug. 26, 2015, and Fowler and Raetz’s sentencings for Sept. 2, 2015.
From September 2006 to April 2008, Scott, a former realtor and developer, arranged to purchase multi-family residences and then sold individual condominium units in the buildings to straw buyers recruited by him, Fowler and Raetz. The defendants fraudulently recruited straw buyers to purchase condominium units in Roxbury and Dorchester with promises that the buyers would not have to make down payments, pay any funds at the closing, or be responsible for mortgage payments, but would share in profits when the units were resold. To obtain mortgage loans in the names of the straw buyers, Scott, Fowler, and Raetz submitted mortgage loan applications that falsely represented key information, such as the buyers’ income, personal assets, down payment, and intention to reside in the condominiums. The mortgage lenders (nine national mortgage companies and one local bank) were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closings.
The charge of bank fraud provides a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million on each count. The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 on each count. The charge of money laundering provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Former Owner of Insurance Brokerage Agency Pleads Guilty to Stealing $10 Million from AetnaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BONNEY J. HEBERT, 59, of Killington, Vermont, waived her right to indictment and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to wire fraud and money laundering charges stemming from her theft of more than $10 million from Hartford-based Aetna Life Insurance Company.
According to court documents and statements made in court, HEBERT was the sole owner and president of Academic Risk Resources and Insurance, LLC (“ARRI”), a risk management and insurance brokerage agency based in Boston. ARRI’s business included brokering insurance contracts between health insurance providers and colleges or universities in order to provide health insurance for students and other individuals affiliated with the college or university. In July 2007, HEBERT and ARRI began serving as the broker for a student health insurance contract entered into between Aetna and Rutgers, the State University of New Jersey. The contract between Aetna and Rutgers provided that premiums would be paid by Rutgers to ARRI and then transmitted by ARRI to Aetna.
Between 2009 and 2012, HEBERT failed to pass along to Aetna $10,358,728 in premiums paid by Rutgers. She used the stolen funds on personal expenses and to cover the business expenses of ARRI.
HEBERT pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum term of imprisonment of 10 years. Judge Covello scheduled sentencing for August 27, 2015.
HEBERT disclosed her fraudulent scheme to Aetna representatives in June 2012. She subsequently sold ARRI to another business and directed that payments related to the sale be made directly to Aetna. Through these payments, HEBERT has repaid Aetna approximately $1.59 million. HEBERT also has not collected more than $900,000 in commissions owed to her by Aetna. As a result, HEBERT currently owes Aetna $7,846,305.45 in restitution.
This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Former Machesney Park Man Sentenced to 8 Months in Federal Prison for Concealment of Assets from A Bankruptcy TrusteeRead the Press Release
ROCKFORD — A former Machesney Park, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for concealing assets from a Bankruptcy Trustee. The defendant, ROBERT J. YONKEE, JR., 56, now of Lake Geneva, Wis., was sentenced to 8 months in federal prison, to be followed by 1 year of supervised release, and was ordered to a fine of $1,000.
In pleading guilty to the charge on Jan. 14, 2015, Yonkee admitted he filed a Chapter 7 Bankruptcy Petition on Sept. 15, 2008, and by signing a Declaration verified his Petition, all his Schedules, and a Statement of Financial Affairs under penalty of perjury. According to the written plea agreement, from Sept. 15, 2008 through at least May 8, 2009, Yonkee fraudulently concealed property from the bankruptcy trustee, including his ownership interest in: a business that sold auto parts, automobiles, and motorcycles; the United States Super Truck Racing Series; Bobby Yonkee Racing; as well as other inventory, merchandise, capital, vehicles, and motorcycles.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Former Executive Director of Choctaw Nation Sentenced to 144 Months, $577,000 Restitution for Theft, Money Laundering and Tax FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JASON BRENT MERIDA, age 40, of Ft. Towson, Oklahoma, and former Executive Director of Construction for the Choctaw Nation of Oklahoma was sentenced on June 1, 2015 to a total of 144 months in the Federal Bureau of Prisons (BOP) for the following crimes:
Count One: Conspiracy to Commit Theft or Bribery of Programs Receiving Federal Funds; Sentence – 60 months in BOP, 2 years supervised release (SR), $100 Special Assessment (SA)
Count Two: Theft by an Employee or Officer of a Tribal Government Receiving Federal Funds; Sentence – 120 months in BOP, 2 years SR, $100 SA
Count Three: Theft by an Employee or Officer of a Tribal Government Receiving Federal Funds; Sentence – 120 months in BOP, 2 years SR, $100 SA
Count Five: Conspiracy to Commit Money Laundering; Sentence – 24 months in BOP to run consecutively to Counts One, Two and Three, 2 years SR, $100 SA
Count Six: Tax Fraud; Sentence – 36 months in BOP, 1 year SR, $100 SA
Count Seven: Tax Fraud; Sentence – 36 months in BOP, 1 year SR, $100 SA
Merida was ordered to pay $545,000 in restitution to the Choctaw Nation of Oklahoma and $32,149 in restitution to the Internal Revenue Service. Merida was ordered to report to the Federal Bureau of Prisons no later than noon on July 13, 2015.
The charge arose from an investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). The defendant was indicted in February, 2014. The jury trial began with testimony on October 29, 2014 and concluded with closing arguments and jury deliberations on Thursday, November 20, 2014 with guilty verdicts.
The investigation of corruption at the Choctaw Nation of Oklahoma began in 2010. The primary allegations of this investigation focused on the payment of bribes from steel contractor, Builders Steel Corporation, to officials at the Choctaw Nation of Oklahoma and executives of Flintco, LLC. Flintco, LLC had been hired by the Choctaw Nation to oversee the construction of the Durant Casino and other major construction projects from 2008 through 2010.
Testimony at the trial established that Merida, the former Executive Director of Construction for the Choctaw Nation of Oklahoma, conspired to corruptly demand, solicit and receive cash, trips, a Cadillac Escalade, plumbing fixtures, cattle guards, and other things of value in excess of the $5,000 from subcontractors performing work on Choctaw Nation construction projects. The testimony also revealed Merida, in concert with others, submitted and approved false invoices from subcontractors allowing him to steal, embezzle and fraudulently convert in excess of $500,000 in funds from the Choctaw Nation of Oklahoma which were used to purchase items for Merida and others. The items included firearms, hunting equipment, hunting trips and furniture. Merida also willfully failed to report the proceeds of the fraud on his federal income taxes in 2009 and 2010.
Merida represents the eighth person to date to be convicted as part of this investigation and prosecution. Other defendants previously convicted and sentenced include:
1. Brent Alan Parsons – Brent Parsons, a former executive with Builders Steel Corporation was sentenced to 60 months in the Federal Bureau of Prisons on January 22, 2015. Brent Parsons was further ordered to pay $3,977,200.00 in restitution to the Choctaw Nation of Oklahoma.
2. Lauri Ann Parsons – Lauri Parsons, the former owner of Builders Steel Corporation was sentenced to 48 months in the Federal Bureau of Prisons. Lauri Parsons was further ordered to pay $3,535,498.24 in restitution to the Choctaw Nation of Oklahoma.
3. James Winfield Stewart – Stewart, a former executive with Scott Rice, LLC, Builders Steel Corporation and current owner of L& M Furniture was sentenced to 21 months in the Federal Bureau of Prisons on January 21, 2015. Stewart was further ordered to pay $345,000.00 in restitution to the Choctaw Nation of Oklahoma.
4. Cordell Alan Bugg – Bugg, a former executive with Flintco, LLC was sentenced to 3 years probation with 8 months home detention on January 23, 2015.
5. Robert DeWayne Gifford – Gifford, a former executive with Flintco, LLC was sentenced to 48 months in the Federal Bureau of Prisons on April 9, 2015. Gifford was further ordered to pay $345,000.00 in restitution to the Choctaw Nation of Oklahoma.
6. Jerry Mark Eshenroder – Eshenroder, a former executive with Flintco, LLC, was sentenced to 3 years probation on January 23, 2015.
7. Mark Allen Franklin – Franklin, a former executive with the Choctaw Nation of Oklahoma was sentenced to 3 years probation on February 3, 2015.
The United States Attorney for the Eastern District of Oklahoma, Mark Green, stated “The convictions of Mr. Merida and the other seven defendants are the result of a long and complicated investigation by a team of agents from the FBI and IRS. The investigation consumed hundreds of man hours and the agent’s dedication to the investigation was paramount in the successful prosecution of these individuals. The convictions and resulting sentences send a clear message to businessmen and tribal officials seeking to illegally profit at the expense of tribal members that their greed should not and will not be tolerated. My thanks go out to the investigators, the attorneys and staff who have made this prosecution successful!”
R. Damon Rowe, Special Agent-in-Charge for the IRS, stated “IRS Criminal Investigation stands by its commitment to ensure justice is brought to those who unlawfully abuse their positions of trust. The message in today’s sentencing remains clear: IRS will pursue and prosecute, to the fullest extent of the law, individuals who use corruption and coercion for personal gain. The victims in this case are not only the Citizens of the Choctaw Nation, but also the American Taxpayers who pay their fair share of taxes.”
James Finch, Special Agent-in-Charge for the FBI, stated “The FBI is committed to bringing to justice those entrusted to conduct government business, tribal or otherwise, who compromise that trust for their own personal gain. These sentences confirm there are consequences for individuals who misuse their position or seek to gain an unfair advantage with tribal government.”
The Honorable James H. Payne, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
First Assistant United States Attorney Doug Horn and Criminal Chief Chris Wilson represented the United States.
Former Buffalo Nurse Arrested and Charged with Stealing Pain Medications Intended for Patients from Local HospitalRead 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 Leyla Samadi, formerly of Buffalo, NY, was arrested and charged by criminal complaint with illegally obtaining controlled substances by fraud. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the complaint, between November 22, 2014 and January 7, 2015, the defendant tampered with pain medications Demerol and Hydromorphone while working as a registered nurse at Sisters of Charity Hospital in Buffalo.
The complaint states that Samadi, while working in her capacity as nurse, would log into a Pyxis machine which is used to automatically dispense liquid pain medications using her username and fingerprint scan. The defendant would identify the narcotic and patient it would be administered to. Samadi would remove the medication, take it to the patient, scan the patient’s wristband and scan the medication. But rather than administer the medication to the patient, the defendant would instead inject herself with the narcotic. Samadi then replaced the missing medication with saline solution and return it to the Pyxis machine. Once she returned the vile to the Pyxis machine, the defendant would cancel the transaction claiming that she had selected the wrong medication or the wrong patient.
Samadi was arrested this morning at her home in Germantown, Maryland. She will make an initial appearance today in the District of Maryland before being returned to the Western District of New York for prosecution.The complaint is the culmination of an investigation by the Food and Drug Administration, Office of Criminal Investigations, under the direction of Acting Special Agent in Charge Jeffrey Ebersole, the New York State Attorney General’s Office, under the direction of Eric T. Schneiderman, New York State Department of Health, Bureau of Narcotic Enforcement, under the direction of Joshua Vinciguerra, and the New York State Office of the Attorney General, Medicaid Fraud Control Unit, under the direction of Chief Upstate Investigator Upstate William Falk.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Five Involved in Failed Land Development of Luxury Homes Sentenced to PrisonRead the Press Release
ASHEVILLE, N.C. – Five of the eleven defendants charged in connection to a scheme involving the development of Seven Falls, a golf course and luxury residential community in Henderson County, N.C. were sentenced today, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); Jason Moran, Special Agent in Charge of the Federal Deposit Insurance Corporation (FDIC), Inspector General’s Office of Investigation, Atlanta office.
U.S. District Judge Martin Reidinger sentenced Avery Ted “Buck” Cashion, III, 61, of Lake Luke, N.C., to 36 months in prison, and three years of supervised release; Raymond M. “Ray” Chapman, 68, of Brevard, N.C., to 36 months in prison, and three years of supervised release; Thomas E. “Ted” Durham, Jr., former President of the failed Pisgah Community Bank, 60, of Fletcher, N.C., to 30 months in prison, and three years of supervised release; and Aaron Ollis, 68, a former licensed Real Estate Appraiser, of Arden, N.C., to two years of probation, including 12 months and 1 day home detention. Cashion, Chapman, Durham and Ollis each pleaded guilty to conspiracy to defraud the United States. The defendants were also ordered to pay restitution as follows:
Avery Ted “Buck” Cashion, III, $14,266,256.47
Raymond M. “Ray” Chapman, $14,266,256.47
Thomas E. “Ted” Durham, $ 6,237,453.37
Aaron Ollis, $10,199,106.87
George M. Gabler, age 60, of Fletcher, N.C., was convicted of one count of willfully failing to report misconduct associated with two Seven Falls lot loans in March 2010. In court documents, Gabler admitted that he withheld documents from a federal grand jury knowing that they were related to fraudulent loans taken out on behalf of conspirator Keith Vinson. For this offense, Gabler, a former Certified Public Accountant, was sentenced to two years of probation, including 500 hours of community service and a $5,000 fine.
Keith Vinson, was convicted at trial in October 2013 of conspiracy, bank fraud, wire fraud, and money laundering conspiracy. He is scheduled to be sentenced on June 25, 2015 in Asheville, N.C.
According to court documents filed in the case, trial evidence and statements made in court during the sentencing hearings:
Beginning in 2008, the defendants conspired and obtained money from several banks through a series of straw borrower transactions, in order to funnel monies to Vinson and his failing development of Seven Falls, a golf course and luxury residential community in Henderson County, N.C. A straw borrower is an individual whose name appears on a loan and on the books and records of a bank as the beneficiary of a loan, but whose name is substituted for that of the true borrower and does not in fact receive the benefits of the loan. Lending institutions cannot properly assess the risk of making such loans as they do not know the true circumstances of the loans or the creditworthiness of the true borrowers. The co-conspirators devised this scheme in order to funnel monies to Vinson and his failing development of Seven Falls.
In order to advance this scheme Vinson, Chapman, Cashion and others recruited local bank officials including George Gordon “Buddy” Greenwood and Ted Durham, who at the time were, respectively President of the Bank of Asheville and the President of Pisgah Community Bank. When bank officials realized that they had reached their legal lending limits with respect to some of the straw borrowers, additional straw borrowers were recruited to the scheme and more straw borrower loans were made to them. Additional straw borrower loans were also necessary to keep loans current, a scheme known as “loan kiting.” The loan kiting scheme became necessary when conspirators were unable to make payments on loans made early in the scheme. Seven Falls and another luxury residential golf development by Vinson named “Queens Gap” failed resulting in millions in property losses. In addition, both the Bank of Asheville and Pisgah Community Bank failed and were taken over by the FDIC.
Previously, Buddy Greenwood was sentenced to 42 months in prison; Nicholas Dimitris was sentenced to 12 months plus one day in prison; the former Pisgah Community Bank Chief Credit Officer, Robert Craig Gourlay was sentenced to 15 months in prison; David G. Smith, who worked as a loan officer for Pisgah Community Bank was sentenced to nine months in prison, and Andrew Hager was sentenced to eight months in prison in connection with the Seven Falls scheme.
The investigation was being jointly handled by the FBI, IRS-CI, and FDIC-OIG. Assistant U.S. Attorneys Don Gast and Michael Savage are in charge of the prosecution.
Fayetteville Man Sentenced to over 8 Years in Federal Prison for Felon in Possession of Firearm ViolationRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that James VanValkenberg, age 22, of Fayetteville, Arkansas, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of being a Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “This defendant, a convicted felon, was in possession of a loaded handgun and fleeing from law enforcement near a busy intersection when he was taken into custody. Felons in possession of firearms pose a serious threat of harm to police officers and citizens in our communities. Our office, along with our partners in law enforcement, will continue to investigate and aggressively prosecute these types of cases in order to keep communities throughout the Western District of Arkansas safe from senseless violence.”
According to court records, on November 5, 2014, patrol officers with the Fayetteville Police Department heard a vehicle collision and went to investigate. As the officers approached the scene, they observed VanValkenberg digging around inside of his vehicle. Once VanValkenberg saw the officers, he began walking away from the scene of the accident. Officers gave VanValkenberg repeated verbal commands to stop; however, VanValkenberg quickly fled from the officers and the accident scene. The officers pursued VanValkenberg on foot, and after tasing him twice, were able to catch and subdue him. Once the officers were able to take him into custody, VanValkenberg was found to be in possession of a loaded firearm, specifically a Beretta .25 caliber pistol. The Beretta in VanValkenberg’s possession was determined to have been manufactured outside the state of Arkansas. VanValkenberg has five prior felony convictions, and is therefore prohibited from possessing firearms. On February 4, 2015, VanValkenberg pleaded guilty to one count of being a Felon in Possession of a Firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Fayetteville Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Dominican Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –Ruberky Antonio Romero-Mejia, 37, of the Dominican Republic, pled guilty on May 29, 2015 to a one-count indictment charging him with illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith. As part of the United States Attorney’s Office for the District of New Hampshire’s fast track program, Romero-Mejia was sentenced to time served and immediately turned over to immigration officials for deportation. Romero-Mejia had been incarcerated since his arrest by immigration officials.
On February 11, 2015, the New Hampshire State Police contacted agents of the Department of Homeland Security concerning an individual who was trying to obtain a New Hampshire identification card under the name Joel Salome-Ortiz. Salome-Ortiz presented altered and inconsistent documents at the Salem office of the Department of Motor Vehicles in support of his attempt to obtain the identification card. Salome-Ortiz was interviewed by immigration officials and agreed to provide a set of digital fingerprints. The digital fingerprints did not match any individual in the DHS’s database and DHS agents noticed that Salome-Ortiz’s fingers appeared to have been scarred and the skin re-sewn. Salome-Ortiz was arrested by state officials on unsworn falsification and tampering with public records charges. The following day, DHS agents obtained a set of inked fingerprints from Salome-Ortiz and they were matched to Ruberky Antonio Romero-Mejia after analysis by DHS lab personnel who specialize in analyzing altered fingertips. Romero-Mejia had been previously deported in March 2010.
The case was investigated by the New Hampshire State Police and agents of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
Dias Kadyrbayev Sentenced to Six Years for Impeding the Boston Marathon Bombing InvestigationRead the Press Release
BOSTON – Dias Kadyrbayev, 21, a close friend of convicted Boston Marathon bomber, Dzhokhar Tsarnaev, was sentenced today to six years in prison for his role in retrieving, and later disposing of, evidence in the Boston Marathon bombing investigation, specifically Dzhokhar Tsarnaev’s backpack, containing fireworks and other items, as well as his role in concealing Tsarnaev’s laptop computer from law enforcement.Kadyrbayev previously pleaded guilty to conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation.
Kadyrbayev has agreed to be deported to Kazakhstan from the United States after serving his sentence. At the time of his arrest, Kadyrbayev was in the United States on a revoked student visa while attending the University of Massachusetts Dartmouth (UMass).
“The concealment and destruction of evidence can have profound effects on the course of an investigation,” said U.S. Attorney Carmen Ortiz. “Mr. Kadyrbayev knowingly concealed and disposed of critical evidence relating to the Boston Marathon bombing. He now faces the consequences of those actions – six years in federal prison, with deportation to follow.”
On the evening of April 18, 2013, after Kadyrbayev viewed images of the Boston Marathon bombers released to the public, he exchanged text messages with Dzhokhar Tsarnaev. Later that evening, Kadyrbayev, Azamat Tazhayakov and Robel Philipos entered Dzhokhar Tsarnaev’s dormitory room at UMass. Kadyrbayev removed Tsarnaev’s laptop and a backpack containing fireworks, a jar of Vaseline, and a thumb drive. The fireworks appeared to have been opened and manipulated, and some of the explosive powder appeared to have been removed.
After returning to their apartment on the evening of April 18, 2013, and during the morning of April 19, 2013, Kadyrbayev and Tazhayakov watched television news reports and read Internet news articles about the bombing investigation and the manhunt for the two Boston Marathon bombers, whom they believed were Dzhokhar and Tamerlan Tsarnaev. During the early morning hours of April 19, 2013, Kadyrbayev and Tazhayakov agreed that they should get rid of Tsarnaev’s backpack. Kadyrbayev placed the backpack and its contents, including the fireworks, into a large black trash bag and threw the entire bag into the garbage dumpster in his apartment complex. After discarding the backpack in the garbage, Kadyrbayev decided to keep Tsarnaev’s laptop computer and continued to conceal it. He did not attempt to return it to Tsarnaev’s dormitory room, nor did he notify law enforcement that he had Tsarnaev’s computer.
On April 26, 2013, after a two-day search, federal agents found Tsarnaev’s backpack in a New Bedford landfill. Although it was found, the condition of the backpack and its contents had been altered by the actions of Kadyrbayev and Tazhayakov.
In July 2014, Azamat Tazhayakov, 21, was found guilty by a federal jury in Boston of conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation. Sentencing is scheduled for June 5, 2015 at 9:00 a.m. Robel Phillipos, 21, was found guilty in October 2014 of two counts of making false statements to law enforcement in a terrorism investigation, and will also be sentenced on June 5th at 2:00 p.m.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI’s Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. Homeland Security Investigations in Boston, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service’s Criminal Investigations in Boston, provided assistance with this investigation.
The case was prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit.
Denver gang member indicted for being a felon in possession of a firearm and ammunitionRead the Press Release
DENVER – Ronald Odean Bryant, age 22, of Denver, Colorado, has been indicted on May 20, 2015 by a federal grand jury in Denver on charges of being a felon in possession of a firearm and being a felon in possession of ammunition, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division Special Agent in Charge Luke Franey announced. Prior to the indictment, Bryant was charged by Criminal Complaint on May 15, 2015. On May 29, 2015 the court ordered that both the original Complaint and the formal charging document, the indictment, be unsealed. The defendant is currently in state custody on unrelated charges. No date has yet been set for when Bryant will be brought to federal court for his initial appearance.
According to court documents, including the original affidavit in support of the Criminal Complaint, on May 11, 2015, at approximately 11:30 p.m. uniformed officers in a marked Denver Police Department patrol vehicle noticed a gold in color Range Rover, with severe damage, including a heavily damaged windshield, damage to the headlight/bumper area, with the turn signals not appearing to work. The break light on the driver’s side was not functioning either. The car was pulled over by the Denver Police patrol vehicle near the intersection of East Bruce Randolph and North York Street.
When the officers approached the car they observed a female driver, a male sitting in the front passenger seat, and two females in the back seat. Each individual provided their identification information. When the officers checked the information, they determined that one of the females, and the male, now identified as Bryant, provided false information. As officers approached the vehicle to discuss the false information the car started to move forward as if it was about to flee. The driver stopped the car after being ordered by an officer to stop. Bryant was then observed to have his hands in his lap, concealed by a leather jacket. He was asked to step out of the car. When he complied, he dropped a plastic baggie of what appeared to be narcotics. It was later determined that the baggie contained methamphetamine.
As Bryant was about to be frisked he fled on foot. Officers gave chase, but did not immediately capture him. The Denver Police Department established a perimeter, and summoned a Police K-9 to the scene. Once the K-9 arrived and the area within the perimeter was searched, Bryant was apprehended without incident. When searched subsequent to arrest a round of ammunition was found in Bryant’s pocket. An inventory search of the vehicle Bryant was in revealed a Ruger .22 caliber pistol loaded with 7 rounds of ammunition. This firearm was located under the rear seat. A small revolver was also located, loaded with one round, in a beer box in the vehicle. Additional investigation determined that one of the females in the vehicle had purchased the Ruger pistol for Bryant several days earlier.
On May 14, 2015, agents and officers reviewed Bryant’s criminal history. Anyone with a felony criminal conviction is prohibited by both federal and state law of possessing a firearm or ammunition. Bryant has been identified as a CMG Blood. He has a prior conviction in Denver District Court for possession of a Schedule II Controlled Substance. Bryant is currently on probation in that case.
Bryant has been charged with one count of being a felon in possession of firearm or ammunition, and one count of being a felon in possession of ammunition. If convicted, the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine on each of the two total counts.
“This case is an example of the close partnership between the Department of Justice, the ATF and the Denver Police Department to combat gun violence on our streets,” said U.S. Attorney John Walsh. “Working together with all levels of law enforcement and the community itself, we are making significant progress in those efforts, and will continue to move forward effectively.”
“ATF and our partners will continue to pursue felons who possess firearms and endanger members of the community,” said ATF Denver Division Special Agent in Charge Luke Franey.
Denver Police Chief Robert White said: “The significant arrest of an individual like Ronald Bryant goes a long way toward making our community safer and addressing violent crime. With zero tolerance for violent crime and a collaborative effort between law enforcement and the community, we can make communities safer and Denver a better place to live.”
This case was investigated by Denver Police Department and the ATF, as part of Project Safe Neighborhood, an initiative which includes the Denver, Aurora and Lakewood Police Departments working in concert with the ATF and the U.S. Attorney’s Office.
The defendant is being prosecuted by Assistant U.S. Attorney Peter McNeilly.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Denver Gang Member Indicted for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
DENVER – Ronald Odean Bryant, age 22, of Denver, Colorado, has been indicted on May 20, 2015 by a federal grand jury in Denver on charges of being a felon in possession of a firearm and being a felon in possession of ammunition, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division Special Agent in Charge Luke Franey announced. Prior to the indictment, Bryant was charged by Criminal Complaint on May 15, 2015. On May 29, 2015 the court ordered that both the original Complaint and the formal charging document, the indictment, be unsealed. The defendant is currently in state custody on unrelated charges. No date has yet been set for when Bryant will be brought to federal court for his initial appearance.
According to court documents, including the original affidavit in support of the Criminal Complaint, on May 11, 2015, at approximately 11:30 p.m. uniformed officers in a marked Denver Police Department patrol vehicle noticed a gold in color Range Rover, with severe damage, including a heavily damaged windshield, damage to the headlight/bumper area, with the turn signals not appearing to work. The break light on the driver’s side was not functioning either. The car was pulled over by the Denver Police patrol vehicle near the intersection of East Bruce Randolph and North York Street.
When the officers approached the car they observed a female driver, a male sitting in the front passenger seat, and two females in the back seat. Each individual provided their identification information. When the officers checked the information, they determined that one of the females, and the male, now identified as Bryant, provided false information. As officers approached the vehicle to discuss the false information the car started to move forward as if it was about to flee. The driver stopped the car after being ordered by an officer to stop. Bryant was then observed to have his hands in his lap, concealed by a leather jacket. He was asked to step out of the car. When he complied, he dropped a plastic baggie of what appeared to be narcotics. It was later determined that the baggie contained methamphetamine.
As Bryant was about to be frisked he fled on foot. Officers gave chase, but did not immediately capture him. The Denver Police Department established a perimeter, and summoned a Police K-9 to the scene. Once the K-9 arrived and the area within the perimeter was searched, Bryant was apprehended without incident. When searched subsequent to arrest a round of ammunition was found in Bryant’s pocket. An inventory search of the vehicle Bryant was in revealed a Ruger .22 caliber pistol loaded with 7 rounds of ammunition. This firearm was located under the rear seat. A small revolver was also located, loaded with one round, in a beer box in the vehicle. Additional investigation determined that one of the females in the vehicle had purchased the Ruger pistol for Bryant several days earlier.
On May 14, 2015, agents and officers reviewed Bryant’s criminal history. Anyone with a felony criminal conviction is prohibited by both federal and state law of possessing a firearm or ammunition. Bryant has been identified as a CMG Blood. He has a prior conviction in Denver District Court for possession of a Schedule II Controlled Substance. Bryant is currently on probation in that case.
Bryant has been charged with one count of being a felon in possession of firearm or ammunition, and one count of being a felon in possession of ammunition. If convicted, the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine on each of the two total counts.
“This case is an example of the close partnership between the Department of Justice, the ATF and the Denver Police Department to combat gun violence on our streets,” said U.S. Attorney John Walsh. “Working together with all levels of law enforcement and the community itself, we are making significant progress in those efforts, and will continue to move forward effectively.”
“ATF and our partners will continue to pursue felons who possess firearms and endanger members of the community,” said ATF Denver Division Special Agent in Charge Luke Franey.
Denver Police Chief Robert White said: “The significant arrest of an individual like Ronald Bryant goes a long way toward making our community safer and addressing violent crime. With zero tolerance for violent crime and a collaborative effort between law enforcement and the community, we can make communities safer and Denver a better place to live.”
This case was investigated by Denver Police Department and the ATF, as part of Project Safe Neighborhood, an initiative which includes the Denver, Aurora and Lakewood Police Departments working in concert with the ATF and the U.S. Attorney’s Office.
The defendant is being prosecuted by Assistant U.S. Attorney Peter McNeilly.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Day Trading Broker Steals More Than $6 Million from Investors in Long Running Ponzi SchemeRead the Press Release
SAN DIEGO – Stock broker Sunil Sharma of Carlsbad pleaded guilty in federal court today, admitting that he stole more than $6 million from local investors by falsely claiming their funds were safe through conservative investments when, in reality, he was pursuing a risky day trading strategy that ultimately turned into a massive Ponzi scheme.
According to his plea agreement, Sharma covered up the massive losses by continuing to falsely tell investors that their investments were doing well. He would send his investors monthly or quarterly statements that falsely reflected that their investments were generating the promised returns. Sharma admitted that even while reassuring investors, he diverted approximately $2.5 million in investor funds for his own personal use, including: (1) approximately $700,000 towards the down payment of a $2 million home off Artesian Road in San Diego; (2) approximately $12,000 for a cruise in the Mediterranean; and (3) for leasing a Mercedes SL and a BMW.
As revealed in court documents, Sharma was a Series 7 licensed broker, who had worked for Merrill Lynch, AG Edwards, and as an independent broker for Raymond James. In 2000, Sharma moved to San Diego where he continued to practice as an independent broker. Due to the market crash that followed September 11, 2001, Sharma and his clients lost a substantial amount of money. As a result, Sharma voluntarily gave up his license to act as a securities broker.
After relinquishing his broker’s license, Sharma began to work in the insurance industry. In 2002, Sharma sold insurance from his business in Rancho Bernardo. He also began teaching seminars highlighting various types of insurance and annuities which could be purchased by his clients.
In 2007, Sharma attended an “Investools” workshop that convinced him that he could make money trading stock options in a conservative manner. After attending the workshop, he set up Gold Coast Holding, LLC (“Gold Coast”) as a vehicle to trade options. Sharma initially funded Gold Coast with approximately $50,000 of his own money that he had made selling insurance. Utilizing a bull and bear spread analysis, Sharma experienced “beginners luck” and began generating profits of more than 10% on his investment by late 2007.
Due to the fact that his insurance clients were making very little money on their personal investments due to low interest rates, Sharma believed that they could make a better return (somewhere in the “neighborhood” of 5%-6%) if he could “day trade” their money and “pocket the difference.” Recognizing that his insurance customers would not have given him money for this venture, he lied to them and falsely stated that Gold Coast was an extremely safe way to earn a monthly retirement income because their money was to be: (1) part of a diversified portfolio; (2) pooled with many other investors; (3) used to buy bonds from emerging markets in Brazil, Russia, India, and China (“BRIC”); and (4) managed by Goldman Sachs. Sharma guaranteed investors a rate of return (typically between 6%-7%) for two to three years and urged his clients to liquidate their retirement accounts and annuities based upon the safety of his investment scheme.
Although Sharma initially planned on buying BRIC bonds with half the investor funds and day trading with the other half, he never in fact purchased BRIC or any other type of bonds. Instead, Gold Coast Holding (and later a second company he established, Safe Harbor Tax Lien Acquisitions) day traded options using TDAmeritrade’s “thinkorswim” trading platform. Between January 2008 and November 2014, Sharma raised $8.36 million from 32 different clients using these two companies. In order to attract new investors, Sharma paid $2.12 million in “returns” to old clients from funds generally derived from the contribution of later investors. For example, of the approximately $3.5 million raised from investors in the first two years of day trading, Sharma – despite some early successes – was left with only about $250,000 by the end of 2009. As a result, Sharma turned Gold Coast into a classic “Ponzi scheme” by paying earlier investors their guaranteed rates of return with approximately $5 million in new funds solicited from later investors.
Prior to the investment scheme collapsing completely, Sharma stopped trading option spreads and switched over to purchasing straight “call” and “put” options. It was Sharma’s hope that adopting this new strategy would allow him to recoup all of his investment losses. Once again, however, Sharma’s strategy proved disastrous. Although he was able to make his December 2014 monthly payout to investors, he ran out of funds in January 2015.
United States Attorney Laura E. Duffy acknowledged that this Ponzi scheme was a bit harder to detect than usual as Sharma did not promise his investors outlandish returns. Nevertheless, she warned all investors to ensure that individuals soliciting money have appropriate licenses and audited financial statements. “All investors – especially when they are dealing with their retirement savings – must exercise due caution before turning over money even to long-time friends or else what appears to be a safe harbor might turn into a ship wreck.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Mr. Sharma's short term gains have resulted in long term losses for his victims. This case serves as a reminder to ask questions and conduct your own due diligence before investing your hard earned money with any broker or investment fund.” The defendant is scheduled to be sentenced by U.S. District Judge John A. Houston on August 24, 2015 at 8:30 a.m.
DEFENDANTS Case Number: 15cr1396 Sunil Sharma Age: 68 Carlsbad, California CHARGESWire Fraud, in violation of 18 U.S.C. § 1343.
INVESTIGATING AGENCIES
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, restitution.Federal Bureau of Investigation
Cuero Man Gets Max Sentence for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – George Deleon, 65, of Cuero, has been sentenced for possession of child pornography, announced U.S. Attorney Kenneth Magidson. He pleaded guilty March 2, 2015.
Late yesterday, he received a sentence of 120 months in federal prison, the statutory maximum, to be immediately followed by 15 years of supervised release.
On May 1, 2013, authorities learned of an allegation of sexual assault involving Deleon and a child victim. Deleon admitted to sexually assaulting the victim, at which time authorities received consent from Deleon to search his cellular telephone. A forensic examination of that phone led to the discovery of 96 images of children involved in sexual explicit conduct.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Deleon was the result of an investigation conducted by Homeland Security Investigations and Cuero Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Conspirators Indicted for Fraudulently Obtaining $1 Million in Vehicle LoansRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted the following defendants on charges arising from a bank fraud scheme:
Brian Edward Diggs, a/k/a “Bryan Diggs” and “Big Poppa,” age 43, of Brandywine, Maryland; Patricia Yvonne Diggs, a/k/a “Patricia Yvonne Johnson,” and “Patricia Yvonne Holmes,” age 48, of Brandywine Maryland; Rechelle Deborjah Fowler, a/k/a “Rechelle Fowler-Jones,” and “Daisy Fowler,” age 45, of Waldorf, Maryland; Brian Dominique Wilson, age 23, of Brandywine; Robert Anthony Fitzgerald Lathan, age 37, of Accokeek, Maryland; and
Derrick Kwan Byas, Jr., age 26, of Baltimore.The indictment was returned on April 29, 2015 and partially unsealed today upon the arrests of four defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
“The defendants allegedly submitted fake documents and false information to obtain car loans, defrauding lenders of more than $1 million,” said U.S. Attorney Rod J. Rosenstein. “The defendants also allegedly agreed to sell vehicles to other people and took their money but did not provide the cars. The charge of ‘aggravated identity theft” – using someone else’s identity to commit a crime – carries a mandatory sentence of two years in federal prison, in addition to the penalty for the fraud offense.”
Brian Diggs owned Big Boi Auto Sales LLC, Showcase Auto Sales, Inc., Car Wiz, Inc. and Auto Dupo of Waldorf LLC. Robert Lathan owned Total Computer Solutions, Inc.
According to the two count indictment, from January 2009 to April 29, 2015, the defendants and others created shell entities purporting to be legitimate businesses, including the businesses identified above. The defendants applied for vehicle loans with financial institutions and lenders using false information as to employment history at the shell entities, addresses, dates of birth and social security numbers. They created and submitted fake documents, such as lien releases, utility bills, paystubs, letters of recommendation and a police report. The defendants often applied for vehicle loans on the same vehicle with different lenders. They sold the vehicles, obtained money from the sales and then did not provide the vehicles to the buyers. They deposited the loan funds into bank accounts and cashed loan checks at liquor stores. The defendants failed to pay the vehicle loans, which often resulted in the vehicles being repossessed by the lenders.
As a result of the scheme, the lenders lost over $1 million.
The defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence. An initial appearance was held today for Fowler, Wilson and Lathan in U.S. District Court in Greenbelt and they were released under the supervision of U.S. Pretrial Services. Patricia Diggs also had an initial appearance today and was detained pending a detention hearing on Thursday, June 4, 2015. Byas remains detained on state charges. Brian Diggs is expected to have an initial appearance on June 3, 2015.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.
Clarks Green Woman Charged with Two Bank RobberiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lisa Alexis Jury, age 47, of Clarks Green, Pennsylvania, has been indicted by a federal grand jury in Scranton on charges of armed bank robbery.
Lisa Alexis Jury was charged with the robbery of:
Peoples Bank, Clarks Summit, Pennsylvania, on October 30, 2014;
P&G Federal Credit Union, Eynon, Pennsylvania, on May 19, 2015.
According to U.S. Attorney Peter Smith, the robberies were investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, with the assistance of the South Abington Township Police Department and the Archbald Police.
The maximum penalty under the federal statute for each count of armed bank robbery is 25 years’ imprisonment. Jury also faces a term of supervised release following imprisonment, and a fine if convicted. She is in custody.
Prosecution of this case is assigned to Assistant U.S. Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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