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Wednesday 15 April 2015
Two Men Each Sentenced to 130 Months in Prison for Their Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. –Two Essex County, New Jersey, men were each sentenced to 130 months in prison for robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Lavell Jones, 29, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of Hobbs Act robbery. Darrell A. Carter, 25, or Irvington, New Jersey, previously pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Judge Thompson imposed both sentences in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2012, Jones, Carter, DaQuaan Vaughn, 36, of Newark, New Jersey, and Maryland Liggins III, 30, of Newark, robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
In addition to the prison term, Judge Thompson sentenced Jones to three years of supervised release and Carter to five years of supervised release; both were ordered to pay $54,000 in restitution to Target. All of the defendants have the same restitution obligation until the full $54,000 is satisfied.
Vaughn and Liggins have also pleaded guilty to their roles in the robbery and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel:
Carter: Peter Carter Esq., Newark
Jones: Richie Roberts Esq., Newark
Two Individuals Sentenced on Marijuana ChargesRead 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 Charles Palmer, Jr., 31, of Buffalo, NY, who was convicted of possession with intent to distribute, and to distribute, marijuana, was sentenced to one year probation by Senior U. S. District Judge William M. Skretny.
Co-defendant Aleathea Stone, 43, of Buffalo, who was convicted of possession of marijuana, was sentenced to time served and one year supervised release, also by Judge Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between January 2011 and June 2011, Charles Palmer, Jr. conspired with his father, co-defendant Charles Palmer, Sr., to possess and distribute marijuana. The investigation utilized a court authorized wiretap which included multiple phone calls regarding the distribution of marijuana between Charles Palmer, Jr. and Charles Palmer, Sr.
On March 1, 2011, Aleathea Stone received 15 pounds of marijuana from Charles Palmer, Sr. and gave it to another individual.
Charles Palmer, Sr. was also convicted and is scheduled to be sentenced April 22, 2015.
The sentencings are the culmination of an investigation by the Federal Bureau of Investigation.
Two Fairfax Men Charged with Causing Amtrak Train CollisionRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles today announced the indictment and arrest of James Duvall Love, 33, and Deon Dovell Roberts, 34, for conspiracy to commit mail and wire fraud, causing a train wreck, and unlawful interference with a train operator. The Indictment was returned by a Grand Jury sitting in Columbia but was sealed pending the arrests of the defendants, which occurred earlier today. The Indictment alleges that on the early morning hours of September 6, 2013, the two men parked a car in the path of an oncoming Amtrak train, got out of the car prior to the collision, and then returned to the car after the collision, feigning injury, all for the purpose of submitting bogus claims for personal injuries and other losses.
Love, a convicted felon, was also charged in a separate Indictment with unlawful possession of a shotgun and live shells.
The case was investigated by Special Agents with the Federal Bureau of Investigation, Amtrak Office of Inspector General, Bureau of Alcohol, Tobacco and Firearms, the Fairfax Police Department, and the Allendale County Sheriff’s Department. Amtrak Inspector General Tom Howard emphasized that: “The safety of the American railroad system is among the highest priorities of the country’s law enforcement agencies. Those who would seek to interfere with the well-being of Amtrak’s passengers and the commerce of the railroads will be held accountable to the greatest extent allowed under the law.”
Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Two Detroit Women Sentenced for Filing False Tax Returns Using Identities of Dead PeopleRead the Press Release
Two Detroit residents were sentenced yesterday after pleading guilty to charges of wire fraud and aiding and abetting in identity theft, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Acting Special Agent in Charge Jarod Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) announced today.
U.S. District Court Judge Avern Cohn of the Eastern District of Michigan sentenced Brenda Knight to serve 24 months in prison and Adreann Turnage to serve 18 months in prison. Willie Watkins, Knight’s husband, was sentenced on April 29, 2014, to serve 30 months in prison and ordered to pay $410,949 in restitution for wire fraud and identity theft.
“The Tax Division has zero tolerance for stealing the identities of the deceased and other vulnerable members of our communities,” said Acting Assistant Attorney General Ciraolo. “The individuals perpetrating these egregious tax crimes will be identified, their criminal operations will be dismantled and they will be prosecuted and punished to the fullest extent of the law.”
According to court records, Knight and Turnage participated in a scheme with Watkins and others to defraud the United States by using the stolen names and social security numbers of recently deceased individuals to prepare fraudulent income tax returns. The defendants electronically filed more than 700 fraudulent 2010 tax returns falsely claiming the Earned Income Credit, Education Credits and the Making America Work Credit, resulting in refund claims of more than $1.8 million. The returns were transmitted utilizing public access internet connections from various locations including Starbucks and Red Roof Inns. A Comcast Communications account registered to Turnage transmitted 46 fraudulent returns. The refunds were directed to bank accounts, many of which were controlled by Watkins, established for the sole purpose of receiving the refunds. Knight helped recruit individuals to whom Watkins would issue checks written on the accounts, cash them and bring the proceeds back to Watkins for distribution to participants in the scheme.
“Using the identities of deceased individuals to commit crimes for financial gain is particularly egregious,” said Acting Special Agent in Charge Koopman. “Identity theft is a top priority for the IRS-Criminal Investigation and we will continue to detect and investigate these types of cases in order to protect taxpayers from being victimized.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney McQuade thanked the special agents of IRS-CI, who investigated the case, and Assistant U.S. Attorney Ross I. MacKenzie of the Eastern District of Michigan and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case.
Trio of Lynchburg Women Indicted on Federal Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – Three local women are facing federal fraud charges following a grand jury indictment that charges them with mail fraud, wire fraud, student loan fraud, and other charges.
A federal grand jury sitting in Roanoke, Va. has charged Melinda Smith, 42, Catherine Pankey, 61 and Vernetta Johnson, 40, all of Lynchburg, Va., in connection with an alleged scheme to defraud insurance companies and the federal student loan program. Smith has been charged with one count of conspiracy to commit mail and wire fraud, 23 counts of student loan fraud, eight counts of mail fraud, four counts of wire fraud and four counts of aggravated identity theft. Pankey has been charged with one count of conspiracy to commit mail and wire fraud and four counts of student loan fraud. Johnson has been charged with one count of conspiracy to commit mail and wire fraud, nine counts of student loan fraud and eight counts of mail fraud.
According to the indictment, between 2011 and 2014, Smith, Pankey and Johnson allegedly engaged in a scheme to submit Free Applications for Federal Student Aid (FAFSA) in order to get Federal Student Aid (FSA) credit refunds for online classes for the purpose of obtaining money to which they were not entitled. It is alleged that as part of the scheme, Smith completed coursework for certain classes, which she at times shared with others, including Pankey, in order to complete a sufficient amount of courses to maintain enrollment. While enrolled at Liberty University, the indictment alleges that Smith helped Pankey with coursework in exchange for a portion of Pankey’s FSA credit refund.
To further support the scheme, Smith and Johnson allegedly submitted false insurance claims for car accidents that did not occur. In addition, Smith and Pankey submitted a false temporary rental agreement to obtain rental reimbursement in connection with a fire.
The indictment also alleges that Smith committed aggregated identity theft by submitting FAFSA forms and obtaining FSA credit refunds in the names of three other individuals without lawful authority.
As a result of these actions, Pankey was reimbursed for losses from a house fire in excess of the amount to which she was entitled; Smith and Johnson were reimbursed for losses caused by car accident that did not occur; and, all three, Smith, Pankey and Johnson, received Higher One debit cards containing credit refunds to which they were not entitled for online classes in which they never intended to participate.
If convicted, each defendant faces a maximum possible penalty of up to 20 years in prison on the conspiracy to commit mail and wire fraud charges, up to 20 years on each of the wire fraud charges, up to 20 years on each of the mail fraud charges and up to five years on each of the student loan fraud charges. Smith faces an additional consecutive term of two years imprisonment on each count of aggravated identity theft. Each charge in the indictment also carries significant fines and a period of supervised release. Restitution to the victims is mandatory in the event of conviction.
The investigation of the case was conducted by the United States Department of Education- Office of the Inspector General, the United States Secret Service, the Virginia State Police, the Campbell County Sheriff’s Office and the Lynchburg Police Department. Assistant United States Attorney Jennifer R. Bockhorst will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Three Individuals Charged in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has indicted Chad Weishan, 28, Jessica Kazmark, 26, both of Buffalo, NY, and Julie Reed, 41, of Houston, TX on charges of conspiracy to possess with intent to distribute, and to distribute fentanyl and oxycodone, and carisoprodol (Soma) and alprazolam (Xanax). The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment, Weishan and Kazmark obtained prescription medications Reed in Salamanca, NY. In exchange for a cut of the prescriptions, the defendants picked up the drugs, and shipped the partial scripts to Reed in Houston. On at least two occasions, the partial prescription medications were shipped to Reed at the Federal Public Defender’s Office in Houston where she was employed. Julie Reed has not yet been taken into custody but efforts continue.
“This is the second prosecution by our Office today which seeks to combat the growing problem of illegal prescription drug abuse in our area,” said U.S. Attorney Hochul.
Weishan and Kazmark made an initial appearance on April 14, 2015 before U.S. Magistrate Judge Hugh B. Scott and were released on conditions.
The criminal complaint is the culmination of an investigation by the Buffalo and Houston Offices of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Bureau of Indian Affairs, Office of Justice Services, Division of Drug Enforcement, under the direction of Director Darren Cruzan, and the Salamanca Police Department, under the direction of Chief Troy Westfall.
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.
Ten Chicago Area People Indicted on Charges of Trafficking Contraband CigarettesRead the Press Release
St. Louis, MO – An indictment was unsealed late yesterday charging the following ten Chicago people involving a conspiracy to buy State of Missouri tax stamped cigarettes and transporting them to Illinois for resale.
According to the indictment, between October 2012 and April 2015, the defendants purchased large amounts of State of Missouri tax stamped cigarettes in the St. Louis, Missouri area, from either a confidential informant or retail business, which they then transported to the Chicago area for resale. The indictment alleges that they then sold the contraband cigarettes themselves or to local distributors. The defendant’s made a profit at the expense of millions of dollars of lost tax revenue for the State of Illinois.
Individuals indicted:
- Mohamad Awadallah
- Khalid Alazzah
- Ibrahim Moghli
- Baraa Awwad
- Wisam Zeidan
- Ahmad Zayed
- Raad Hamdeh
- Suhaib Awwad
- Muath Salah
- Yazan Alsala Ymeh
Each defendant was indicted by a federal grand jury April 8th on one felony count of conspiracy to traffic in contraband cigarettes. The indictment was suppressed until the arrest of some of the defendants Tuesday. They are expected to appear in court Monday, April 20, 2015.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney John Ware 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.
TDCJ Inmate Sentenced to Federal Prison for Threatening Federal JudgeRead the Press Release
HOUSTON - George Yarbrough, 43, a former resident of Houston, has been ordered to federal prison following his conviction of mailing a threatening communication, announced U.S. Attorney Kenneth Magidson.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Yarbrough a 21-month sentence. Yarbrough’s sentence was ordered to being after he finishes serving his current sentence in the Texas Department of Criminal Justice (TDCJ).
As part of his plea, Yarbrough admitted that on or about Sept. 26, 2014, he knowingly mailed a communication threatening to kill a specific federal judge in Houston. The communication was received at the Bob Casey U.S. Courthouse at 515 Rusk St. in Houston and had a return address implicating Yarbrough, who was an inmate serving a sentence within TDCJ.
In the letter, Yarbrough warned the judge that he intended to kill him as soon as he got out of TDCJ. Yarbrough claimed the judge had ruined Yarbrough’s life and that he had lost of his loved ones. Yarbrough repeated the threat throughout the letter with a final note that “…I’m coming to get you and your family!”
Yarbrough was interviewed on two occasions and never denied sending the letter.
Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier.
He will be returned to state custody. Upon his release from state custody he will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future. Yarbrough was also ordered to serve a three-year term of supervised release upon his release from federal prison, during which he will participate in mental health counseling.
The FBI, U.S. Marshals Service and the TDCJ-Office of Inspector General investigated the case which is being prosecuted by Assistant U.S. Attorney Mel Pechacek.
Spiro Man Sentenced to 262 Months for Drug Conspiracy, Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BILLY DON FULLER, age 48, of Spiro, Oklahoma, was sentenced to 262 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846 and Possession With Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2.
The charge is a result of an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March, 2014 and pled guilty in July, 2014.
The Indictment alleged that from in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, in the Eastern District of Oklahoma, and elsewhere, BILLY DON FULLER, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
South Jersey Man and South Carolina Woman Admit Roles in Conspiracy to Traffic 25 GunsRead the Press Release
CAMDEN, N.J. – A South Jersey man and a woman from South Carolina have admitted their roles in a conspiracy to sell 25 guns without a license, U.S. Attorney Paul J. Fishman announced today.
Shawn Tribbett, 32, of Camden, pleaded guilty to an information charging him with one count of conspiring to deal firearms without a license, two counts of possession of a firearm by a previously convicted felon and one count of distribution and possession with intent to distribute cocaine. Katelynn Schippnick, 25, of Greeley, South Carolina, pleaded guilty to a separate information charging her with one count of conspiring to deal firearms without a license. Both defendants entered their pleas before U.S. District Judge Renée Marie Bumb in Camden federal court.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 2014, both Tribbett and Schippnick conspired with others to illegally sell firearms without a license, including handguns, shotguns and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Tribbett personally sold or participated in the sale of at least six firearms, including handguns, shotguns and an assault-style rifle, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Schippnick assisted in the sale of at least five firearms, including handguns and a shotgun, also to an ATF cooperating witness. On at least one occasion, Tribbett and sold ammunition with the firearms.
In addition to the firearms conspiracy, Tribbett admitted that on several occasions he sold cocaine and oxycodone pills to a witness cooperating with the ATF.
The conspiracy charge to which Tribbett and Schippnick pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charges to which Tribbett pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The distribution of cocaine charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for both defendants is scheduled for July 23, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to the guilty pleas. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel:
Tribbett: Brian O’Malley Esq., Haddon Heights, New Jersey
Schippnick: Martin Isenberg Esq., Gibbsboro, New Jersey
Somerset Man Sentenced to 10 Years in Prison for Distributing MethRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident has been sentenced in federal court to 120 months in prison and five years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Justin D. Carr, 23, of Somerset, Pa.
According to information presented to the court, on Jan. 14, 2013, Carr and a co-defendant possessed with the intent to distribute five hundred (500) grams or more of methamphetamine.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania State Police Troop A Barracks, the Somerset Borough Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Carr.
Second Man Involved in March 2014 Heroin Overdoses SentencedRead the Press Release
HARRISONBURG, VIRGINIA – A Cross Junction, Virginia man, who was responsible for selling heroin that caused the same man to overdose twice in seven days in March 2014, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Colin Patrick Butler, 30, of Cross Junction, Va., previously pled guilty to two counts of distribution of heroin. Today in District Court, Butler was sentenced to 150 months of federal incarceration and three years of supervised released after that. David Josueh Medina, 34, the man who sold the heroin to Butler before the first overdose, was previously sentenced to 14 years in federal prison for his role in the heroin overdoses.
“Heroin continues to pose a real and substantial danger to many communities throughout Virginia,” Acting United States Attorney Anthony P. Giorno said today. “I commend our law enforcement partners in the Northwest Region of the Western District who have made significant progress in identifying and interdicting organizations and individuals who are profiting from heroin trafficking. We will continue to fight this epidemic with the combination of enforcement, education and prevention.”
According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, on March 15, 2014, Medina sold heroin to Butler. In turn, Butler then distributed that same heroin to a friend, J.H.H. The friend was injected with the heroin and overdosed inside a residence in Winchester, Va. Butler, and another resident at the home, attempted CPR on J.H.H. and soon called 911. Emergency medical personnel and law enforcement personnel responded to the scene, and after taking life-saving measures, administered Narcan to J.H.H., who ultimately survived the overdose.
One week later, on March 21, 2014, Butler again distributed heroin to J.H.H. and again J.H.H. suffered an overdose. Again, 911 was called and emergency personnel administered life-saving measures and Narcan to J.H.H. and were able to save J.H.H.’s life.
During both overdoses, Butler disposed of and cleaned up evidence of drug use after J.H.H. collapsed.
The investigation of this case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Elizabeth Wright prosecuted the case for the United States.
Rochester Man Charged with Possession and Distribution of Synthetic CannabinoidsRead 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 Mohammed W. Akram, 27, of Rochester, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of, controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that according to the complaint, between January 22, 2015 and April 14, 2015, the defendant sold synthetic cannabinoids out of Best in the West, a store he operated on Jay St. in Rochester.
Following multiple undercover purchases over a period of time, Akram was stopped by law enforcement officers on April 14, 2015, as he was headed to Buffalo from Rochester. During a search of the defendant’s vehicle on the I390, officers recovered three gallons of suspected liquid synthetic cannabinoids.
Subsequently, search warrants were executed at the defendant’s store and residence above the store. During the search, officers found additional synthetic cannabinoids, both liquid form (approximately 850 small bottles) and “spice” form (approximately 2000 packets).
“The public, from parents to police, need to be aware that these synthetic drugs are now being put into electronic cigarettes and ingested, said U.S. Attorney Hochul. “And like all illegal drugs, these substances can pose a serious danger to those who abuse them.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on April 16, 2015 at 2:30 p.m.
The complaint is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, New York, New York Field Division, and the New York State Police, under the direction of Major Craig Hanesworth.
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.
Rochester Man Arrested in Louisiana on Bank Robbery ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Ricky Knox, 28, of Rochester, NY, was arrested in Louisiana and charged by criminal complaint with bank robbery. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that according to the complaint, on April 10, 2015, the defendant robbed the Chase Bank on Rochester Street in Scottsville, NY. The defendant approached the teller window and demanded the teller “put 50’s and 100’s up on the counter.” Knox also told the teller to hurry. The defendant fled on foot with a specific amount of money.
The defendant was arrested on April 14, 2015 in Baton Rouge, Louisiana and will be returned to the Western District of New York at a later date.
The criminal complaint is the culmination of an investigation by the Rochester Office of the Federal Bureau of Investigation.
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.
Ringling Man Sentenced to 37 Months for Illegal Receipt of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CODY BRANSON BARNES, age 22, of Ringling, Oklahoma, was sentenced to 37 months imprisonment and 3 years supervised release for Illegal Receipt of a Firearm by a Person Under Felony Indictment or Information, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D).
The charge arose from an investigation by the Ardmore Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in July, 2014 and pled guilty in October, 2014.
The Indictment alleged that on or about January 31, 2014, within the Eastern District of Oklahoma, the defendant, who was then under indictment and information for a crime punishable by imprisonment for a term exceeding one year, namely, Assault and Battery with a Dangerous Weapon, in the District Court of Jefferson County, Case No. CF-13-37, willfully received a firearm which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Richfield man charged for sale of unregistered securities in which investors lost $7 millionRead the Press Release
A Richfield man was charged in a criminal information with selling unregistered securities in which dozens of investors lost about $7 million, law enforcement officials said.
Jerry A. Cicolani, Jr., 51, worked to recruit investors to KGTA Petroleum, Ltd., which was operated by Kenneth A. Grant and others. Grant and others marketed the company to investors as a petroleum company that earned profits by buying and reselling various crude oils and refined fuel products.
Cicolani was a licensed registered representative with PrimeSolutions Securities, Inc., which had officers in Akron and was registered with the Financial Industry Regulatory Authority. Cicolani concealed his outside business interests from PrimeSolutions and had his commissions from KGTA paid to outside entities, according to the information.
KGTA issued securities which were required to be issued with the Securities and Exchange Commission. At no time did Cicolani, or anyone to his knowledge, file any documentation related to the KGTA with the SEC, according to the information.
Cicolani received approximately $5 million in commission fees for enlisting 39 investors, who collectively lost $7 million from their investments with KGTA in unregistered securities, according to the information.
In a related case, Kelly C. Hood, 36, of Naples, Florida, was charged with one count of structuring. Hood, at Cicolani’s direction, structured commission payments made to himself and Cicolani for the sale of unregistered securities of KGTA. This was done to evade bank reporting requirements, according to the information.
Grant has previously pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering for his role in the scheme. He is scheduled to be sentenced May 20.
These case are being prosecuted by Assistant U.S. Attorney Mark Bennett and Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Removed Alien Charged with Illegally Returning to U.S.Read the Press Release
PITTSBURGH - A resident of Michocan, Mexico, has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Hector Cardenas-Orozco, 37, of Michocan, Mexico, as the sole defendant.
According to indictment, Cardenas-Orozco, an alien who had been deported and removed from the United States on Aug. 18, 2000, was found in the United States on March 25, 2014 without having received permission to reenter from either the Attorney General of the United States or the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Homeland Security 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.
Previously Deported Mexican National Pleads Guilty to Immigration and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – A previously deported felon from Mexico pled guilty today in federal court in Las Cruces, N.M., to conspiracy to transport illegal aliens and unlawful re-entry into the United States.
Ricardo Rogelio Paez, 26, of Ciudad Juarez, Mexico, was charged on June 3, 2014, in a criminal complaint with attempting to bring illegal aliens into the United States. At the time, Paez himself was an illegal alien who previously had been deported from the United States after being convicted of aggravated felonies. Immigration records reflect that Paez had been deported to Mexico on July 3, 2013, based on two felony convictions for assault with a deadly weapon in Oct. 2007, and for being a felon in possession of a firearm in May 2012.
Paez subsequently was indicted on Dec. 3, 2014, and charged with conspiracy to transport illegal aliens from May 13 through May 16, 2014, two counts of attempting to move and transport illegal aliens within the United States, possession of more than 100 kilograms of marijuana with intent to distribute and unlawful re-entry into the United States. All offenses occurred in Doña Ana County, N.M., in May 2014.
During today’s plea hearing, Paez pled guilty to conspiracy to transport illegal aliens, possession of marijuana with intent to distribute, and unlawful re-entry of a removed alien. In entering his guilty plea, Paez admitted that on May 16, 2014, he conspired with others to drive a vehicle on New Mexico State Road 9 while transporting 14 illegal aliens. He also admitted possessing approximately 264 kilograms of marijuana in the vehicle he was driving on May 16, 2014, which he intended to distribute to others. Finally, Paez admitted that he unlawfully re-entered the United States after previously being deported and without obtaining the consent of the United States.
At sentencing, Paez faces a statutory minimum penalty of five years and a maximum penalty of 40 years in federal prison. Paez will be deported to Mexico after completing his prison sentence.
This case was investigated by the Santa Teresa, N.M., Station U.S. Border Patrol, U.S. Customs and Border Protection, and the Las Cruces office of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Selesia Winston of the U.S. Attorney’s Las Cruces Branch Office.
Pensacola Man Convicted of Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA – A federal trial jury convicted Thomas Victor Sway, 24, of Pensacola, of receipt, attempted receipt, and possession of child pornography. The verdict was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between November 2012 and May 2013, Sway received and possessed child pornography, including videos depicting images of minors less than 12 years of age engaged in sex acts. Undercover law enforcement officers discovered and downloaded the pornographic files from a public file sharing network that could be traced to Sway’s computer. After agents executed a search warrant at Sway’s residence, a forensic analysis of his hard drive revealed at least 140 video files containing images of child pornography. Additionally, the system file history indicated a pattern of Sway using dozens of distinct search terms to locate child pornography on the internet.
Sway faces a minimum of 5 years in prison and a maximum of 20 years in prison. Sentencing has been scheduled for June 30, 2015, before Chief United States Judge Casey Rodgers at the United States Courthouse in Pensacola, Florida.
United States Attorney Marsh praised the work of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. It was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pennsylvania Man Sentenced to Five Years in Prison on Assault ChargeRead the Press Release
CAMDEN, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for his role in an assault, U.S. Attorney Paul J. Fishman announced.
Garrett Wiseman, 25, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him in connection with his role in traveling from Pennsylvania to New Jersey to commit an aggravated assault in furtherance of an extortion scheme. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On June 09, 2010, Wiseman and two co-defendants were in a car that was used to run down a construction site manager who had been critical of the work being done by a company called Sands Mechanical Inc., a subcontractor on the restoration and rehabilitation of the Marine Corps Reserve Training Center at Joint Base-McGuire-Dix-Lakehurst in Burlington County, New Jersey. Wiseman was driving the vehicle at the time of the assault. The victim suffered serious injuries.
In addition to the prison term, Judge Rodriguez sentenced Wiseman to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia; Naval Criminal Investigative Service – Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont; and the Air Force Office of Special Investigations Detachment 307, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Owner of Harrisburg Diet Supplement Business Charged with Selling Misbranded DrugsRead the Press Release
The U.S. Attorney’s Office of the Middle District of Pennsylvania announced today that a criminal information was filed in U.S. District Court in Harrisburg, Pennsylvania, charging Cheryl Floyd, 52, Harrisburg, owner of Floyd Nutrition LLC, with introducing misbranded drugs into interstate commerce and money laundering.
According to U.S. Attorney Peter Smith of the Middle District of Pennsylvania, Floyd, aka Cheryl Floyd Brown, is owner and operator of an internet-based business known as Floyd Nutrition LLC, based at her Harrisburg residence and warehouse facilities in the Harrisburg area.
The items offered for sale between 2010 and 2014 were allegedly purported all-natural dietary supplements sold as weight loss products. They allegedly contain the drugs sibutramine and phenolphphthalein which are not listed as ingredients in the product labels.
According to U.S. Food and Drug Administration (FDA), sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed increased heart attack and stroke in the studied population. Phenolphphthalein was an over-the-county drug until 1999 when FDA reclassified it as not generally safe because it posed a carcinogenic risk.
The FDA has detained shipments of the products coming from China intended for Floyd’s business. In July 2014, search warrants executed at locations used by Floyd’s business resulted in seizure of a large quantity of the products. The products were sold over the internet under the names such as Slim Trim U, ZXT Slim Bee Pollen, Magic Slim, ZXT Bee Pollen, ZXT Gold Infinity, Lean Body Extreme, Bnew Beauty and Body and Natural Body Solutions.
“When individuals knowingly sell misbranded drugs to the general public and generate significant profits from these sales, IRS Criminal Investigation will diligently work with our fellow law enforcement partners to dismantle the operation and trace the proceeds of the criminal activity, which in this particular matter where seven properties valued at over $2 million,” said Special Agent in Charge Akeia Conner of the Internal Revenue Service Criminal Investigation.
“The manufacturing and selling of products marketed as all natural dietary supplements that actually contain dangerous pharmaceutical ingredients places consumers at risk of serious injury or death,” said Special Agent in Charge Antoinette V. Henry of the FDA Office of Criminal Investigations’ (FDA OCI) Metro-Washington Field Office. “FDA OCI will continue working with the Department of Justice to protect consumers from public health risks and fraud and commends the USAO MDPA and our law enforcement partners for the resolve and commitment they demonstrated in investigating and prosecuting this case.”
The criminal information also charges Floyd with money laundering of the proceeds of the sales of the misbranded products and the government is seeking forfeitures of properties in Harrisburg owned by the defendant, a truck and nine bank accounts.
The government filed a plea agreement with the defendant that included an agreement to forfeit the properties listed in the criminal Information. The agreement is subject to the approval of the U.S. District Court of the Middle District of Pennsylvania.
This case was investigated by the FDA Office of Criminal Investigations, Internal Revenue Service Criminal Investigations and the Dauphin County Drug Task Force. It is assigned to Assistant U.S. Attorney Christy H. Fawcett of the Middle District of Pennsylvania.
Introduction of misbranded drugs in interstate commerce carries a maximum penalty of three years’ imprisonment, a $10,000 fine and a one-year term of supervised release. The maximum penalty for conducting financial transactions with criminally-derived property in excess of $10,000 is ten years’ imprisonment, a $250,000 fine and a three-year term of supervised release.
An Indictment and criminal Information 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.
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.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA's MedWatch Safety Information and Adverse Event Reporting Program: Complete and submit the report Online: www.fda.gov/MedWatch/report.htm - download the form or call 1-800-332-1088 to request a reporting form, then complete and return to the address on the pre-addressed form, or submit by fax to 1-800-FDA-0178
Owner of Harrisburg Diet Supplement Business Charged with Selling Misbranded DrugsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal Information was filed in U.S. District Court in Harrisburg charging Cheryl Floyd, age 52, Harrisburg, owner of Floyd Nutrition LLC, with introducing misbranded drugs into interstate commerce and money laundering.
According to U.S. Attorney Peter Smith, Floyd, also known as Cheryl Floyd Brown, is owner and operator of an internet-based business known as Floyd Nutrition LLC, based at her Harrisburg residence and warehouse facilities in the Harrisburg area.
The items offered for sale between 2010 and 2014 were allegedly purported all-natural dietary supplements sold as weight loss products. They allegedly contain the drugs sibutramine and phenolphphthalein which are not listed as ingredients in the product labels.
According to U.S. Food and Drug Administration (FDA) sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed increased heart attack and stroke in the studied population. Phenolphphthalein was an over-the-county drug until 1999 when FDA reclassified it as not generally safe because it posed a carcinogenic risk.
The FDA has detained shipments of the products coming from China intended for Floyd’s business. In July 2014, search warrants executed at locations used by Floyd’s business resulted in seizure of a large quantity of the products. The products were sold over the internet under the names such as Slim Trim U, ZXT Slim Bee Pollen, Magic Slim, ZXT Bee Pollen, ZXT Gold Infinity, Lean Body Extreme, Bnew Beauty and Body and Natural Body Solutions.
Akeia Conner, Internal Revenue Service, Criminal Investigation, Special Agent in Charge, said “When individuals knowingly sell misbranded drugs to the general public and generate significant profits from these sales, IRS Criminal Investigation will diligently work with our fellow law enforcement partners to dismantle the operation and trace the proceeds of the criminal activity, which in this particular matter where seven properties valued at over $2,000,000.”
"The manufacturing and selling of products marketed as all natural dietary supplements that actually contain dangerous pharmaceutical ingredients places consumers at risk of serious injury or death," said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations' Metro-Washington Field Office. "FDA OCI will continue working with the Department of Justice to protect consumers from public health risks and fraud and commends the USAO MDPA and our law enforcement partners for the resolve and commitment they demonstrated in investigating and prosecuting this case."
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA's MedWatch Safety Information and Adverse Event Reporting Program: Complete and submit the report Online: www.fda.gov/MedWatch/report.htm - download the form or call 1-800-332-1088 to request a reporting form, then complete and return to the address on the pre-addressed form, or submit by fax to 1-800-FDA-0178.
The criminal Information also charges Floyd with money laundering of the proceeds of the sales of the misbranded products and the government is seeking forfeitures of properties in Harrisburg owned by the defendant, a truck, and nine bank accounts.
The government filed a plea agreement with the defendant that included an agreement to forfeit the properties listed in the criminal Information. The agreement is subject to the approval of the U.S. District Court.
This case was investigated by the FDA Office of Criminal Investigations, Internal Revenue Service Criminal Investigations, and the Dauphin County Drug Task Force. It is assigned to Assistant U.S. Attorney Christy H. Fawcett.
Introduction of misbranded drugs in interstate commerce carries a maximum penalty of three years’ imprisonment, a $10,000 fine, and a one-year term of supervised release. The maximum penalty for conducting financial transactions with criminally-derived property in excess of $10,000 is 10 years’ imprisonment, a $250,000 fine, and a three-year term of supervised release.
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.
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.Owner of Freight Shipping Company Admits Role in A Scheme to Defraud Pharmaceutical Company Out of $3 MillionRead the Press Release
NEWARK N.J. – The owner of a Morris County, New Jersey, freight shipping company today admitted billing a medical devices and pharmaceutical company more than $3 million for services that were never provided, U.S. Attorney Paul J. Fishman announced.
Courtney P. Shorter, 48, of Roselle, New Jersey, and Memphis, Tennessee, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of mail fraud.
According to the documents filed in this case and statements made in court:
Shorter owned Sam Shorter & Son Delivery Service LLC, a freight shipping and trucking company in Long Valley, New Jersey. Company B manufactured and supplied insulated containers to Company A, a medical devices, pharmaceutical and consumer packaged goods manufacturer headquartered in New Brunswick, New Jersey. Company C was a freight invoice processing company headquartered in Fort Myers, Florida, that Company A used to pay trucking companies.
From 2008 through April 2010, Shorter charged Company A for transporting shipments from Company B to Company A when, in fact, those shipments were never made. Shorter admitted that he and others sent Company C more than 1,725 fraudulent invoices for work that was never actually performed. As a result of the invoices, Shorter received $3,039,840 from Company C, which he later deposited into bank accounts he controlled and used for personal expenses, including more than $120,000 in jewelry.
The mail fraud charge to which Shorter pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 28, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Randy P. Davenport Esq. and Steven Brister Esq., Union, New Jersey
Owner and Operator of Charlotte Area Laundromats Pleads Guilty to Tax EvasionRead the Press Release
CHARLOTTE, N.C. – The owner and operator of Charlotte-area laundromats pleaded guilty to tax evasion today, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Teng Lor, 55, of Matthews, N.C., appeared before U.S. Magistrate Judge David S. Cayer and admitted to concealing from the Internal Revenue Service (IRS) significant personal earnings derived from his businesses, “T&C Equipment, Inc.” (T&C Equipment) and “LOR Enterprises, Inc.” (LOR Enterprises).
Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) joins Acting U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and today’s plea hearing, between tax years 2010 and 2012, Lor deposited cash receipts from the two businesses totaling over $1.5 million into his business and personal bank accounts. Court records show that the deposits were structured to avoid the filing of currency transaction reports. According to court records, during the relevant time period, Lor failed to disclose or provide records from all of the bank accounts to his tax return preparer. Court records indicate that for tax years 2010 through 2012, T&C Equipment and LOR Enterprises earned additional gross receipts totaling approximately $744,162 that Lor failed to report on the corporate tax returns filed with the IRS. As a result of the unreported gross receipts, Lor had additional taxable income of $544,261. Court records show that for the same tax years, Lor also failed to report all of his income on his individual state income tax returns.
Lor pleaded guilty to one count of tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine. As part of today’s plea agreement, Lor has agreed to pay restitution, the amount of which will be determined by the Court at Lor’s sentencing hearing, which has not been scheduled yet. Lor was released on bond following his plea hearing.
The investigation of the case was handled by IRS-CI. The case is being prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Omaha Man Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 15, 2015, David V. Roberts, age 42 of Omaha, Nebraska, was sentenced for wire fraud. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Roberts to the custody of the United States Bureau of Prisons for forty-one (41) months. There is no parole in the federal system. After his release from prison, Roberts will begin a three, (3), year term of supervised release. Roberts was also ordered to make restitution in the amount of $91,707.81.
An investigation conducted by the Omaha Police Department and the United States Secret Service determined that from at least June, 2011, and continuing through at least February, 2012, Roberts caused to be transmitted email communications to various individuals located throughout the United States, which emails sought the purchase of material, product or services advertised by victims for sale to the public. Once a purchase price was agreed upon, a check was mailed to the victims for payment of the advertised material, product, or services for sale. The checks were not legitimate and were fraudulently created.
Victims were instructed to electronically wire a portion of the funds credited to their account by virtue of the fraudulent check to Roberts within the District of Nebraska. Victims were provided with Roberts’s name and the location where the funds were to be electronically wired. Victims were told money needed to be wired to Roberts for purposes of paying defendant to pick-up, ship, or assist with transportation of the material or product advertised and purportedly purchased.
Once the victims believed the funds from the fraudulent check had been credited to their bank account, victims would electronically wire a portion of the deposited funds to Roberts within the District of Nebraska using the services of Western Union or MoneyGram. Roberts would travel to Western Union or MoneyGram locations where he would accept the electronically wired payments.
From at least June, 2011, and continuing through at least February, 2012, Roberts personally accepted more than fifty (50) fraudulently obtained electronically wired monetary payments from victims located outside the District of Nebraska in the total amount of $91,707.81.
The case was investigated by the Omaha Police Department and United States Secret Service.
Ohio Man Charged with Committing a $300,000 Mail and Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HOWARD GREGOR, age 52, a resident of Attica, Ohio, was charged today in a two-count Bill of Information for mail and wire fraud.
According to court documents, from November 3, 2008, through on or about April 19, 2013, GREGOR worked for Company A, a New Orleans based company that manufactures conveyor belts for use in food processing and packaging facilities. Company A employed GREGOR as an account manager. His sales work required him to travel frequently and incur business-related expenses. Company A had a policy that allowed account managers to submit expense reports for reimbursement of actual out-of-pocket business expenses. Rather than submitting expense reports for actual expenses, GREGOR devised a scheme and artifice to defraud Company A by creating inflated and fictitious items to put on his expense report to cause Company A to pay him for expenses that he did not actually incur. GREGOR submitted these expense reports via U.S. mail and electronic mail. In all, GREGOR caused Company A to reimburse him for nearly $300,000 of expenses that he did not actually incur, causing a loss to the company.
If convicted, GREGOR faces a maximum term of imprisonment of 20 years, followed by five years of supervised release, and a fine of $250,000, as to each of Counts 1 and 2.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Sharan Lieberman is in charge of the prosecution.
Howard Gregor Bill of Information
North County Woman Indicted on Tax ChargesRead the Press Release
St. Louis, MO – STACI A. MARTIN was indicted for allegedly filing false tax returns for tax years 2008 and 2009.
Martin, Florissant, Missouri, was indicted by a federal grand jury on two felony counts of filing false tax returns. The indictment was returned April 1st, but remained sealed until the arrest of the defendant. She appeared for arraignment in federal court earlier today.
If convicted, each count of the indictment carries a maximum penalty of three years in prison and/or fines 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 IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick 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.
Newport News Man Sentenced to Thirteen Years for Receipt of Child PornographyRead the Press Release
Defendant possessed over 600 images of Child Pornography
NEWPORT NEWS, Va. – Isaiah Al’Von Holloman, 22, of Newport News, Va., was sentenced today to 160 months in prison, followed by 25 years of supervised release for Receipt of Child Pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, John S. Adams, Special Agent in Charge of the Norfolk Field Office, and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D. C., made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Holloman plead guilty on January 14, 2015. According to court documents, federal agents identified the defendant via a Peer-to-Peer network on his computer. On May 29, 2014 members of FBI and Homeland Security Investigations executed a search warrant at the defendant’s apartment in Newport News. Holloman was home and agreed to speak to the agents. He admitted he conducted internet activities using on-line applications including Facebook, Instagram, Kik, livechat, Dropbox, anonymous chat, and Sharazza, and that he obtained child pornography using Sharazza. Further, he created and used a Dropbox to obtain and provide images and videos of child pornography. During the search Holloman identified a laptop computer, tablet, and smartphone all belonging to him and all were seized pursuant to the search warrant. A subsequent forensic examination of these devices revealed over 600 images of child pornography.
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr68.
New Jersey defendants plead guilty in biofuels fraudRead the Press Release
PRESS RELEASE
INDIANAPOLIS-Josh J. Minkler, the United States Attorney for the Southern District of Indiana and John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, announced today that Joseph Furando, 49, of Montvale, New Jersey, together with companies he operated in New Jersey, pleaded guilty today for their roles in an Indiana-centered scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives. Today’s plea wraps up the part of this case that involved New Jersey defendants. Three Indiana-based individuals and their company, E-biofuels, are scheduled for trial on May 11, 2015, here in Indianapolis.
“April 15, tax day, is a fitting date for Mr. Furando to accept responsibility for his crimes, which defrauded U.S. taxpayers of tens of millions of dollars that Congress appropriated for energy independence and a cleaner environment for all of us,” said Minkler.
Cruden said, “Incentives for the production of biodiesel help promote independence from foreign petroleum resources, drive innovation in the fuel and agriculture sectors, and have positive environmental impacts. Criminals who would sacrifice those benefits for a quick buck may be sure that significant punishment, including long prison sentences, await them.”
“The Renewable Fuel Standard was created to reduce the nation’s dependence on foreign oil and achieve important greenhouse gas reductions,” said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance at EPA. “This criminal activity undercuts these benefits and puts businesses that follow the law at an unfair disadvantage. Today’s guilty plea upholds program integrity and protects companies that play by the rules.”
From 2007 through 2012, E‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number or “RIN”, that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.
Furando has admitted that sometime in late 2009, he and his companies, New Jersey- based defendants Caravan Trading Company and CIMA Green, began supplying E‑biofuels with biodiesel that was actually made by another company and had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at low prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. Furando knew that once he supplied the product, E‑biofuels and his individual co-defendants would claim to have made it, illegally re-certify it, and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this program of fraud as “Alchemy.”
Furando, his New Jersey-based companies, and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Furando realized his profits through the prices he charged E‑biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145,500,000. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
Today, Furando pleaded guilty to all of the charges against him, which included conspiracy, wire fraud, lying to investigators during a search of his offices, and engaging in prohibited financial transactions (money laundering). He faces up to twenty years of imprisonment on some of the charges, as well as large fines and the requirement that he provide full restitution to the victims of this crime, which include United States taxpayers, truck stop companies, fuel traders, and others. Furando has also agreed to forfeit biodiesel-powered motorcycles, sports cars, real estate, jewelry, watches, a piano, artwork, and other luxury goods that he purchased with the proceeds of this fraud.
United States Attorney Josh J. Minkler said, “This plea represents a step along the way to closing the book on one of the largest fraud schemes in Indiana history. All told, this case involves nearly a dozen defendants and daunting investigative work. The intense, high-quality work of all of the law enforcement agents and prosecutors involved should make those who seek personal profit at taxpayers’ expense think twice before attempting such schemes.”
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division, and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI, and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture.Other defendants are scheduled for trial pursuant to the indictment in this case. An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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New Jersey Companies and Owner Plead Guilty to Biodiesel Fuel Fraud SchemeRead the Press Release
Joseph Furando, 49, of Montvale, New Jersey, together with two companies he operated in New Jersey, pleaded guilty today for their parts in an Indiana-centered scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives, announced Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minker for the Southern District of Indiana.
From 2007 through 2012, e‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was be eligible for a dollar per gallon tax credit as well as a another valuable credit, called a RIN, that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.
“Incentives for the production of biodiesel help promote energy independence, drive innovation in the fuel and agriculture sectors and have positive impacts on our environment,” said Assistant Attorney General Cruden. “Furando engaged in extensive criminal activity to gain advantage, all at the expense of the biofuels program and its benefits to our nation, and for that he has been vigorously prosecuted and convicted.”
“This plea represents a step along the way to closing the book on one of the largest fraud schemes in Indiana history,” U.S. Attorney Minker. “All told, this case involves nearly a dozen defendants and daunting investigative work. The intense, high-quality work of all of the law enforcement agents and prosecutors involved should make those who seek personal profit at taxpayer’s expense think twice before attempting such schemes.”
Furando has admitted that sometime in late 2009, he and his companies, defendants Caravan Trading Company and CIMA Green, began supplying e‑biofuels with biodiesel that had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at low prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. Furando knew that once he supplied product, e‑biofuels and his individual co-defendants would illegally re-certify it and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this program of fraud as “Alchemy.”
Furando, his companies, and his Indiana co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Furando realized his profits through the prices he charged e‑biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
Today, Furando pleaded guilty to all of the charges against him, which included conspiracy, wire fraud, lying to investigators during a search of his offices and engaging in prohibited financial transactions, money laundering. He faces up to twenty years of imprisonment on some of the charges, as well as large fines and the requirement that he provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Furando has also agreed to forfeit biodiesel-powered motorcycles, sports cars, real estate, jewelry, watches and other luxury goods that he purchased with the proceeds of this fraud.
“The Renewable Fuel Standard was created to reduce the nation’s dependence on foreign oil and achieve important greenhouse gas reductions,” said Assistant Administrator Cynthia Giles of EPA for Enforcement and Compliance Assurance. “This criminal activity undercuts these benefits and puts businesses that follow the law at an unfair disadvantage. Today’s guilty plea upholds program integrity and protects companies that play by the rules.”
Today’s plea completes the part of this case involving New Jersey defendants. Four Indiana defendants remain, who face trial in the Southern District of Indiana on May 11, 2015.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture.
Other defendants are scheduled for trial pursuant to the indictment in this case. An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Navajo Woman from Arizona Pleads Guilty to Federal Assault and Child Abuse Charges in New MexicoRead the Press Release
ALBUQUERQUE – Bridget Wilson, 22, an enrolled member of the Navajo Nation who resides in Sawmill, Ariz., pleaded guilty this morning in federal court in Albuquerque, N.M., to assault and child abuse charges.
Wilson was arrested on Feb. 10, 2015, on an indictment charging her with assault resulting in serious bodily injury and abuse of a child. According to the indictment, Wilson committed the offenses on April 4, 2014, within the Navajo Indian Reservation in San Juan County, N.M.
During today’s plea hearing, Wilson pled guilty the indictment and admitted that on April 4, 2014, she assaulted the victim, causing the victim to suffer serious bodily injury. She also acknowledged putting the victim, who was under the age of 18 years, in a situation that endangered the victim’s life or health.
According to the plea agreement, the parties will recommend that Wilson be sentenced to a term of probation to be determined by the court. Wilson’s sentencing hearing has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Monroe County Man Enters Guilty Plea to Federal Methamphetamine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of conspiracy to distribute methamphetamine.
According to United States Attorney Peter Smith, Scott Borushak, age 51, of Sciota, Monroe County, admitted to participating in a conspiracy to distribute methamphetamine in the Monroe County area in 2013 and 2014.
Borushak was one of seven individuals indicted by a federal grand jury in April 2014, after an investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department.
Previously, Jeannine Altemose, age 53, of Stroudsburg, pleaded guilty and admitted to allowing methamphetamine to be stored and distributed from her residence. The charges against the remaining defendants are currently pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In this case, the maximum penalty for all charges under the federal statutes is imprisonment for 20 years, 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.
Monroe County Man Enters Guilty Plea to Federal Methamphetamine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of conspiracy to distribute methamphetamine.
According to United States Attorney Peter Smith, Scott Borushak, age 51, of Sciota, Monroe County, admitted to participating in a conspiracy to distribute methamphetamine in the Monroe County area in 2013 and 2014.
Borushak was one of seven individuals indicted by a federal grand jury in April 2014, after an investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department.
Previously, Jeannine Altemose, age 53, of Stroudsburg, pleaded guilty and admitted to allowing methamphetamine to be stored and distributed from her residence. The charges against the remaining defendants are currently pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In this case, the maximum penalty for all charges under the federal statutes is imprisonment for 20 years, 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.
Milford Realtor Pleads Guilty to Running $15 Million Ponzi SchemeRead the Press Release
CINCINNATI – Brenda Ashcraft, 45, of Milford, Ohio pleaded guilty in U.S. District Court to defrauding investors of at least $15 million between 2009 and 2013 in a fraudulent investment scheme to purchase and sell real estate through real estate investment trusts known as REITs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service; and Jacqueline Williams, Director of Ohio Department of Commerce, announced the plea entered into today before U.S. District Senior Judge Sandra S. Beckwith.
According to court documents, Aschraft owned and operated French Manor Properties, which she told investors was acting as the REIT Trustee that would “secure residential and commercial real estate at wholesale pricing.” Investors believed that their investments were secured by real estate and Ashcraft promised them 40% annual returns on their investments. These representations were false.
Instead, Ashcraft used new investor money to pay earlier investors and diverted investor funds to her own personal use and benefit, including a $50,000 investor payment that she used to pay for Cincinnati Reds season tickets. Ashcraft would at times send investors checks for returns on their investments but the checks often bounced. After FBI agents seized Ashcraft’s iPhone pursuant to a search warrant, she sent a remote wipe command to destroy evidence stored on her cell phone.
Ashcraft pleaded guilty to one count of wire fraud, one count of securities fraud and one count of destruction of evidence, each punishable by up to 20 years in prison, and one count of money laundering, which is punishable by up to 10 years in prison.
Ashcraft’s case was scheduled to begin trial yesterday, but was delayed when she failed to appear in court. Ashcraft turned herself in late yesterday afternoon.Stewart commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are prosecuting the case.
Michigan Home Health Agency Owner Pleads Guilty in Connection with $2.6 Million Home Health Care SchemeRead the Press Release
The owner of a greater Detroit-area home health care agency pleaded guilty today to fraud and money laundering charges in connection with her role in a $2.6 million home health care scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Rahmat Begum, 49, of Farmington Hills, Michigan, pleaded guilty today – during the second day of her trial – to all charges in a six-count indictment, including one count of conspiracy to commit wire fraud, one count of making false statements relating to health care matters, one count of conspiracy to violate the Anti-Kickback Statute and three counts of money laundering. A sentencing hearing is scheduled for Aug. 18, 2015, before U.S. District Judge Bernard A. Friedman of the Eastern District of Michigan.
According to admissions made as part of her guilty plea, Begum conspired to submit falsified claims to Medicare where the claims were based upon referrals obtained through illegal kickbacks to patient recruiters and physicians. Begum also admitted to conspiring to pay illegal kickbacks to patient recruiters and physicians and to making a false statement to Medicare pledging not to pay kickbacks, when in fact she was paying them. Finally, Begum admitted to laundering the proceeds of the wire fraud conspiracy.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican Man Heads to Federal Prison for Illegally Reentering the United StatesRead the Press Release
McALLEN, Texas – Victor Manuel Blancas-Rosas, 40, of Mexico, has been ordered to prison following his conviction of being unlawfully present in the country after having been previously deported or removed, announced U.S. Attorney Kenneth Magidson. A McAllen federal jury convicted Blancas-Rosas Dec. 3, 2014, after only two hours of testimony and 15 minutes of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Blancas-Rosas a 48-month sentence. At the hearing, additional evidence was presented by the defendant contending he was an incorporated individual under the Uniform Commercial Code and therefore not subject to imprisonment. Judge Crane noted that his claims were not meritorious and proceeded to hand down the sentence. Blancas-Rosas is expected to face deportation proceedings following his release from prison.
On April 20, 2014, a concerned citizen saw possible illegal aliens running from a car on US-281 into the brush between Encino and the U.S. Border Patrol Checkpoint at Falfurrias. Agents quickly apprehended and detained Blancas-Rosas. The investigation revealed Blancas-Rosas had prior felony convictions and had previously been removed from the U.S.
At trial, he admitted he had illegally entered the country, had been deported on four previous occasions and to conducting prior felony criminal conduct.
Representing himself, his defense was that he had renounced his Mexican citizenship, was a citizen of the world and had copywrited his name. The jury ultimately found him guilty as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol investigated. Assistant U.S. Attorney Steven T. Schammel is prosecuting the case.
Member of Young Melph Mafia (YMM) Neighborhood Gang Sentenced to 13 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARIUS WILLIAMS, age 23, a resident of New Orleans, was sentenced yesterday for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.” U.S. District Judge Kurt D. Engelhardt sentenced WILLIAMS to 156 months imprisonment, to be followed by five years of supervised release.
WILLIAMS was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, WILLIAMS and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
U. S. Attorney Polite stated, “This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans. These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
Meat Market Owner Charged with Defrauding Assistance ProgramRead the Press Release
PHILADELPHIA - Saud Saleh, 30, of Philadelphia, PA, was charged by indictment, unsealed today, with wire fraud against the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the federal Food Stamp program, and associated charges, announced United States Attorney Zane David Memeger. The defendant owned and operated Twinz Meat Market, located at 3083 Kensington Avenue in Philadelphia, PA.
According to the indictment, Saleh engaged in the illegal trafficking in of SNAP benefits (formerly known as food stamps) by purchasing those benefits from customers of Twinz Meat Market in exchange for cash. The indictment charges that from approximately July 2010 through approximately December 2012, as a result of his trafficking activities, Saud Saleh sought and received from USDA redemption of approximately $1.125 million in SNAP benefits.
If convicted, Saleh faces a substantial period of incarceration in addition to an additional three years of supervised release, a fine of approximately $1.8 million and restitution.
The case was investigated by the United States Department of Agriculture Office of Inspector General and Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McAlester Man, Woman Sentenced to 65 and 43 Months, $31,000 Restitution for StalkingRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TONI SHNEA FOURKILLER, age 31, and RICHARD ROCKEY BLACKMAN, age 32, both of McAlester, Oklahoma, were sentenced in federal court for Stalking, in violation of Title 18, United States Code, Sections 2261A(1), 2261 and 2.
FOURKILLER, was sentenced to 43 months imprisonment and 3 years supervised release and BLACKMAN was sentenced to 65 months imprisonment and 3 years supervised. The defendants were ordered to pay restitution in the amount of $31,652.86.
The charge arose from an investigation by the McAlester Police Department. The defendants were indicted in September, 2014 and pled guilty in October, 2014.
The Indictment alleged that on or about March 23, 2014, in the Eastern District of Oklahoma, the defendant, left Indian country, with the intent to injure, harass, intimidate, and place under surveillance with intent to injure, harass, or intimidate another person, and in the course of, and a result of such travel, engaged in conduct that placed P.S. in reasonable fear of serious bodily injury to himself and caused P.S. serious bodily injury and substantial emotional distress.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. At the conclusion of the sentencing hearing, both defendants were remanded into the custody of the United States Marshal Service pending transportation to the designated prison at which they will serve their nonparolable sentences.
Assistant United States Attorney Chris Wilson represented the United States.
Mask-Wearing Robber ConvictedRead the Press Release
PHILADELPHIA – Blair Thomas, Jr., 29, of East Lansdowne, PA, was convicted today of a bank robbery in Springfield, PA, the attempted armed robberies of postal employees in Yeadon and Darby, PA, and with being a convicted felon in possession of a firearm.
In each robbery and robbery attempt, Thomas wore a special effects, movie quality mask as a disguise, and in each robbery attempt, he armed himself with a .45-caliber Ruger semi-automatic handgun. On January 22, 2014, Thomas attempted to rob a United States Postal Service employee at the Yeadon Post Office, located at 709 Church Lane, of money orders. That same day, Thomas brandished a firearm and tried to rob a United States Postal Service employee at the Darby Post Office, located at 801 Main Street, of money orders. On January 23, 2014, Thomas robbed the Wells Fargo Bank, at 888 Baltimore Pike in Springfield, of approximately $1,890.
U.S. District Court Judge L. Felipe Restrepo scheduled a sentencing hearing for July 14, 2015. Thomas faces a mandatory minimum sentence of 30 years in prison with a maximum sentence of life, up to five years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
Thomas is also awaiting trial on separate charges in the District of Delaware.
The case was investigated by the United States Postal Inspection Service and the Springfield, Yeadon, and Darby Police Departments. It is being prosecuted by Assistant United States Attorney Jessica Natali.
Manchester Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Jesse David Kuchta, age 28, of Manchester, Maryland, pleaded guilty today to production and possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees, and Carroll County State’s Attorney Brian DeLeonardo.
According to Kuchta’s plea agreement, on May 14, 2014, a detective with the Carroll County Sheriff’s Office received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning images depicting minors engaged in sexually explicit conduct that had been uploaded to Photobucket, a free image and video hosting website. Based on their investigation of the tip, law enforcement identified Kuchta as the holder of the Photobucket accounts and obtained a search warrant for his address in Manchester. On May 14, 2014, law enforcement executed the search warrant.
During the search, Kuchta arrived at the home and spoke with investigators. He admitted taking the images and videos of a minor female engaged in sexually explicit conduct and uploading them to his Photobucket accounts. Law enforcement seized a flash drive, two micro SD cards and two cell phones used in the production, possession or transportation of child pornography, as well as other items of evidence that were seen in the images and videos that Kuchta produced.
As part of his plea agreement, Kutcha must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Kutcha faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for production of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to lifetime of supervised release. U.S. District Judge George L. Russell, III has scheduled sentencing for August 7, 2015 at 11:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Man Sentenced to 72 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
WICHITA FALLS, Texas — Viviano Nuncio, an Oklahoma man, who was arrested in Wichita Falls, Texas, last year for failing to register as a sex offender, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 72 months in federal prison, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Viviano Nuncio, 50, was arrested on July 30, 2014, and he pleaded guilty in November 2014 to one count of failure to register as a sex offender. The 72-month sentence was an upward departure from the U.S. Sentencing Guidelines.
According to documents filed in the case, Nuncio was convicted in Tillman County, Oklahoma, in December 2005 for lewd molestation, and he was sentenced to 15 years in the Oklahoma Department of Corrections, with all but the first eight years suspended. As a result of this conviction, Nuncio was advised of his requirement to register as a sex offender by the sentencing judge. Nuncio registered as a sex offender upon his release from prison on March 28, 2012. The last time he registered, however, was on September 10, 2013, in Garfield County, Oklahoma.
Nuncio admitted he had moved in with his sister in Wichita Falls the day before Thanksgiving, November 27, 2013. When he was arrested, he admitted he knew he had a duty to register in Texas, but stated that he did not because he was afraid of getting arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Marshals Service investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Adam Rey Gonzalez, 28, of Schenectady, New York, pled guilty today in Albany before Senior United States District Judge Thomas J. McAvoy to one count of distribution of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
"This case demonstrates that even sophisticated traders of child pornography will be identified and prosecuted," stated United States Attorney Richard S. Hartunian. "My office, working with our law enforcement partners, will use every tool at its disposal to track down and prosecute those who share movies and photographs depicting the sexual abuse of young children."
"Today’s guilty plea was the result of a diligent investigation that unraveled the web in which Mr. Gonzalez sought to anonymize his criminal online activities. Others who are engaging in similar online activity should be aware that we can identify them and will pursue criminal charges against them," said Special Agent-in-Charge Andrew W. Vale.
Gonzalez, who has been convicted twice previously for sexual offenses, faces a statutory mandatory minimum term of fifteen years of imprisonment and a maximum sentence of forty years of imprisonment, as well as a lifetime term of supervised release, a maximum fine of $250,000, and mandatory registration as a sex offender. Gonzalez will be sentenced in Albany on August 10, 2015.
As part of his guilty plea, Gonzalez admitted that he used a peer-to-peer file sharing program to distribute movies and photographs of young boys engaged in sexually explicit activity over the Internet. Gonzalez also admitted that he took numerous steps to remain anonymous while trading child pornography online, and that he kept a small computer hidden in his sofa specifically for the purpose of trading child pornography. A forensic examination of that computer ultimately revealed that Gonzalez had nearly a thousand files depicting children as young as age two engaged in sexually explicit conduct that he downloaded from the Internet and regularly traded with others.
This case was investigated by the Federal Bureau of Investigation, Albany Division, and is being prosecuted by Assistant United States Attorneys Wayne A. Myers, Emily T. Farber, and Special Assistant United States Attorney Amanda W. Cox.
Man Indicted for Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Gnoan Pierre Kablan was indicted on April 9 on 16 felony counts of aiding and assisting in the preparation and presentation of false and fraudulent tax returns, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. On each count, Kablan faces a maximum imprisonment term of 3 years, a maximum fine of $100,000, a special assessment of $100, and a maximum term of supervised release of 1 year. As part of any sentence, Kablan may also be ordered to pay to the Treasury Department an amount equaling the tax loss that his conduct is found to have caused.
Kablan, 52, of Latham, was arraigned in Albany on April 13 before the Honorable Randolph F. Treece, United States Magistrate Judge, and released on his own recognizance pending a trial scheduled for June 15 before the Honorable Mae D’Agostino, United States District Court Judge.
According to the indictment, Kablan, a tax preparer working in Rensselaer County during the relevant time period, prepared at least 16 tax returns for 2008 through 2011 containing false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property or energy efficiency credits that gave his taxpayer clients refunds that they were not entitled to.
"The defendant allegedly prepared tax returns that resulted in a tax loss to the U.S. Treasury Department because his clients were not entitled to the deductions and credits that they claimed," stated United States Attorney Richard S. Hartunian. "This being tax-paying season, now is a good time for our citizens to remember that willfully filing a false return can result in civil and criminal liability."
"The investigation of unscrupulous tax return preparers remains a priority for the Internal Revenue Service," said Shantelle P. Kitchen, IRS Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. "We will vigorously pursue the prosecution of them with our partners in the United States Attorney’s Office."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Assistant United States Attorney Michael Barnett is prosecuting this case, which is being investigated by the New York Field Office of the IRS-Criminal Investigation.
Magistrate Judge Detains St. Croix Man Arrested on Child Pornography ChargesRead the Press Release
St. Croix, USVI – U.S. Magistrate Judge George W. Cannon today issued an order detaining Nicolas Mena, 34, of St. Croix, who was arrested Friday on a criminal complaint charging him with one count of receipt of child pornography and one count of possessing child pornography, United States Attorney Ronald W. Sharpe announced. Mena made his initial appearance before U.S. Magistrate Judge Cannon on Friday after his arrest, and had his detention hearing on Monday.
If convicted of receipt of child pornography, Mena faces a mandatory minimum sentence of five years and a maximum of 20 years in prison, and a $250,000 fine. If convicted of possession of child pornography, Mena faces a maximum sentence of 10 years in prison and a $250,000 fine.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
This case is being investigated by U.S. Immigration and Customs Enforcement's HomelandSecurity Investigations. It is being prosecuted by Assistant U.S. Attorney Rami. S. Badawy.
Last of Four “Spice” Conspirators SentencedRead the Press Release
BOISE – Mark Ciccarello, 37, of Boise, Idaho, was sentenced today in U.S. District Court to 37 months in prison, followed by three years of supervised release for conspiring to launder money, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Ciccarello to pay $4.5 million in asset forfeiture, and to pay a $3,000 fine. Ciccarello will self-surrender, as directed by the United States Bureau of Prisons.
Ciccarello is the last of the defendants charged with manufacturing controlled substance analogues and laundering the money from selling these substances nationwide. The Indictment alleged that Ciccarello and three co-conspirators, Troy Palmer, William Mabry, and Robert Eoff, conspired to purchase and import from China chemicals known as AM2201, UR-144, and XLR11, which they use to treat innocuous plant matter to make “spice”Ca synthetic cannabinoid similar to substances—including JWH018—listed in Schedule I of the Controlled Substances Act. The most popular spice product they made was called “Zombie Matter,” which also became the name of the marketing enterprise set up by Ciccarello. The Indictment alleged that they conspired to launder money illegally obtained through spice manufacturing and distribution.
According to court documents, Ciccarello admitted that he was a leader in a conspiracy to conduct financial transactions in connection with a “spice” manufacturing and distribution business, beginning in March 2011. Ciccarello also admitted to knowingly participating in and directing the financial activity of the business by engaging in bank and other financial transactions, through both domestic and foreign financial institutions. The transactions consisted of the proceeds of illegal spice sales and other specified unlawful activity and, in many cases, the transactions conducted through financial institutions separately consisted of criminally derived property of a value greater than $10,000; most of the transactions occurred in Idaho, Washington and California.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Killeen Trio Sentenced to Federal Prison for Tax Refund Fraud SchemeRead the Press Release
Three Killeen, TX, residents were sentenced to federal prison for their roles in a tax refund scheme with an estimated intended loss of $1.8 million announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
Yesterday afternoon in Austin, United States District Judge Lee Yeakel sentenced 34-year-old Albert Powell, 32-year-old Paris Stephens and 34-year-old Ronnie Cole to 54 months, 36 months and 18 months in federal prison, respectively. Judge Yeakel also ordered that Powell and Stephens jointly and severally pay $852,226 in restitution to the IRS; Cole, $121,810 in restitution to the IRS.
According to court records and testimony, from 2010 to 2012, the defendants were involved in a scheme to obtain personal identification information from various sources then used it to file more than 350 fraudulent income tax returns which generally claimed refunds between $3,000 and $7,000. In July 2014, the defendants pleaded guilty to one count of conspiracy to defraud the government with respect to claims and one count of fraudulent use and possession of a means of identification.
“The sentencings of Albert Powell, Paris Stevens and Ronnie Cole should be a reminder to others that IRS-Criminal Investigation is determined to bring down those who use identity theft to enrich themselves,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people's money.”
This Stolen Identity Refund Fraud (SIRF) case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.
KC Man Sentenced to 40 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today on charges related to producing child pornography.
Donald T. Paris, Jr., 28, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 40 years in federal prison without parole.
On March 25, 2014, Paris was convicted at trial of one count of producing child pornography, one count of receiving child pornography over the Internet, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Evidence introduced during the trial indicated that Paris used a child victim, identified in the indictment as “CV,” to produce child pornography in December 2010. Paris also used his e-mail account to receive, transport and possess separate images of child pornography.
According to court documents, Paris was arrested in December 2011 when he was caught printing images of child pornography at the Kansas City Public Library. Paris admitted to law enforcement officers that he used his e-mail account to receive, send and possess images and videos of child pornography. Paris possessed 169 images and 25 movies of child pornography.
Paris also admitted that he had used his cell phone to produce images of child pornography with two separate minors in December 2010 and January 2011. Paris admitted to repeated sexual abuses and molestations of numerous children as young as three years of age over the past decade.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Taney County, Mo., Sheriff’s Department, the North Richland Hills, Texas, Police Department and the Branson, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Asks Federal Court to Shut Down Fraudulent Florida Tax Return PreparerRead the Press Release
The United States has filed a complaint seeking to permanently bar a West Palm Beach, Florida, area man and his business from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint against Paul Jean, which was filed in the U.S. District Court for the Southern District of Florida, alleges that Jean prepares federal income tax returns for customers that understate their correct tax liabilities. The complaint alleges that Jean has operated under the business names Whiz Tax and Rejoice Tax Services.
According to the complaint, Jean intentionally misreports the information he receives from customers in order to fabricate or inflate tax credits, including claiming improper earned income tax credits, education credits or fuel credits. Because some of these credits are refundable, the improper claims often result in larger tax refunds than the customer would otherwise be entitled to, according to the suit.
The complaint alleges that Jean also prepares returns that report false or inflated deductions, such as mortgage interest deduction or contributions to charity, or business expense deductions reported on a Schedule C (Profit or Loss From Business), such as expenditures for supplies or office expenses.
According to the suit, the Internal Revenue Service (IRS) interviewed several of Jean’s customers who stated that they had not provided Jean with information to support a claim for a credit and that they were not aware that the improper credit was claimed on their tax return.
The suit also alleges that in some instances, Jean has prepared two returns for one customer. One return is shown to the customer but is not filed with the IRS, while the other return is filed with the IRS but not shown to the customer. The filed return claims a larger refund than the return shown to the customer by using at least one of the schemes described. Jean then allegedly keeps the fraudulent excess refund reported on the filed return.
The IRS estimates that Jean, directly or indirectly, has prepared and filed more than 3,000 tax returns since 2012, and that Jean’s conduct has potentially caused millions of dollars of harm to the U.S. Treasury, according to the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Investment Advisors Indicted for Operating Ponzi Scheme to Defraud Investors for Millions of DollarsRead the Press Release
Jeffrey Gardner and Stuart Voigt charged with using real estate scheme to steal millions
United States Attorney Andrew M. Luger today announced a superseding indictment charging JEFFERY ALLEN GARDNER, 61, and STUART ALAN VOIGT, 66, for conspiring to defraud individuals and financial institutions. In an indictment unsealed on July 24, 2014, GARDNER was charged with conspiracy to commit mail and wire fraud and other charges. In a superseding indictment filed today, VOIGT is also charged with conspiracy to commit mail fraud and other charges, and both defendants are additionally charged with bank fraud and making a false statement in a loan application.
“Those who hold positions of responsibility in the banking and investment industries are duty- bound to be honest and forthright with their clients,” said U.S. Attorney Luger. “We will continue to work with all of our federal and state partners to protect this important principle.”
According to the indictment and documents filed in court, between 2005 and 2007, GARDNER and VOIGT solicited and raised funds from private investors in connection with GARDNER’S business entity, Hennessey Financial, LLC (Hennessey). Investors were told that their investment would be used for commercial real estate financing and related projects, and were promised returns of between 10 and 20 percent annually. However, according to the superseding indictment, GARDNER, VOIGT, and others misrepresented the true financial circumstances of Hennessey to the victim investors.
According to the indictment and documents filed in court, GARNDER did not use Hennessey’s funds substantially as promised, instead diverting them to unapproved uses, including for repayments to prior investors and preexisting debts incurred by GARDNER and his companies. Moreover, even when GARDNER knew that Hennessey was failing as a business and unlikely to meet its obligations to repay investor funds, his company’s communications still represented to investors that their investments had positive value and were expected to continue to yield previously promised returns.
According to the indictment and documents filed in court, during the time period when Hennessey was failing, GARDNER and VOIGT created new companies, opened bank accounts in the names of new companies, transferred funds from Hennessey accounts, and took other steps to hide income and assets from investors, creditors, and the government.
According to the indictment and documents filed in court, VOIGT knowingly engaged in monetary transactions of criminally derived property, namely multiple payments exceeding $50,000 each drawn from a Hennessey Financial account and made payable to VOIGT. During this same time period, VOIGT was the chairman of the board of First Commercial Bank (FCB). According to the charges, in order to keep Hennessey afloat and provide funds to funnel back to VOIGT, GARDNER and VOIGT secured loans for GARDNER from FCB without truthfully disclosing GARDNER’S financial situation. The defendants filed security interests and took other steps to allow another company to obtain Hennessey assets that GARDNER had presented as security for the loans from FCB, thereby depriving FCB of collateral and reducing the likelihood that FCB would be made whole.
According to the indictment and documents filed in court, GARDNER also misrepresented the reason Hennessey’s CFO resigned in early 2008. He told FCB that the CFO had been dismissed because he was only working 20 hours per week and was having family issues, when in truth, the CFO resigned due to concerns he had about Hennessey’s financial condition and representations made to investors.
According to the indictment and documents filed in court, VOIGT also made false statements to Tradition Capital Bank (TCB) in connection with a personal loan. VOIGT is charged with misrepresenting the value of his assets in personal financial statements made to the bank.
This case is the result of an investigation conducted by the United States Postal Inspection Service, Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Minnesota Department of Commerce – Fraud Bureau.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.
Defendant Information:
JEFFERY ALLEN GARDNER, 61
Hopkins, Minn.
Charges:
• Conspiracy to commit mail fraud, 2 counts
• Mail fraud, 4 counts
• Bank fraud, 5 counts
• False statement on a loan application, 7 counts
• Monetary transactions in criminally-derived property, 1 count
STUART ALAN VOIGT, 66
Apple Valley, Minn.
Charges:
• Conspiracy to commit mail fraud, 2 counts
• Mail fraud, 4 counts
• Bank fraud, 5 counts
• False statement on a loan application, 7 counts
• Monetary transactions in criminally-derived property, 16 counts
• False statement to the FDIC, 2 countsThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.