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Tuesday 14 April 2015
Antigo Man Sentenced to 45 Years in Federal Prison for Production of Child PornographyRead the Press Release
United States Attorney James L. Santelle announced today that Thomas A. Gervais (age: 45) of Antigo, Wisconsin, was sentenced yesterday to 45 years imprisonment by United States District Judge William C. Griesbach. Judge Griesbach also ordered a lifetime term of supervised release. The sentence followed his guilty plea to two counts of production of child pornography. The counts charged that he used and coerced two minor females to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct.
According to the complaint and other court documents, in July 2014, law enforcement agents arrested a subject, who lived out of state, on charges involving the sexual exploitation of minors. The subject told law enforcement agents that he communicated with other child pornography producers and traded child pornography with them. Subsequent investigation revealed that Thomas Gervais was one of those producing and trading child pornography with the subject. On October 10, 2014, a federal search warrant was executed at the residence of Thomas Gervais, located in Antigo, Wisconsin. Gervais was arrested and agents recovered additional evidence supporting Gervais’ sexual assault and exploitation of two minor females over the course of several years.
This case was prosecuted in federal court as part of “Project Safe Childhood,” the Department of Justice’s nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children using the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, the Antigo Police Department, Langlade County Sheriff’s Department and the Langlade County District Attorney’s Office. The case was prosecuted by Assistant United States Attorney William Roach.
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Additional Credit Union Fraud Charges and Firearms Violations Filed Against Leo GlodzikRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton filed a superseding indictment charging Leo Glodzik, age 44, of Wilkes-Barre with additional counts of bank fraud and false statements. In a separate indictment, Glodzik is charged with unlawful possession of three firearms in August 2014.
According to United States Attorney Peter J. Smith, the new fraud charges are part of a continuing investigation involving the Wilkes-Barre City Employees Federal Credit Union. Glodzik allegedly aided in the making of a false statement by using a fraudulent check drawn on a closed bank account as collateral for a $3,500 loan from the credit union to a co-defendant in July 2013.
In a separate indictment, the grand jury charged Glodzik with unlawful possession of three firearms in August 2014, specifically, a shotgun and two rifles. According to the indictment, Gladzik was allegedly a convicted felon at the time, as a result of a previous conviction on a state charge of theft.
No additional charges were brought against other co-defendants in the pending credit union bank fraud conspiracy case which is now part of the superseding indictment. Yesterday the government filed a plea agreement with one of the co-defendants, Tino Ninotti, which is subject to the approval of the court.
The indictments are part of a continuing investigation by the Scranton Office of the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for the firearm charge is 10 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The maximum penalty for the bank fraud charge is 30 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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"C-S.T.A.N.D", "Call-in Meeting"Read the Press Release
Contact Person: Lance Crick (864) 282-2100
“Call-in Meeting”, Wednesday April 15, 2015 at 5:30pm
Conway Recreation Center, 1515 Mill Pond Road, Conway, SC 29526COLUMBIA, South Carolina ---- United States Attorney Bill Nettles stated today that a “call-in meeting” will be held Wednesday, April 15, 2015 at 5:30 pm at the Conway Recreation Center, 1515 Mill Pond Road, Conway, SC 29526. This meeting is open to the public. The program, “C-S.T.A.N.D” an acronym for “Conway – Starting Toward A New Direction” is an application of the Drug Market Intervention program, coordinated by the United States Attorney’s Office and most recently utilized in the Charleston Farms community in North Charleston beginning in 2011. This initiative is a unified, proactive approach that bands together local, state and federal law enforcement with community partners in an effort to eradicate open drug dealing in a multiple block area of Conway. In addition to the federal and state arrests effected last Thursday, several letters, in lieu of arrest warrants, were delivered by law enforcement to lower level targets notifying them of the meeting.
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Monday 13 April 2015
‘Dr. Commander’ Former Leader of Hindu Temple of Georgia,Read the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been sentenced to 27 years, three months in prison following his conviction on 34 felony counts, including bank fraud, tax fraud, bankruptcy fraud, and obstruction charges.
“Annamalai perverted the sacred institution of religion by using it as a vehicle for greed and personal profit,” said Acting U.S. Attorney John A. Horn. “He convinced his victims that they had a problem in need of spiritual guidance, and then took advantage of their vulnerabilities for personal financial gain. The sentence rendered against him is lengthy but just and fair considering the irreparable harm he caused to his victims.”
“Annamalai Annamalai, a self-proclaimed “child prodigy” and “priest”, received his fate today for the fraud that he perpetrated on the faithful followers that believed in him,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant utilized the nation’s financial system to steal money from unsuspecting victims and then used the money for his own personal benefit. This sentence is a vital element in maintaining public confidence in our legal and financial system.”
According to Acting United States Attorney Horn, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai caused the followers’ credit card numbers to be charged on multiple occasions, in excess of their agreed amount and without authorization.
If the followers disputed the charges with their respective credit card companies, Annamalai submitted false documentation to the credit card companies in support of the unauthorized charges. Annamalai later filed spurious lawsuits against followers who disputed his charges and manipulated audio recordings to make it sound as if the followers had agreed to the disputed charges. Annamalai caused these manipulated audio recordings to be submitted to police departments investigating criminal complaints that were lodged against him.
The income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.
Following a two-week jury trial, Annamalai was convicted on August 25, 2014, for bank fraud and tax fraud offenses. Annamalai was also convicted of bankruptcy fraud offenses in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. Annamalai concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to a bank account in the name of a different entity. Annamalai was also convicted of money laundering for using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Annamalai was also convicted on three counts of obstruction and false statements in connection with the grand jury investigation and the bankruptcy proceeding. Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding.
Finally, Annamalai was convicted of conspiring with his spouse and others to conceal the arrest of co-defendant Kumar Chinnathambi.
Annamalai Annamalai, 49, of Baytown, Texas, was sentenced to 27 years, three months in prison.
Chinnathambi, 34, of Baytown, Texas, was later arrested and pleaded guilty to conspiracy to commit bankruptcy fraud on July 17, 2014. He will be sentenced at a later date.
In addition to Annamalai’s prison sentence, U.S. District Court Judge Timothy C. Batten, Sr. also ordered Annamalai to not engage in any spiritual service for compensation, directly or indirectly through intermediaries; and to not file frivolous, abusive, or malicious lawsuits against (1) former customers of the Hindu Temple and related entities, and victims of his criminal schemes; (2) parties, creditors, the Trustee, lawyers, or court personnel involved in the Hindu Temple’s bankruptcy case; and (3) attorneys, government agents, the jury, and court personnel involved in the criminal case. Judge Batten also recommended to the Bureau of Prisons that Annamalai be housed in a “Communications Management Housing Unit,” which is a special facility that will be able to monitor Annamalai’s telephone calls and electronic communications from prison.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation, with valuable assistance from the Federal Bureau of Investigation.
Assistant United States Attorneys Steven D. Grimberg and Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Wichita Man Sentenced for Trafficking More than 12,000 Pounds of MarijuanaRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 12 years in federal prison for trafficking more than 12,000 pounds of marijuana over a period of two years, U.S. Attorney Barry Grissom said.
Jeremy Harris, 33, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute marijuana. In his plea, he admitted obtained and distributed the marijuana in Kansas during a period from 2011 to 2013. The plea agreement states:
- On Aug. 2, 2013, Harris received a bulk marijuana shipment near Augusta, Kan. Investigators seized 35 steel containers that contained a total of more than 1,000 pounds of marijuana.
- One of Harris’ co-conspirators admitted driving a vehicle from El Paso, Texas, to Wichita more than 15 times, each time transporting more than 150 pounds of marijuana.
- Other conspirators were responsible from transporting marijuana from Texas to Kansas, and for transporting bulk cash to Texas and Mexico for payment.
- Harris paid for marijuana with bulk cash or by making wire transfers as directed. On one occasion, he asked another conspirator to deliver $70,000 in cash to Mexico to pay for marijuana. On another occasion, he asked another conspirator to deposit cash into the account of a third party to transfer drug proceeds. On another occasion, three conspirators transported $170,000 to El Paso to pay for marijuana.
Co-defendants included:
Jason Giesy, who was sentenced to 87 months in federal prison.
Evan Woolsey, who was sentenced to 72 months.
Grissom commended the Wichita Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Debra Barnett and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Urbandale Man Charged with St.Charles, Iowa RobberyRead the Press Release
DES MOINES, IOWA – Hassam Fayiz Abusharkh, 35, of Urbandale, Iowa, appeared in federal court on a criminal complaint alleging that Abusharkh robbed the Farmers and Merchants State Bank in St. Charles, Iowa, on March 25, 2015. Abusharkh made his initial appearance before United States Chief Magistrate Judge Celeste F. Bremer, who ordered that Abusharkh remain detained pending presentment of his case to a federal grand jury.
The public is reminded that a criminal complaint is merely an accusation, and that Abusharkh is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the Madison County Sheriff’s Office and the Federal Bureau of Investigation, and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. The United States Attorney’s Office does not anticipate making any further statements about this matter at this time.
U.S. Attorney’s Office and Cook County State’s Attorney’s Office Conducting Joint Investigation of Police Shooting DeathRead the Press Release
CHICAGO — Federal officials confirmed today that they are conducting a criminal investigation into the death of Laquan McDonald, 17, who died on Oct. 20, 2014, during an encounter with Chicago Police. McDonald, who was armed with a knife, was near West 41st Street and South Pulaski Road on the city’s southwest side, when he was shot and killed during an encounter with police.
United States Attorney Zachary T. Fardon confirmed the investigation along with FBI Special Agent in Charge Robert J. Holley and Cook County State’s Attorney Anita Alvarez. The joint investigation is being led by the Chicago Office of the Federal Bureau of Investigation in coordination with the Independent Police Review Authority, the U.S. Attorney’s Office, and the Cook County State’s Attorney’s Office.
Two Defendants Plead Guilty in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Lucia Chavez, 37, and her husband Joseph Chavez, 41, both of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced. As part of their plea agreements, Lucia Chavez agreed to a personal forfeiture money judgment of $1,624,450, and Joseph Chavez agreed to a personal forfeiture money judgment of $3,092,000.
According to court documents, Lucia Chavez and Joseph Chavez conspired with seven co-defendants from 2007 to 2010 to use straw buyers to purchase residential properties in Bakersfield developed by Pershing Partners LLC, owned by Lucia Chavez, and Jara Brothers Investments (JBI), owned by her brothers, co-defendants Eliseo Jara and Sergio Jara. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications. The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that they funded certain of the straw buyers’ down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyers had high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from straw buyers’ landlords, false pay stubs, and false verifications of employment.
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A.S. Richards are prosecuting the case.
The court set a sentencing hearing for the Chavez defendants on July 20, 2015. The maximum sentence for the conspiracy charge is 30 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The other seven co-defendants all previously pleaded guilty in this case. Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014 to 3 years and 10 months in prison for his role in the conspiracy. Co-defendants Eliseo Jara, Sergio Jara, Arlene Mojardin, and Candace Gonzales each pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and are scheduled to be sentenced on the following dates: May 18, 2015 (Arlene Mojardin), June 8, 2015 (Candace Gonzales), and June 22, 2015 (Eliseo Jara and Sergio Jara). Co-defendant Melissa Jara pleaded guilty to wire fraud and is to be sentenced on June 22, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015.
Docket #: 1:12-cr-213 AWI
Tuscola Businessman Charged with Income Tax EvasionRead the Press Release
Springfield, Ill. – A Tuscola, Ill., businessman is scheduled to appear for arraignment later this month on federal charges that he allegedly failed to pay more than $1.12 million in income tax for the 2008 and 2009 tax years. Last week, a grand jury returned the indictment charging Lorenzo Shane Stewart, owner of Ten Acres Excavating, Tuscola, with two counts of income tax evasion. Stewart’s arraignment has been scheduled on April 29, 2015, in Urbana.
According to court documents, in 2006, Stewart, 48, began conducting his excavation and construction business under the name Ten Acre Excavating. Stewart put the business under the name of one of his employees, although Stewart allegedly operated the business and received the income generated from the business. As a result, Stewart did not claim income generated by Ten Acre Excavating on his own tax returns.
In approximately July 2008, Stewart was awarded contracts to perform excavating and construction work on several natural gas pipeline substations that were being built in the Tuscola area in 2008 and 2009. Stewart and his employees performed work on these substations and received checks related to this pipeline work totaling approximately $1.7 million in 2008 and $5.9 million in 2009. Stewart allegedly claimed his adjusted gross income for 2008 was approximately $74,199, when in fact, the indictment alleges his adjusted gross income for 2008 was approximately $279,803. For 2009, Stewart allegedly claimed his adjusted gross income was approximately $257,361, when in fact, his adjusted gross income was approximately $3,044,980.
If convicted, each count carries a penalty of up to five years in prison, a $100,000 fine plus the costs of prosecution, and restitution.
The charge is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Three Men Sentenced in Alien Smuggling ConspiracyRead the Press Release
HOUSTON – Three people have been sentenced for their involvement in a conspiracy to harbor and transport illegal aliens, announced U.S. Attorney Kenneth Magidson along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Jose Heriberto Lopez, 42, Jose Arenas-Lucero, 51, and Miguel Angel Medina-Ortiz, 37, pleaded guilty in September, October and November 2014, respectively.
Today, U.S. District Judge Vanessa Gilmore considered relevant conduct for an incident in Oklahoma which involved the death of an alien being transported by Lopez. As a result, he received a sentence of 70 months in federal prison. Arenas-Lucero and Medina-Ortiz received respective sentences of 24 and 18 months. All are all citizens of Mexico who had resided in Houston and expected to face deportation proceedings following completion of their federal prison sentences.
Lopez and others engaged in a conspiracy to harbor and transport illegal aliens from April 2014, until his arrest June 12, 2014. Authorities discovered a stash house in Houston following a 911 call. HSI ultimately discovered 34 undocumented aliens being held in the house that had boarded up windows.
The undocumented aliens claimed the defendants would take their shoes, phones and other property upon entry into the home. The illegal aliens were detained at the house by guards until their families had paid the rest of their bill for transportation further into the United States. Lopez and Arenas-Lucero were guards in the home and occasionally drove the aliens to their next destination. Medina-Ortiz was involved in the payment portion of the scheme.
The three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI investigated. Assistant U.S. Attorney Celia Moyer prosecuted the case.
Three Former Beaumont ISD Employees Sentenced in Warehouse Fraud SchemeRead the Press Release
BEAUMONT, Texas — Three former Beaumont Independent School District employees have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daryl Glenn Johnson, 44, of Beaumont, pleaded guilty on Dec. 4, 2014, to conspiracy and was sentenced to 33 months in federal prison today by U.S. District Judge Ron Clark. Erin Gipson Johnson, 38, of Beaumont, and Kailyn DeShondra Pete, 25, of Beaumont, each pleaded guilty on Dec. 4, 2014 to fraud upon programs receiving federal funds. They were both sentenced to 5 years probation today by Judge Clark.
Daryl Johnson was ordered to pay $284,039.42 in restitution. He is jointly and severally liable with Erin Johnson for $193,998.37, and jointly and severally liable with Kailyn Pete for $90,041.05.
According to information presented in court, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, first his wife, Erin Johnson, and then a friend, Kailyn Pete, placed on the BISD payroll as temporary employees. However, neither Erin Johnson nor Kailyn Pete ever actually worked as a BISD warehouse employee. Daryl Johnson had the autonomy to hire temporary warehouse employees on his own, and the authority to determine how many hours they would be paid, and could do so unilaterally and without the authorization or direct knowledge of anyone else. Daryl Johnson used this authority to fraudulently verify that both Erin Johnson and Kailyn Pete worked the hours indicated on their respective timesheets, which included extensive amounts of overtime when he knew that they in fact had not worked any of the hours. From July 2009 through May 2011, Erin Johnson was paid $193,998.37. During the timeframe of June 2010 through May 2012, Kailyn Pete was paid $90,041.05.
This case was investigated by the joint Task Force with the Jefferson County District Attorney’s Office, the Beaumont Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Joe Batte and Christopher T. Tortorice.
Three Floydada Men Face Federal Drug Distribution Conspiracy ChargesRead the Press Release
LUBBOCK, Texas — Three residents of Floydada, Texas, who were arrested on Friday by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made their initial appearances in federal court this afternoon on drug distribution conspiracy charges outlined in a federal complaint that was just unsealed, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Victor Alaniz, 34, Michael Alaniz, 32, and Jonathan Molina, 22, each appeared this afternoon before U.S. Magistrate Judge Nancy M. Koenig, who ordered that they remain in custody pending further hearings set for Wednesday, April 15, 2015.
On April 9, 2015, law enforcement obtained a federal search warrant for 508 W. Lee Street and 510 W. Lee Street in Floydada. Victor Alaniz and a 9mm semi-automatic pistol were located inside 508 W. Lee Street.
Law enforcement located Michael Alaniz and Jonathan Molina inside 510 W. Lee Street. A search of that residence yielded approximately 54 grams of methamphetamine, approximately 25 grams of cocaine, and approximately 30 grams of cocaine base. Additionally, digital scales, plastic bags and writing consistent with a drug ledger were located in the residence. Jonathan Molina had nearly six grams of cocaine in his pocket.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not more than 20 years in federal prison and a $1 million fine.
The ATF and the Floydada County Sheriff’s Office are investigating. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Tampa Man Indicted for Traveling to Engage in Unlawful Sexual Activity with A Missouri MinorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Stephen Farris Underwood (46, Tampa) with coercion and enticement, transportation of a minor with the intent to engage in criminal sexual activity, and traveling to meet a minor with the intent to engage in illicit sexual conduct. If convicted on all counts, he faces a maximum penalty of life in federal prison.
According to the indictment, Underwood traveled from Tampa to Missouri to meet a minor with whom he had been corresponding online. Underwood picked up the minor from a Missouri shopping center and transported him to Underwood’s residence in Tampa. It was Underwood’s intent that he and the minor would live together as a couple in Florida. The parents of the minor, who was fifteen at the time, did not give Underwood permission to leave the state with their son.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office, the Mountain View (Missouri) Police Department, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Solaroli Pleads Guilty to Money LaunderingRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Christy Romero, Special Inspector General for TARP (SIGTARP), announced today that Alberto Solaroli, 60, of Jacksonville, Fla., pled guilty on April 10, 2015, to an Information charging him with money laundering. The charge relates to a $120,000 wire transfer from One Bank and Trust of Little Rock, Ark. (Onebanc), to a bank in Florida where Solaroli controlled an account.
Friday’s plea hearing took place in Little Rock before Chief District Judge Brian S. Miller. An indictment charging Solaroli with bank fraud was dismissed after he pled guilty to money laundering.
“Deceiving banks through fraudulent pretenses ends up hurting our entire banking industry,” Thyer said. “We are committed to investigating and prosecuting those who take advantage of the good will of bank depositors. When people try to steal from banks by deceiving banking officers all banking customers suffer, and our faith in the banking industry is undermined. Those who try to steal from our community’s banks with lies rather than force will be prosecuted.”
In November 2013 a federal grand jury returned an indictment against Solaroli, a Canadian citizen purporting to be the owner of patents for technology related to engine technology for race cars, related to a $1.5 million personal line of credit he borrowed from Onebanc in 2007. In early 2007, Solaroli was introduced to a Senior Vice President at Onebanc by a friend who was also Onebanc customer. As a result of the introduction, Solaroli met with the Onebanc Senior Vice President in Jacksonville, Fla., where the defendant lived and worked. The defendant requested a $1,500,000 loan from Onebanc in April 2007, stating that his cash flow was tied up at the time. As a result of Solaroli’s personal written financial statement submitted to Onebanc, which listed his net worth as $169,473,680, the bank made a $1,500,000 line of credit available to the defendant to be repaid in one year.
Immediately after receiving the approval of his loan application, Solaroli instructed the Onebanc Senior Vice President to wire $120,000 to a bank account in Florida that Solaroli controlled, in the name of CET Racing. The defendant eventually received all $1,500,000, but never made a payment on any of the monies he received from the line of credit. In later efforts by the bank to collect on a judgment against Solaroli, Solaroli admitted under oath that the financial statement he submitted to Onebanc was false.
The money laundering charge carries a statutory sentence of not more than 10 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised. Solaroli will be sentenced by Judge Miller at a later date.
The case was investigated by special agents from the IRS-Criminal Investigations, Federal Bureau of Investigation, SIGTARP, and the Federal Reserve. The case is prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley.
Second Member of Lawrence Kidnapping Crew Sentenced to 16 Years in PrisonRead the Press Release
BOSTON – A Lawrence man was sentenced today to 16 years in prison for his role in a 2012 kidnapping.
Julio Gonzalez, 30, was sentenced to 16 years in prison and three years of supervised release after pleading guilty in November 2014 to conspiracy to commit kidnapping.
Gonzalez was part of a kidnapping crew headed by Alfred Vasquez. On Jan. 30, 2012, Vazquez, Gonzalez, Edgar Acevedo, Alberto Moreno, and Deborah Torres, all of Lawrence, held a gun to a victim and kidnapped him from a street in the Jamaica Plain neighborhood in Boston. Through Vasquez, the crew demanded a $100,000 ransom for the victim’s release and, joined by William Ayala, held the victim in Lawrence for five days. After agents interceded, the victim was rescued, unharmed, in Lawrence. Among other evidence, members of the crew were identified by fingerprint and DNA evidence.
Gonzalez is the second member of this Lawrence-based kidnapping crew to be sentenced. In March 2015, Acevedo was sentenced to 16 years in prison.
The charge of conspiracy to commit kidnapping provides for a sentence of life in prison. Actual sentences for federal crimes are typically less than the maximum penalty. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
This case is part of a two-year investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Massachusetts State Police, the Lawrence Police Department, and other law enforcement agencies into violent kidnapping and home invasion crews operating in Lawrence. According to affidavits and other documents filed in court, the investigation revealed that the majority of these kidnappings were carried out by organized, armed, violent crews often referred to as Joloperros (loosely translated as “Stick-up Guys”). These Joloperros crews typically kidnapped drug dealers for large ransoms, paid in cash and/or drugs; used safe houses to hold their hostages; and sometimes assaulted and burned their victims while they held them captive. These crews also frequently used sophisticated tracking techniques, such as GPS devices, to follow their victims before the abductions, and at times used associates in the Dominican Republic to receive ransom money.
United States Attorney Carmen M. Ortiz; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief James Fitzpatrick of the Lawrence Police Department; Commissioner William Evans of the Boston Police Department; Chief Domenic J. DiMella of the Saugus Police Department, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorneys Peter K. Levitt, Christopher Pohl, and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
Rochester Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul announced today that Peter Barclay, 31, of Rochester, NY, who was convicted of possession of heroin with intent to distribute and being a convicted felon in possession of a firearm, was sentenced to 78 months in prison by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on May 17, 2012, Rochester Police Officers went to the area of Ellison Street to investigate a report of a single shot being fired. Officers approached Barclay, who was with another person, to see if they had information about the incident. The defendant became verbally abusive towards the officers and, when asked for identification, threw his New York State Identification on the ground near the officers. Barclay then ran into the residence at 214 Ellison Street.
Officers went to the address and were met by Barclay and his family who let the officers into the residence to look around. Officers located a .9mm semi-automatic pistol, ammunition, and approximately 445 grams of heroin. The defendant admitted to possessing both the firearm and the heroin.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Office and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Richmond Man Sentenced to 144 Months for Distributing Child PornographyRead the Press Release
LEXINGTON — A Richmond man, who previously admitted to making images of child pornography available for download on the internet, has been sentenced to 144 months in federal prison.
U.S. District Judge Joseph M. Hood sentenced 53-year-old Mark Douglas Taylor for distribution of child pornography and ordered him to be under the supervision of the U.S. Probation Office for 10 years following his release. Under federal law, Taylor must serve at least 85 percent of his sentence.
According to Taylor’s plea agreement, an undercover investigator with the Office of the Kentucky Attorney General, downloaded several files from the internet that she suspected contained child pornography. Law enforcement later identified Taylor’s computer as the source of the child pornography files. Then, in February 2014, law enforcement executed a search warrant at his residence and located numerous images depicting prepubescent children engaged in sexually explicit conduct on his computer.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Jack Conway, Kentucky Attorney General; and Howard Marshall, Special Agent in Charge of the FBI, jointly made the announcement today.
The investigation was conducted by the FBI and the Office of the Kentucky Attorney General. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
Quality Egg, Company Owner and Top Executive Sentenced in Connection with Distribution of Adulterated EggsRead the Press Release
The company owner, a top executive and their company, Quality Egg LLC, were sentenced today in federal district court in Sioux City, Iowa, the Department of Justice announced.
Austin “Jack” DeCoster, 81, of Turner, Maine, who owned Quality Egg, was sentenced to serve three months in prison to be followed by one year of supervised release, and fined $100,000. His son, Peter DeCoster, 51, of Clarion, Iowa, who was Quality Egg’s chief operating officer, was also sentenced to serve three months in prison to be followed by one year of supervised release, and fined $100,000. Quality Egg was sentenced to pay a fine of $6.79 million and placed on probation for three years. All three defendants were ordered to make restitution in the total amount of $83,008.19. Quality Egg also agreed to forfeit $10,000 as part of its plea agreement with the government. The defendants were sentenced by U.S. District Court Judge Mark W. Bennett in the Northern District of Iowa.
On June 3, 2014, Quality Egg, an egg production company with operations in Wright County, Iowa, pleaded guilty to one count of bribery of a public official, one count of introducing a misbranded food into interstate commerce with intent to defraud and one count of introducing adulterated food into interstate commerce. Jack and Peter DeCoster each pleaded guilty to one count of introducing adulterated food into interstate commerce. In plea agreements, the company and the father and son admitted that the company’s shell eggs were adulterated in that they contained a poisonous and deleterious substance, Salmonella Enteriditis, which may have rendered the eggs injurious to health.
During the spring and summer of 2010, adulterated eggs produced and distributed by Quality Egg were linked to approximately 1,939 reported consumer illnesses in multiple states—a nationwide outbreak of salmonellosis that led to the August 2010 recall of millions of eggs produced by the defendants.
“The message this prosecution and sentence sends is a stern one to anyone tempted to place profits over people’s welfare,” said the U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “Corporate officials are on notice. If you sell contaminated food you will be held responsible for your conduct. Claims of ignorance or 'I delegated the responsibility to someone else’ will not shield them from criminal responsibility.”
“American consumers deserve to feel secure that the eggs they eat are safe and produced in sanitary conditions,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will pursue and prosecute those whose criminal conduct compromises the safety of our food supply.”
“Food manufacturers have a responsibility to produce and sell food that is safe for consumers to eat,” said Dr. Stephen Ostroff, U.S. Food and Drug Administration (FDA) Acting Commissioner. “Eggs are commonly consumed nationwide, both on their own and as ingredients in other foods. When manufacturers fail to produce safe food, the FDA will take action to protect public health.”
As noted in the government’s memorandum regarding sentencing, Quality Egg personnel had, for years, disregarded food safety standards and practices and misled major customers, including Walmart, about the company’s food safety practices. In the memorandum filed with the court, the government noted that since 2006, the company had commissioned tests to detect Salmonella Enteriditis in its layer barns and in the organs of its layer hens, that the results came back positive on 47 percent of the days tested, and that the frequency of positive test results grew in the months leading up to the August 2010 recall. As part of the memorandum, the government also argued that the evidence indicated that Quality Egg personnel took steps to conceal from regulators and customers the company’s failures to follow food safety standards and practices, that Quality Egg created food safety plans that included inaccurate claims about the company’s biosecurity and pest control practices, and that Quality Egg falsified documents for the food safety audits required by various customers.
Quality Egg pleaded guilty to bribing an inspector of the U.S. Department of Agriculture (USDA) to release eggs that had been retained for quality issues. Quality Egg acknowledged that, on at least two occasions in 2010, its employees gave a cash bribe to a USDA inspector. The USDA inspector’s job responsibilities included inspecting shell eggs at one or more of Quality Egg’s production facilities in Iowa. Quality Egg admitted that its employees provided the bribe to the USDA inspector (now deceased) in an attempt to corruptly influence the inspector to exercise his authority to release pallets of retained eggs for sale without re-processing the eggs as required by law and USDA standards. The eggs had been retained or “red tagged” for failing to meet minimum USDA quality grade standards. Former Quality Egg employee Tony Wasmund, 64, of Willmar, Minnesota, pleaded guilty in September 2012 to one count of conspiracy to bribe a public official, sell restricted eggs with intent to defraud and introduce misbranded food into interstate commerce with intent to defraud and mislead. Wasmund is scheduled to be sentenced by U.S. District Court Judge W. Bennett on May 15 at 8:30 a.m.
Quality Egg also pleaded guilty to introducing misbranded eggs into interstate commerce with the intent to defraud. As part of its plea agreement, Quality Egg admitted that, beginning no later than January 2006 and continuing through Aug. 12, 2010, its employees affixed labels to egg shipments that indicated false expiration dates with the intent to mislead state regulators and retail egg customers regarding the true age of the eggs. Quality Egg acknowledged that there were a number of ways that the company mislabeled older eggs with newer processing and expiration dates prior to shipping the eggs to customers in California, Arizona and other states. Sometimes Quality Egg personnel did not put any processing or corresponding expiration dates on the eggs when they were processed. The eggs would be kept in storage for several days or up to several weeks. Then, just prior to shipping the eggs, Quality Egg personnel labeled the eggs with processing dates that were false in that the dates were more recent than the dates that the eggs had actually been processed and with corresponding false expiration dates.
The case was prosecuted by Assistant U.S. Attorney Peter Deegan of the Northern District of Iowa and Trial Attorneys Lisa Hsiao and Christopher Parisi of the Civil Division’s Consumer Protection Branch. They were assisted by Associate Chief Counsel Michael Varrone of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division. The case was investigated by FDA’s Office of Criminal Investigations, the USDA’s Office of Inspector General and the FBI.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3024.
Quality Egg, Company Owner and Top Executive Sentenced in Connection with Distribution of Adulterated EggsRead the Press Release
Sioux City, Iowa – The company owner, a top executive and their company, Quality Egg LLC, were sentenced today in federal district court in Sioux City, Iowa, the United States Attorney’s Office for the Northern District of Iowa announced.
Austin “Jack” DeCoster, 81, of Turner, Maine, who owned Quality Egg, was sentenced to serve three months in prison to be followed by one year of supervised release, and fined $100,000. His son, Peter DeCoster, 51, of Clarion, Iowa, who was Quality Egg’s Chief Operating Officer, was also sentenced to serve three months in prison to be followed by one year of supervised release, and fined $100,000. Quality Egg was sentenced to pay a fine of $6.79 million and placed on probation for three years. All three defendants were ordered to make restitution in the total amount of $83,008.19. Quality Egg also agreed to forfeit $10,000 as part of its plea agreement with the government. The defendants were sentenced by U.S. District Court Judge Mark W. Bennett in the Northern District of Iowa.
On June 3, 2014, Quality Egg, an egg production company with operations in Wright County, Iowa, pleaded guilty to one count of bribery of a public official, one count of introducing a misbranded food into interstate commerce with intent to defraud and one count of introducing adulterated food into interstate commerce. Jack and Peter DeCoster each pleaded guilty to one count of introducing adulterated food into interstate commerce. In plea agreements, the company and the father and son admitted that the company’s shell eggs were adulterated in that they contained a poisonous and deleterious substance, Salmonella Enteriditis, which may have rendered the eggs injurious to health.
During the spring and summer of 2010, adulterated eggs produced and distributed by Quality Egg were linked to approximately 1,939 reported consumer illnesses in multiple states—a nationwide outbreak of salmonellosis that led to the August 2010 recall of millions of eggs produced by the defendants.
"The message this prosecution and sentence sends is a stern one to anyone tempted to place profits over people's welfare. Corporate officials are on notice. If you sell contaminated food you will be held responsible for your conduct. Claims of ignorance or ‘I delegated the responsibility to someone else’ will not shield them from criminal responsibility,” said U.S. Attorney Kevin W. Techau for the Northern District of Iowa.
“American consumers deserve to feel secure that the eggs they eat are safe and produced in sanitary conditions,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will pursue and prosecute those whose criminal conduct compromises the safety of our food supply.”
Dr. Stephen Ostroff, FDA Acting Commissioner, said, “Food manufacturers have a responsibility to produce and sell food that is safe for consumers to eat. Eggs are commonly consumed nationwide, both on their own and as ingredients in other foods. When manufacturers fail to produce safe food, the FDA will take action to protect public health.”
As noted in the government’s memorandum regarding sentencing, Quality Egg personnel had, for years, disregarded food safety standards and practices and misled major customers, including Walmart, about the company’s food safety practices. In the memorandum filed with the court, the government noted that since 2006, the company had commissioned tests to detect Salmonella Enteriditis in its layer barns and in the organs of its layer hens, that the results came back positive on 47 percent of the days tested, and that the frequency of positive test results grew in the months leading up to the August 2010 recall. As part of the memorandum, the government also argued that the evidence indicated that Quality Egg personnel took steps to conceal from regulators and customers the company’s failures to follow food safety standards and practices, that Quality Egg created food safety plans that included inaccurate claims about the company’s biosecurity and pest control practices, and that Quality Egg falsified documents for the food safety audits required by various customers.
Quality Egg pleaded guilty to bribing an inspector of the U.S. Department of Agriculture (USDA) to release eggs that had been retained for quality issues. Quality Egg acknowledged that, on at least two occasions in 2010, its employees gave a cash bribe to a USDA inspector. The USDA inspector’s job responsibilities included inspecting shell eggs at one or more of Quality Egg’s production facilities in Iowa. Quality Egg admitted that its employees provided the bribe to the USDA inspector (now deceased) in an attempt to corruptly influence the inspector to exercise his authority to release pallets of retained eggs for sale without re-processing the eggs as required by law and USDA standards. The eggs had been retained or “red tagged” for failing to meet minimum USDA quality grade standards. Former Quality Egg employee Tony Wasmund, 64, of Willmar, Minnesota, pleaded guilty in September 2012 to one count of conspiracy to bribe a public official, sell restricted eggs with intent to defraud and introduce misbranded food into interstate commerce with intent to defraud and mislead. Wasmund is scheduled to be sentenced by U.S. District Court Judge W. Bennett on May 15 at 8:30 a.m.
Quality Egg also pleaded guilty to introducing misbranded eggs into interstate commerce with the intent to defraud. As part of its plea agreement, Quality Egg admitted that, beginning no later than January 2006, and continuing through Aug. 12, 2010, its employees affixed labels to egg shipments that indicated false expiration dates with the intent to mislead state regulators and retail egg customers regarding the true age of the eggs. Quality Egg acknowledged that there were a number of ways that the company mislabeled older eggs with newer processing and expiration dates prior to shipping the eggs to customers in California, Arizona and other states. Sometimes Quality Egg personnel did not put any processing or corresponding expiration dates on the eggs when they were processed. The eggs would be kept in storage for several days or up to several weeks. Then, just prior to shipping the eggs, Quality Egg personnel labeled the eggs with processing dates that were false in that the dates were more recent than the dates that the eggs had actually been processed and with corresponding false expiration dates.
The case was prosecuted by Assistant U.S. Attorney Peter Deegan of the Northern District of Iowa and Trial Attorneys Lisa Hsiao and Christopher Parisi of the Civil Division’s Consumer Protection Branch, U.S. Department of Justice. They were assisted by Associate Chief Counsel Michael Varrone of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the USDA’s Office of Inspector General and the FBI.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3024.
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Pine Lawn Mayor Pleads Guilty to Extortion ChargesRead the Press Release
St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, has pled guilty to charges involving the extortion of cash payments from the owner of a local towing company and from the owner of a Pine Lawn convenience store.
According to court documents, from December 2013 through April 2014, special agents with the Federal Bureau of Investigation ("FBI") were conducting an ongoing public corruption investigation into the activities of defendant Sylvester Caldwell ("the defendant"), who was Mayor of the City of Pine Lawn, Missouri. As Mayor, the defendant exercised authority and control over which towing company provided the primary towing service for the City of Pine Lawn. During the public corruption investigation, the owner of a towing company, who was cooperating with the FBI, met with the defendant on several occasions for the purpose of making cash payments to the defendant at the defendant’s request, in order to remain as the primary towing service for Pine Lawn.
On at least five occasions, the defendant met with the tow company owner at various locations within the Eastern District of Missouri and accepted cash payments, which the defendant had requested in exchange for continuing to give work to the towing company. These payments included the following: December 20, 2013 - $300; December 30, 2013 - $200; January 16, 2014 - $300; February 21, 2014 - $500; and March 27, 2014 - $300. At times, the defendant used coded language when requesting the cash payments. For example, the defendant commanded the tow company owner to place "green Mountain Dew in a cup," which was code for directing that the cash be placed in a disposable cup and handed to the defendant. The defendant also induced payments by threatening to use a competing towing company.
From at least February 2013 through September 2014, Mayor Caldwell also extorted numerous payments of money from the owner of a convenience store known as Pine Lawn Market. Defendant attempted to disguise the payments as donations to the City of Pine Lawn. The owner paid the money to defendant out of fear that defendant would make trouble for the store. The owner of the store also allowed defendant to take goods from the store out of fear that his business could suffer economic harm if he refused.
Caldwell, Florissant, Missouri, pleaded guilty to one count of Attempted Extortion and one count of Extortion before United States District Judge Catherine D. Perry. Sentencing has been set for July 7, 2015.
Each of these charges carries a maximum penalty of 20 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 Attorneys Reginald Harris and Anthony Franks are handling the case for the U.S. Attorney’s Office.
Perry Hall Man Sentenced in Scheme to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Robert Johnson, age 33, of Perry Hall, Maryland, today to a year and a day in prison followed by three years of supervised release, and ordered him to serve 75 hours of community service, for wire fraud conspiracy and aggravated identity theft related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits.
On March 4, 2015, a federal jury convicted co-defendant Denita Hill, age 26, of Baltimore, of wire fraud conspiracy and two counts of aggravated identity theft, related to the scheme.
The sentence and trial conviction were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
Johnson worked in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs. Denita Hill was an accountant in the Finance Department of the City of Baltimore.
Baltimore City employees who leave their employment are entitled to a lump sum check of any pay and benefits for which they are qualified. According to his guilty plea and court documents, from July 11, 2013 to August 2, 2013, Johnson and Hill used the financial and identity information of former Baltimore City employees to request fraudulent employee benefit payout checks. Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received. These duplicate checks were printed at the Baltimore City Finance Office, where Hill stole the checks. Hill delivered the checks to Johnson, endorsed to him and purportedly signed by the original payee. Johnson endorsed and cashed the checks, deposited the proceeds into his bank account and used the funds for his and Hill’s benefit.
For example, on July 11, 2013, Johnson deposited a check fraudulently endorsed to Johnson with the victim’s forged signature, and made out to the victim in the amount of $14,741.09. On July 31, 2013, Johnson deposited a check made out to a second victim in the amount of $58,485.91. Again, the check was endorsed to Johnson with the second victim’s forged signature. Both victims had previously received and cashed their initial lump sum payment checks and the duplicate checks were issued and endorsed to Johnson without their knowledge or permission.
After Johnson attempted to wire some of the funds to pay off an account at a different financial institution, Johnson’s bank was alerted to the suspicious transactions and referred the matter to the City of Baltimore Office of the Inspector General, who sought the assistance of the Finance Department in determining the authenticity of the endorsements. Hill was tasked with the investigation and notified Johnson of the problem. Hill attempted to derail the investigation and obtain release of the funds by the bank by claiming to have spoken with the check recipients, who purportedly confirmed that the endorsements were genuine. In fact, neither statement was true. Meanwhile, Johnson’s bank had reversed the deposits and returned the funds to the City of Baltimore, leaving a large deficit in Johnson’s account balance. Johnson obtained funds from Hill to repay the amount due.
Over the course of the conspiracy, Johnson and Hill fraudulently obtained approximately $70,000 all of which was ultimately recovered.
Denita Hill faces a maximum sentence of 20 years in prison for the wire fraud conspiracy; and two years in prison, consecutive to any other sentence imposed, on each of two counts for aggravated identity theft. Judge Russell has scheduled her sentencing for May 19, 2015 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh J. Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Pair who worked in Toledo real estate business indicted for $1.5 million conspiracyRead the Press Release
Two people who worked in the real estate business in the Toledo area were indicted for their roles in a $1.5 million conspiracy to defraud several banks, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Timothy R. Bradley, 40, now of Cary, N.C., and Martha E. Ednie, 53, of Toledo, were each indicted on one count of conspiracy to commit bank fraud and multiple counts of bank fraud.
Bradley worked as a real estate agent working for various brokerages in the Toledo area, while Ednie was a mortgage broker who operated Apex Mortgage Company. Beginning in 2005, Bradley and Ednie conspired with others to obtain fraudulent mortgage loans by concealing the true purchase price from banks making the loans, according to the indictment.
The true purchase price was represented by an “addendum” to the real estate contract, which lowered the purchase price. These addendums were signed near the time of closing and were concealed from the lenders. Unbeknownst to the lenders, they were loaning the home purchasers between 82 percent and 135 percent of each home’s value based on the adjusted addendum purchase price, according to the indictment.
Bradley was listed as the real estate agent on the contracts and Ednie secured financing in her role as mortgage broker. Bradley and others attracted buyers to the scheme by advertising the properties as good sources of rental income and assuring cash back at closing, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Olathe Man Pleads Guilty to Casino Money Laundering, Drug TraffickingRead the Press Release
KANSAS CITY, KAN. - An Olathe man pleaded guilty Monday to his role in a scheme to launder profits from marijuana trafficking through a casino in Kansas City, Kan., U.S. Attorney Barry Grissom said.
Christopher Anderson, 31, Olathe, Kan., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to commit money laundering. In his plea, he admitted he and other conspirators inserted more than $470,000 in proceeds of drug trafficking into slot machines at the Hollywood Casino in Kansas City, Kan. Then they cashed out at an ATM machine in the casino without playing. Their purpose was to convert small denomination bills into large denomination bills that were easier to transport from Kansas to California.
Anderson also admitted the following:
- The trafficking organization to which he belonged cultivated marijuana in California and transported it to the Kansas City area for distribution.
- During the early days of the organization, traffickers mailed Home Depot buckets and basketballs containing marijuana from California to Kansas. Over time, they began to drive cars carrying marijuana from California to Kansas, and money from Kansas to California.
- The conspirators also used Money Grams to send cash from Kansas to California.
Sentencing will be scheduled at a later time. Anderson faces a maximum penalty of 20 years in federal prison and a fine up to $500,000 on the money laundering charge and a maximum penalty of five years and a fine up to $250,000 on the drug distribution charge. Grissom commended the Kansas Bureau of Investigation, the Johnson County Sheriff’s Office, the U.S. Secret Service and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.
Ohio Man Arrested, Charged with FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Paul Lacey, 56, of Youngstown, Ohio, was arrested and charged by criminal complaint with participating in a wire fraud scheme. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that according to the complaint, Lacey traveled from Ohio to Georgia to open a bank account with Bank of America into which approximately $250,00 had been illegally transferred from an attorney’s account in Dansville, NY. With the knowledge that he had no legal right to the proceeds in the Bank of America account, the defendant then withdrew large sums of cash from the account.
Lacey made an initial appearance today before U.S. Magistrate Judge Marian W. Feldman. The defendant be detained pending a detention hearing on April 15, 2015 at 10:30 a.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation in Rochester, NY, Atlanta, Georgia and Youngstown, Ohio.
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.
Nolin Rural Electric Cooperative Corporation of Elizabethtown, Kentucky, Enters A Non-Prosecution Agreement and Civil Settlement with the United States Related to Fort Knox BillingsRead the Press Release
Nolin RECC agrees to pay $7,619,333
LOUISVILLE, Ky. - Acting United States Attorney John E. Kuhn, Jr. announced today that the United States has entered into a Non-Prosecution Agreement with Nolin Rural Electric Cooperative Corporation (Nolin RECC) of Elizabethtown, Kentucky, related to bills submitted to Fort Knox under an Army energy-saving program. Under the terms of the agreement, Nolin RECC will pay the United States $2,619,333 as part of a civil settlement, and will forfeit an additional $5 million to the United States Marshals Service, for a total settlement amount of $7,619.333. In addition, Nolin RECC has agreed to employ a corporate ethics monitor for two years to oversee its dealings with the federal government.
“The Agreements we announce today result from an extensive investigation of the Ft. Knox energy program,” stated Acting United States Attorney John Kuhn. “The investigation uncovered criminal acts and millions of dollars in questionable payments. We have vigorously pursued justice by prosecuting responsible parties and now, with these Agreements, recovering over $7.6 million in questionable payments. The settlement also brings about an important correction to ensure compliance with program requirements going forward.”
Brian J. Reihms, Defense Criminal Investigative Service (DCIS) Special Agent-in-Charge, stated, “DCIS is dedicated to working with our investigative partners to investigate the conduct of DoD officials and contractors and ensuring the integrity of the procurement system.”
As part of the civil Settlement Agreement and the Non-Prosecution Agreement, the United States and Nolin RECC agreed to the relevant facts in Appendix A to the Non-Prosecution Agreement, which describes the conduct in question. In exchange for the total civil settlement amount of $2,619,333, the United States has released civil claims under the False Claims Act, the Procurement Integrity Act, the Program Fraud Civil Remedies Act and common law causes of action.
In 1996, Nolin RECC and Fort Knox entered into a Utility Energy Service Contract (UESC), which authorized and enabled Fort Knox and Nolin RECC to undertake energy saving projects. Each project was called an Energy Conservation Opportunity (ECO). Since 1996, Fort Knox awarded 108 ECOs to Nolin RECC, which were intended to make Fort Knox more energy efficient and were cumulatively valued at approximately $270 million. By design, the projected savings associated with each ECO project were intended to offset the cost of each project.
In early 2010, Nolin RECC billed Fort Knox $199,020 for work performed and expenses incurred related to a proposed waste-to-energy project that was never approved for implementation. Because the proposed ECO was not approved, Nolin RECC submitted a bill for expenses under another unrelated ECO that had been approved. $398,040, representing double damages for these unauthorized expenses, has been recovered by the United States as part of the civil settlement.
Similarly, in 2010, Nolin RECC worked on a Sample Solar Panel Project at Fort Knox. Although this project was never authorized or approved by the Fort Knox Contracting Officer, Nolin RECC billed the Sample Solar Panel Project costs of $94,178 under three unrelated but previously authorized ECOs. $12,394, representing double damages on Nolin RECC’s profits, has been recovered by the United States as part of the civil settlement.
Pursuant to ECOs 70 and 102, Nolin RECC became involved in the extraction of natural gas from Fort Knox land. Pursuant to those ECOs, Nolin RECC was authorized to bill Fort Knox for the gas at a specified rate. Notwithstanding the ECO rate definition, Nolin RECC billed Fort Knox in excess of the rate allowed by the ECOs, adding an additional sum characterized as "Retained Savings." This additional billing amounted to $800,089 more than the amount authorized by the ECOs. As part of the civil settlement, Nolin has agreed that Fort Knox will receive credit for these payments.
Nolin RECC understood that the Army required that all ECOs pay for themselves within ten years. Between 2002 and May 2008, Nolin RECC presented pro formas to the Army for twenty proposed ECOs which gave the impression that these twenty ECOs paid for themselves within ten years and were projected to save over $7 million in ten years. In fact, these twenty ECOs were actually projected to lose over $15 million over ten years. None of these twenty ECOs paid for themselves within ten years, and therefore, they should not have been authorized by the Army. These twenty ECOs resulted in over $8,000,000.00 in payments to Nolin RECC. Nolin RECC is forfeiting $5,000,000 to the United States as a result of the improperly authorized ECOs.
Nolin RECC has also paid double damages to the United States in connection with hiring Gary T. Meredith as its Resource Energy Manager (REM). Before becoming Nolin RECC's REM in August 2007, Meredith was employed by Fort Knox as its Energy Program Manager, working closely with Nolin RECC in that capacity for more than a decade.
The ECO for the REM position required Nolin RECC to comply with the Joint Ethics Regulations (Regulations which incorporate ethics statutes Meredith is charged with violating). The United States will recover $1,408,810, double the amount Nolin RECC received to pay Meredith for the REM position. Meredith is currently charged in a 38-count federal superseding indictment with conflict of interest and wire fraud for actions he took as an Army employee and as the Nolin RECC REM. His case is set for trial on December 1, 2015. Meredith’s co-defendant, Matthew Bowman, a former Army attorney, pleaded guilty on October 1, 2014, to providing a false written statement to a DCIS Special Agent investigating Meredith.
On September 8, 2014, the Department of Defense, Office of Inspector General (DoD OIG) issued an audit report that documented the results of an independent audit conducted on Ft. Knox’s energy program. The audit concluded that “Fort Knox officials did not properly award and administer 108 task orders, valued at about $270 million, for energy-saving projects. In addition, Fort Knox officials could not support the claim that projects achieved the projected energy savings. The audit further found that “the lack of adequate internal controls increases the risk of fraud, waste, and abuse.” The full audit can be viewed here: http://www.dodig.mil/reports.html/Article/1119054/fort-knox-and-the-army-need-to-improve-internal-controls-for-utility-energy-ser/
This agreement is neither an admission of liability by Nolin RECC nor a concession by the United States that its claims regarding the covered conduct are not well-founded.
The legal work for the criminal investigation and matter was handled by Assistant United States Attorney David Weiser, the civil matter by Assistant United States Attorney William F. Campbell, and the forfeiture by Assistant United States Attorney Amy Sullivan. The investigation was conducted by the Defense Criminal Investigative Service, Dayton Resident Agency. The Defense Contract Audit Agency and Army Criminal Investigations Command also supported the investigation.
Monmouth County, New Jersey, Man Admits Possessing Explicit Images of 12-Year Old Pennsylvania GirlRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted possessing sexually explicit images of a 12-year old Pennsylvania girl with whom he had an online relationship, U.S. Attorney Paul J. Fishman announced.
Chad Weber, 22, of Colt’s Neck, New Jersey, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of possessing images of child pornography.
According to documents filed in the case and statements made in court:
In April 2013, law enforcement agents learned Weber had been communicating with a 12-year-old girl from Pennsylvania. The agents obtained and reviewed copies of various chat logs and other internet-based messages, which reflect Weber’s online communications with the victim between February 2013 and April 2013. Many of these communications were sexually explicit. Weber and the victim also traded sexually explicit photographs of each other through the internet and discussed the photographs in online chats. During some of these communications, Weber acknowledged that the victim was 12 years old. Weber admitted possessing these sexually explicit photographs of the minor victim on his cell phone and computer.
As part of his guilty plea, Weber must forfeit the computer and cell phone he used to commit the offense. He will also be required to register as a sex offender.
The possession of child pornography count to which Weber pleaded guilty carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 22, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Miami Office Manager Convicted for Her Participation in Medicare Fraud SchemeRead the Press Release
A former office manager of a Miami based physical and occupational therapy clinic was convicted, following a four day trial, for her participation in a scheme that involved the fraudulent submission of more than $3.3 million dollars in false billing to Medicare.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Defendant Rossana Caneiro, 41, of Miami Lakes, was convicted of conspiracy to commit health care fraud and six substantive counts of health care fraud.
Evidence presented at trial showed that Caneiro had managed and operated Flagler Rehabilitation Center, Inc., a Miami based physical and occupational therapy clinic, for five years. The defendant was responsible for patient appointments, Medicare billing, the scheduling of therapy sessions, and was the point of contact for co-conspirator therapists who worked at the facility. Caneiro facilitated the fraudulent conduct at Flagler Rehabilitation Center, Inc. by directing the co-conspirator therapists to write fraudulent evaluations and other falsified documents for patients that were not actually treated at the clinic. The falsified physical and occupational therapy evaluations were prepared in an effort to conceal the Medicare fraud.
The defendant faces a maximum possible sentence of ten years in prison for each count of conviction.
Mr. Ferrer commended the investigative efforts of HHS-OIG. The case was prosecuted by Assistant U.S. Attorneys James V. Hayes and Amanda Perwin of the U.S. Attorney’s Office for the Southern District of Florida, in coordination with the Fraud Section of the Justice Department’s Criminal Division and the Medicare Strike Force.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Dade College Student Sentenced to 51 Months in Prison for Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 51 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $29,289, for his participation in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Smith Jean, 23, previously pled guilty to one count of conspiracy to commit an offense against the United States and one count of theft of government property or money.
According to court documents, from October 15, 2012 to September 23, 2013, Jean participated in a tax fraud scheme with co-defendant Beatrice Simeon, 22, and other co-conspirators. During the course of the scheme, the co-conspirators received fraudulently obtained U.S. Department of Treasury tax refunds into their personal Higher One, Inc. (HOI) accounts. HOI provided financial services to colleges and universities throughout the United States, including Miami Dade College in the Southern District of Florida.
Jean opened his HOI account when he enrolled as a student at Miami Dade College. Jean and his co-conspirators set up their HOI accounts to allow for the receipt of the fraudulently obtained federal income tax refunds. After the stolen tax refunds were deposited into Jean’s HOI account, the defendant withdrew the fraudulently obtained monies for his own personal benefit. Jean recruited co-defendant Simeon to participate in the tax fraud scheme by offering her a financial incentive, in exchange for the deposit of stolen tax refunds into Simeon’s HOI account. Simeon agreed to participate in the tax fraud scheme and provided Jean with her HOI account number.
Jean and other unknown co-conspirators submitted thirty-eight (38) false and fraudulent tax returns, claiming $263,415 in tax refunds to be deposited into Simeon’s HOI account. Jean and the co-conspirators also submitted twenty-four (24) false and fraudulent tax returns, claiming $81,076 in tax refunds to be deposited into Jean’s HOI account.
Co-defendant Simeon previously pled guilty to one count of conspiracy to commit an offense against the United States and one count of theft of government property or money. Simeon was sentenced to five years of probation by U.S. District Judge Ursula Ungaro.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to Five Years for Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ernesto Felix, 52, of Sinaloa, Mexico, was sentenced today in federal court in Albuquerque, N.M., to 60 months in federal prison for his methamphetamine trafficking conviction. He will be deported following his prison sentence.
Felix is one of 29 individuals charged in Feb. 2014, with drug trafficking offenses as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
On Jan. 12, 2015, Felix pled guilty to Count 4 of the indictment and admitted that on July 31, 2013, in San Juan County, N.M., he and co-defendant Wesley Contreras, 20, of Farmington, N.M., were transporting approximately 891 grams of methamphetamine from Arizona to New Mexico when they were apprehended by law enforcement. Felix admitted that he and Contreras were paid to transport the drugs.
Contreras has entered a not guilty plea to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorneys Reeve L. Swainston and Shana B. Long are prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican Man Pleads Guilty on Eve of Trial to Trafficking MethamphetamineRead the Press Release
LAREDO, Texas - Andres Villarreal-Parades, 28, of Nuevo Laredo, Mexico, has been convicted of possession with intent to distribute more than 500 grams of methamphetamine, announced U.S. Attorney Kenneth Magidson. Villarreal-Parades was set to begin trial tomorrow, but instead opted to plead guilty today.
Parades admitted trafficking 20.5 kilograms of crystal methamphetamine containing a 95% purity-level.
On July 28, 2014, authorities arrested co-conspirator Gilberto Jorge Rodriguez for a traffic violation, at which time they seized approximately 20.5 kilograms of crystal methamphetamine. Upon further investigation, authorities identified Villarreal-Parades as the person who arranged the drug load.
Villarreal-Parades was arrested Aug. 21, 2014, and seized telephones that were associated with the drug conspiracy. Through analysis, agents were able to connect the two defendants and discovered a drug operation that shipped large bulk methamphetamine from Laredo to Houston and Dallas.
The conspiracy spanned February through July 2014, during which time approximately 100 kilograms of methamphetamine, valued at millions of dollars, were moved throughout the United States.
Rodriguez, 48, of Laredo, pleaded guilty in December 2014.
U.S. District Judge Marina Garcia-Marmolejo, who accepted both of the pleas, will set sentencing a later date. At that hearing, each faces a minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.
This charges are the result of an investigation by Homeland Security Investigations, police departments in Freer and Laredo as well as the High Intensity Drug Trafficking Area Task Force. Assistant U.S. Attorney (AUSA) Sanjeev Bhasker and former AUSA Raul Guerra prosecuted the case.
Marydel Woman Sentenced for Embezzling over $1.2 Million from Her EmployerRead the Press Release
Greenbelt, Maryland - U.S. District Judge George J. Hazel sentenced Janice McCumbie, age 45, of Marydel, Maryland, today to 37 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to steal over $1.2 million from a consulting company. Judge Hazel entered an order that McCumbie forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, McCumbie worked for a global consulting business that had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.
Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to a co-conspirator in exchange for a share of the check proceeds.
From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to co-defendant Leonard Smedley in exchange for a share of the check proceeds. Similarly, from October 2010 to November 2013, McCumbie caused the consulting company to issue 17 false refund checks totaling $217,695.57 to her niece, co-defendant Amber Gayleard, who cashed the checks and shared the proceeds with McCumbie. Smedley and Gayleard were not clients of the consulting company.
Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, and Brian Hooper, age 43, of Woodbridge, Virginia previously pleaded guilty to the conspiracy. Judge Hazel sentenced: Hooper to 27 months in prison and ordered him to pay restitution of $1,031,571.96; Gayleard to 21 months in prison and ordered her to pay restitution of $217,695.57; and Smedley to 18 months in prison and ordered him to pay restitution of $910,490.74.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David Salem, who prosecuted the case.
Man Convicted for Bronx Home Invasion Robbery of Quadriplegic and OthersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and William Bratton, Commissioner of the New York City Police Department (NYPD), announced today that RALPH NOLAN was found guilty of conspiracy to commit robbery, attempted robbery, and brandishing a firearm during and in relation to the attempted robbery following a one-week trial before United States District Judge George B. Daniels. The jury convicted NOLAN Friday, April 10, 2015, for his role in connection with a December 2013 home invasion robbery in the Bronx, New York.
Manhattan U.S. Attorney Preet Bharara stated: “Ralph Nolan terrorized the occupants of a Webster Avenue apartment in the Bronx by tying them up at gunpoint during the commission of a brutal robbery. Now, justice has been served for the victims of this heinous crime.”
ATF Special Agent in Charge Reid stated: “This swift and decisive conviction will definitely resonate with the public in that it clearly shows that the ATF and its law enforcement partners will relentlessly pursue those criminals who prey on the innocent. These depraved acts will not be tolerated. The defendant will now live a large part of his future within a prison cell and be reminded daily of that fact.”
NYPD Commissioner Bratton stated: “I want to thank the NYPD investigators and the prosecutors with the US Attorney's Office, Southern District whose hard work resulted in the conviction of this individual."
According to the allegations in the Indictment against NOLAN and evidence admitted at trial:
On December 16, 2013, NOLAN and two co-conspirators planned and executed an armed home invasion robbery of an apartment in the Bronx, New York, that belonged to a quadriplegic woman. The robbers believed that the apartment contained drugs and drug proceeds. During the course of the robbery, NOLAN, who was armed with a handgun, pistol-whipped one of the apartment occupants and restrained the victims with telephone cords and cable wires before making off with electronics and other items.
NOLAN was convicted of one count of conspiracy to commit robbery and one count of attempted robbery, each carrying a maximum sentence of 20 years in prison. In addition, NOLAN was convicted of one count of brandishing a firearm during and in relation to the attempted robbery, which carries a maximum sentence of life in prison. NOLAN is scheduled to be sentenced August 11, 2015, before Judge Daniels. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
NOLAN, 26, of Gloversville, New York was arrested July 28, 2014. He was remanded pending sentencing.
Mr. Bharara praised the outstanding investigative work of the ATF and NYPD.
The prosecution is being handled by the Office’s Violent and Organized Crime United. Assistant U.S. Attorneys Richard Cooper and Russell Capone represented the government at trial.
Major Egg Producer to Reduce Water Pollution Discharges at Mississippi FacilityRead the Press Release
The U.S. has reached a settlement with Cal-Maine Foods, Inc., one of the nation’s largest egg producers, that resolves Clean Water Act violations at the company’s poultry egg production facility in Edwards, Mississippi, announced the Justice Department’s Environment and Natural Resources Division and the U.S. Environmental Protection Agency (EPA). Under the settlement, Cal-Maine will bring the facility into compliance with its state-issued water discharge permit, significantly reduce nutrient pollution discharges and improve environmental data collection and reporting practices. The company will also pay a $475,000 penalty to be split evenly between the U.S. and Mississippi.
“The Justice Department is committed to protecting clean water for all Americans and ensuring large concentrated animal feeding operations are good neighbors to those communities living near them like Edwards,” said Assistant Attorney General John Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement will bring Cal-Maine into compliance with state and federal laws and cut nutrient pollution discharges into area waterways.”
“Clean Water Act violations from agricultural facilities can impair drinking water sources, transmit disease-causing bacteria and endanger our lakes and rivers,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “When concentrated animal feeding operations discharge pollutants into U.S. waters, the law requires them to have a permit and comply with it. We’re committed to enforcing the law to protect water quality for communities like the one where this facility is located.”
“This is good news for water quality and health for the residents of Edwards by requiring that Cal-Maine's facilities operate in accordance with state and federal laws,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi. “The settlement also represents the commitment by the Justice Department and our federal and state partners to protect water, air and land from health hazards and pollution.”
Today’s settlement, a consent decree filed in federal court in the Southern District of Mississippi, resolves alleged violations of Cal-Maine’s Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit at its facility in Edwards, Mississippi, a large concentrated animal feeding operation that houses more than 2 million chickens. Cal-Maine discharged pollutants from the production area into a tributary of a nearby creek without NPDES permit authorization and applied nitrogen-laden wastewater on fields at the facility during winter months when land application was prohibited and sometimes at rates that exceeded their permit requirements. Cal-Maine also committed hundreds of water sampling, recordkeeping and reporting violations.
The facility is located in a community where close to half of the households have an annual income of less than $25,000. One of EPA's top priorities is to protect communities that are disproportionately affected by pollution.
Too much nitrogen and phosphorus in the water causes algae to grow faster than ecosystems can handle. Large growths of algae, known as algal blooms, contribute to the creation of hypoxia or “dead zones” in water bodies where oxygen levels are so low that most aquatic life cannot survive. Excessive nitrogen and phosphorus that washes into water bodies and is released into the air are often the direct result of human activities and agricultural operations are one of the major sources of nutrient pollution.
Under the settlement, Cal-Maine is already developing and implementing procedures for its egg production and land application areas to achieve compliance with its NPDES permit, an employee training policy and improved recordkeeping and reporting practices. The procedures were submitted to and reviewed and approved by EPA and Mississippi officials over the course of settlement negotiations. Cal-Maine has begun implementing these procedures and must comply with all the terms of the settlement by April 30, 2016.
Once the pollution controls required by the settlement are implemented, EPA estimates Cal-Maine will cut discharges of nitrogen by 89,000 pounds and phosphorous by 20,000 pounds per year. EPA estimates it will cost Cal-Maine approximately $418,000 to implement the settlement requirements and bring the Edwards, Mississippi, facility into compliance with state and federal clean water laws.
Cal-Maine Foods Inc. and Cal-Maine Farms Inc. merged into one corporate entity called Cal-Maine Foods Inc., effective January 1, 2015.
This case is part of EPA’s National Enforcement Initiative to prevent animal waste from contaminating surface and ground water. For more information on that initiative, visit http://www2.epa.gov/enforcement/national-enforcement-initiative-preventing-animal-waste-contaminating-surface-and-ground.
The proposed consent decree is subject to a 30-day public comment period. A copy of the consent decree is available at http://www.justice.gov/enrd/Consent_Decrees.html.
Madison Man Sentenced for Firearm OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on April 13, 2015, Monte D. Perry, 26, Madison, IL, was sentenced for Transfer of a Firearm in Violation of the National Firearms Act and the Unlawful Possession of a Firearm by a Previously Convicted Felon. Perry received 33 months’ imprisonment on each count, to run concurrently; 2 years’ supervised release on each count, also to run concurrently; fined $50 on each count, for a total fine of $100, and ordered to pay a $200 special assessment. The defendant has been detained since his arraignment on the Indictment on September 26, 2014.
The charges arose from a controlled buy of a sawed-off shotgun from Monte Perry, who had been convicted of a felony offense in Madison County in 2009, on July 7, 2014, that had been arranged by agents with ATF using a confidential source for $350. The controlled buy was videotaped. During the buy, Perry is heard discussing the characteristics of the gun, clearly indicating that he knew that the shotgun had been sawed-off, and requesting additional money for the sawed-off shotgun because it was a semi-automatic shotgun rather than a pump. After being paid for the sawed-off shotgun, Perry wiped his prints from it before placing it in the backseat of the confidential source’s vehicle.
The barrel length of the shotgun was measured and determined to be 14 inches in length. Because the barrel length of the shotgun was less than 18 inches, it should have been registered to Perry in the National Firearms Registration and Transfer Record. A check of that database showed that that the weapon was not registered to Perry. Perry therefore violated the National Firearms Act when he transferred the unregistered firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was assigned to Assistant United States Attorney Angela Scott.
Lewiston Man Sentenced to 14 Years on Drug and Firearm ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Lamar Young, 28, of Lewiston, was sentenced today in U.S. District Court by Judge George Z. Singal to 14 years in prison and five years of supervised release for conspiracy to distribute cocaine base and possession of a firearm in furtherance of a drug trafficking crime.
According to court records, in late 2012 and early 2013, Young and other individuals sold cocaine base out of an apartment in Lewiston. Young and other members of the conspiracy contributed money to purchase cocaine base and cocaine powder from suppliers in Massachusetts. The cocaine was transported from Massachusetts to Maine, turned into cocaine base when necessary, packaged for distribution, and sold by members of the conspiracy.
Court records also showed that in March 2014, Young was arrested in the bedroom of an apartment in Lewiston. After his arrest, officers found a digital scale and several plastic bags containing cocaine powder and cocaine base in a dresser drawer in the bedroom. Officers also found a loaded Hi-Point .380 caliber pistol in the bedroom. Young possessed the pistol for the purpose of protecting the drugs, and protecting himself from anyone who might seek to take the drugs from him.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Lewiston Police Department; and the Maine Drug Enforcement Agency.
Last Two Defendants Sentenced in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Evelyn Brigget Sanchez, 32, and Darling Arlette Montalvo, 34, both of Bakersfield, were sentenced today to two years in prison each for their involvement in a mortgage fraud scheme that ran from October 2005 to May 2007, United States Attorney Benjamin B. Wagner announced. Sanchez and Montalvo were convicted at trial of conspiracy to commit mail fraud, wire fraud, and bank fraud. Sanchez was also convicted of 11 counts of mail fraud, and Montalvo was also convicted of 10 counts of mail fraud and one count of money laundering.
According to court documents, between October 2005 and May 2007, Sanchez and Montalvo conspired with co-defendants Eric Hernandez, Monica Hernandez, and Patricia King to defraud mortgage lenders by submitting false loan applications and fraudulent supporting documentation, causing the lenders to fund mortgage loans for the defendants’ benefit on the basis of false and misleading information. During this time, Eric Hernandez and Evelyn Sanchez were employed at mortgage brokerages in Bakersfield. The defendants submitted loan applications to lenders that included material misstatements concerning the borrowers’ income, assets, and employment, and false statements concerning the borrowers’ intent to reside in the properties as owner-occupiers, among other false statements. The defendants also fabricated false supporting documentation and submitted it to lenders in support of the loan applications.
The court also ordered the defendants to pay forfeiture money judgments to the United States in the amounts of $1,412,100 for Sanchez and $1,017,100 for Montalvo. The court set a further hearing on June 22, 2015 to determine the restitution amounts owed to victims of the crime.
Eric Hernandez, Monica Hernandez, and Patricia King previously pleaded guilty and were sentenced for their roles in the scheme. Eric Hernandez was sentenced on Sept. 16, 2013, to 10 years and 10 months in prison. King was sentenced on April 23, 2012, to three years and one month in prison. Monica Hernandez was sentenced on January 5, 2015, to one year in prison.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff and Henry Carbajal III prosecuted the case.
Docket #: 1:10-cr-249 AWI
Justice Department Reminds Taxpayers that No One Is Above the Law or Below the RadarRead the Press Release
With the annual tax filing deadline approaching on Wednesday, April 15, the Justice Department’s Tax Division reminds U.S. taxpayers across the country and around the world of their obligation to file timely and accurate income tax returns.
“As U.S. taxpayers, we enjoy many benefits, including the security provided by our U.S. military, the ability to travel on public roads and highways, and the beauty and enjoyment of national parks and monuments,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division. “Those individuals who choose to accept these benefits and yet turn a blind eye to their federal tax obligations by failing to file required returns, filing false and fraudulent returns, and evading the assessment and payment of tax due will be pursued for their criminal conduct. No one is above the law or below the radar.”
The Justice Department works with the Internal Revenue Service (IRS) and other law enforcement partners to enforce the nation’s tax laws fully, fairly and consistently through both criminal and civil litigation. During the past year, the Tax Division’s prosecutions have included:
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April 2015 – Daniel Porter, a Chino, California, businessman, was sentenced by a federal court in Las Vegas to serve 55 months in prison for conspiring to defraud the United States by promoting and selling fraudulent tax products, including a product called Tax Break 2000. The intended tax loss of the scheme was more than $60 million. Porter designed and sold Tax Break 2000 directly and through other individuals and entities, including NADN, a company in Las Vegas. Alan Rodrigues, NADN’s former general manager and executive vice president, Weston Coolidge, the former president of NADN, and Joseph Prokop, a former NFL punter, were convicted at trial in a separate criminal case. In March 2015, Rodrigues was sentenced to serve 72 months in prison, Coolidge was sentenced to serve 70 months in prison and Prokop was sentenced to serve 18 months in prison to be followed by 30 months home confinement.
- < > 2015 – Arkan Summa, an owner of Happy’s Pizza franchises, was sentenced by a federal court in the Eastern District of Michigan to serve 18 months in prison and ordered to pay $199,847 in restitution for his role in a wide ranging conspiracy to defraud the IRS. The conspiracy involved diverting more than $6.1 million in gross receipts, underreporting wages and understating income and expenses of the pizza franchises. The total tax loss resulting from the scheme was more than $6.2 million. The founder of Happy’s Pizza, Happy Asker, was previously convicted at trial, and three others have also pleaded guilty to related charges.
March 2015 – Jon McBride, owner of a cell phone clip company and a real estate investor in Utah, was sentenced by a federal court in Utah to serve 27 months in prison and ordered to pay $174,684 in restitution following his conviction for filing a false return and tax evasion. McBride filed a false tax return for 2005 that failed to report his gross income. He later filed a false amended return for the same year and again failed to report his gross income. McBride created several nominees to conceal his income and ownership in real properties to evade the payment of his taxes for 1999 through 2002, tried to evade the assessment of his 2006, 2007, and 2009 taxes, filed false 2006 and 2009 returns, and failed to file a return for 2007.
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March 2015 – Paul DiLorenzo, a doctor from Ocean Township, New Jersey, was sentenced by a federal court in New Jersey to serve 46 months in prison and ordered to pay $304,293 in restitution for structuring cash transactions to avoid reporting requirements and for aiding and assisting in the filing of his own false tax returns. The court also ordered DiLorenzo to forfeit nearly $1 million in illegally derived proceeds.
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March 2015 – Yvette Johnson was sentenced by a federal court in Maryland to serve two years in prison for tax evasion. Her husband, Shannon Johnson, was previously sentenced to serve 72 months in prison for his role in the tax evasion and conspiracy to commit mail and wire fraud. Shannon Johnson held himself out as a wealthy international investment banker offering financing to businesses and investors, who wired and mailed advance banking fees to multiple bank accounts in different states controlled by the Johnsons. Shannon Johnson received millions in fees and payments, but never provided the promised financing. Yvette and Shannon Johnson filed false claims for refunds for the 1998 through 2001 tax years based on fictitious Forms W-2, and further evaded their taxes for the 2002 through 2006 tax years. The court also ordered Shannon Johnson to forfeit $3.7 million based on fraud committed against investors.
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February 2015 – Kenneth and Kimberly Horner, who owned and operated Topcat Towing and Recovery Inc., were each convicted by a federal court in Georgia of filing false personal and corporate tax returns. According to the charges and information presented in court, between 2005 and 2008, the Horners skimmed more than $1.5 million in cash receipts from their towing business and deposited that money into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. They owe approximately $400,000 in taxes to the IRS for their unreported income.
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February 2015 – Thair Alwan, the owner of a pizza shop, was sentenced by a federal court in North Carolina to serve 12 months and one day in prison and ordered to pay $237,587 in restitution and a $10,000 fine for filing a false tax return for 2008. According to court filings, Alwan skimmed cash from pizza shops he owned, failed to report the cash on the corporate returns and under-reported his income on his personal income tax returns.
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February 2015 – Fidencio Moreno, owner of a charter bus company, was sentenced by a federal court in California to serve 41 months in prison for conspiring to defraud the United States. Arturo Moreno, also an owner of the company, was sentenced to serve 28 months in prison for conspiring to defraud the United States, and conspiring to commit wire fraud and mortgage fraud. According to court filings, from 2005 until 2010, Fidencio and Arturo Moreno, along with their co-defendant Elena Moreno, conspired to file false and fraudulent corporate and personal income tax returns, on which they failed to report cash receipts from the charter bus company. The defendants also submitted fraudulent loan applications to purchase or refinance real properties. Elena Moreno was sentenced to serve 22 months in prison in January 2015.
- January 2015 – Matthew Libous, an attorney licensed to practice in New York, was convicted by a federal jury in New York of filing false tax returns for tax years 2007, 2008 and 2009. According to court filings, Libous failed to report income from his law practice and tens of thousands of dollars in personal expenses that he caused to be paid by another company he operated.
- January 2015 – Michael Stover, a Michigan businessman, was sentenced by a federal court in Michigan to serve 42 months in prison for tax evasion and wire fraud. From 2004 through 2010, Stover was president of a company from which he embezzled more than $2 million, and he failed to report the income on his tax returns.
- December 2014 – Jesus Pons, a computer-services manager for Miami-Dade County, was sentenced by a federal court in Florida to serve 51 months in prison and ordered to pay $556,254 in restitution for tax evasion. According to court filings, from 2007 to 2011, Pons, who was in charge of managing information technology projects and county vendors, received illegal kickback payments in exchange for approving payments for consulting work that was never done and failed to report this income on his personal income tax returns.
- November 2014 – Joel Field, owner and operator of Cadillac Ranch restaurants and bars in Ohio and elsewhere, was sentenced by a federal court in Ohio to serve 12 months and one day in prison, to be followed by four months in a halfway house and four months of home confinement, and was ordered to pay $349,778 in restitution and a $4,000 fine for tax evasion. According to court documents, Field filed his 1997 through 2001 tax returns but failed to pay the full tax due and owing. While the IRS was attempting to collect his taxes, Field transferred assets into the names of nominees and submitted false IRS Forms 433-A (Collection Information Statements for Wage Earners and Self-Employed Individuals).
- October 2014 – Jeffrey Scott, owner and operator of Greenville Loop Seafood (GLS), a seafood distribution company, was sentenced by a federal court in North Carolina to serve 12 months and one day in prison and was ordered to pay $26,263 in restitution and a $25,000 fine for attempting to evade his 2007 taxes. According to court filings, between 2006 and 2010, Scott paid nearly all of his living expenses with checks from GLS, including his mortgage, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. Scott also purchased five vehicles for more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott did not report these funds as income. He also filed a false corporate tax return for 2011 claiming the painting of his personal residence, plumbing work at his personal residence and vet bills for his family dog as business expenses.
- October 2014 – Michael Mangold, a doctor specializing in emergency medicine and urgent care, was sentenced by a federal court in Wisconsin to serve 18 months in prison for tax evasion and making false statements. According to court filings, Mangold earned income working for various hospitals, emergency rooms, urgent care facilities and state and county correctional facilities. From 1997 through 2007, Mangold concealed his income by filing false tax returns and asserting frivolous legal arguments to the IRS.
- September 2014 – Nick Jodha, also known as Nick Persaud, an owner and operator of contracting company United HVAC Services Inc., was sentenced by a federal court in New York to serve 12 months and one day in prison and ordered to pay $214,529 in restitution for evading his 2007 through 2010 taxes. According to court filings, Jodha cashed checks written to United HVAC at a check-cashing service rather than depositing them into the business bank account. He failed to tell his accountant about these cashed checks, which were not reflected in the statements that the accountant used to prepare United HVAC’s corporate returns, or about the fact that he used a portion of the cashed checks to pay business and personal expenses.
- April 2014 – Amberula Levitt, who owned and operated Tax Time Tax Service, a tax-preparation business with multiple locations throughout Atlanta, was sentenced by a federal court in Georgia to serve 21 months in prison, ordered to pay $620,004 in restitution and ordered to complete 100 hours of community service for filing false tax returns for 2004 and 2005, assisting in filing a false tax return for 2006, and failing to file tax returns for 2007, 2008 and 2009.
Additional highlights from the U.S. Attorneys’ Offices include:
- April 2015 – William M. Weisberg, an attorney from Vienna, Virginia, was sentenced by a federal court in Virginia to serve 12 months and one day in prison and ordered to pay $451,955 in restitution for willful failure to pay tax due and owing. According to court filings, Weisberg filed his income tax returns, but failed to pay his taxes for 2008 and 2010, and paid only a portion of his taxes for 2009. During this time, Weisberg paid approximately $250,000 to rent a house in Vienna, $150,000 for private and parochial schools for his two children, $35,000 for maid service and $130,000 for travel and entertainment. When the IRS tried to work with Weisberg in 2010 to obtain the money he owed, Weisberg falsified a document from his law firm, which told the IRS that the firm was withholding money from his paychecks to give to the IRS, when, in fact, no money was being withheld.
- March 2015 – Gwendolyn Muller, a receptionist previously employed by a medical office in Kearny, New Jersey, was sentenced by a federal court in New Jersey to serve 34 months in prison and ordered to pay $556,000 in restitution for embezzlement, using fraudulent credit cards to obtain goods and services and tax evasion. According to court filings, from 2007 through 2011, Muller used her position at the medical practice to take cash and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
- February 2015 – Don F. Lindner, an attorney from Severna Park, Maryland, pleaded guilty to filing a false return and agreed to pay $341,730 in restitution. According to court filings, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 in gross receipts from his law practice. He also maintained a rental property and falsely reported on his tax returns that he paid more than $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.
- February 2015 – Rebecca Hoff, a former office manager and accounts payable bookkeeper from Ironwood, Michigan, was sentenced by a federal court in Wisconsin to serve 15 months in prison for filing a false income tax return. According to court filings, Hoff used company checks to pay her personal expenses, which included the purchase of a vehicle, home improvements and mortgage payments. Although the employer did not pursue charges for the embezzlement, Hoff never declared the money she embezzled as income on her federal tax returns, resulting in a tax liability of more than $300,000.
- February 2015 – Joel Carlson, an investment advisor, was sentenced by a federal court in Minnesota to serve 42 months in prison for tax evasion. Carlson deposited client investments and additional funds solicited from his father into a Trust Financial Group account, which he treated as his personal bank account. Carlson spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to misappropriating assets, totaling more than $1.5 million, Carlson failed to file personal income tax returns for tax years 2010 and 2011. Carlson will pay approximately $3.1 million total in restitution, which includes $1.2 million in restitution to the IRS.
- November 2014 – Dennis Weiss, formerly a suburban home builder, was sentenced by a federal court in Illinois to serve 30 months in prison and ordered to pay $296,643 in restitution to the IRS for filing a false federal income tax return and making false statements in a bankruptcy petition. According to court documents, Weiss filed false individual federal income tax returns for 2005 through 2009 and failed to file corporate tax returns for both of his companies, Custom Homes by D.R. Weiss Inc. and Reliable Home Solutions Inc. Between 2005 and 2009, Weiss paid personal expenses from a business bank account, accepted cash payments from customers of his businesses and failed to record the receipt of these funds on the books and records of the corporations, resulting in a total federal tax loss of $1,271,280.
- October 2014 – Patrick J. Belzner, also known as Patrick McCloskey, a home builder residing in Selbyville, Delaware, was sentenced by a federal court in Maryland to serve 15 years in prison and ordered to pay $19.8 million in restitution on charges of wire fraud conspiracy, wire fraud and tax evasion. According to court filings, Belzner worked for the McCloskey Group, a real estate development business, and conspired with others to defraud investors through a fraudulent investment scheme. Belzner admitted that investor funds were used to pay personal and business expenses, as well as to make partial repayments to earlier lenders and to pay fees to some of the victim investors to keep them from demanding the return of their money. In addition, Belzner admitted to stealing more than $1 million from former employers and failing to report those sums on his federal tax returns. He further admitted evading the payment of the tax due and owing by placing his residences, other real estate and automobiles in the names of corporations that he formed, as well as by paying his personal expenses – including his mortgage, ground rent for a vacation home, construction costs on a house that he built, car payments, Baltimore Ravens season tickets and private school tuition – from bank accounts he opened in the names of the corporations or from payments out of the real estate development business. In 2006 and again in 2009, Belzner submitted forms to the IRS falsely claiming that he did not have sufficient income to make any payments on the assessed back taxes, penalties and interest. By August 2013, the total assessed tax, interest and penalties due and owing by Belzner exceeded $2.6 million.
The Justice Department will continue to vigorously pursue and prosecute those engaged in tax crimes. These efforts of the department, the IRS and its other law enforcement partners are critical to the continued integrity of our national tax system, and send a strong message to those individuals who make good faith efforts to comply with their tax obligations that we will hold accountable those who do not.
More information about the Tax Division’s civil and criminal enforcement efforts in these and other areas is available on the division’s website.
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Jury in Del Rio Convicts Eagle Pass Businessman on Federal Drug ChargesRead the Press Release
On Saturday, April 11, 2015, a federal jury in Del Rio returned a guilty verdict against Felipe Carmona-Rodriguez for narcotics distribution in Eagle Pass, Texas, announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Joseph Arabit of the DEA’s Houston Division, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
Jurors convicted 50-year-old Felipe Carmona-Rodriguez, of Eagle Pass, Texas, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from January 1, 2009 until March 21, 2014, and two counts of possession with intent to distribute less than 500 grams of cocaine. Evidence presented at trial showed that Carmona-Rodriquez used his two businesses, Felipe’s Auto Detail Shop and Felipe’s Auto Sales to sell cocaine and launder drug proceeds. Additionally, Carmona-Rodriguez sold cocaine from his home and had others sell cocaine for him from a local Eagle Pass bar. Carmona-Rodriguez hired others to sell cocaine for him and collected the street tax from these dealers on behalf of the Mexican Mafia. During recorded calls played at trial Carmona-Rodriguez stated he had been involved in the distribution of narcotics for twenty-eight (28) years.
Carmona-Rodriguez’s potential punishment range for his conspiracy to possess with the intent to distribute 500 grams or more of cocaine is 5 to 40 years in prison. For his conviction for possession with the intent to distribute less than 500 grams of cocaine, Carmona-Rodriguez faces up to 20 years for each conviction.
Carmona-Rodriguez is scheduled to be sentenced on October 15, 2015, before United States District Judge Alia Moses.
The case resulted from a joint investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Timothy Duree.
International Gathering Marks Inauguration of INTERPOL Global Complex for InnovationRead the Press Release
SINGAPORE – Ministers and senior police officials from around the world have gathered at the official opening of the INTERPOL Global Complex for Innovation (IGCI) which is set to empower law enforcement officers worldwide with cutting-edge tools and knowledge against 21st century crime.
With the IGCI marking the transition of global policing into the digital age, Singapore’s Deputy Prime Minister, Coordinating Minister for National Security and Minister for Home Affairs, Teo Chee Hean, addressed its opening ceremony after chairing a ministerial cybercrime meeting involving INTERPOL’s President Mireille Ballestrazzi and Secretary General Jürgen Stock.
Underlining the growing complexity of today’s safety and security threats, Deputy Prime Minister Teo said: “Police and law enforcement agencies in the region can access INTERPOL’s tools and programs through the IGCI, to train and equip their officers to combat new and emerging threats, thereby enhancing collective regional safety and security.”
“The IGCI can use Singapore’s location in the heart of Asia to reach out to the rest of the region and beyond. Through the IGCI, INTERPOL can also gain a better understanding of Asian perspectives and expertise, to shape its research and development and operational responses against transnational threats,” added Singapore’s Deputy Prime Minister.
The opening ceremony also included representatives from international organizations and strategic partner organizations from the private sector. These include Entrust Datacard, Kaspersky Lab, NEC, Safran Morpho and Trend Micro Ltd.
INTERPOL President Ballestrazzi said that collaboration with the public and private sectors would allow the IGCI to benefit from the culture, innovation and dynamic spirit of all those involved.
“Today’s inauguration of the IGCI marks the end of a process that has mobilized our member countries and partners in a joint effort to strengthen the abilities of INTERPOL and law-enforcement agencies as they face the realities of modern crime. It also marks our joint resolve to build a safer world,” said President Ballestrazzi.
Highlighting Singapore’s thriving spirit as it celebrates its 50th anniversary, INTERPOL Secretary General Jrgen Stock said that the IGCI was born out of the Organization’s commitment to adapt to changes in the threat landscape.
“By establishing the IGCI, INTERPOL will ensure that it is best placed to help police around the world address emerging threats through innovation and training. The work of the IGCI will provide operational and forensic support, build capacity and identify cyber threats,” said Mr. Stock.
In this respect, the audience heard that intelligence from a prominent IT actor had led to an IGCI-coordinated operation which dismantled the Simda botnet through a joint international effort by law enforcement and the private sector.
“These achievements highlight the value of the IGCI and how it will help police adopt new technology and practices to outsmart cybercriminals,” added Mr. Stock.
In addition to cybercrime and capacity building and training, the IGCI’s Command and Coordination Centre operations room represents its third central pillar. It recently coordinated its first border security initiative, Operation Sunbird, leading to the arrest of international fugitives attempting to travel across ASEAN countries.
The IGCI inauguration begins a week of INTERPOL events in Singapore, including the INTERPOL World 2015 exhibition and the 22nd INTERPOL Asian Regional Conference.
Illegal Aliens Arrested in Southeast Texas on Federal ViolationsRead the Press Release
BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that 18 individuals have been arrested on federal violations in the Eastern District of Texas.
On Apr. 7-8, 2015, a combined task force of federal, state and local law enforcement arrested 18 illegal aliens working under false identities at various refineries, industrial plants and shipyards in Jefferson, Galveston and Liberty counties.
A federal grand jury returned 18 indictments on Apr. 2, 2015, charging each individual with either illegal reentry after deportation, identity theft, and or making false claims of United States citizenship in order to obtain jobs at numerous refineries, industrial plants and shipyards over the past six years. The defendants, who are in the United States illegally, were all allegedly working under assumed names obtained through the possession of fraudulently obtained legitimate social security numbers and matching birth certificates, primarily issued in Puerto Rico. With such primary identifying information the defendants obtained State issued identification cards from Louisiana, Arkansas, Texas, and other states. The use of such documents allowed the illegal aliens to pass the E-verify systems used by their employers to ascertain U.S. citizenship or alien lawful work permits. The documents allowed some individuals to obtain Transportation Worker Identification Credentials allowing access to ports and other sensitive work sites. HSI knew the actual identities of several of the aliens because they had been previously deported. One alien was previously deported after a felony drug conviction. Fifteen other aliens were identified after being arrested under their assumed names.
If convicted of the charges, defendants face up to 20 years in federal prison and deportation.
These cases are being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement and Removal Operations (ERO) offices in Beaumont, Houston, and Galveston, as well as the U.S. Marshals Service, Social Security Administration Office of Inspector General, Coast Guard Investigative Service, Beaumont Police Department, and Port Arthur Police Department. These cases are being prosecuted by Assistant U.S. Attorney Robert L. Rawls.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Identity Theft Task Force Created in ColumbusRead the Press Release
In 2013, Columbus, Georgia was the #2 location in the country for stolen identity affidavits filed with the Federal Trade Commission (FTC).
As a result, an identity theft task force is being created and will be a combined effort among the Internal Revenue Service, the United States Attorney’s Office, the United States Secret Service, the Postal Inspector, Harris County Sheriff’s Department, and the Columbus Police Department.
There has been an increase in theft of Personal Identifying Information (PII) from several large employers in and around the Columbus area, as well as stolen U.S. Treasury checks being cashed by various local banks and/or check cashers.
Identity theft includes such schemes as stealing Personal Identifying Information and using the information to file fraudulent tax returns, check cashing runners who transfer the fraudulent tax refund checks from the fraudulent tax return filer to the check cashers (check cashing runners are paid a percentage of the fraudulent tax refund check cashed), and check cashers knowingly cashing fraudulent tax refund checks and charging higher percentages than allowed by states or receiving a kickback for cashing the checks.
Inquiries regarding the task force should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Click here to view news story on WJTV Columbus.
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Husband and Wife “Pill Mill” Operators Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Warren and Aigoul Gold to 12 months and one day, and six months in federal prison, respectively, for drug trafficking and money laundering charges. The Court also ordered a money judgment in the amount of $713,570 and forfeiture of $61,232 in a bank account, both of which are traceable to proceeds of the offenses. The Golds pleaded guilty on July 24, 2014.
According to court documents, beginning in early 2010, the Golds became the owner-operators of a pain clinic (“Clinic”) located in the Middle District of Florida. As the owner-operators of the Clinic, the Golds organized, managed, operated, maintained, and relocated the Clinic to various locations during 2010. In that time, the Clinic served as a high-volume, cash-only, pill-prescription operation that sometimes handled more than 100 patients in a single day, with a large number of those patients residing out of state, many from Kentucky.
At each of the Clinic’s locations, doctors prescribed patients a similar drug "cocktail," consisting mostly of large amounts of oxycodone and other Schedule II narcotics. The Golds knew that many of the patients were not legitimate pain patients. Rather, most of these “patients” were seeking the oxycodone cocktail to fuel their own addictions or to unlawfully distribute those drugs to other dealers and/or addicts.
The Golds also laundered the unlawful proceeds from the Clinic in a variety of ways, including making cash deposits of less than $10,000 to banks for the purpose of avoiding reporting requirements. Once the proceeds had been deposited, the Golds spent some of those funds in a manner that concealed the unlawful nature of the Clinic. For example, they diverted some of the proceeds in the Clinic’s account into other accounts that were wholly unrelated to the operation of the Clinic. They also used proceeds from the Clinic to promote their pain business. Among other ways, the Golds used profits to pay the doctors cash bonuses based upon the number of patients seen in a given day.
This case was investigated by the U.S. Marshals Service and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Hurricane man gets probation for stealing more than $24,000 from Social SecurityRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Vallas Paul Bell, 31, of Hurricane, West Virginia, received five years of probation today for stealing more than $24,000 of his mother’s Social Security Benefits after her death. The Social Security payments for Bell’s mother were deposited in her checking account at City National Bank. For over a year and a half after her death, Bell used a debit card to withdraw money from his mother’s account and spend it on himself. As part of his sentence, Judge Thomas Johnston ordered Bell to make full restitution to the Social Security Administration.
The investigation was conducted by the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Blair L. Malkin and Erik S. Goes were responsible for the prosecution.
Huntington man sentenced in federal court for distributing heroinRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who distributed heroin in May of 2014 was sentenced today to 12 months and one day in federal prison, announced U.S. Attorney Booth Goodwin. Thomas Edward Hill, 41, previously pleaded guilty in January of 2015 to distributing heroin.
On May 21, 2014, officers using a confidential informant (CI), arranged a drug deal with Clarence Edward House II, also known as “Nitty.” The informant contacted House and negotiated the purchase of 7.5 grams of heroin in exchange for $800. Thereafter, House and Hill met with the CI in House’s vehicle where Hill distributed the heroin to the CI at House’s direction.
The FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Houston Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – Michael Brandon Garza, 33, has been ordered to prison following his convictions for receiving and possessing child pornography, announced U.S. Attorney Kenneth Magidson. Garza pleaded guilty Sept. 2, 2014.
Today, U.S. District Judge Kenneth M. Hoyt handed Garza 168 and 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. Garza will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Garza will also be ordered to register as a sex offender.
Garza is considered a savvy computer user. He admitted he utilized multiple email addresses and online identities to communicate with underage females and obtain child pornography images and videos via the Internet. Specifically, he contacted underage females in Pennsylvania and New Mexico, both of whom believed Garza was a teenager.
Garza was identified during the investigation and law enforcement subsequently executed a search warrant at his Houston residence on Dec. 11, 2012. At that time, Garza acknowledged the email address that law enforcement had received from the underage girls and that he had he had received videos containing child pornography.
Several electronic media devises were seized which resulted in the discovery of numerous images/videos.
Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Garza were the result of an investigation conducted by members of the Houston Area Cyber Crimes Task Force of the FBI, which focuses its attention on, among other things, investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Greenbrier Man Arrested for Aggravated Identity TheftRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, today announced the unsealing of a federal complaint charging a Greenbrier, Ark., man with multiple counts related to an identity theft that had been continuously occurring for more than 20 years. On April 9, 2015, federal agents with the Office of the Inspector General, the United States Secret Service, and the Federal Bureau of Investigation, along with assistance from the Faulkner County Sheriff’s Office, arrested William Marshall, 51, at his home in Greenbrier. Upon arrest, agents executed a federal search warrant on Marshall’s residence and vehicle.
Later that day Marshall appeared for arraignment in front of Federal Magistrate Judge Beth Deere. On April 10, 2015, Marshall was released on bond. The arrest stemmed from a federal complaint signed by Judge Deere that charged Marshall with aggravated identity theft, misrepresentation of a social security number, and providing a false statement to a federal agency.
“The extent of damage to the true victim’s identity is beyond measure,” Thyer said. “Thanks to security measures that the Social Security Administration has in place while filing for disability benefits, Marshall’s scheme was finally identified and stopped. These types of crimes continue to plague not only businesses and government entities, but individuals as well. Our office, along with our law enforcement partners, will continue to vehemently seek justice for those who are victimized by these crimes.”
The investigation began when Marshall allegedly fraudulently applied for Social Security benefits under a false identity earlier this year at the Conway, Ark., Social Security office. The subsequent investigation revealed that Marshall has been living under the false identity of the true victim for more than 20 years. The investigation also revealed that Marshall moved back to Arkansas in 1992, where he has lived as a fugitive from California.
This case was investigated by the Office of the Inspector General—Social Security Administration with the assistance of the Arkansas Department of Insurance—Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
The charges of misrepresentation of a social security number and providing a false statement to a federal agency each carry a statutory penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. Aggravated identity theft has a maximum statutory penalty of two years’ imprisonment consecutive to any other sentence imposed, not more than a $250,000 fine, and not more than one year of supervised release.
The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these charges. Marshall is presumed innocent until proven guilty.
Four Former Blackwater Employees Sentenced to Decades in Prison for Fatal 2007 Shootings in IraqRead the Press Release
One former security guard for Blackwater USA was sentenced today to a term of life in prison, and three others were each sentenced to prison terms of 30 years and one day for their roles in the Sept. 16, 2007, shooting at Nisur Square in Baghdad, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by the U.S. Attorney’s Office for the District of Columbia and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The defendants are Nicholas Abram Slatten, 31, of Sparta, Tennessee; Paul Alvin Slough, 35, of Keller, Texas; Evan Shawn Liberty, 32, of Rochester, New Hampshire; and Dustin Laurent Heard, 33, of Maryville, Tennessee. All were found guilty by a jury on Oct. 22, 2014, following a two and one-half-month trial. They were sentenced by the Honorable Senior Judge Royce C. Lamberth of the District of Columbia.
Slatten, who was accused of firing the first shots, was sentenced to life in prison. The jury had found him guilty of one count of first-degree murder.
Slough, Liberty and Heard were each sentenced to prison terms of 30 years and one day. The jury had found Slough guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter and one firearms offense. Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter and one firearms offense. Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter and one firearms offense.
At a day-long sentencing hearing, Judge Lamberth said that the sentences reflected the seriousness of the crimes and the large number of victims. He said that the U.S. government “should be commended for finding and exposing the truth of what happened in Nisur Square.”
In a statement, the U.S. Attorney’s Office said the prosecution reflected the commitment of the American justice system to the rule of law and expressed hope that the sentencing of the four defendants will bring some comfort to survivors of the shootings and the family members of those who died or were injured. “In killing and maiming unarmed civilians, these defendants acted unreasonably and without justification,” the statement said. “In combination, the sheer amount of unnecessary human loss and suffering attributable to the defendants’ criminal conduct on Sept.16, 2007, is staggering.”
“These sentencings are the result of the enduring resolve by law enforcement to protect victims of violent crime,” said Assistant Director in Charge McCabe. “Because this crime scene was so large and required international travel, both by witnesses and by investigators, this case required a tremendous amount of resources, time and investigative expertise. The results of this case demonstrate that the FBI will investigate violations of U.S. law no matter where they occur in order to bring justice to innocent victims.”
Another Blackwater security guard, Jeremy P. Ridgeway, pleaded guilty in December 2008 to voluntary manslaughter and attempt to commit manslaughter. Ridgeway, who testified as a government witness in the trial, has not yet been sentenced.
The defendants worked for Blackwater USA, a private security contractor that was paid by the U.S. government to provide protective services to U.S. officials.
The trial began June 17, 2014. Over the next 10 weeks, the government presented testimony from 71 witnesses, including 30 from Iraq. This represented the largest group of foreign witnesses ever to travel to the United States for a criminal trial. The witnesses included 13 people who were wounded in the shootings, as well as relatives of many of those who died. The government’s witnesses also included nine members of “Raven 23,” the Blackwater team that was on the scene on the day of the shootings.
According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including the four defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad. When they stopped shooting, 14 Iraqi civilians were dead. Those killed included 10 men, two women and two boys, ages 9 and 11. Another 18 victims were injured.
The four defendants and 15 other Blackwater security contractors were assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.” Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team. Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.
Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone. While occupying the southern part of the traffic circle, seven of the 19 members of Raven 23, including the four defendants and Ridgeway fired their weapons resulting in the deaths or injury of the unarmed Iraqi civilians there. While leaving the traffic circle, Slough continued to fire his weapon resulting in additional deaths and injuries.
Finally, further away, north of the traffic circle, Slough and Ridgeway again fired their weapons resulting in the injury of three more unarmed Iraqi civilians.
The first to be killed was Ahmed Haithem Ahmed Al Rubia’y, 21, an aspiring doctor, who was driving his mother to an appointment. His mother, Mahassin Mohssen Kadhum Al-Khazali, 44, a medical doctor, also was killed. Others who died included Ali Mohammed Hafedh Abdul Razzaq, 9, who was traveling with his family; Osama Fadhil Abbas, 52, a businessman who sold used cars and who was enroute to a business meeting; Mohamed Abbas Mahmoud, 47, a delivery truck driver, and his 11-year-old son, Qasim Mohamed Abbas Mahmoud; Sa’adi Ali Abbas Alkarkh, 52, a businessman; Mushtaq Karim Abd Al-Razzaq, 18, an Iraqi soldier who was standing at a military checkpoint; Ghaniyah Hassan Ali, 55, who was traveling with her daughter on a public bus, and who was in the area to get documentation for a trip to holy sites; Ibrahim Abid Ayash, 77, a gardener, who was traveling in another bus; Hamoud Sa’eed Abttan, 33, and his cousin, Usday Ismail Ibrahiem, 27, who were out looking for work with the Iraqi Army; Mahdi Sahib Nasir, 26, a taxi driver, and Ali Khalil Abdul Hussein, 54, a motorcyclist who was commuting to work.
The jury considered charges involving injuries to 14 men and three women. Because of travel issues, witnesses to support an 18th charge of attempted manslaughter did not appear at the trial and the charge related to that victim’s injuries was dismissed by the government.
This case was investigated by the FBI’s Washington Field Office. The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.
The case was prosecuted by Special Assistant U.S. Attorneys Anthony Asuncion, Christopher R. Kavanaugh and T. Patrick Martin, and Assistant U.S. Attorneys John Crabb Jr. and David Mudd, of the National Security Section of the U.S. Attorney’s Office of the District of Columbia. The case was originally indicted by Assistant U.S. Attorneys Jonathan M. Malis and Kenneth Kohl of the District of Columbia.
Former UPS Driver Who Stole Shipments of Guns, Jewelry and Phones Is Sentenced to 41 Months in Federal PrisonRead the Press Release
RIVERSIDE, California – A former United Parcel Service driver who was convicted of federal gun trafficking charges for stealing dozens of guns going through the shipping company’s Ontario hub and providing them to another man who sold the weapons on the street was sentenced today to 41 months in federal prison.
Curtis Ivory Hays II, 37, of Rancho Cucamonga, was sentenced by United States District Judge Virginia A. Phillips. During the time of the offenses, Hays was a package truck driver for UPS who made deliveries in the Rancho Cucamonga area.
Hays was found guilty in January of 15 counts – conspiracy, six counts of theft of firearms, six counts of receipt and possession of stolen firearms, and two counts of theft of interstate shipments.
The associate who allegedly sold some of the firearms – Dennis Dell White Jr., 35, of Moreno Valley – pleaded guilty last year to one count of theft of firearms. White is scheduled to be sentenced by Judge Phillips on May 4, at which time he faces a statutory maximum sentence of 10 years in federal prison.
According to the evidence presented during a six-day trial, Hays stole a series of packages containing guns that were supposed to be delivered to Turner’s Outdoorsman in Rancho Cucamonga. From May through October of 2012, Hays stole six shipments containing a total of 72 firearms.
Hays gave the stolen firearms to White, who illegally sold the weapons to other individuals, and some of the guns then were sold to others. The firearms included 12-gauge shotguns and .45-caliber handguns.
In a sentencing memorandum filed with the court, prosecutors illustrated the danger Hays’ conduct posed to public safety by noting that one of the stolen firearms made its way to Isaac Arriaga, who used the .22-caliber handgun to shoot at three police officers at the conclusion of a high-speed chase in Baldwin Park in 2012.
“By sheer luck no officers or civilians were hurt during Arriaga’s pursuit,” prosecutors wrote. “But individuals like Arriaga would not be able to pose such an extreme threat to the community if they did not have access to black market firearms. [Hays] not only stole the firearms in this case, which [was] reprehensible enough, but he partnered with White to supply the black market and directly contributed to
Arriaga’s actions.”Hays also stole shipments containing jewelry and mobile phones that were supposed to be delivered to Costco in Rancho Cucamonga, and this merchandise also was given to White.
The investigation into the stolen firearms was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Ontario Police Department and the Riverside County Sheriff’s Department. Substantial assistance was provided by the San Bernardino County District Attorney’s Office.
Release No. 15-033
Former Texas State Judge Pleads Guilty in Federal Judicial Corruption CaseRead the Press Release
ALBUQUERQUE – Angus Kelly McGinty, 51, a former Texas state district court judge in Bexar County, Texas, pleaded guilty today to an honest services wire fraud charge and admitted depriving the State of Texas and citizens of Bexar County of his honest services by soliciting and accepting bribes intended to influence his judicial decisions. McGinty’s guilty plea was announced by Damon P. Martinez, U.S. Attorney for the District of New Mexico, and Christopher H. Combs, Special Agent in Charge of the FBI’s San Antonio Division.
In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “Independent and impartial judges are essential to the proper administration of justice. The Department of Justice is committed to rooting out corruption and maintaining confidence in public institutions. This case should serve as a reminder to those who occupy positions of public trust that they must act with integrity and in conformity with the highest ethical standards. Individuals who abuse positions of public trust for private gain will be held accountable.”
“Despite Judge McGinty’s obligation to fairly and impartially carry out his duties as an elected judge, he engaged in serious criminal activity,” said FBI Special Agent in Charge Christopher H. Combs. “Regardless of whether someone is a judge or any other public official, the FBI is committed to investigating and exposing public corruption.”
McGinty initially was charged with conspiracy to commit federal programs bribery, federal programs bribery, extortion under color of official right, and honest services wire fraud in an indictment filed in the U.S. District Court for the Western District of Texas in June 2014. In Feb. 2015, a five-count superseding indictment was filed charging McGinty with conspiracy to commit honest service wire fraud, three counts of honest services wire fraud, and extortion under color of official right. At the time of the events underlying the charges in the indictments, McGinty was a state district court judge in the criminal division of the 144th Judicial District Court in Bexar County, Texas. According to the superseding indictment, between Jan. 2013 and Sept. 2013, McGinty solicited and accepted bribes from an attorney who appeared before him in exchange for favorable rulings for the attorney’s clients. McGinty resigned from the bench on Feb. 14, 2014.
According to court documents, from Jan. 2013 through Sept. 2013, McGinty solicited and accepted bribes from Alberto Acevedo, Jr., an attorney in San Antonio, in exchange for favorable judicial rulings that benefited Acevedo and his clients. Acevedo’s bribes to McGinty included cash, car repairs, arranging the sale of McGinty’s vehicle, and registering a vehicle purchased by McGinty. In exchange, McGinty provided the favorable judicial rulings requested by Acevedo, including lenient sentences and less restrictive conditions of release for Acevedo’s clients. According to the indictments, McGinty received gifts, payments and other things of value totaling more than $6,655.00 from Acevedo.
Today McGinty entered a guilty plea to Count 3 of the superseding indictment. In his plea agreement, McGinty proffered the following statements in support of his guilty plea:
“On or about January 1, 2011, I assumed office as judge of the 144th Judicial District Court, located in Bexar County, Texas. During my term of service as judge of the 144th Judicial District Court, I knowingly participated in a scheme to defraud the State of Texas and citizens of Bexar County, Texas of their right to my honest services inasmuch as I solicited and accepted things of value from Alberto Acevedo, Jr., including vehicle repairs to my two Mercedes Benz, my 1992 Mercedes Benz 300CE and my 2001 Mercedes Benz S430. I accepted these benefits knowing that the purpose behind them was to influence me to exercise my official discretion as judge of the 144th Judicial District Court in favor of Mr. Acevedo and his clients. From at least January 2013 to September 2013, Mr. Acevedo paid for repairs and services to my two Mercedes. I took steps to cover up my dealing with Mr. Acevedo by failing to report the benefits I had received from him on my Personnel Statement for 2013. On May 20, 2013 at 7:02 p.m., I sent Mr. Acevedo a text message to make arrangements to drop off my 2011 Mercedes Benz S430 at his law firm so that he could take it to his mechanic for repairs. That text message traveled in interstate commerce. “
Under the terms of the plea agreement, McGinty will be sentenced to 24 months in federal prison followed by a term of supervised release to be determined by the court. McGinty’s sentencing hearing is scheduled for July 15, 2015.
Acevedo pled guilty on March 17, 2014, to a felony information charging him with bribery involving a program receiving federal funds. In entering his guilty plea, Acevedo admitted that he corruptly influenced a state court judge by giving him things of value. In his plea agreement, Acevedo admitted giving gifts, payments and other things of value totaling more than $6,655.00 to the state court judge in exchange for favorable judicial rulings that benefitted him and his clients. At sentencing, Acevedo faces a maximum statutory penalty of ten years in prison and a $250,000.00 fine. Acevedo is released on bond pending his sentencing hearing, which has yet to be scheduled.
U.S. Attorney Damon P. Martinez praised the investigative work of the San Antonio Division of the FBI. The prosecution of this case in federal court in San Antonio, Texas, is being handled by Special Attorneys Mark A. Saltman and Brock E. Taylor of the U.S. Attorney’s Office for the District of New Mexico. The U.S. Attorney’s Office for the Western District of Texas is recused.
Former Stone Child College President Pleads Guilty to Tax FraudRead the Press Release
GREAT FALLS – Former Stone Child College President Melody Henry, 50, of Box Elder, and her husband, Frank Gregory Henry, 51, the former Facilities Manager at the College, entered guilty pleas to federal income tax fraud during a hearing today before U.S. District Judge Brian Morris in Great Falls. The Henrys face a potential sentence of three years imprisonment, a $100,000 fine and a year of supervised release, together with the costs of prosecution. Sentencing has been set for July 27, 2015, in the Missouri River Courthouse in Great Falls.
The Henrys had been indicted for taking almost a quarter of a million dollars in kick-backs from Hunter Burns and Hunter Burns Construction between October of 2010 and November of 2012. Melody Henry had approved $530,242 in contracts to Hunter Burns Construction in her role as President of Stone Child College. The payments were never disputed but the Henrys claimed that he had, in addition to his full-time employment at the College, done work at the College on behalf of Hunter Burns Construction and therefore the payments were not kick-backs but payments for services rendered. A federal jury acquitted the Henrys after a three day trial in February.
In the tax fraud indictment, prosecutors alleged that the Henrys had attempted to evade payment on the monies received by them from Hunter Burns Construction by claiming business expenses in an amount that would eliminate any tax liability. For the tax year 2012 the Henrys claimed their salaries from Stone Child College—totaling $246,586—and business income from Hunter Burns Construction in the amount of $124,537 for a total annual income of $371,124. On a Schedule C (Profit or Loss From Business) the Henrys claimed $135,146 in business expenses which completely off-set the income received from Hunter Burns Construction and resulted in a business loss.
In an offer of proof filed by the government to support the defendants’ pleas, the United States Attorney told the Court that the Henrys claimed $20,283 in vehicle expenses, $15,000 in contract labor, $6000 in insurance costs, $3000 in office expenses, $3,600 in office rental, $15,998 in repairs and maintenance, $9,035 in supplies, $10,000 in employee wages, $35,500 in newly purchased equipment, and $4,200 in telephone costs. A forensic financial review of the defendants’ bank account records by the Internal Revenue Service did not reveal any expenditures consistent with the expenses claimed on Schedule C. Prosecutors have agreed that if the civil IRS review indicates that some of the expenses claimed were legitimate they would reduce the restitution award which will be, by stipulation of the parties, $47,301 in tax due and owing for 2012. All other tax liability, for other years, will be dealt with directly by the IRS.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.