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Monday 13 April 2015
Former Real Estate Agent Pleads Guilty in Connection with Investment Fraud SchemeRead the Press Release
FRESNO, Calif. — Kenneth Manuel Martin, 66, formerly of Modesto, pleaded guilty today to one count of wire fraud in connection with a Guatemalan real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
Between a date unknown and August 2008, Martin induced individuals to give him money by saying that he would cause the money to be used to fund mortgage loans to borrowers in Guatemala so borrowers could purchase homes in that country. Among several false representations, Martin represented that his company would provide a real estate attorney in Guatemala who would be able to protect investor funds and would hold a grant deed in favor of the investors secured by Guatemalan real estate. He also represented that his company would provide investors who invested in his Guatemalan real estate venture a high interest rate of return and consistent monthly interest payments. Martin provided investors with conflicting explanations concerning the lack of consistent interest payments and his failure to return the investment principal of investors who requested such a return. As a result of Martin’s conduct, investors lost approximately $258,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Henry Z. Carbajal III and Grant B. Rabenn are prosecuting the case.
Martin is scheduled to appear before Senior U.S. District Judge Anthony W. Ishii on July 21, 2015, for an evidentiary hearing on sentencing issues. The maximum statutory penalty for a violation of wire fraud is 20 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Docket #: 1:11-cr-219 AWI
Former Inmate Sentenced to 42 Years for Distributing Child Porn from PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former California prison inmate, incarcerated for state sex offenses, was sentenced in federal court today for using a smuggled cell phone to distribute child pornography over the Internet.
Eric Lee Bederson, 37, formerly an inmate at the California Medical Facility in Vacaville, Calif., was sentenced by U.S. Chief District Judge Greg Kays to 42 years in federal prison without parole.
On Aug. 12, 2014, Bederson pleaded guilty to two counts of distributing child pornography. At the time he committed these offenses, Bederson was serving a 16-year state sentence in California for a charge involving the aggravated sexual abuse, sexual abuse, and abusive sexual conduct of a minor. Bederson, then a 21-year-old day care center teacher, had been arrested following an investigation into suspicions that he was molesting multiple children and possessed child pornography. According to court documents, Bederson molested at least 20 children. A civil lawsuit resulted in a judgment of more than $10 million in damages.
Bederson used smuggled cell phones to distribute numerous images and videos of child pornography while he was incarcerated. As his release date approached, Bederson began communicating with other traders of child pornography via e-mail. He amassed upwards of 40 gigabytes of images and videos in his multiple e-mail accounts, which he used to actively trade, receive, and distribute to others – including an undercover federal agent based in Kansas City, Mo. According to court documents, these images and videos constitute violent and disturbing child pornography, including minors as young as five years old.
Between Sept. 29 and Oct. 8, 2011, he sent six e-mails to an undercover agent with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), which included a total of 164 images and 10 videos of child pornography. Bederson sent this child pornography with the hope and expectation that the undercover HSI agent (and others) would reciprocate in sending child pornography back to him in return. Bederson also admitted that his e-mail accounts contained multiple gigabytes of e-mails and attachments of child pornography.
For example, on Sept. 29, 2011, Bederson sent an e-mail with 24 attached images of child pornography to the undercover federal agent. On Oct. 1, 2011, Bederson sent another e-mail to the undercover federal agent, which contained a video of child pornography.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the California State Prison security office.
Former Chester County Man Admits to Selling Illegal ExplosivesRead the Press Release
PHILADELPHIA - Ryan Joseph Hribick, 34, of Minersville, formerly of Coatesville, Pennsylvania, pleaded guilty today to all four counts in the pending indictment charging him with one count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice, and one count of witness tampering. United States District Judge Robert F. Kelly scheduled sentencing for Hribick on July 17, 2015.
From about March 2009 to about February 2013, Hribick possessed, manufactured, and sold improvised explosive devices (“IEDs”), including PVC pipes (some containing nails, screws, and/or rocks) and cardboard tubes, all center primed with flash powder. After federal agents searched his home, Hribick instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury.
In addition, Hribick attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence. Specifically, Hribick advised the witness to lie and conceal from the federal grand jury the fact that the witness had destroyed and concealed evidence according to Hribick’s instructions. At this time, Hribick knew that the federal grand jury was actively investigating his conduct.
Hribick faces a maximum possible sentence of 60 years in prison, a $1 million fine, 3 years of supervised release and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, the Chester County District Attorney’s Office, the Maryland State Police, and the North Carolina State Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.
Former Campaign Treasurer Sentenced to Prison Term for Tax Evasion and Filing False Campaign Reports Related to Diverting Money from Campaign's Bank AccountRead the Press Release
WASHINGTON – Hakim J. Sutton, 33, of Washington, D.C., was sentenced today to 16 months in prison for evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen, Jr., Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department (MPD), and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C., Field Office.
Sutton pleaded guilty on Oct. 23, 2014, in the U.S. District Court for the District of Columbia to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. He was sentenced by the Honorable Richard J. Leon. Under the plea agreement, Sutton is required to pay full restitution of $18,231 in taxes and interest to the IRS. Sutton was also ordered to three years of supervised release following his 16 month prison sentence.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
In announcing the sentence, Acting U.S. Attorney Cohen and Acting Assistant Attorney General Ciraolo commended the Metropolitan Police Department and the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case.
They also thanked Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet, and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia, for their assistance.
Former Campaign Treasurer Sentenced for Tax Evasion and Filing False Campaign Reports Related to Diverting Money from Campaign's Bank AccountRead the Press Release
Defendant Worked on Unsuccessful Campaign of Washington, D.C., Council Candidate
A 33-year-old Washington, D.C., man was sentenced today to serve 16 months in prison for evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C., Field Office.
Hakim J. Sutton pleaded guilty on Oct. 23, 2014, in the U.S. District Court for the District of Columbia to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. He was sentenced by the Honorable U.S. District Judge Richard J. Leon. Under the plea agreement, Sutton is required to pay full restitution of $18,231 in taxes and interest to the IRS. Sutton was also ordered to three years of supervised release following his 16 month prison sentence.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Cohen commended the Metropolitan Police Department and the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case. Ciraolo and Cohen thanked Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia, for their assistance.
Final Two Defendants Sentenced to 440 and 348 Months in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” WatsonRead the Press Release
Two Colombian nationals were sentenced to decades in U.S. federal prison today for their roles in the kidnapping and murder of former Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogotá, Colombia, on June 20, 2013.
Attorney General Eric Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Bill A. Miller, Director, U.S. State Department’s Diplomatic Security Service (DSS) made the announcement.
“With these sentencings, all seven defendants involved in the kidnapping and murder of Special Agent Terry Watson have been found, prosecuted, and brought to justice,” said Attorney General Holder. “Special Agent Watson was a courageous patriot, a principled law enforcement agent, and a proud defender of the rule of law. Our nation owes him and his loved ones a debt we can never repay. And although our prosecution of his heinous attackers has come to its rightful close, the Department of Justice will never rest in our efforts to honor Special Agent Watson’s life of service and sacrifice by upholding the values that he served to protect.”
“DEA is grateful that the final two defendants connected to Terry Watson’s murder faced justice in a U.S. court of law for their heinous crime," said Administrator Leonhart. “Terry will be remembered for his bravery, dedication and loyalty to our agency’s mission, and his presence is missed every day by the men and women of DEA. Throughout this ordeal, the Watson family has remained in our thoughts and prayers, and we will never forget their sacrifice.”
Édgar Javier Bello Murillo, 28, and Omar Fabián Valdes Gualtero, 28, were sentenced today to 440 months in prison and 348 months in prison, respectively, by U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia. Both pleaded guilty to second degree murder and conspiracy to kidnap an internationally protected person on Dec. 19, 2014.
In the statements of facts filed with their plea agreements, Valdes Gualtero and Bello Murillo admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in which victims were lured into taxi cabs, kidnapped and then robbed. Both admitted that, on the evening of June 20, 2013, they were a part of a six-person robbery crew that targeted Special Agent Watson. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Bello Murillo admitted that he entered the taxi in which Special Agent Watson was riding and stabbed him multiple times. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
In total, seven defendants were arrested and extradited from Colombia to the United States to face charges in connection with Special Agent Watson’s murder and the subsequent attempt to cover up the crime. Six defendants pleaded guilty for their respective roles in the kidnapping and murder: Julio Estiven Gracia Ramírez, 32; Héctor Leonardo López, 34; Andrés Álvaro Oviedo García, 22; Edwin Gerardo Figueroa Sepúlveda, 40; Valdes Gualtero; and Bello Murillo. On Dec. 12, 2014, Gracia Ramírez was sentenced to 27 years in prison, López was sentenced to 25 years in prison and Oviedo García was sentenced to 20 years in prison. On Feb. 18, 2015, Figueroa Sepúlveda was sentenced to 30 years in prison. A seventh defendant, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice for cleaning the taxi cab in which the attack occurred before turning it in to the Colombian National Police. On Feb. 18, 2015, Peralta-Bocachica was sentenced to 40 months in prison.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Criminal Division’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Federal inmate sentenced to life in prison for murder of fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal inmate at the U.S. Penitentiary in Hazelton, West Virginia, pleaded guilty and was sentenced to life in prison today for the murder of another inmate, announced U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Patrick Andrews, 34, formerly of Washington, D.C., pleaded guilty to one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris. U.S. District Judge Irene M. Keeley of the Northern District of West Virginia sentenced Andrews to life in prison on both counts.
According to his plea agreement, Andrews and fellow inmate, Kevin Bellinger, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s June 2014 trial in this case, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Andrews was serving a sentence of 35 years to life in prison for two murders that took place in 1997 and 2000, and Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.
Bellinger was convicted in this case by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility. On Oct. 8, 2014, he was sentenced to life in prison.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by and Assistant U.S. Attorney Andrew Cogar of the Northern District of West Virginia and Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section.
Federal Tax Prosecutions Serve as Reminder to Taxpayers to Comply with Tax Obligations as April 15 Deadline ApproachesRead the Press Release
CHICAGO -- Eleven Chicago and suburban residents, among others, are facing federal prosecution for alleged federal income tax crimes in various separate cases filed recently. Defendants from Bolingbrook and Palatine were charged with evading income taxes by funneling hundreds of thousands of dollars to bank accounts that they controlled and using the money for their own personal purposes. A tax preparer from Lockport was charged with assisting clients in obtaining over $1 million in fraudulent refunds and other defendants from Chicago were indicted in an alleged scheme to use stolen identities to fraudulently claim and obtain tax refunds based on fictitious returns.
“The IRS Criminal Investigation Division is focused on ensuring that taxpayers pay their fair share,” said Stephen Boyd, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “Tax fraud does not know a season -- IRS special agents pursue criminals year round, not only at filing deadlines. Taxpayers who might be thinking about cheating should think twice or they will risk the consequences,” he said.
“Federal tax prosecutions occur throughout the year but at this time of year it is especially prudent to remind taxpayers of the importance of voluntary compliance with their tax obligations,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
In addition to criminal penalties, including incarceration, fines, and the costs of prosecution, convicted defendants remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed, Mr. Fardon noted. And those making false claims against the government may be required to pay restitution or may be sued civilly for an amount greater than the fraudulent claims, he added.
LEOPOLDO RODRIGUEZ, 42, of Bolingbrook, was indicted April 9 on 3 counts of tax evasion and 3 counts of filing false federal income tax returns. Rodriguez worked at Chicago Pallet Service, which was a business that bought and sold pallets, and the indictment alleges that Rodriguez diverted income from the sale of pallets by his employer to bank accounts that he maintained and controlled, including a bank account maintained in the name of a business he operated called Sugar Daddy Stables. Specifically, the indictment alleges that Rodriguez diverted approximately $230,000 in 2010, approximately $370,000 in 2011, and approximately $530,000 in 2012. Rodriguez also allegedly filed false individual tax returns for each of those years when he failed to report the income that he diverted from his employer on his personal returns. Rodriguez will be arraigned at a date to be determined by the district court. Each count of filing false returns carries a maximum sentence of 3 years in prison and each count of tax evasion carries a maximum sentence of 5 years in prison. Each of the counts also carries a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. Assistant U.S. Attorney Brian Hayes is representing the government.
WILLIAM DADDANO, 58, of Palatine, was indicted April 7 on 2 counts of tax evasion and 2 counts of filing false federal income tax returns. Daddano, who owned real estate appraisal businesses, allegedly evaded payment of taxes by having his appraisal companies issue checks to a defunct company and funneling the money through a bank account maintained under the name of the defunct company, Real Property Valuation, and then using the money as his own personal income. The indictment alleges that Daddano used Real Property Valuation to divert over $350,000 in 2008 and over $280,000 in 2009, and that he filed false corporate and personal returns for each of those years. Daddano will be arraigned on a date to be determined by the district court. Each count of tax evasion carries a maximum sentence of 5 years in prison and each count of filing a false income tax return carries a maximum sentence of 3 years in prison. Each of the counts also carries a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. The government is represented by Assistant U.S. Attorney Sheri Mecklenburg.
Two additional defendants were indicted on April 2, 2015 in an alleged scheme to fraudulently claim tax refunds in excess of $290,000. EBONY RICHARDSON, 34, of Chicago and LATASHA WEATHERALL, 35, of Chicago, were each charged with 4 counts of wire fraud and 2 counts of theft of government funds in an 8-count indictment. According to the indictment, Richardson and Weatherall caused over 120 fraudulent tax returns to be filed on behalf of various taxpayers without the taxpayer’s knowledge or consent and then caused refunds exceeding $290,000 to be deposited into various accounts controlled by the defendants. The indictment alleges that the fraudulent returns contained false amounts related to items of income, wages, pension distributions, federal tax withholdings, Earned Income Credits, and education and other credits. Richardson and Weatherall each allegedly had control and access to multiple accounts into which the fraudulent refunds were deposited as part of the scheme. Each count of wire fraud carries a maximum sentence of 20 years in prison, each count of theft of government funds carries a maximum of 10 years, and all counts carry a maximum fine of $250,000 or twice the gross gain to the defendants or loss to the government. Assistant U.S. Attorney Michelle Petersen is representing the government.
Other recently charged cases include the following:
TIFFANY EICHELBERGER-MYERS, 32, formerly of Lockport, was charged April 10 with 2 counts of willfully assisting in the preparation of false income tax returns. Eichelberger-Myers worked as a tax preparer at Shelby Investment, LLC and managed a branch location that did business under the name “Tiff’s Taxes.” The information alleges that she fraudulently obtained over $1,100,000 in tax refunds for clients for tax years 2010 through 2012 by falsely claiming, among other things, business losses and education expenses on behalf of her clients. Each count of assisting in the preparation of false returns carries a maximum sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Sarah Streicker)
DAVID A. BROWN, 47, of Country Clubs Hills, was charged April 9 on 27 counts of wire fraud, 33 counts of filing false claims, and 4 counts of filing false income tax returns. Brown, who owned and operated a tax preparation business under the name of Tax Professional Consultant Agency, Inc. in Chicago, allegedly prepared and filed returns on behalf of clients that falsely claimed business losses, casualty and theft losses, and Schedule A deductions, in addition to false claims of entitlement to Earned Income Credits and Educations Credits for the 2008 through 2012 tax years. Brown was also charged with filing false individual tax returns on his own behalf for tax years 2010 through 2013. Brown will be arraigned on a date to be determined by the district court. Each count of wire fraud carries a maximum sentence of 20 years in prison, each count of filing a false claim carries a sentence of 5 years in prison, each count of filing a false tax return carries a sentence of 3 years in prison, and all counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. The United States Secret Service also participated in the investigation. (Assistant U.S. Attorney Bolling Haxall)
SOL K. WINER, 75, of Highland Park was charged April 10 with filing a false income tax return. The information alleges that Winer substantially underrepresented his total income for tax year 2011. The charge carries a sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Patrick King)
DYONE DORSEY, 39, and JANET DORSEY, 42, of Chicago, were charged on April 2, 2015 in a 35-count indictment with preparing and assisting in the preparation of false income tax returns. According to the indictment, the Dorseys owned and operated a tax return preparation business in Chicago that did business under the name “Dorsey’s Tax Service.” Between 2009 and 2011, the Dorseys allegedly assisted in the preparation of income tax returns on behalf of clients that falsely claimed business losses as well as other deductions and credits to which the clients were not entitled. The indictment also charged the Dorseys with filing a false joint income tax return on their own behalf for tax year 2010 as well as charging the Dorseys individually for filing false income tax returns on their own behalf for tax years 2008 and 2009. Each of the charges carries a sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Ryan Fayhee)
RONALD TAYLOR, 49, of Evanston, was charged on April 1, 2015 in a 4-count indictment with filing false claims and theft of government funds. The indictment alleges that Taylor filed three income tax returns for trusts for the 2007, 2008, and 2009 tax years falsely claiming entitlement to refunds totaling $900,000 and stealing a tax refund of $300,000. Each count of filing a false claim carries a maximum sentence of 5 years in prison, each count of theft of government funds carries a maximum sentence of 10 years in prison, and all counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Jeremy Daniel)
SOLOMON SMITH, JR., 56, of Berkeley, was charged on April 1, 2015 in a 2-count indictment with filing and assisting in the preparation of filing of false tax returns. According to the indictment, Smith filed income tax returns for trusts that falsely claimed, among other things, income and tax withholding amounts, and falsely claimed entitlement to a refund of $381,180 for 2008 and $381,213 for 2009. Each count carries a maximum sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Stephen Heinze)
In each case, if convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that criminal charges are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Inmate Sentenced to Life in Prison for Murder of Fellow PrisonerRead the Press Release
A federal inmate at the U.S. Penitentiary in Hazelton, West Virginia, pleaded guilty and was sentenced to life in prison today for the murder of another inmate, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia.
Patrick Andrews, 34, formerly of Washington, D.C., pleaded guilty to one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris. U.S. District Judge Irene M. Keeley of the Northern District of West Virginia sentenced Andrews to life in prison on both counts.
According to his plea agreement, Andrews and fellow inmate, Kevin Bellinger, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s June 2014 trial in this case, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Andrews was serving a sentence of 35 years to life in prison for two murders that took place in 1997 and 2000, and Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.
Bellinger was convicted in this case by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility. On Oct. 8, 2014, he was sentenced to life in prison.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar of the Northern District of West Virginia.
Essex County, New Jersey, Carjacker Sentenced to 135 Months in PrisonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man who was identified by the “find my iPhone” feature on a cell phone he stole during an armed carjacking was sentenced today to 135 months in prison, U.S. Attorney Paul J. Fishman announced.
Lee Caraballo, 28, was previously convicted of both counts in the indictment against him: theft of a motor vehicle by force, violence and intimidation and use of a firearm in furtherance of a crime of violence. Caraballo was convicted following a three-day trial before U.S. District Esther Salas, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Nov. 30, 2012, Caraballo carjacked a Rutgers law student at gunpoint in the driveway of the student’s home. After stealing the victim’s wallet and cell phone, Caraballo fled in the victim’s Toyota Corolla. A Roselle Park police officer stopped Caraballo, who was driving his own car, later that day. In that car, law enforcement found the victim’s cell phone and car keys as well as various items of clothing the victim later identified. While Caraballo was in police custody, the carjacking victim located his phone remotely using the “find my iPhone” feature and called the police station. He later identified the defendant.
In addition to the prison term, Judge Salas sentenced Caraballo to five years of supervised release.
U.S. Attorney Fishman credited detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the N.J. State Police, Newark Police Department and Roselle Park Police Department, as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to today’s sentencing.
The government is represented Assistant U.S. Attorneys Barry A. Kamar and Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Gary Leo Cutler Esq., Newark
Delaware County Man Charged Federally in Child Exploitation CaseRead the Press Release
John Corcoran IV, of Glenolden, PA, is charged by Indictment with numerous counts of child exploitation, announced United States Attorney Zane David Memeger. Corcoran is charged with 20 counts of using or inducing a child to pose for child pornography, and one count of possession of child pornography. He is currently in custody awaiting trial.
Corcoran is charged in this federal indictment with abusing 11 children at his home in Glenolden, at the children’s homes throughout Delaware County, and at the Ridley YMCA in Ridley, Pennsylvania. He faces additional charges – involving additional victims – in Delaware County.
If convicted of all charges in federal court, Corcoran faces a maximum possible sentence of 610 years in prison, and a mandatory minimum of 15 years.
The case was investigated by Federal Bureau of Investigation, Delaware County District Attorney’s Office, the Glenolden Police Department, the Darby Police Department, and the Folcroft Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
DEA Seizes Large Quantity of Heroin, Cocaine, and a Firearm from Boston Drug TraffickersRead the Press Release
BOSTON – Two Boston men were arrested Friday, April 10, 2015, on federal drugs charges for their roles in trafficking large quantities of heroin and cocaine. In the raid conducted by the DEA on the three locations used by the drug traffickers, federal agents seized six kilograms of heroin, one-and-a-half kilograms of cocaine, a handgun, and a large sum of cash.
Yamal Gonzalez, 33, of Boston, was charged with distribution of heroin, and Jose Polanco, 33, of Boston, was charged with conspiracy to possess heroin with intent to distribute and possession of heroin with intent to distribute. Gonzalez and Polanco are scheduled for detention hearings on Monday, April 20, 2015 at 2:00 p.m. before U.S. District Court Magistrate Judge Judith G. Dein.
According to the criminal complaint, the DEA conducted a three-month investigation into Gonzalez who sold heroin to a cooperating witness on three occasions. The investigation revealed that the drug traffickers utilized three locations in their operation: 1431 Commonwealth Avenue, Apartment 9, in Brighton; 15 School Street, Apartment 2, right side, Dorchester; and 457 Massachusetts Avenue, Apartment 2, Roxbury.
On Friday, April 10, 2015, federal agents observed Gonzalez and Polanco exit the School Street apartment in Dorchester together and walk towards their vehicles. Officers converged on the two men, and Gonzalez was arrested, searched, and found to be in possession of 80 grams of heroin and one-half ounce of cocaine. Officers confronted Polanco, who initially fled as they approached, but was quickly arrested and found to be in possession of a plastic corn starch container with 300 grams of heroin inside. Agents executed a federal search warrant at the School Street apartment and seized, among other things, a Smith and Wesson; .40 caliber, semi-automatic handgun containing ammunition; additional rounds of 9mm ammunition; six kilograms of heroin; one and one-half kilograms of cocaine; drug packaging materials; drug “presses” used to package narcotics; cash; and scales. Agents also executed a federal search warrant at the Commonwealth Avenue apartment in Brighton and seized 50 grams of heroin and 20 grams of cocaine. At the Massachusetts Avenue apartment in Roxbury, agents seized a large quantity of cash.
The charging statutes provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million.
The details contained in the complaints are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was investigated by the DEA; the Massachusetts State Police; the Somerville, Cambridge, Arlington, Ipswich, and Boston Police Departments; and the Essex County Sherriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Glenn A. Mackinlay of Ortiz’s Organized Crime and Gang Unit.
Colombian Nationals Sentenced to 36 and 29 Years in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” WatsonRead the Press Release
ALEXANDRIA, Va. – Omar Fabian Valdes Gualtero, 28, and Edgar Javier Bello Murillo, 28, both Colombian citizens, were sentenced today for their roles in the kidnapping and murder of former Drug Enforcement Agency (DEA) Special Agent James “Terry” Watson in Bogata, Colombia, on June 20, 2013. Gualtero was sentenced to 348 months in prison and five years of supervised release. Murillo was sentenced to 440 months in prison and five years of supervised release.
Attorney General Eric H. Holder; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente, Eastern District of Virginia; DEA Administrator Michele M. Leonhart; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS), made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
“These two defendants bear responsibility for the kidnapping and murder of a courageous federal agent,” said Attorney General Eric Holder. “With this sentencing, they face justice for their involvement in this brutal crime. Our nation owes a great debt to Special Agent Terry Watson and his loved ones. We will never rest in our determination to honor his profound sacrifices, to pursue all who would threaten our brave men and women in law enforcement, and to carry on the vital work for which he gave his life.”
“Today’s sentencing is another important step in bringing justice to those responsible for the murder of Special Agent Terry Watson,” said DEA Administrator Michele M. Leonhart. “Terry was a respected and dedicated DEA Special Agent and we will not rest until all those involved in this heinous act are sentenced. Our thoughts and prayers continue to go out to the Watson family as this case moves towards a final resolution.”
Both Gualtero and Murillo previously pleaded guilty to murder of an internationally protected person and conspiracy to kidnap an internationally protected person.
In the statements of facts filed with their plea agreements, as well as other evidence presented in open court, Gualtero and Murillo admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in which victims in Bogotá, Colombia, were lured into taxi cabs, kidnapped and then robbed. Both admitted that on the evening of June 20, 2013, they were a part of a robbery crew that included five other individuals who targeted Special Agent Watson. Gualtero was the ring leader, who organized the robbery crew. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Murillo entered the taxi carrying Special Agent Watson and stabbed him multiple times. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
A total of six defendants were charged in this case for their involvement in the murder and kidnapping of Special Agent Watson: Héctor Leonardo López, 34; Julio Estiven Gracia Ramírez, 32; Andrés Álvaro Oviedo García, 22; Fabián Valdes Gualtero, 28; Edwin Gerardo Figueroa Sepulveda, 40; and Wilson Daniel Peralta Bocacachica, 30.
Defendant Name & Age
Charge(s)
Sentencing Information
Héctor Leonardo López, 34
Guilty to Conspiracy to Kidnap and Aiding and Abetting the Murder of an Internationally Protected Person.
December 12, 2014. 25 years in prison.
Julio Estiven Gracia Ramírez, 32
Same as above.
December 12, 2014. 27 years in prison.
Andrés Álvaro Oviedo García, 22
Same as above.
December 12, 2014. 20 years in prison.
Edwin Gerardo Figueroa Sepulveda, 40
Same as above.
February 18, 2015. 30 years in prison.
Omar Fabian Valdes Gualtero, 28
Same as above.
April 13, 2015. 29 years in prison.
Edgar Javier Bello Murillo, 28
Same as above.
April 13, 2015. 36 years in prison.
Wilson Daniel Peralta Bocacachica,
Obstruction of justice.
February 18, 2015. 40 months in prison.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorney Michael P. Ben’Ary and Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:13-cr-310.
Civil Rights Orientation and TrainingRead the Press Release
Click here for the slideshow from the training.
Charleston man pleads guilty to defrauding timeshare ownersRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that David Brandon Ball, 35, of Charleston pled guilty in federal court today to his role in defrauding timeshare owners throughout the United States and Canada. Ball admitted that he and his associate, David Andrew Glynn, formed Mountain State Resales, LLC (MSR) a bogus company used to defraud timeshare owners of money. Ball and his associates advised timeshare owners that MSR had a buyer for their timeshares, and asked them to front money to MSR in South Charleston, to cover fees and expenses necessary to facilitate the sales. MSR had no buyers for the timeshares and Ball knew that the timeshare owners would not receive anything in return for money sent to MSR.
Ball and his associates, including Glynn, also posed as “agents” and contacted timeshare owners who previously lost money in other timeshare fraud schemes and represented that they were affiliated with a non-existent organization named “Internal Revenue Recovery Associates” and were investigating timeshare fraud schemes. Ball admitted that he and his coconspirators told the timeshare owners to send money to MSR to assist “agents” in recovering the lost funds.
At his plea hearing, Ball admitted that neither MSR nor Internal Recovery Associates were legitimate businesses and were used to defraud timeshare owners. Ball also admitted that MSR received at least $80,346 from the conspiracy. Ball further admitted that in 2013, he operated a Florida-based company called International Transfers and Documents (International Transfers), that like MSR, was created and used to defraud timeshare owners of more than $145,000.
Ball has agreed to pay restitution to the victims of both MSR and International Transfers. Ball is scheduled to be sentenced on July 8, 2015. Glynn has already pled guilty and been sentenced for his role in the offense.
Today’s plea stems from an investigation being conducted by the West Virginia State Police, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Meredith George Thomas is handling the prosecution.
Champaign Property Developer Charged with Bank FraudRead the Press Release
Urbana, Ill. – A Champaign, Ill., real estate developer, Gene T. Hardwick, 72, is scheduled to appear for arraignment on April 27, 2015 in Urbana, following an indictment returned last week charging him with one count of bank fraud related to a $3.9 million loan.
The indictment alleges that Hardwick obtained a $3.9 million bank loan in 2007 to construct a 64-unit apartment building at 611 East Park Street, Champaign. From 2007 into at least 2009, Hardwick allegedly diverted funds from the stated purpose of the loan to fund other projects including approximately $800,000 toward a senior living facility in Tuscola, and additional funds to pay personal expenses such as real estate taxes and credit card bills.
If convicted, bank fraud carries a penalty of up to 30 years in prison and a fine of up to $1 million.
The charge is the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Jason M. Bohm is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Central Florida Businessman Sentenced to Nine Years in Prison for $44 Million Bank Fraud ConspiracyRead the Press Release
Orlando, FL – Senior United States District Judge Gregory J. Presnell sentenced Pedro “Pete” Benevides (45, Astatula) today to nine years in federal prison. In addition, Benevides was ordered to forfeit $44,059,565.00, including several bank accounts containing approximately $40 million in cash and two exotic sports cars: a 2008 Lamborghini Murcielago and a 2009 Audi R8. He will also be ordered to pay full restitution to the financial institutions that were the victims of his offense. The amount will be determined at a later hearing. Benevides pleaded guilty on July 14, 2014.
According to court documents, from about 2005 through September 2008, Benevides obtained 20 commercial and residential loans and lines of credit from several federally insured financial institutions totaling approximately $44,059,565. He obtained the fraudulent loans by providing the financial institutions with documents that, among other things, contained false information concerning his income and assets or the business that he used to obtain the loans and lines of credit. During that time, Benevides controlled several Central Florida businesses, including a private jet charter service, an exotic car rental service, and hotels in Orange County and Pinellas County, Florida. Those companies included Superior International Investment Corporation; ABC Auto Wholesalers, Inc.; Skyview Aviation, Inc.; Fidelity Investment Group LLC; PBJB Best Investment LLC; Divello Family LLC; and Leesburg Title and Escrow Company. Benevides then used the fraudulently obtained funds for his own purposes, including paying the interest and principal on other, earlier loans that he had obtained in order to continue the fraudulent scheme, paying business expenses, paying the other co-conspirators involved in the scheme, and funding living expenses for himself and his family.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, and the St. Cloud IRS-USSS Federal Financial Crimes Task Force. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Carson City Man Sentenced to Prison for Possessing and Distributing Images and Videos of Child Pornography and RapeRead the Press Release
RENO, Nev. – A man who was found in possession of 6,000 images and 20 videos of child pornography, including child rape, has been sentenced to 10 years in prison, lifetime supervised release, and ordered to pay $25,000 in restitution to various victims, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Andrew Wayne Hamrick, 30, of Carson City, Nev., who pleaded guilty on July 28, 2014, to one count of distribution of child pornography and one count of receipt of child pornography, was sentenced on April 6, by U.S. District Judge Miranda M. Du. Hamrick has been in custody since he was arrested in April 2014.
“As the investigation in this case demonstrates, there are persons trolling the Internet 24 hours-a-day looking for accomplices and innocent children to harm,” said U.S. Attorney Bogden. “Thanks to the dedication and skills of these investigators and prosecutors, we are able to identify, arrest and successfully prosecute these dangerous predators.”
According to the court records, in October 2013, Hamrick engaged in a series of email and text message conversations with an FBI special agent who was posing undercover as an adult female interested in incest. Hamrick provided the undercover agent with instructions on how to teach the undercover agent’s fictional six-year old niece to engage in sexual activity. During the chat sessions, Hamrick emailed approximately 10 images of child pornography to the undercover agent. In March 2014, a federal search warrant was executed at Hamrick’s home in Carson City, and agents recovered two cellular telephones that, upon forensic examination, were found to contain a total of approximately 6,000 images and 20 videos of child pornography. The images and videos included depictions of child rape, bestiality, sadistic or masochistic conduct, and bondage-related activities with both young boys and girls. Agents obtained a federal arrest warrant for Hamrick, and he was arrested in Carson City while driving his vehicle. Law enforcement officials recovered another cellular telephone from Hamrick that had been activated only a few hours after the search warrant was served on his home. Several more images of child pornography were recovered from the new phone. Hamrick worked as a locksmith in Carson City.
The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham. It was investigated by the FBI, Nevada Attorney General’s Office, and Northern Nevada Internet Crimes Against Children Task Force, and brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
California Man Sentenced to Prison for Odometer Fraud SchemeRead the Press Release
A Tarzana, California, man was sentenced today in U.S. District Court in Los Angeles to serve two years in prison on charges related to an odometer tampering scheme, the Department of Justice announced.
Shamai Salpeter, 66, was sentenced by Chief Judge George H. King in the Central District of California to serve 24 months in prison followed by three years of supervised release. He was also ordered to pay $421,666 in restitution to victims who purchased vehicles without knowing the odometer readings were incorrect.
In November 2014, Salpeter pleaded guilty to one count of conspiracy and one count of tampering with an odometer. Salpeter admitted that from July 2008 through January 2012, he used electronic odometer tampering tools to alter hundreds of odometers at his residence in Woodland Hills, California. For a payment of $100 to $400, he reset the odometers to any mileage requested by his customers. Frequently, his customers were trying to avoid penalties for exceeding the maximum mileage for their vehicle lease or to make their vehicle more valuable as a trade-in. Many of the vehicles were subsequently sold to unsuspecting consumers who had no way to detect that the odometer readings were inaccurate.
“Each time this defendant altered an odometer with an electronic odometer tampering tool, he violated federal law,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to prosecute individuals engaged in odometer tampering to protect innocent purchasers from odometer fraud.”
Many of Salpeter’s customers were referred to him by Jeffrey Levy, a salesman at Galpin Ford in North Hills, California. Levy also pleaded guilty to conspiracy to commit odometer fraud. On March 16, Levy was sentenced to serve one year in prison and ordered to pay $115,818 in restitution.
“Tampering with odometers is a crime that puts consumers’ lives and wallets at risk,” said Administrator Mark Rosekind of the U.S. Department of Transportation (DOT) National Highway Traffic Safety Administration (NHTSA). “We will continue to work with our Department of Justice and state DOT partners to deter odometer fraud and inform consumers of the potential signs and dangers associated with this crime.”
This case is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch. The case was investigated by the NHTSA’s Office of Odometer Fraud Investigation and California’s Department of Motor Vehicles Investigations Division.
The NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA’s website, and tips on detecting and avoiding odometer fraud are available at this page.
California Felon Convicted of Conspiracy and Distribution of Methamphetamine in Western KentuckyRead the Press Release
Nearly 4 pounds of pure meth found hidden inside SUV engine
Faces up to life in prison
PADUCAH, Ky. – A felon from the Los Angeles, California area was convicted by a federal jury in Paducah, Kentucky, recently of conspiracy to distribute and distribution of methamphetamine in McCracken County, announced Acting United States Attorney John E. Kuhn, Jr.
“Methamphetamine continues to destroy so many lives; it has become a toxic scourge within our communities,” stated U.S. Attorney John Kuhn. “This conviction helps by putting a drug dealer behind bars and removing pounds of this poison from our streets.”
Jose Manuel Jimenez, age 34, of Hemet, faces a mandatory minimum sentence of twenty years in prison and could be sentenced to life in prison for his role in attempting to distribute nearly four pounds of pure methamphetamine with a street value of $160,000. There is no parole in the federal system.
The trial lasted three days and jurors deliberated under one hour before returning a guilty verdict on April 8, 2015, on both counts of the October 14, 2014, superseding indictment. Jimenez is in the custody of the U.S. Marshals Service and will be sentenced before Senior Judge Thomas B. Russell.
Evidence presented at trial included photographs of the methamphetamine hidden inside the engine of a Dodge Durango SUV and cellular phone records. Testimony indicated that the meth had been shipped to Western Kentucky from Arkansas, but the shipment may have originated in Southern California.
Co-defendant Rodolfo Benitez pleaded guilty to possession with the intent to distribute meth, on July 22, 2014 and is scheduled for sentencing on April 14, 2015 at 12:30pm before Senior Judge Russell.
This case was prosecuted by Assistant United States Attorneys Larry E. Fentress and Nute A. Bonner and was investigated by the McCracken County Sheriff’s Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
C.W. Matthews Agrees to Pay $1 Million to Settle Allegations That it Violated the False Claims ActRead the Press Release
ATLANTA - C.W. Matthews Contracting Company (“C.W. Matthews”), a Marietta, GA based construction firm, has agreed to pay $1 million dollars to settle allegations that it violated the False Claims Act by submitting false and misleading certifications to the Government regarding: (1) work performed on several federally funded highway construction projects; as well as (2) the company’s compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program (“DBE Program”).
Additionally, C.W. Matthews has reached a separate settlement with the U.S. Federal Highway Administration, pursuant to which the company has agreed to: (1) adopt an ethics code and a corporate compliance program; (2) appoint a compliance officer; and (3) retain an independent monitor to assess its performance.
“To receive the tangible and intangible benefits that it contracts for, the United States expects companies that actively seek and obtain federally funded contracts to be diligent and forthright in fulfilling their contractual obligations to the Government,” said Acting U.S. Attorney John Horn.
The settlement concerns false certifications that C.W. Matthews provided the Government regarding its compliance with requirements associated with the DBE Program. Pursuant to the DBE Program, federally funded construction contracts contain DBE clauses, which require that a specified percentage of the work be sub-contracted to firms meeting the statutory definition of a Disadvantaged Business Entity (“DBE”).
As a precondition to bidding, a contractor must acknowledge the project’s DBE goals, and then identify the DBE that it proposes to subcontract with if awarded the contract. Additionally, DBE regulations require “real and substantial” work performed by a “viable” and “independent” DBE firm, and state that “there cannot be a contrived arrangement for the purpose of meeting DBE goals.” See, 49 C.F.R. § 26.55. The DBE Program is intended to ensure that DBEs are able to compete for federal construction contracts.
Between 2006 and 2007, C.W. Matthews was awarded several highway construction contracts that contained DBE clauses. In bidding on the contracts, C.W. Matthews promised to subcontract with a DBE firm called Longoria Trucking (“Longoria”) to satisfy the contracts’ DBE goals. As work progressed, C.W. Matthews submitted the requisite DBE Reports to the Government, which: (1) described work Longoria had purportedly performed; and (2) quantified the monetary amounts purportedly paid to Longoria.
The Government’s investigation revealed that the DBE Reports submitted by C.W. Matthews were false and misleading as, in truth, it was a non-DBE trucking firm called G.E. Robinson – not Longoria – that performed most of the work, and received most of the payments, described in the reports. Indeed, the investigation revealed that G.E. Robinson used Longoria as a “front” to obtain, and receive payment under, the applicable contracts. As a non-DBE firm, G.E. Robinson was ineligible to even bid on these subcontracts. To circumvent this restriction, G.E. Robinson assumed the identify of, and controlled, Longoria, which did little work and was paid a small fee by G.E. Robinson for its complicity.The investigation revealed C.W. Matthews either knew, or should have known, of the scheme between Longoria and G.E. Robinson. However, despite this knowledge, C.W. Matthews continued issuing false and misleading certifications to the Government regarding Longoria’s role in the applicable highway projects.
In certifying that Longoria was performing work under the contracts, despite clear signs that the work was actually being performed by G.E. Robinson, C.W. Matthews, at minimum, was either reckless or deliberately indifferent.
This matter was investigated by the U.S. Department of Transportation – Office of the Inspector General.
Assistant United States Attorney Paris A. Wynn handled this matter.
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/.
Brooklyn Man Sentenced to 5 Years in Prison for Conspiring to Pass Counterfeit U.S. CurrencyRead the Press Release
PITTSBURGH -- A resident of Brooklyn, New York, has been sentenced in federal court to 60 months of probation, which shall include 10 months of home detention with electronic monitoring, on his conviction of conspiracy and passing counterfeit United States Currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Marcus Taylor, age 32.
According to information presented to the court, Taylor conspired and passed counterfeit U.S. currency during the period Nov. 9, 2012, through Nov. 30, 2012.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Taylor.
Brooklyn Man Arrested and Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARCELLO TREBITSCH was arrested this morning on wire fraud and securities charges stemming from his alleged scheme to defraud multiple investors of approximately $7 million through a fraudulent investment scheme that he allegedly perpetrated for at least five years. Among other false and misleading statements, TREBITSCH allegedly lied to investors by telling them that he would use their money to trade in securities through an investment fund that he controlled, generating double-digit returns with very low risk. Instead, TREBITSCH allegedly invested only a portion of the investors’ money and suffered enormous trading losses, which he failed to disclose to the investors. TREBITSCH allegedly used the remainder of the investors’ money for his own personal benefit and to pay back other investors.
TREBITSCH was presented today before United States Magistrate Judge Debra Freeman.
U.S. Attorney Preet Bharara said: “Investing in securities entails certain risks, but should not include the risk of being defrauded by one’s investment manager. Investment fraud is a high priority for this Office. I want to thank the FBI for working with us to protect investors and their money.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Trebitsch took $7 million in investor money under false pretenses. Allegedly promising double digit returns to investors, Trebitsch suffered losses on what money he did invest. Trebitsch finds himself under arrest on securities and wire fraud charges.”
According to the allegations in the two-count Complaint unsealed today in Manhattan federal court:
From 2009 through December 2014, TREBITSCH engaged in a multimillion-dollar fraudulent investment scheme, during which he solicited money from investors based on materially false and misleading representations. Specifically, TREBITSCH told the investors that he would use their money to purchase large-cap stocks through an investment fund called Allese Capital LLC, which TREBITSCH co-owned with his wife, who was a certified public accountant. TREBITSCH told the investors that he would purchase and sell stocks on a daily basis, with little or no funds invested in the market at the end of each trading day, which would minimize the risk of loss, and result in double-digit annual returns in the range of 14 to 16 percent. In fact, TREBITSCH invested only a portion of the investors’ money, and instead principally used the investors’ money for his own personal benefit, including to repay other investors.
With respect to the portion of investor funds that he did use to purchase securities, TREBITSCH suffered net trading losses, which he did not disclose to the investors. Rather, TREBITSCH sent the investors false and misleading monthly account statements and tax forms, which purported to show positive annual returns in range of 15 to 19 percent on the investors’ investment in Allese.
During the course of the fraudulent scheme, TREBITSCH solicited more than $7 million from multiple investors.
TREBITSCH, 37, of Brooklyn, New York, is charged with one count of wire fraud and one count of securities fraud. The wire fraud count and the securities fraud count each carry a maximum sentence of 20 years in prison; the wire fraud charge carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, and the securities fraud charge carries a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel S. Goldman and Amy Lester are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
Trebitsch, Marcello Complaint
Brazoria Man Arrested on Child Pornography ChargesRead the Press Release
GALVESTON, Texas – Joseph Saunders, 34, of Brazoria, has been arrested on two charges related to child pornography, announced U.S. Attorney Kenneth Magidson.
The two-count indictment was returned under seal March 11, 2015, and unsealed upon his arrest this afternoon. He is expected to make his initial appearance before U.S. Magistrate John R. Froeshner in Galveston at 10:00 a.m. tomorrow, at which time the government expects to request he be detained pending further criminal proceedings.
Saunders is charged with one count each of receipt and possession of child pornography.
If convicted, he faces up to 20 years in federal prison for the receipt and a maximum of 10 years for the possessing of child pornography.
The investigation was conducted by the Houston Metro Internet Crimes Against Children Task Force and Homeland Security Investigations.
This case, being prosecuted by Assistant U.S. Attorney Carrie Wirsing, is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Another Member of Local 401 Sentenced to Prison TermRead the Press Release
PHILADELPHIA- Greg Sullivan, 50, of Philadelphia, PA, was sentenced today to 27 months in prison for conspiracy to maliciously damage property by means of fire, and Hobbs Act Extortion. Sullivan pleaded guilty on September 23, 2014. He participated in the Grays Avenue arson and the attempted arson in Malvern. In addition to the prison term, United States District Court Michael Baylson ordered restitution of $10,306.80 – half of which must be paid within 30 days – three years of supervised release and a $100 special assessment. He has 30 days to report to prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Akron man pleads guilty to operating dog-fighting ventureRead the Press Release
An Akron man pleaded guilty in federal court to operating a dog-fighting venture and related counts, law enforcement officials said.
Alvin Banks, 56, is scheduled to be sentenced June 30. He pleaded guilty to five counts: sponsoring and exhibiting a canine in an animal fighting venture; buying, selling, delivering, possessing, training and transporting canines for participation in an animal fighting venture; attending an animal-fighting venture; being a felon in possession of firearms and ammunition and possession with intent to manufacture and distribute less than 50 marijuana plants.
The plea was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Akron Police Chief James Nice, Summit County Sheriff Steve Barry and Summit County Prosecutor Sherry Bevan Walsh.
Banks is the last of 10 people to plead guilty in federal court related to a dog-fighting operation uncovered in Akron last year.
Federal and local authorities raided a home on Cordova Avenue in Akron on Nov. 15, 2014 as part of an investigation into dog fighting. In addition to firearms, narcotics and more than $52,000 in cash, investigators discovered a blood-stained 16x16 foot ring used as part of an animal fighting venture, as well as two “break sticks” used to pry a dog’s mouth and teeth off another dog when the fight is finished. They also found eight pit bull or pit bull mixes, two of which were covered in blood and had fresh wounds from a fight that occurred just prior to the execution of the search warrant, according to court documents.
The investigation preceding the indictment was conducted by the Akron Police Department, the Federal Bureau of Investigation and the Summit County Sheriff’s Office, with assistance from the Summit County Prosecutor’s Office and the Humane Society of Greater Akron. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
Friday 10 April 2015
Ypsilanti Man Sentenced for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
An Ypsilanti man was sentenced yesterday for his involvement in a scheme to defraud the Internal Revenue Service, announced United States Attorney Barbara L McQuade.
McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Receiving the sentence from U.S. District Judge Gershwin A. Drain was Antonio R. Lundy, 43. Lundy pleaded guilty before Judge Drain in December 2014. Judge Drain sentenced Lundy to 18 months in prison and three years’ supervised release and ordered him to pay restitution to the IRS in the amount of $251,900.
According to court records, Lundy participated in a scheme to defraud the Internal Revenue Service through the filing of numerous income tax returns in the names of individuals whose personal identification information (PII) had been either obtained with their consent or obtained illegally. From September 2011 through April 2012, Lundy provided the home addresses and PII of individuals to others members of the scheme. The information provided by Lundy was used to prepare and file fraudulent federal income tax returns, which requested refunds based on reported tax withholdings that were false. The refunds were loaded onto Turbo Tax Visa debit cards and mailed to the home addresses provided by Lundy. Lundy used the debit cards to withdraw cash at ATMs, and his cash withdrawals totaled $251,900. Overall, the scheme involved approximately 180 fraudulent returns that requested approximately $1.7 million in refunds.
“IRS-CI is committed to working with our law enforcement partners to combat identity theft. Investigating and prosecuting identity thieves who attempt to defraud the government by filing fraudulent income tax returns remains a top priority for the IRS,” said IRS Criminal Investigation Special Agent in Charge Koopman.
The case was investigated by special agents of the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Washington County Man Sentenced to Prison for Fraud Scheme Targeting the ElderlyRead the Press Release
PITTSBURGH - A Washington County resident has been sentenced in federal court to 30 months imprisonment, three years supervised release, and ordered to pay $405,717.78 in restitution on his conviction of wire fraud and filing false tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on James Grimes, 35 of Lawrence, Pa.
According to information presented to the court, Grimes misappropriated $313,000.00 funds belonging to clients of his brokerage firm. He also failed to report the income realized on his tax return for the years 2007-2009.
Prior to imposing sentence, Judge Fischer explained that Grimes had preyed on the elderly and committed serious crimes. However, his remorse and understanding of the need to make amends justified a slight reduction in sentence..
Assistant United States Attorney James Y. Garrett prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Grimes.
Victoria Man Gets Maximum Sentence for Sexual Exploitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Jason Paul Tijerina, 30, of Victoria, has been ordered to prison for the sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Tijerina pleaded guilty in December 2014.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, sentenced Tijerina to the statutory maximum of 30 years in federal prison to be immediately followed by 25 years of supervised release. He must also register as a sex offender.
In January 2014, Victoria Police Department responded to Tijerina’s residence in reference to a sexual assault. The victim was identified and confirmed the abuse. Authorities conducted a search warrant and seized Tijerina’s cellular telephone from his residence which resulted in the discovery of 10 thumbnail files and one video of a child involved in sexually explicit conduct.
Tijerina has remained in custody since his arrest and will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Tijerina was the result of an investigation conducted by Homeland Security Investigations and Victoria Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Val Verde County Commissioner Indicted on Federal ChargesRead the Press Release
In Del Rio this morning, 62-year-old Val Verde County Precinct 1 Commissioner Ramiro Ramon surrendered to authorities based on federal charges alleging that he accepted bribes totaling more than $68,000 in exchange for actions performed in his official capacity. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and IRS-Criminal Investigation Special Agent in Charge William Cotter.
A 23–count federal grand jury indictment, returned on Wednesday and unsealed today, charges Ramon with nine counts of wire fraud and theft of honest services; three counts of bribery; seven counts of Travel Act violations (use of interstate communication facilities to aid in racketeering); and four counts of making a false statement on an income tax return. The indictment alleges that since November 2005, the defendant solicited and accepted bribes from three different entities in exchange for favorable official action including casting votes, arranging meetings between the entities and City of Del Rio officials, and advocating for the approval of measures which would benefit the entities and their Val Verde County real estate project called “the Ranch.”
Specifically, Ramon allegedly accepted close to $50,000 in payments from a San Antonio developer; approximately $9,300 from a group of New Braunfels business owners; and $5,000 from a California businessman.
According to the indictment, Ramon also took steps to hide, conceal and cover up his affiliation with the entities including the failure to report payments he received on his electronically filed federal income tax returns for 2011 and 2012. The indictment also alleges that Ramon made false statements on his income tax returns in which he underreported his total income to the IRS for calendar years 2008-2011.
Upon conviction, Ramon faces up to 20 years in federal prison for wire fraud; up to ten years imprisonment for bribery; up to five years for violating the Travel Act; and, up to three years imprisonment for making a false statement on an income tax return.
Ramon, who has served as Val Verde County Precinct 1 Commissioner since 2003, had his initial appearance this morning in Del Rio before United States Magistrate Judge Collis White and was released on bond.
This indictment resulted from an investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorneys Jay Hulings, William R. Harris and Goran Krnaich are prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
United States Settles False Claims Act Allegations Against Jacksonville-Based Fertility ClinicRead the Press Release
Jacksonville, FL - The United States has settled allegations that a Jacksonville-based fertility practice knowingly billed the government for services that were “up-coded,” or billed at a rate higher than medically necessary, and billed for certain claims when the physician-owner was out of the country. The allegations resolved included liability under the False Claims Act (FCA).
The government announced today that it has reached a settlement with the Jacksonville Center for Reproductive Medicine (Center), and the physician who owned the practice – Dr. Michael Fox. In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until February 2013, Dr. Fox operated a fertility practice that billed for services at a higher rate of reimbursement than appropriate. At issue, in particular, was the misuse of “incident to” billing provisions. In general, the government allows medical professionals to bill for the services of physician assistants and nurse practitioners as fully compensable claims when those services are “incident to” a physician’s course of treatment. In this case, the government alleged that the Center routinely misused the “incident to” provisions when it billed for work performed by a physician assistant or nurse practitioner. In many instances, it appeared that physician involvement was minimal such that the “incident to” provision would not be applicable. The government agreed to accept $98,838.98 to resolve these allegations.
“TRICARE and other federal health care programs are dependent upon healthcare providers honestly reporting the work that they do,” said A. Lee Bentley, III, U.S. Attorney for the Middle District of Florida. “Claiming reimbursement for treatments not provided, or at higher rates than authorized by regulation, defrauds taxpayers and depletes limited funds available to provide medical care to deserving patients. By bringing False Claims Act cases such as this, we recover funds stolen from the government and deter others from attempting similar schemes.”
Today’s settlement involved false claims submitted to the TRICARE Program. This case was developed by proactively mining healthcare reimbursement data. In mining through this data, the Center was identified as a top biller of fertility related treatments. In addition, through this data mining, government investigators were able to determine that the Center had billed for services allegedly rendered by Dr. Fox – the owner of the practice – even when he was out of the country.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Departments of Justice and Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS will actively analyze, inquire, and challenge health care providers that overcharge the DoD, mistakenly or otherwise. We do this to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees."
This case was investigated by Defense Criminal Investigative Services, Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney's Office for the District of Colorado Recovers $66,000 Resolving Allegations That Slawson Exploration Company Violated the False Claims ActRead the Press Release
DENVER -- John Walsh, United States Attorney for the District of Colorado, today announced the recovery of more than $66,000 to settle allegations that Slawson Exploration Company violated the Federal False Claims Act by failing to properly value gas produced from Indian leases and pay royalties to the Department of the Interior’s Office of Natural Resources Revenue (“ONRR”).
Slawson isa privately held oil and gas exploration company headquartered in Wichita, Kansas. In 2011, Slawson was the lessee for seven leases located on the Fort Berthold Indian Reservation in North Dakota and one lease located on the Fort Peck Indian Reservation in Montana (“the Leases”). As a lessee of these Indian leases, Slawson is required to comply with regulations mandating proper valuation and pricing when calculating and paying royalties to ONRR on any gas removed from these leases. This matter was handled by the Colorado U.S. Attorney’s Office because all energy companies that have a federal or Indian lease from which they obtain oil and gas resources are required to submit reports of their production and corresponding royalty payments to ONRR in Lakewood, Colorado.
ONRR acts as a trustee for royalty payments owed to Indian tribal and individual leaseholders. After receiving the royalty payments from lessees like Slawson, ONRR verifies that the payments are correct and then passes these monies on for distribution to the Indian leaseholders.
According to the Settlement, the United States contends that Slawson knowingly failed to properly adjust the value of gas production on the Leases in 2011, and thus, underreported royalties to ONRR. The United States alleges that Slawson has a history of underpaying royalties on the Leases, and had been penalized by ONRR in the past for failing to properly report and pay royalties. Slawson denies the allegations.
“When gas companies tell the federal government what they owe for the natural resources taken from Indian lands, they need to understand that ‘close enough’ is not ‘good enough’,” said U.S. Attorney, John Walsh. “We stand ready with our law enforcement partners to hold these companies accountable when they don’t tell the whole truth about what they are required to pay the government.”
“The Office of the Inspector General for the Department of the Interior continues to support ONRR and the Department of Justice in recovering oil and gas royalties owed to Indian mineral owners,” said Matthew Elliott, Deputy Inspector General for Investigations at the Office of the Inspector General. “This settlement should stand as a reminder that our Energy Investigations Unit is poised to respond when Indian mineral interests are compromised or ignored.”
“A company's timely and accurate submission of royalty reports and payments is essential,” said Greg Gould, Director of the Office of Natural Resources Revenue. “To ensure that we collect every dollar due, ONRR will continue to insist that companies report and pay the proper royalties for these American Indian assets.”
The United States Attorney’s Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today’s recovery. Special thanks are extended to both the Office of Natural Resources Revenue and the Energy Investigations Unit of the Department of the Interior’s Office of Inspector General. The United States Attorney’s Office in Denver, Colorado works closely with both of these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.Assistant U.S. Attorney Amanda Rocque handled the matter on behalf of the United States.
U.S. Attorney and IRS Announce Latest Arrest in Operation Point Break, Targeting Federal Income Tax Refunds Obtained with Stolen IdentitiesRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz announced the latest arrest today in Operation Point Break, a long-term and previously unpublicized investigation into thieves who use stolen identities to file for and obtain fraudulent federal income tax refunds, also known as “stolen identity refund fraud” (SIRF).
In a typical SIRF transaction, the SIRF conspiracy steals the identity of a U.S. citizen and files a fraudulent federal income tax return in his or her name, using false wage and tax-withholding data that, if true, would entitle the person to a sizeable tax refund, often worth thousands of dollars. The fraudulent refund never goes to the identity theft victim, but rather to the SIRF conspiracy, either in the form of a paper U.S. Treasury check mailed to an address specified on the fraudulent tax return, an address that the SIRF conspiracy controls, or in the form of an electronic deposit onto a prepaid debit card owned by the SIRF conspiracy. The conspiracy then converts the fraudulent refund into cash. If the fraudulent refund comes by check, a co-conspirator brings it to another co-conspirator, an employee of a bank or check-cashing company who cashes the check, even though the person presenting the check and the person to whom the check was issued are not the same. Each co-conspirator — the original identity thief, the tax return filer, the “runner” of the check to the bank or check-cashing company, and the bank or check-cashing company employee — takes a cut of the refund.
Operation Point Break has targeted SIRF conspiracies for two-and-a-half years.
Its most recent success was the arrest earlier today of Junior Albert Lopez, 30, of Dorchester, on a five-count indictment alleging that as part of a SIRF conspiracy, Lopez kept at his Dorchester apartment a USB flash drive that contained more than 700 individuals’ identity information, Employer Identification Numbers, and tax tables for creating false Forms W-2, and spreadsheets used to track the filing of fraudulent returns. The indictment alleges Lopez’s SIRF conspiracy used these identifiers to file more than $750,000 in fraudulent tax returns with the IRS. The indictment also charges Lopez with possessing 27 prepaid debit cards found hidden in a wall at his apartment in February 2013, with making fraudulent purchases using two of those debit cards, and with using an identity theft victim’s name, date, and Social Security Number in relation to the scheme. If convicted, Lopez faces a statutory maximum sentence of 10 years in prison, and a maximum fine of $250,000 on each of the indictment’s first four counts and a mandatory, two-year consecutive sentence on the final count.
Prior successes of Operation Point Break include the conviction of four bank employees who cashed SIRF checks or deposited them into co-conspirator’s bank accounts, and often falsified bank records to cover their tracks. On April 1, 2015, Cynthia Mansfield, a bank manager, was sentenced to five years of probation, including 11 months of in a residential re-entry center, and full restitution for cashing 138 Treasury tax refund checks worth $993,158. In December 2014, Mildred Martinez, a bank employee, was sentenced to three years of probation, including six months in home detention, and full restitution for cashing 31 Treasury tax refund checks worth $226,349. In November 2014, Danielle Pazi, another bank employee, was sentenced to 11 months in prison, two years of supervised release, and full restitution for cashing 162 Treasury checks worth $1,147,216. Pazi’s charges included taking responsibility for the SIRF checks that she supplied to her coworker, Gregory Guertin, an assistant bank manager, who in December 2014 was sentenced to time-served and supervised release for three years, and full restitution for cashing 20 Treasury checks worth $137,673. As a result of committing these offenses, all of the bank employees lost their jobs.
Three other defendants have pleaded guilty in connection with the checks given to Pazi and Guertin. In January 2015, Oscar Demota of Worcester was sentenced to 11 months in prison for supplying Pazi and Guertin more than $400,000 in fraudulently obtained tax refund checks to cash at the bank. Demota’s co-conspirator in more recent SIRF crimes, Nancy Hernandez, is scheduled to be sentenced in June 2015. Another co-conspirator, Maties Toribio, pleaded guilty in February 2015 in the Southern District of New York, and is also awaiting sentencing.
In another case prosecuted under Operation Point Break, seven defendants pleaded guilty in the District of Massachusetts in connection with a scheme to steal customer data from a local health insurance company and use the data to file fraudulent tax returns and to steal Social Security benefits. In August 2014, Emeline Lubin of Boston, pleaded guilty to stealing customer data from a local health insurance company where she was employed. She transmitted the data to Sniders Jean-Jacques of Florida. The data was then used to file fraudulent tax returns and to steal Social Security benefits. The tax refunds and Social Security benefits, which were obtained using the identities of 45 individuals and which totaled more than $100,000, were directly deposited into banks in Worcester. A team of couriers, including Juanita Hall, Shantelle Smith, Natalia Santana, and Brittany Davis withdrew the money from the accounts. The couriers were recruited and managed in part by Marvin Lubin, who is Emeline Lubin’s brother. Jean-Jacques is serving two years in prison; Marvin Lubin is serving one year in prison; Hall, Smith, and Santana were sentenced to terms of supervised release; and Emeline Lubin and Brittany Davis are awaiting sentencing.
Joining Ortiz in the announcement were William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston.
Operation Point Break is being prosecuted by Assistant U.S. Attorneys Scott L. Garland, formerly of Ortiz’s Cybercrime Unit, and currently of Ortiz’s Anti-Terrorism and National Security Unit; Sean Delaney of the District of Maryland; Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit; Seth B. Kosto of Ortiz’s Cybercrime Unit; and Jordi de Llano Campos of Ortiz’s Major Crimes Unit.
The details contained in charging documents are allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Palm Beach County Residents Convicted in Connection with Identity Theft Tax Refund Fraud SchemeRead the Press Release
The leader and another member of a massive identity theft tax refund fraud scheme have been convicted of conspiracy, wire fraud, and aggravated identity theft charges following a ten day trial.
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), Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office, and Amos Rojas, Jr., United States Marshals, United States Marshals Service Regional Fugitive Task Force, made the announcement.
Defendant Lukner Blanc, 31, of Royal Palm Beach, and Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 26, of West Palm Beach, were convicted of conspiracy to receive, conceal or retain monies stolen from the United States, wire fraud, and aggravated identity theft. Blanc was also convicted of receiving, concealing and retaining monies stolen from the United States. The defendants were remanded into custody, following their conviction.
At trial, the government presented evidence that the federal investigation began with the arrest of Blanc, on October 29, 2012, for an unrelated state crime. Agents recovered four bank debit cards out of Blanc’s pants pocket, all in the names of other persons. While incarcerated in the state case, Blanc made recorded calls from the Palm Beach County Jail. Based on information obtained during the course of the monitored and recorded jail calls, law enforcement officials obtained a state search warrant for the residence of co-conspirator Jean Juste, a/k/a “Junior,” a/k/a “Shorty,” 24, of West Palm Beach. Inside Juste’s residence, agents discovered items used to facilitate identity theft crimes, including computers, more than sixty-nine Western Union debit cards, lists of employers, and the names, Social Security numbers, and dates of birth of various individuals. During the course of the investigation, law enforcement learned that Blanc and Juste were associates in the identity theft fraud scheme, alongside co-conspirator Placide.
During the course of the identity theft fraud scheme investigation federal agents obtained additional warrants to search the computers recovered from Juste’s residence. Forensic examinations of the computers revealed that more than 1,000 fraudulent federal personal income tax returns had been filed using the operating system. The returns were submitted over the internet to the Internal Revenue Service (“IRS”) using TaxHawk.com and TurboTax. The actual taxpayers had filed or authorized the filing of the fraudulent income tax returns. Co-conspirators of the fraud scheme opened bank accounts in Florida, in order receive the fraudulently obtained federal income tax refunds.
The co-conspirators attempted to obtain more than $1,200,000 in unauthorized income tax refunds. The co-conspirators received more than $700,000 in fraudulent tax refund payments, which were sent to bank accounts and pre-paid debit cards they controlled. After the fraudulent refunds were sent by wire transfer to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
Co-conspirator Jean Juste previously pled guilty to conspiracy, theft of government funds, wire fraud, and aggravated identity theft. On February 17, 2015, Juste was sentenced to 84 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $668,947 for his participation in the conspiracy.
Co-Conspirator Marie Claude, 25, of Lantana, previously pled guilty for her participation in the conspiracy.
Co-conspirator Marie Demesyeux, 29, of Lake Worth, previously pled guilty to one count of perjury for making a false statement while testifying under oath before a Federal Grand Jury.
Claude and Demesyeux are scheduled to be sentenced on April 16, 2015 before United States District Judge T.K. Hurley.
Co-conspirator Shelda Phadael, 28, of Lake Worth, previously pled guilty to conspiracy and theft of government funds. Phadel is scheduled to be sentenced on May 27, 2015 before United States District Judge T.K. Hurley.
Co-conspirator Frank Fleuzinord, 29, of Cape Coral, is a fugitive.
Defendants Claude and Demesyeux face maximum possible sentences of five years in prison. Phadel faces a maximum possible sentence of fifteen years in prison for the theft of government funds conviction and twenty years in prison for the conspiracy conviction. Blanc and Placide face a maximum possible sentence of twenty years in prison for the conspiracy-related convictions, followed by a mandatory minimum term of two years in prison for the aggravated identity theft conviction.
Mr. Ferrer commended the investigative efforts of IRS-CI, the United States Marshals Service Regional Fugitive Task Force, and the Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Two Men Indicted for Conspiracy to Distribute Narcotics Following Their Arrests at the Airport in St. ThomasRead the Press Release
St. Thomas, USVI – A federal grand jury returned a three-count indictment against Amari Story, 23, and Kurt Reovan, 38, on April 9, 2015, charging them with conspiracy to distribute narcotics, possession with intent to distribute, and use of a communication facility to facilitate a narcotics crime, United States Attorney Ronald W. Sharpe announced today.
According to the indictment, on February 13, 2015, Stroy and Reovan entered the Cyril King Airport in St. Thomas on a flight from the mainland United States with approximately 9.9 kilograms of marijuana in a suitcase. After a search of the suitcase, Stroy and Reovan were arrested on February 13, 2015, and made their initial appearances on February 18, 2015, before Magistrate Judge Ruth Miller. Each defendant was ordered detained pending further proceedings. If convicted, Stroy and Reovan face up to five years in prison for the conspiracy and possession counts and four years for the use of communication facility to facilitate a drug crime, and a $250,000 fine.
United States Attorney Sharpe reminds the public is reminded that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is being investigated by U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney David White.
Two Harrisburg Men Sentenced on Drug Related OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ralph Howell, age 48, and Eddie Rodgriguez-Melendez, age 35, both of Harrisburg, were sentenced today by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg, for drug related offenses.
Judge Conner sentenced Howell to 46 months imprisonment for use of a telephone to commit a drug trafficking crime. Rodriguez-Melendez was sentenced to 51 months imprisonment for distribution and possession with intent to distribute cocaine hydrochloride.
According to United States Attorney Peter Smith, Howell and Rodriguez-Melendez were initially charged in a Criminal Indictment on April 11, 2014 and later charged in a Superseding Indictment filed by the United States Attorney on July 18, 2012. Howell pled guilty on June 13, 2014. Rodriguez-Melendez pled guilty on December 4, 2014.
The case was investigated by Drug Enforcement Administration (DEA), Dauphin County Drug Task Force, Harrisburg City Police, and Lebanon Country Drug Task Force. Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
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Truck Driver Sentenced to 4 Years in Prison for His Role in A $1.7 Million Investment ScamRead the Press Release
CHICAGO — A Chicago man was sentenced today to 48 months in prison by U.S. District Court Judge John Z. Lee for scamming people whom he had persuaded to invest in a bogus lending program involving short-term, high-interest loans to distressed homeowners. The defendant, GREGG E. STEINNAGEL, was also ordered to a three year term of supervised release and to pay $1,734,270 in restitution to 20 victims of the fraud scheme. Steinnagel was ordered to report to the Bureau of Prisons on July 10, 2015.
According to sentencing papers filed by the government, one of the victims entrusted her life savings to Steinnagel, a truck driver, and to a deceased co-schemer named Jeffrey Fazzio, a restaurant/department store worker who was posing as an attorney. Another victim entrusted Steinnagel and Fazzio with retirement money that he had saved. “It did not seem to matter to Steinnagel and Fazzio whether or not their victims could afford to lose any money. Steinnagel and Fazzio were willing to defraud anyone who was willing to provide them with money,” the government argued in a sentencing memorandum. Many of the victims of Steinnagel’s fraud were present and spoke at the sentencing.
“Mr. Steinnagel preyed on victims who themselves were in financial need,” said U.S. District Judge John Z. Lee in sentencing the 54-year-old Steinnagel to a prison term at the high end of the range established by federal sentencing guidelines.
In November 2014, Steinnagel pled guilty to one count of wire fraud, admitting that he and Fazzio led victims to believe that their money would be invested and repaid at high rates of interest, with no risk of loss because their investment money was supposedly secured by real estate. As evidence that their money had been invested, Steinnagel and Fazzio provided victims with fabricated promissory notes purportedly signed by the owners of the real estate securing the victims’ investments. The defendants lulled victims with occasional cash payments, in amounts of several hundred dollars or several thousand dollars, to gain their trust and induce them to continuously invest larger amounts of money. Steinnagel and Fazzio then kept most of the victims’ money and failed to repay them. Steinnagel admitted to using at least some of the victims’ funds to gamble at casinos in the Chicago area, Florida, and Nevada.
The sentence was announced this afternoon by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation’s Chicago office. The government was represented by Assistant U.S. Attorney Brian Havey.
Troy Man Charged with Attempted Commercial Sex Trafficking of A ChildRead the Press Release
Shane L. Schlaefer, 27, of Troy, Illinois, has been charged by a two-count Complaint with Attempted Commercial Sex Trafficking of a Child and Attempted Enticement of a Minor, United States Attorney Stephen R. Wigginton announced today. The alleged violations took place on or about April 6, 2015, in Madison County. After a detention hearing held today, the Court ordered that Schlaefer be held without bond pending trial.
"My Office will spare no time or effort in defending the most innocent in our society – our children." noted United States Attorney Wigginton. "Again, I warn parents – be knowledgeable and vigilant of computer usage when it comes to your children. Predators are out there, and they will stop at nothing to get to their prey."
The offenses charged in the Complaint allege that, on or about April 6, 2015, Schlaefer attempted to recruit, induce, entice and obtain a child under the age of 14 years knowing that the person would be caused to be engaged in a commercial sex act.
If convicted of Attempted Commercial Sex Trafficking of a Child, Schlaefer faces a term in prison of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Attempted Enticement of a Minor, Schlaefer faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
A complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The investigation was conducted by investigators for the Ohio Internet Crimes Against Children Task Force, the United States Secret Service’s Southern Illinois Cyber-Crime Unit, and the Illinois State Police. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Topeka, Kansas, Man Charged in Plot to Explode Car Bomb at Military BaseRead the Press Release
A Topeka, Kansas, man has been charged in federal court with attempting to detonate a vehicle bomb at Fort Riley military base near Manhattan, Kansas, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Barry Grissom of the District of Kansas and Special Agent in Charge Eric K. Jackson of the FBI’s Kansas City Division. The defendant was arrested as part of an FBI investigation, and the device used by the defendant was, in fact, inert.
John T. Booker Jr., 20, of Topeka, Kansas, was charged in a criminal complaint unsealed today with one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Booker is expected to make an initial appearance this afternoon before U.S. District Judge Daniel Crabtree of the District of Kansas in federal court in Topeka.
Booker was arrested this morning near Manhattan, as he completed his final preparations to detonate a vehicle bomb targeting U.S. military personnel.
“As alleged in the complaint, John Booker attempted to attack U.S. military personnel on U.S. soil purportedly in the name of ISIL,” said Assistant Attorney General Carlin. “Thanks to the efforts of the law enforcement community, we were able to safely disrupt this threat to the brave men and women who serve our country. Protecting American lives by identifying and bringing to justice those who wish to harm U.S. citizens remains the National Security Division’s number one priority.”
“We face a continued threat from individuals within our own borders who may be motivated by a variety of causes,” said U.S. Attorney Grissom. “Anyone who seeks to harm this nation and its people will be brought to justice.”
“I want to assure the public there was never any breach of Fort Riley Military Base, nor was the safety or the security of the base or its personnel ever at risk,” said FBI Special Agent in Charge Jackson. “Recently the Command Staff at Fort Riley has been working hand in hand with law enforcement to ensure the utmost security and protection for the men and women who serve our country, and the surrounding community that supports the base."
Booker is alleged to have spent months discussing multiple plans before deciding on a plan that involved the execution of a suicide bombing mission.
The complaint alleges Booker told another person “that detonating a suicide bomb is his number one aspiration because he couldn’t be captured, all evidence would be destroyed, and he would be guaranteed to hit his target.” Booker identified Fort Riley as a good target, “because the post is famous and there are a lot of soldiers stationed there,” the complaint alleges.
It is alleged that since March 2015, Booker plotted to construct an explosive device for an attack on American soil. It is alleged he repeatedly stated that he desired to engage in violent jihad on behalf of ISIL. Over a period of months, he took a series of actions to advance his plot. As alleged in the complaint, Booker assisted in acquiring components for a vehicle bomb, produced a propaganda video, rented a storage locker to store components for the explosive device, identified Fort Riley as the target and talked about his commitment to trigger the device himself and become a martyr.
FBI Evidence Response Teams are executing search warrants related to the case.
If convicted, Booker would face a maximum penalty of life in prison.
The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol.
The case is being prosecuted by Assistant U.S. Attorneys Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal activity.
Booker Complaint
Topeka Man Charged in Plot to Explode Car Bomb at Military BaseRead the Press Release
KANSAS CITY, KAN. – A Topeka man has been charged in federal court in Topeka with attempting to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom, District of Kansas, and Assistant Attorney General for National Security John P. Carlin announced today. The defendant was arrested as part of an FBI investigation, and the device used by the defendant was, in fact, inert.
John T. Booker, Jr., 20, Topeka, Kan., was charged in a criminal complaint unsealed today with one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) Booker is expected to make an initial appearance this afternoon before U.S. District Judge Daniel Crabtree in federal court in Topeka.
Booker was arrested this morning near Manhattan, Kan., as he completed his final preparations to detonate a vehicle bomb targeting U.S. military personnel.
“We face a continued threat from individuals within our own borders who may be motivated by a variety of causes,” said U.S. Attorney Barry Grissom. “Anyone who seeks to harm this nation and its people will be brought to justice.”
“As alleged in the complaint, John Booker attempted to attack U.S. military personnel on U.S. soil purportedly in the name of ISIL,” said Assistant Attorney General Carlin. “Thanks to the efforts of the law enforcement community, we were able to safely disrupt this threat to the brave men and women who serve our country. Protecting American lives by identifying and bringing to justice those who wish to harm U.S. citizens remains the National Security Division’s number one priority.”
Booker is alleged to have spent months discussing multiple plans before deciding on a plan that involved the execution of a suicide bombing mission.
The complaint alleges Booker told another person “that detonating a suicide bomb is his number one aspiration because he couldn’t be captured, all evidence would be destroyed, and he would be guaranteed to hit his target.” Booker identified Fort Riley as a good target, “because the post is famous and there are a lot of soldiers stationed there,” the complaint alleges.
Booker allegedly produced a propaganda video in which he told the American people to get their loved ones out of the military now because, “The Islamic State is coming for them. From inside, whether it be in their homes, whether it be on a base like this, whether it be in the recruiting stations, whether it be in the streets.”
It is alleged that since March 2015, Booker plotted to construct an explosive device for an attack on American soil. It is alleged he repeatedly stated that he desired to engage in violent jihad on behalf of the ISIL. Over a period of months he took a series of actions to advance the plots. As alleged in the complaint, Booker:
-- Assisted in acquiring components for a vehicle bomb.
-- Produced a propaganda video.
-- Rented a storage locker to store components for the explosive device.
-- Identified Fort Riley as the target.
-- Talked about his commitment to trigger the device himself and become a martyr.
On Friday, Booker was arrested without incident near Manhattan, Kan., as he undertook preparations for the execution of his plan.
“I want to assure the public there was never any breach of Fort Riley Military Base. Recently the Command Staff at Fort Riley has been working hand-in-hand with law enforcement to ensure the utmost security and protection for the men and women who serve our country, and the surrounding community that supports the base,” said FBI Special Agent in Charge Eric Jackson.
FBI Evidence Response Teams are executing search warrants related to the case.
If convicted, Booker would face a maximum penalty of life in prison.
The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol and the Kansas Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney David Smith, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Booker complaint
Three Broward Tax Preparers Sentenced for Preparing False Tax ReturnsRead the Press Release
Three Broward Residents were sentenced today for preparing false tax returns for their clients. Steven Tidas, of Tamarac, was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $85,459. Sylvanie Junior Pierre, of Lauderdale Lakes, was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $28,119. Stenor Prosper, of Parkland, was sentenced to 6 months in prison, followed by 6 months home confinement and three years of supervised release, and ordered to pay restitution in the amount of $30,463.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Tidas, Pierre and Propser previously pled guilty to one count of conspiracy.
According to court documents, the defendants served as officers of Value Tax Services, Inc. and Value Financial Group, Inc., both of Sunrise. The defendants prepared tax returns for individuals that falsely claimed tax credits for being first time home buyers, when the defendants knew that in truth and in fact, the taxpayers had not purchased a home and did not qualify for the tax credit. The defendants also prepared tax returns for individuals that falsely claimed they had received household help income or inflated household help income and had falsely inflated other income or deductions, in order to increase the amount of the taxpayers’ refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
The United States Attorney’s Office for the Northern District of Iowa sent out today reminders to summer camps concerning the need to make reasonable accommodations to accept children with disabilities.
“Summer camps present tremendous growth opportunities for children to learn independence, try new activities and gain self-confidence,” stressed United States Attorney Kevin Techau. He further points out that, “The law requires camps to provide equal opportunities to children who are disabled when their needs can be reasonably accommodated.”
To help ensure that children with disabilities receive the opportunity to attend summer camp, the United States Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Northern District of Iowa reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that children without disabilities can attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for children who are disabled to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Additional information about the ADA is available at www.ada.gov or the ADA Information line at: 800-514-0301 (voice); 800-514-0383 (TTY).
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Seven Louisiana Residents Indicted in Tax Fraud SchemeRead the Press Release
Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. According to the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.
The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft.
According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy. Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them. Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control. Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.
If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The defendants also face potential fines, forfeiture and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Louisiana Residents Indicted in Tax Fraud SchemeRead the Press Release
WASHINGTON – Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. According to the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.
The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft.
According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy. Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them. Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control. Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.
If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The defendants also face potential fines, forfeiture and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Corey Lewis et al Indictment
Second Topeka, Kansas, Man Charged in Connection with Car Bomb PlotRead the Press Release
A second Topeka, Kansas, man was charged Friday in connection with an alleged plot to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kansas, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Barry Grissom of the District of Kansas.
Alexander E. Blair, 28, is charged with one count of failing to report a felony. A criminal complaint filed Friday in U.S. District Court in the District of Kansas alleges Blair knew of a plot by co-defendant John T. Booker Jr., 20, of Topeka, to detonate a bomb at Fort Riley.
The complaint alleges that in March 2014, the FBI began an investigation into Booker, who also called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.
During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. The complaint alleges Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, the complaint alleges, Blair chose not to report what he knew to the authorities.
If convicted, he faces a maximum penalty of three years in federal prison. The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Jared Maag of the District of Kansas.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Blair Complaint
Second Topeka Man Charged in Connection with Car Bomb PlotRead the Press Release
KANSAS CITY, KAN. – A second Topeka man was charged Friday in connection with an alleged plot to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom said.
Alexander E. Blair, 28, Topeka, Kan., is charged with one count of failing to report a felony. A criminal complaint filed Friday in U.S. District Court in Topeka alleges Blair knew of a plot by co-defendant John T. Booker, Jr., 20, Topeka, Kan., to detonate a bomb at Fort Riley.
The complaint alleges that in March 2014, the FBI began an investigation into Booker, who also called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.
During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. The complaint alleges Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, the complaint alleges, Blair chose not to report what he knew to the authorities.
If convicted, he faces a maximum penalty of three years in federal prison. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Schanze Pleads Guilty as Charged in Misdemeanor Information; Convicted of Using Aircraft to Harass Wildlife and Pursuing A Migratory BirdRead the Press Release
SALT LAKE CITY – Dell Schanze, age 45, of American Fork, Utah, pled guilty to using an aircraft to harass wildlife and pursuing a migratory bird in U.S. District Court in Salt Lake City Friday afternoon. There was no plea agreement, and federal prosecutors made no concessions to Schanze as a part of his guilty plea to both counts of the Misdemeanor Information.
U.S. District Judge Dee Benson took the plea and imposed a sentence of one year of court probation. Schanze will forfeit an orange parasail as a substitute asset for the paraglider involved in the illegal conduct. Judge Benson also ordered him not to land a paraglider in a federally-designated Wilderness Area or in any area closed to motorized access by a federal agency.
“The protection of Utah’s wildlife should be important to all of us. Mr. Schanze used his motorized paraglider to harass an owl to the point of exhaustion and then kicked it. His actions showed utter disregard for this protected bird,” U.S. Attorney Carlie Christensen said Friday afternoon.
Schanze was charged in a Misdemeanor Information filed in late October following an investigation by the U.S. Fish and Wildlife Service. Count one of the Information alleged that Schanze violated the Airborne Hunting Act by using a motorized paraglider to harass the owl during an incident in February or March of 2011. Count two of the charging document alleged Schanze used a motorized paraglider to harass the barn owl, a violation of the Migratory Bird Treaty Act.
The Rocky Mountain Information Network assisted the U.S. Fish and Wildlife Service in the investigation. The case was prosecuted by Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office.
Savannah Couple Sentenced to Federal Prison in Identity Theft & Tax Return ScamRead the Press Release
Savannah, GA – Sheryl Renita Wilson, 44, of Savannah, Georgia, was sentenced last week to 57 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in an identity theft and tax return scam. Last month, Wilson’s partner-in-crime, Bryan Chester Coney, 32, also of Savannah, was sentenced to 61 months in prison.
According to evidence presented at the guilty plea and sentencing hearings, Wilson and Coney, who lived together in Savannah, used the stolen identities of others to file fraudulent tax returns with the IRS. Wilson and Coney stole the identities of over 75 individuals and claimed over $385,000 worth of fraudulent tax refunds. Both Wilson and Coney have a history of committing fraud-related crimes.
United States Attorney Edward Tarver stated, “Every year at this time, millions of law-abiding citizens truthfully complete their tax returns and timely file them with the IRS. Unfortunately, thieving criminals also attempt to use this time of year to steal — causing great harm to the victims of identity theft and to all taxpayers. The U.S. Attorney’s Office, partnering with the IRS-Criminal Investigations, will vigorously investigate and prosecute those who commit tax fraud. Tax fraudsters like these defendants can expect to spend the next several tax seasons in a federal prison.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “As the defendants in this case have learned, stealing from the American people will not be tolerated and you will be held accountable.”
This case was investigated by Special Agents with IRS-CI. Assistant United States Attorney T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Rochester Man Charged with Possession of Child PornographyRead 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 Matthew Cruz, 22, of Rochester, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum of 20 and a fine of $250,000.
Assistant U.S. Attorneys Tiffany H. Lee and Melissa M. Marangola, who are handling the case, stated that according to the complaint, on March 4, 2014, law enforcement officers went to the Mount Read Boulevard residence of the defendant. Officers seized Cruz’s computer which contained 179 videos and 186 images according to a subsequent forensic analysis. Some of the images depicted prepubescent children.
Cruz made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. He is being held pending an appearance on April 14, 2015.
The criminal complaint is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Michael Kennedy.
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.
Registered Sex Offender Sentenced to 11 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Thomas Sean Tinsley, age 29, of Glen Burnie, Maryland today to 11 years in prison, followed by 35 years of supervised release, for sex trafficking of a minor. Tinsley is a registered sex offender, having previously been convicted of having sex with a minor female.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Tinsley’s plea agreement, in May 2013, Tinsley met a 15 year old runaway near the Gallery Mall in downtown Baltimore, and invited her to live with him at his residence - a motel on Caton Avenue in Baltimore. Soon thereafter, Tinsley began having sex with the victim.
Tinsley encouraged the victim to engage in prostitution to pay for the motel room and to provide him with additional money. The victim routinely met with prostitution clients and communicated with Tinsley regarding her client interactions, including the location of the commercial sex and the identity of her patrons. Tinsley monitored the victim’s commercial sex activities and gave her instructions regarding her client interactions, including telling her to collect cash before the commercial sex. Sometimes, Tinsley negotiated directly with prospective clients for commercial sex on behalf of the victim.
According to court documents, a confidential informant called law enforcement after Tinsley offered the victim to him to perform commercial sex acts for $100. The FBI’s Crimes Against Children Task Force was alerted and law enforcement responded to Tinsley’s motel room, where they located the victim.
Inside the motel room were condoms, cell phones and prescription medication. Law enforcement also recovered from the room Tinsley’s sex offender registry paperwork from a 2007 conviction, which listed the motel address as his “place of residence.”
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.