Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 2 April 2015
Brookline Man and Connecticut Fund Manager Arrested for Million Dollar Insider Trading SchemeRead the Press Release
BOSTON – A Brookline man and a Connecticut fund manager were arrested and charged today in U.S. District Court in Boston in connection with their role in an insider trading scheme that netted more than $1 million in illegal profits.
Amit Kanodia, 47, of Brookline, and Iftikar Ahmed, 44, of Greenwich, Conn., were charged with one count of securities fraud. Both were arrested this morning and are scheduled to appear before U.S. District Magistrate Judge Marianne B. Bowler this afternoon.
As alleged in the criminal complaint, prior to April 2013, Kanodia secretly tipped off his friend Ahmed, an executive at a Connecticut-based fund, and another friend, about the contemplated acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre. Kanodia learned about the possible acquisition from his wife who was the General Counsel of Apollo at the time. In the months leading up to the public announcement of the acquisition, both Ahmed and the associate, purchased shares and options in Cooper Tire which trades on the New York Stock Exchange. On the day of the announcement, Cooper Tire’s share price increased 41% and Ahmed and his associate began selling their interests in the company for a combined profit of more than $ 1 million. It is alleged that both Ahmed and his associate paid Kanodia a portion of their illegal profits.
“The defendants here are alleged to have improperly obtained confidential information from Apollo Tyre and used that information to unlawfully beat the markets and line their own pockets,” said United States Attorney Carmen M. Ortiz. “Trading on insider information is fraud, plain and simple.”
“The integrity of the capital market is seriously compromised when people trade inside information for personal gain,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation in Boston. “The FBI will continue to go after those who violate the securities laws to make sure no one has an unfair advantage.”
The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which today filed a separate civil action in federal court (http://www.sec.gov/news/pressrelease/2015-56.html#.VR1whrqgzal). The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bank Employee Pleads Guilty to Stealing from Her Former EmployerRead the Press Release
A woman and former bank employee who stole more than $140,000 from her former employer pled guilty today in federal court in Cedar Rapids.
Teresa Ann Kobriger, age 42, from Iowa Falls, Iowa, was convicted of one count of embezzlement by a bank employee.
In a plea agreement, Kobriger admitted that from December 2008 through December 2012, while employed by the Iowa Falls Sate Bank in a position equivalent to a head teller, she embezzled $144,181.47 from the bank. She admitted that during this time, she stole money from her teller drawer and the bank vault and then altered bank records in order to conceal her thefts.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Kobriger remains free on conditions of release pending sentencing. Kobriger faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, a $100 special assessment, and not more than five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Moriftt and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-00026.
Follow us on Twitter @USAO_NDIA.
Bank Employee Pleads Guilty to Embezzling as Much as $1 MillionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a woman employed by a Kansas City, Mo., bank pleaded guilty in federal court today to stealing up to $1 million from her employer and to failing to pay taxes on the embezzled income.
Jennifer Regans, 39, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges her with embezzlement by a bank employee and filing a false tax return.
Regans was employed as an administrative assistant by Pioneer Services, the military banking division of MidCountry Bank in Kansas City, Mo. Pioneer Services is a finance company that exclusively serves the military community, providing unsecured loans, promoting financial literacy and other financial services. Regans was terminated on July 18, 2012, after the embezzlement was discovered.
By pleading guilty today, Regans admitted that she embezzled at least $500,000 from her employer from Nov. 30, 2007, to July 2, 2012. The government believes the actual loss amount may be as much as $1,013,980. Regans also admitted that she did not pay taxes on the embezzled funds, although the IRS concluded that she should have paid a total of at least $139,746 in federal income taxes during that time frame.
As an administrative assistant, Regans had access to an administrative credit card account for charging company expenses related to her duties. Regans admitted that she embezzled $84,989 via her corporate American Express card and that she purchased another $75,380 worth of American Express gift cheques that were deposited to her personal bank accounts. Pioneer Services found that she embezzled $828,045 on her American Express corporate card. The federal investigation matched up Regans’ expenses against the expenses she listed in the company ledger, and noted which entries were altered. The total amount that the government argues that she certainly embezzled is at least $575,114. The total amount of possible fraud, adding in the charges the company deemed fraudulent (but the government was unable to confirm), is $1,013,980. The actual amount of loss and the actual amount of taxable income that was unreported will be left open for the court to determine at Regans’ sentencing hearing.
According to today’s plea agreement, Regans’ fraud was discovered when the bank received a notice from American Express about a past due corporate credit card that was held by Regans. The accounting department noted that Regans had several apparent personal charges on her corporate credit card and an audit was conducted. The audit revealed that Regans had been making personal expenditures on her corporate American Express since 2007. She then submitted cost allocation reports that disguised her personal expenses as business in nature. The statement balances and sums of the application spreadsheets submitted by Regans were identical, but the description of the expenses did not match.
Regans self-prepared her federal income tax returns from 2008 to 2012 and submitted them online. The embezzled funds were knowingly omitted from Regans’ federal income tax returns, which resulted in an additional tax due and owing of $139,746 based upon the government’s position that she embezzled at least $575,114.
Under federal statutes, Regans is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1.1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.
Avon man sentenced to 12 years in prison for robbing banks and calling in bomb threatRead the Press Release
An Avon man was sentenced more than 12 years in prison for robbing two banks in Elyria and calling in a bomb threat to Elyria High School, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Brett L. Benson, 41, robbed Talmer Bank & Trust on March 19, 2014, and Dollar Bank on March 24, 2014. He also called in a bomb threat to the Elyria High School on the same date as the second bank robbery, according to court documents.
Assistant United States Attorneys Matthew B. Kall and Matthew J. Cronin are prosecuting the case following an investigation by the Federal Bureau of Investigation, the Elyria Police Department, and other local law enforcement agencies.
American Citizen Charged with Conspiring to Provide Material Support to TerroristsRead the Press Release
Defendant Allegedly Supported a Conspiracy to Kill Americans and Carry Out Attacks Against U.S. Military
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that a complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Muhanad Mahmoud Al Farekh, an American citizen, with conspiracy to provide material support to terrorists. Farekh’s initial appearance is scheduled today before U.S. Magistrate Judge Viktor V. Pohorelsky of the Eastern District of New York. Farekh was deported from Pakistan to the United States and arrested pursuant to the pending warrant.
As alleged in the complaint, Farekh conspired with others to provide material support to terrorists and specifically to provide personnel to be used in support of efforts to kill American citizens and members of the U.S. military abroad. In approximately 2007, Farekh, an individual named Ferid Imam and a third co-conspirator departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. According to public testimony in previous criminal trials in the Eastern District of New York, in approximately September 2008, Ferid Imam provided weapons and other military-type training at an al-Qaeda training camp in Pakistan to three individuals – Najibullah Zazi, Zarein Ahmedzay and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment. Ferid Imam has also been indicted for his role in the plot.
“Today’s arrest demonstrates that there is no escape from the long reach of our law for American citizens who seek to do harm to our country on behalf of violent terrorist,” said U.S. Attorney Lynch. “We will continue to use every tool at our disposal to bring such individuals to justice.”
“Muhanad Mahmoud Al Farekh is alleged to have conspired with others to provide material support to terrorists,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to be tireless in our pursuit of those who wish to harm the United States or its people. I would like to thank the many agents, analysts and prosecutors who are responsible for the charges in this case.”
“Al Farekh allegedly provided material support to terrorists with every intention of becoming a martyr,” said Assistant Director in Charge Rodriguez. “Today members of our military are safer because of the relentless investigative work by the FBI’s Manhattan-based Joint Terrorism Task Force.”
“The NYPD will continue to work with our law enforcement partners to investigate and arrest individuals who choose to work alongside terrorist organizations and threaten the lives of Americans,” said Commissioner Bratton. “We applaud the investigators and prosecutors whose efforts led to this arrest.”
If convicted, the defendant faces a maximum sentence of 15 years’ imprisonment.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad and Richard M. Tucker of the Eastern District of New York, with assistance provided by Trial Attorney Bridget Behling of the Justice Department’s National Security Division.
Farekh Complaint
American Citizen Charged with Conspiring to Provide Material Support to TerroristsRead the Press Release
A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Muhanad Mahmoud Al Farekh, an American citizen, with conspiracy to provide material support to terrorists. Farekh’s initial appearance is scheduled today before United States Magistrate Judge Viktor V. Pohorelsky. Farekh was deported from Pakistan to the United States and arrested pursuant to the pending warrant.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As alleged in the complaint, Farekh conspired with others to provide material support to terrorists and specifically to provide personnel to be used in support of efforts to kill American citizens and members of the U.S. military abroad. In approximately 2007, Farekh, an individual named Ferid Imam, and a third co-conspirator departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. According to public testimony in previous EDNY criminal trials, in approximately September 2008, Ferid Imam provided weapons and other military-type training at an al-Qaeda training camp in Pakistan to three individuals – Najibullah Zazi, Zarein Ahmedzay, and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment. Ferid Imam has also been indicted for his role in the plot (see EDNY Docket Number 10-CR-019 (S-4) (RJD)).
“Today’s arrest demonstrates that there is no escape from the long reach of our law for American citizens who seek to do harm to our country on behalf of violent terrorists,” stated United States Attorney Lynch. “We will continue to use every tool at our disposal to bring such individuals to justice.”
“Muhanad Mahmoud Al Farekh is alleged to have conspired with others to provide material support to terrorists,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to be tireless in our pursuit of those who wish to harm the United States or its people. I would like to thank the many agents, analysts, and prosecutors who are responsible for the charges in this case.”
“Al Farekh allegedly provided material support to terrorists with every intention of becoming a martyr. Today, members of our military are safer because of the relentless investigative work by the FBI’s Manhattan-based Joint Terrorism Task Force,” said FBI Assistant Director in Charge Rodriguez.
“The NYPD will continue to work with our law enforcement partners to investigate and arrest individuals who choose to work alongside terrorist organizations and threaten the lives of Americans. We applaud the investigators and prosecutors whose efforts led to this arrest,” said Police Commissioner Bratton.
If convicted, the defendant faces a maximum sentence of fifteen years’ imprisonment.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad and Richard M. Tucker are in charge of the prosecution, with assistance provided by Trial Attorney Bridget Behling of the Justice Department’s Counterterrorism Section.
The Defendant:
MUHANAD MAHMOUD AL FAREKH
Age:
Nationality: United States
E.D.N.Y. Docket No. 15-MJ-021
7 Charged in Scheme to Pay Hundreds of Thousands of Dollars in Kickbacks to Boeing Official to Secure Contracts Related to SatellitesRead the Press Release
LOS ANGELES – Seven defendants have been charged in a scheme to pay hundreds of thousands of dollars in kickbacks to a procurement official at a subsidiary of the Boeing Company that supplies satellites and satellite parts to federal government entities, including NASA.
A series of cases related to the kickback scheme were announced today after prosecutors learned that a federal judge unsealed documents related to four of the defendants who previously pleaded guilty in under seal proceedings.
At the center of the scheme is an executive at a San Gabriel Valley metal company that was a subcontractor to Boeing Space and Intelligence Systems (BSIS), which supplies satellites and satellite parts to NASA, the Department of Defense, the National Reconnaissance Office and the United States Air Force. That executive – Alfred Henderson, 60, of Pico Rivera, who is the vice president of A&A Fabrication and Polishing, Inc., which operates in Whittier and Montebello – was arrested on Monday and arraigned on a 15-count grand jury indictment that was unsealed after his arrest. A&A is also charged in the indictment.
Henderson pleaded not guilty on Monday, was released on a $25,000 bond, and was ordered to stand trial on May 26. Representatives of A&A will appear on behalf of the company in federal court on April 13.
A&A is a company that specializes in machining, welding and producing sheet metal for industries that include aerospace. A&A manufactured tooling parts that Boeing used to manufacture satellites.
The indictment alleges that Henderson and A&A paid kickbacks to Mark Allen, 60, of Fresno, who was a procurement officer at BSIS in El Segundo. The kickbacks were paid to Allen through an outside sales representative, Raymond Joseph, 66, of Los Angeles, related to purchase orders to A&A for tooling parts used to manufacture satellites that were sold to the U.S. Government. The indictment alleges that Allen provided Henderson with confidential information that gave A&A an improper advantage in bidding and ensured that A&A would receive purchase orders from BSIS.
The indictment also alleges that, after Boeing decided to stop doing business with A&A due to work quality and performance issues, Henderson devised a scheme to do business through a “front” company, Nace Sheet Metal Company, which was owned and operated by Cesar Soto, 47, of Chino. The indictment against Henderson alleges that Soto and an A&A employee, Randy Mitchell, 62, of Whittier, misrepresented that A&A’s facility was actually operated by Nace and that Henderson unlawfully used Soto’s name on price quotes to Boeing. The indictment further alleges that Henderson and A&A issued false tax forms to Joseph, which he used to understate his taxable income to the Internal Revenue Service.
“As part of the conspiracy, defendant Henderson and defendant A&A paid approximately $650,000 to Joseph and approximately $100,000 to Allen,” according to the indictment against Henderson, which further states that “Allen awarded defendant A&A approximately $4.5 million in BSIS purchase orders between 2005 and February 2012.”
“Pay-to-play schemes undermine the integrity of the competitive bidding process and, in this case, compromised the quality of products used to manufacture satellites for scientific exploration and national defense,” said Acting United States Attorney Stephanie Yonekura.
Chris D. Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service, stated: “Corruption in government contracting is always reprehensible. The indictment handed down by the grand jury and the arrest of Alfred Henderson is yet another example of the continued dedication by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who engage in corrupt business practices.”
Erick Martinez, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office, commented: “The individuals charged in this scheme allegedly undermined the process of fair and open competition by paying kickbacks to a Boeing procurement officer in exchange for securing lucrative contracts. Through a potent synthesis of global teamwork and our dynamic financial investigative talents, CI is committed to maintaining fair competition, free
of corrupt practices.”In a court order filed late Tuesday, United States District Judge Otis D. Wright II, unsealed criminal cases against Mark Allen, Raymond Joseph, Cesar Soto, and Randy Mitchell. All four previously pleaded guilty and are pending sentencing.
The United States Attorney’s Office on Monday filed a criminal information against the seventh defendant in this scheme – Noberto Martinez, 53, of Alhambra, who owns and controls Zenitram Engineering and Manufacturing, Inc. The information charges Martinez with conspiring to pay kickbacks to Allen and issuing false tax forms to Joseph. Martinez has signed a plea agreement and is scheduled to make his first court appearance on April 13.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The cases are the result of investigations by the Defense Criminal Investigative Service, NASA’s Office of Inspector General, and IRS - Criminal Investigation. The National Reconnaissance Office and the U.S. Air Force’s Office of Special Investigations also participated in the investigation. Boeing cooperated fully in the investigation.
Release No. 15-031
4 Short North Posse Members Charged with MurderRead the Press Release
COLUMBUS, Ohio, – A federal grand jury has charged Robert D. Ledbetter, 35; Christopher A. Harris, 27; Rashad A. Liston, 25, and Deounte Ussury, 30, all formerly of Columbus, Ohio, with murder and violent crimes in aid of racketeering activity in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Donald Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the indictment, which was returned today.
The indictment alleges that the defendants committed murder with a firearm during and in relation to a drug trafficking crime on April 22, 2007 in Columbus, Ohio. Under federal law, the offenses charged in the indictment are punishable by the death penalty or life in prison without the possibility of parole.
It is alleged that the four defendants committed the murder for the purpose of gaining entrance to and maintaining and increasing their position in the Short North Posse, an enterprise engaged in racketeering activity in Columbus and other parts of Ohio. Various members of the Short North Posse formed subsets of the criminal organization, known as “Cut Throat Committee” and “Homicide Squad,” and engaged in murders, attempted murders, drug trafficking, weapons trafficking, extortion, robbery, arson and other crimes.
“The Short North Posse enterprise had an informal structure where status and respect were acquired in a large part by the commission of acts of violence,” U.S. Attorney Stewart said. “Bringing to justice criminal organizations like the Short North Posse that traffic drugs and use violence and intimidation to terrorize communities is one of our highest priorities. This indictment is yet another step in holding these individuals accountable.”
In June 2014 and October 2014, respectively, the grand jury returned similar indictments charging these four defendants and other members and associates of the Short North Posse with a host of crimes in aid of racketeering activity, including 13 murders. The U.S. Attorney’s Office will formally request that the federal district court join the new indictment with the previous indictments, so that all the offenses can be tried together in April 2016.
“Living a life of drugs and violent crime has its consequences from an arrest to sentencing,” Columbus Police Chief Kim Jacobs said. “These defendants will have to pay a price, even eight years after their offenses, for destroying the lives of others. The Columbus Division of Police has and will continue to work to diligently against gang activity.”
All of the defendants remain in custody.U.S. Attorney Stewart commended the cooperative investigation by law enforcement and Assistant U.S. Attorneys David DeVillers and Kevin Kelley and Special Assistant U.S. Attorney Brian Martinez, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Wednesday 1 April 2015
Wilmington Man Sentenced for Possession with Intent to Distribute over $100,000 of Crack CocaineRead the Press Release
WILMINGTON, Del. – Keba Williams, 39, of Wilmington, Del. was sentenced today to seven (7) years of imprisonment for possession with intent to distribute cocaine base (“crack cocaine”) in Wilmington, Del., announced Charles M. Oberly, III, United States Attorney for the District of Delaware. Williams was also sentenced to three (3) years of supervised release following his prison sentence.
According to the indictment and other documents filed in court, Williams was arrested on June 11, 2014 with 1157 grams of crack cocaine, valued at somewhere between $115,700 and $173,550, which represents the largest seizure of crack cocaine in Delaware in many years. Inside Williams’ Trolley Square residence, detectives also found materials used to cook crack cocaine, drug packaging paraphernalia, and over $6,500 in cash. Williams admitted that he had been selling drugs for the past eight (8) years.
United States District Court Chief Judge Leonard P. Stark, who imposed the sentence, called Williams’ conduct “extremely serious and dangerous” and said that “to contribute to the drug trade at such a massive scale warrants a serious punishment.”
The case is the product of an investigation conducted by the Wilmington Resident Office of the Drug Enforcement Administration and the Wilmington Police Department. Special Assistant United States Attorney Elizabeth L. Van Pelt prosecuted the case on behalf of the United States.Williamson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On March 26, 2015, Michael A. Boyt, Sr., 42, of Marion, Ill., was sentenced for his involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Boyt, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 135 months in prison, to be followed by 3 years’ supervised release. Boyt was also fined $600.00.
The offense occurred between 2012 and January 2014, in Williamson, Perry, Jackson, Randolph, and Franklin Counties. Evidence at the plea and sentencing hearings established that co-defendant Matthew Beers and numerous other persons were supplying pseudoephedrine pills to Boyt for use in the manufacture of methamphetamine. Boyt was manufacturing methamphetamine at numerous locations in Williamson and Franklin Counties. At sentencing, the district judge found that Boyt was responsible for the possession of over 419 grams of pseudoephedrine. In imposing a high-end sentence, the district judge found that Boyt was a danger to the both the public and himself. Co-defendant Beers has pled guilty to his role in the conspiracy and is awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Wichita Massage Parlor Operators Indicted on Federal ChargesRead the Press Release
WICHITA KAN. – Two people who operated a business called Q Massage at 3833 W. 13th in Wichita were indicted Wednesday on federal charges, U.S. Attorney Barry Grissom said.
Ping Liu, 43, Wichita, Kan., and Xingdi Lin, 48, Wichita, Kan., are charged with one count of attempting to persuade, induce, entice or coerce an individual to cross state lines to engage in prostitution and one count of using a telephone in furtherance of prostitution. The crimes are alleged to have occurred March 13 and March 16, 2015 in Sedgwick County, Kan.
If convicted, they face a maximum penalty of 20 years and a fine up to $250,000 on enticement charge and a maximum penalty of five years and a fine up to $250,000 on the other count. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER FEDERAL GRAND JURY INDICTMENTS
A man who was arrested in Kansas after escaping from a prison in Oklahoma has been indicted here on federal firearms charges.
Lance D. Colbert, 40, an inmate at the Mack Alford Correctional Center in Stringtown, Okla., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction, and one count of unlawfully possessing a .38 caliber revolver with the serial number removed.
On March 11, Colbert was arrested in Spivey, Kan. (Kingman County). He and another man had escaped from the prison in Oklahoma two days earlier.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Walt Jasper Samuel Shrum, 48, Kingman, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction and one count of possession of methamphetamine. The crimes are alleged to have occurred March 11, 2015, in Kingman County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the firearms charges and a civil penalty up to $10,000 on the misdemeanor methamphetamine charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Gary Dewayne Meacham, 53, Caney, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 11, 2014, in Montgomery County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Matthew T. Payton, 25, Wichita, Kan., is charged with one count of manufacturing counterfeit bills and one count of possessing counterfeit bills. The crimes are alleged to have occurred at various times from September 2014 to February 15, 2015, in Wichita, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Wayne E. Williams, 45, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges he used a telephone to make false statements as part of his application for unemployment benefits. The indictment alleges he received more than $34,000 in benefits to which he was not entitled during a period from Sept. 26, 2009, to April 20, 2013.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The U.S. Department of Labor investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Westwego Woman Sentenced for Conspiring to Commit Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CYNTHIA HEFLER, age 67, of Westwego, was sentenced today after previously pleading guilty to a one-count Bill of Information for conspiring to commit bank fraud.
U.S. District Judge Kurt D. Engelhardt sentenced HEFLER to 5 years of probation and ordered her to pay $16,851 in restitution.
According to court documents, HEFLER, worked as the office manager for A & H Armature Works, Inc. In her capacity as office manager, HEFLER handled the company’s accounts receivable and embezzled from the company business bank accounts at First American Bank. HEFLER conspired with another person to steal the company’s funds in order to help pay off her credit card debt accrued through gambling.
The case was investigated by the United States Secret Service, New Orleans Field Division and prosecuted by Assistant United States Attorney Loan A "Mimi" Nguyen.
West Chicago Man Sentenced to 10 Years in Federal Prison for Transporting A Minor Interstate for Criminal Sexual PurposesRead the Press Release
CHICAGO ― A West Chicago man was sentenced Monday to the maximum of 10 years in federal prison for transporting a minor for criminal sexual purposes. The defendant, NICACIO JAIMES-MORENO, 52, pled guilty in October 2014, to one count of knowingly transporting a minor interstate with the intent to engage in sexual activity. The defendant has been in federal custody since the filing of charges August 2013.
At the sentencing hearing, a victim impact statement was read to U.S. District Judge John J. Tharp describing the traumatic damage that Jaimes-Moreno inflicted upon the victim’s life. “The defendant engaged in serious criminal conduct that has caused lasting and immeasurable harm to his victim,” Assistant U.S. Attorney Matthew Ebert argued in seeking the highest sentence possible in the Government’s Sentencing Memorandum. “Further compounding the trauma inflicted by defendant, he was a parental figure to the victim, and she was very much in defendant’s custody, care, and supervisory control throughout the time defendant was sexually assaulting her.”
According to court documents, the defendant began sexually abusing the victim at age 11 and continued the abuse for over four years in various places the defendant lived with the victim and her mother throughout Mexico, Oklahoma, Indiana and Illinois; all while not allowing the victim to attend school. Further, court records describe that during the years the defendant was sexually assaulting the victim, he prevented her from telling anyone that he was assaulting her and she was only allowed outside when chaperoned by defendant.
Judge Tharp imposed the maximum sentence of 10 years in prison. Jaimes-Moreno was also ordered to three years supervised court supervision but is subject to deportation upon release from custody because he is not a United States citizen. He must serve at least 85 percent of his sentence. There is no parole in the federal prison system.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorneys Matthew Ebert and Rachel Cannon.
Washington, D.C., Police Officer Indicted for Tax FraudRead the Press Release
An indictment was unsealed yesterday in the U.S. District Court in the District of Columbia that charges a Washington, D.C., Metropolitan Police Department (MPD) officer with obstructing and impeding the Internal Revenue Service (IRS) and evading his federal income taxes for 2009 and 2010, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Jamal A. Adams, also known as Ishmeal Heru-Bey, failed to file federal income tax returns for 2005 through 2012 while he was employed as a MPD officer and earning income. During this time period, Adams submitted IRS forms falsely claiming to be exempt from federal income tax withholding to the MPD. In 2010, he filed false documents signed under the penalties of perjury with the U.S. Bankruptcy Court for the District of Columbia in which he failed to report the tax debts that he owed to the IRS.
If convicted, Adams faces a total statutory maximum sentence of 13 years in prison, plus a fine of up to $250,000 per count of conviction.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jeffrey McLellan and Erin Pulice of the Tax Division, 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.
Volusia County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that William A. Harvey (50, DeLand) has pleaded guilty to producing child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison, and a potential life term of supervision. His sentencing hearing has been scheduled for June 11, 2015. Harvey was indicted on December 23, 2014.
According to court documents, Harvey produced child pornography at his residence on May 5, 2014. His victim was a 16-year-old autistic girl. Harvey took several photographs of the victim engaged in sexually explicit conduct. The girl told another individual the next day what had happened. Law enforcement was contacted and a state search warrant was executed on May 29, 2014. During the execution of the search warrant, officers found a computer and an external hard drive in Harvey’s bedroom. A subsequent forensic examination of the computer and hard drive revealed 20 pornographic images of the victim. The victim stated that Harvey had used a purple camera to take the photographs of her. That camera was also found during the search.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the DeLand Police Department. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vincent H. Cohen, Jr. Takes Office as Acting U.S. AttorneyRead the Press Release
WASHINGTON – Vincent H. Cohen, Jr. took office today as Acting United States Attorney for the District of Columbia. He succeeds Ronald C. Machen Jr., who resigned after serving more than five years in office.
Mr. Cohen, 44, a native Washingtonian, graduated with honors from Syracuse University in 1992 and obtained his juris doctorate from Syracuse University School of Law in 1995.
Mr. Cohen had been the Office’s Principal Assistant U.S. Attorney since July 2010, when he was named to that position by then- U.S. Attorney Machen. He first joined the U.S. Attorney’s Office in 1997 following his hiring by then-U.S. Attorney Eric Holder. Mr. Cohen handled criminal and civil matters until 2003, when he left the office for private practice.
In private practice, Mr. Cohen first worked at Hogan & Hartson (now Hogan Lovells), specializing in white-collar criminal litigation and employment law. While at Hogan & Hartson, he worked pro bono in 2005 for the International Criminal Tribunal for Rwanda, which investigated war crimes. He was joined in this work by Loretta E. Lynch, who was then a partner at the firm and who is now President Obama’s nominee to succeed Eric Holder as Attorney General of the United States.
Mr. Cohen later became a partner at Schertler & Onorato, where his practice included the representation of individuals and corporations in all aspects of criminal and civil litigation. While in private practice, Mr. Cohen was named one of the “Nation’s Best Advocates: 40 Lawyers Under 40” by the National Bar Association. He has served as General Counsel and active member of 100 Black Men of Greater Washington, Inc., an organization focused on improving the quality of life of African-Americans in the Washington, D.C. metropolitan area through programs focusing on health and wellness, economic empowerment, education, and mentoring.
Vienna Attorney Sentenced for Wilful Failure to Pay TaxesRead the Press Release
ALEXANDRIA, Va. – An attorney from Vienna, Virginia, who failed to pay his taxes for three years and instead spent hundreds of thousands on personal expenses for himself and his family, was sentenced today to 12 months and one day in prison followed by three years of supervised release for willful failure to pay federal income taxes. The court also ordered him to pay $451,955 in restitution to the Internal Revenue Service.
William M. Weisberg, 53, pled guilty on Dec. 13, 2014, to three counts of willful failure to pay personal income taxes. According to court documents, from 2008 through 2010, Weisberg was a practicing attorney who filed his tax returns for those years, but failed to pay his taxes for 2008 and 2010, and paid only a portion of his taxes for 2009. During that same period, however, he paid approximately $250,000 to rent a house in Vienna, $150,000 for private and parochial schools for his two children, $35,000 for maid service, and $130,000 for travel and entertainment. In addition, when the IRS tried to work with Weisberg in 2010 to obtain the money he owed, Weisberg falsified a document from his law firm, which told the IRS that the firm was withholding money from his paychecks to give to the IRS, when, in fact, no money was being withheld.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and, Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigations, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney Jack Hanly prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-380.
Veteran Sentenced for Wrongful Receipt of Benefits Based on Falsified Military RecordsRead the Press Release
BOSTON – A Wakefield veteran was sentenced yesterday for fraudulently receiving $174,000 in benefits paid to him based upon falsified Vietnam War service records.
Albert L. Seely, 67, was sentenced by U.S. District Court Judge Rya W. Zobel to six months in prison, three years of supervised release, and ordered to pay $174,000 in restitution to the Veteran’s Administration. Seely pleaded guilty in December 2014.
Seely, a former U.S. Marine, was deployed to Vietnam and served there from 1966 to 1967. In December 1970, Seely filed his discharge papers with the Veterans Benefit Administration (VBA) and misrepresented the dates and places of his deployment in Vietnam. He also falsely listed numerous commendations, including two Purple Hearts, a Vietnam Cross of Gallantry, a Bronze Star, and a Silver Star. In March 1999, Seely applied for and received VBA disability payments based upon his false claims of combat and valor. He ultimately fraudulently obtained $174,656 in government benefits. In February 2014, the VBA terminated his benefits after his fraud was revealed.
United States Attorney Carmen M. Ortiz and Jeffrey G. Hughes, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit.
U.S. Attorney Charges 27 in East Texas Drug Trafficking OrganizationRead the Press Release
TYLER, Texas – U.S. Attorney John M. Bales announced today that 27 individuals have been indicted following a lengthy investigation into a drug trafficking organization dealing methamphetamine in the Eastern District of Texas.
On Mar. 14, 2015, a federal grand jury returned a sealed indictment charging 27 individuals with conspiracy to possess with intent to distribute methamphetamine.
A combined task force of federal, state and local law enforcement began executing federal arrest warrants and search warrants this week as a result of the investigation. According to the indictment, beginning in July 2014, the defendants conspired to distribute at least 1.5 kilograms of methamphetamine in the Jacksonville, Texas and Cherokee County area. During the investigation, agents conducted about 40 controlled buys of over $65,000 worth of methamphetamine. The drug trafficking organization uses a network of drug couriers, distributors and multiple sources of supply bringing methamphetamine to Cherokee County, Angelina County, Marshall, Texas and into Louisiana. The indictment also charges two of those defendants with being criminal aliens unlawfully present in the United States after having been deported and four with firearms violations.
If convicted, the defendants each face a minimum of 10 years and up to life in federal prison.
This investigation is being led by the Federal Bureau of Investigation, the Jacksonville Police Department, and the Cherokee County Sheriff’s Office with assistance from multiple federal, state, and local agencies. Assistant U.S. Attorney Richard Moore is prosecuting the case.
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
#######
ATTACHMENT
U.S. Attorney Charges 27 in East Texas Drug Trafficking Organization:
Subjects Arrested April 1, 2015
- Jose Luis Servin-Escalera, 32, of Jacksonville, Texas
- Felipe Gonzales, 31, of Jacksonville, Texas
- Juan Armando Servin, 28, of Jacksonville, Texas
- Javier Secara Servin, 39, of Jacksonville, Texas
- Jose Alfredo Servin, 31, of Jacksonville, Texas
- Flavio Fernando Balderas, 46, of Jacksonville, Texas
- Gerardo Servin Escalera, 29, of Jacksonville, Texas
- Jose Juan Garcia, 32, of Jacksonville, Texas
- Johnny Ray Johnston, 49, of Jacksonville, Texas
- Austin Tamas Gipson, 20, of Rusk, Texas
- Milton Cynell McFarland, 44, of Jacksonville, Texas
- James Carlos Simms, 33, of Jacksonville, Texas
- Toyn Bernard McCuin, 29, of Jacksonville, Texas
- Vandorus Tranode Horn, 35, of Jacksonville, Texas
- Raul Hernandez, Jr., 25, of Jacksonville, Texas
- Jessica Lee Wolf, 32, most recently of Bullard, Texas
- Penny Ann King, 41, of Lufkin, Texas
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
#######
Two Co-defendants Sentenced to A Total of 13 Years and 10 Months in Prison for Kidnapping Texas WomanRead the Press Release
Fayetteville, Arkansas – Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Michael Roberts, age 25, of Bella Vista and Jason Petitt, age 25, of Fayetteville, were sentenced today on one count each of Conspiracy to Commit Kidnapping. Roberts was sentenced to 120 months in prison, five years of supervised release, and was ordered to pay a $3,500.00 fine and $1,832.00 in restitution to be paid jointly and severally with the co-defendants. Petitt was sentenced to 46 months in prison, three years of supervised release, and was ordered to pay a $2,000.00 fine and $1,832.00 in restitution to be paid jointly and severally with the co-defendants. They, along with Theron Vance, age 22, of Rogers, were indicted by a federal grand jury on August 13, 2014. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “With the sentences announced today, it is our hope that the victim in this case can rest easier knowing that justice has prevailed over the terror that she once faced. The elaborate planning that these defendants went to in order to keep her from testifying against one of them is unthinkable. We will continue to hold those that commit these violent crimes accountable so that the residents of the Western District of Arkansas can live in a community free from fear.”
"Roberts and Petitt terrorized the victim and have earned their place in a federal prison,” commented Special Agent in Charge David T. Resch with the FBI in Little Rock. “We are proud of our partnership with the United States Attorney, the Bentonville Police Department, and the Dallas Police Department in bringing them to justice.”
According to court records, on June 14, 2014, the Bentonville Police Department received a 911 call from an employee at the Walmart Supercenter that a woman had been kidnapped. Once officers arrived on scene they were able to determine the victim entered the restroom at Walmart and handed an employee a note informing them that she had been kidnapped from Dallas, Texas by her ex-boyfriend Michael Roberts. By the time officers arrived at Walmart, Roberts had fled the scene. According to an interview of the victim, the previous night between 6:00 p.m. and 6:30 p.m. she was walking into her apartment in Dallas, Texas when she was attacked from behind by Michael Roberts and physically assaulted. Theron Vance, a co-defendant in this case, was present and assisted Roberts by acting as the lookout. Roberts forced the victim into her apartment and began restraining and choking her when Vance entered the apartment and identified himself as an FBI agent. The victim was told she could either go with the two men or she would be killed. The victim cooperated and packed a bag with her belongings. She was also told to write a note to her roommate explaining her disappearance. She did so, but also left another note in the refrigerator that said “call 911.” The victim was then transported against her will to the Western District of Arkansas in Bentonville by Roberts and Vance. Prior to leaving the Dallas area, Vance took the victim’s phone and broke it on the sidewalk, making it inoperable. On the way to Bentonville the victim advised they stopped in Eufaula, Oklahoma at a gas station, where she left another note in the restroom identifying the vehicle in which she was being transported (this note was later recovered by Oklahoma Police). The victim was brought to the residence of Michael Roberts, located at 807 Southwest Krug in Bentonville during the early morning hours of June 14th. Later that day the victim was taken to Walmart where the employee was notified that she had been kidnapped.
While interviewing the victim officers noted that her lip appeared to be busted on the inside of her mouth and she had a large bruise on her right forearm. According to the victim, she was told by Roberts and Vance that she had been kidnapped because they did not want her to testify against Roberts in a pending criminal case in Texas and that they were going to keep her until the proceedings were over. The victim was able to positively identify Vance as one of the individuals that kidnapped her and transported her from Dallas, Texas to Bentonville, Arkansas against her will.
As the Bentonville Police Department was investigating the case, Detectives with the Dallas Police Department searched the victim’s apartment and located the two notes and also found a blood stain on the carpet. Bentonville Detectives then executed a search warrant at defendant Roberts’ residence, where they located the victim’s bloody clothing. Prior to executing the warrant, officers located Petitt at the residence. During his interview with detectives, Petitt informed officers that he and Roberts had been roommates, that he knew Roberts had an ex-girlfriend in Dallas that he hated, and that Roberts told him he was going to “take care of it.” Petitt also admitted to assisting Roberts in the commission of the kidnapping. Specifically, Petitt stated that Roberts and Vance had been planning to abduct and kill the victim; Petitt admitted that Roberts gave him his debit card, car, and cell phone to make it look like Roberts never left town; Petitt admitted that he did use Roberts’ cell phone and debit card to establish an alibi for him and make it appear as though Roberts was still in the Bentonville area while Roberts and Vance traveled to Dallas to kidnap the victim. Roberts and Petitt were both arrested on September 5, 2014. Roberts pleaded guilty November 3, 2014, and Petitt pleaded guilty October 21, 2014.
On June 16, 2014, defendant Vance was located and arrested. Subsequent to being advised of and waiving his Miranda rights he admitted his role in the kidnapping. Specifically, Vance admitted that approximately four months prior to the kidnapping that he and Roberts began planning; Vance admitted that a week prior to the abduction, he and Roberts drove to Dallas to scout the area; Vance admitted to wearing a fake FBI badge during the abduction and breaking the victim’s cell phone so they would not be tracked. In addition, Vance disclosed to investigators the location of several items used in the kidnapping, including a blonde wig, razor blades, zip ties and a book on the human anatomy. These items were subsequently recovered by investigators. Furthermore, Vance’s vehicle was used to transport the victim from Texas to Arkansas.
This case was investigated by the Bentonville Police Department, The Federal Bureau of Investigations, and the Dallas Police Department. Assistant United States Attorney David Harris and Assistant United States Attorney Kim Davis prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tuba City Man Found Guilty of Killing 10-Week-Old Infant DaughterRead the Press Release
PHOENIX – Ken Jermaine Fowler, 30, of Tuba City, Ariz., a member of the Navajo Nation, was found guilty by a federal jury of involuntary manslaughter and assault resulting in serious bodily injury of a minor. The case was tried before U.S. District Judge G. Murray Snow from March 3 - 26, 2015. The defendant was remanded into custody after trial. Sentencing is set before Judge Snow on June 29, 2015.
The evidence at trial showed that Fowler assaulted the ten week old infant on the Navajo Nation Indian Reservation while she was alone in his care. The assault caused massive brain injury that resulted in her death four days later.
A conviction for assault resulting in serious bodily injury of a minor carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, a $250,000.00 fine, or both.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8156-PCT-GMS
RELEASE NUMBER: 2015-028_Fowler
Teacher’s Union Negotiator Sentenced for FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Frank Aquila, 76, of Amherst, NY, who was convicted of fraud involving a scheme to defraud the Buffalo Educational Support Team (BEST), a union representing approximately 900 teacher’s aides and assistants in the City of Buffalo School District, was sentenced to 12 months in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that between March 2006 and December 2011, the defendant served as the chief negotiator for BEST during 2008 collective bargaining negotiations with the City of Buffalo School District. Aquila, as chief negotiator for BEST, refused to reach final agreement with the district on a collective bargaining agreement until and unless the district agreed to allow BEST to (1) select its own insurance broker; (2) make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST; and (3) agreed to make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members.
The defendant failed to disclose to the district or BEST that he would share in commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members. Aquila unlawfully obtained $332,500.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office.
Tahlequah Man Sentenced to 48 Months Probation for Obtaining Possession of A Controlled Substance by DeceptionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that ROBERT JAMES KOHNE, age 24, of Tahlequah, Oklahoma, was sentenced to 4 years of probation for Obtaining Possession of a Controlled Substance by Deception, in violation of Title 21, United States Code, Section 843(a)(3).
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The defendant was indicted in July, 2014 and pled guilty in October, 2014.
The Information alleged that on or about March 21, 2013, in the Eastern District of Oklahoma, the defendant knowingly and intentionally obtained possession of Oxycodone, a Schedule II Controlled Substance, by deception, by providing a Walmart pharmacy clerk with a false prescription for Oxycodone.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Two Men Sentenced for Federal Drug ChargesRead the Press Release
TYLER, Texas – A Tyler resident, along with his Houston co-conspirator, have been sentenced to federal prison, announced U.S. Attorney John M. Bales today.
Juan Gutierrez-Mojica, 44, of Tyler, was sentenced to 180 months for conspiracy to possess with the intent to distribute methamphetamine and cocaine, and money laundering during an appearance before United States District Judge Michael H. Schneider. His co-conspirator, Norberto Pineda, 41, of Houston, was sentenced to 70 months for conspiracy to possess with the intent to distribute cocaine and money laundering.
Gutierrez-Mojica and Pineda were indicted along with 16 co-defendants on April 23, 2014. According to information presented in court, the conspiracy involved the transportation of multiple kilograms of cocaine from Houston to individuals in Longview and Tyler. Gutierrez-Mojica also acquired methamphetamine and cocaine from suppliers in Dallas and Houston, which he then distributed. In addition to their illicit drug conspiracy activities, the pair utilized a bank account to deposit proceeds from the sale of drugs. Gutierrez-Mojica entered a guilty plea on October 14, 2014. Pineda pleaded guilty on November 4, 2014.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Springfield Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – Jose Vargas, 29, of Springfield, pleaded guilty yesterday in U.S. District Court in Springfield to conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and distribution of heroin. U.S. District Judge Mark G. Mastroianni scheduled sentencing for July 2, 2015.
At his change of plea hearing, Vargas admitted that on Oct. 6, 2013, he sold heroin to an undercover federal agent in Springfield. He also admitted that, during the transaction, he handed the heroin to the undercover agent just before his co-conspirator accepted $400 in cash in return for the drugs. The drug purchase was captured on video.
The charge of conspiracy to possess with intent to distribute heroin provides a sentence of no greater than 20 years in prison, 3-5 years supervised release and a fine of $1 million. The charge of distribution of heroin provides a sentence of no greater than 20 years in prison, 3-5 years supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Six Individuals Charged in String of Armed Home Invasion Robberies that Targeted Victims of Indian and Asian AncestryRead the Press Release
Six individuals were charged today in connection with their involvement in an armed robbery crew that conducted home invasion robberies in Michigan and Texas, principally targeting victims of Indian and Asian ancestry.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division, Acting Special Agent in Charge Katherine J. Greer of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s (ICE-HSI) Dallas Field Office, Chief John Seto of the Ann Arbor, Michigan, Police Department, Sheriff Jerry L. Clayton of the Washentaw County, Michigan, Sheriff’s Department and Director Todd L. Mutchler of Canton, Michigan, Public Safety made the announcement.
“The armed robberies allegedly committed by this organized criminal group were horrific home invasions that spread fear through Asian and Indian communities across multiple states,” said Assistant Attorney General Caldwell. “This indictment is the first step in holding responsible those accused of carrying out armed robberies that were both life threatening and ethnically targeted.”
“As alleged in the indictment, these defendants used online research to target their victims from a distance, traveled to their homes, and then carried out the robberies while the victims were at home,” said U.S. Attorney McQuade. “The defendants either broke in or used a female decoy to knock, luring victims to open the door. Once the door was open, the robbers would charge inside with guns and threats of violence, round up all the adults and children into one room, and bind them with duct tape before ransacking the house and stealing valuables. We are grateful for the outstanding work of federal, state and local law enforcement in various jurisdictions to connect the dots and put this case together.”
“This multistate investigation serves as an example of the successful collaboration between federal, state and local law enforcement to bring justice to bear upon those who have wreaked havoc upon our neighborhoods and victimized families in their own homes,” said Special Agent in Charge Abbate. “Combating violent crime is among the highest of priorities for the FBI. There is nothing more important than protecting our communities and keeping law abiding citizens safe in their own homes. The FBI, along with our law enforcement partners, will maintain its resolve and continue the fight against violent criminal offenders.”
Chaka LeChar Castro, 40, Juan Olaya, 35, and Octavius Scott, 22, all of Houston, and Jakeyra Augustus, 21, of La Marque, Texas, are each charged with engaging in a RICO conspiracy, four counts of assault with a dangerous weapon in aid of racketeering, and four counts of use and carrying of a firearm in furtherance of a crime of violence. Rodney Granger, 19, and Johnisha Williams, 19, both of Houston, are each charged with engaging in a RICO conspiracy. All of the defendants are currently in custody.
According to the indictment, the defendants committed four armed home invasion robberies in the greater Ann Arbor area over the Thanksgiving weekend in 2014, as well as additional armed robberies in the greater Dallas area in early December 2014. The crews allegedly utilized a similar modus operandi in each of the robberies. According to the indictment, they typically used female decoys to knock on the victims’ doors and gain entry, or they merely forced entry themselves. Once inside, members of the robbery crew—disguised with bandanas and masks—allegedly brandished firearms to gain control of their victims, including children, and then forced them at gunpoint into a single room of the home. Some members of the crew were allegedly assigned to bind the victims with duct tape, or otherwise maintain control over them. At the same time, other members of the crew allegedly ransacked the homes in search of cash, jewelry and electronics.
According to allegations in the indictment, Castro was the leader of the enterprise. In that capacity, she allegedly coordinated with Olaya to generate lists of robbery targets by conducting research on the Internet, among other methods, to identify families of Asian and Indian ancestry. Castro then assigned crews to carry out the armed robberies of these targeted families. Olaya allegedly led the robberies themselves, and Scott, Augustus, Granger and Williams were allegedly members of the robbery crew.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by a collaboration of local, state and federal law enforcement in Michigan and Texas, including the FBI, ICE-HSI, Washtenaw County Sheriff’s Office, the Ann Arbor Police Department and the Canton Police Department. The case is being prosecuted by Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Douglas C. Salzenstein of the Eastern District of Michigan.
Castro Indictment
Six Individuals Charged in String of Armed Home Invasion Robberies That Targeted Victims of Indian and Asian AncestryRead the Press Release
Six individuals were charged today in connection with their involvement in an armed robbery crew that conducted home invasion robberies in Michigan and Texas, principally targeting victims of Indian and Asian ancestry.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division, Acting Special Agent in Charge Katherine J. Greer of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s (ICE-HSI) Dallas Field Office, Chief John Seto of the Ann Arbor, Michigan, Police Department, Sheriff Jerry L. Clayton of the Washentaw County, Michigan, Sheriff’s Department and Director Todd L. Mutchler of Canton, Michigan, Public Safety made the announcement.
“The armed robberies allegedly committed by this organized criminal group were horrific home invasions that spread fear through Asian and Indian communities across multiple states,” said Assistant Attorney General Caldwell. “This indictment is the first step in holding responsible those accused of carrying out armed robberies that were both life threatening and ethnically targeted.”
“As alleged in the indictment, these defendants used online research to target their victims from a distance, traveled to their homes, and then carried out the robberies while the victims were at home,” said U.S. Attorney McQuade. “The defendants either broke in or used a female decoy to knock, luring victims to open the door. Once the door was open, the robbers would charge inside with guns and threats of violence, round up all the adults and children into one room, and bind them with duct tape before ransacking the house and stealing valuables. We are grateful for the outstanding work of federal, state and local law enforcement in various jurisdictions to connect the dots and put this case together.”
“This multistate investigation serves as an example of the successful collaboration between federal, state and local law enforcement to bring justice to bear upon those who have wreaked havoc upon our neighborhoods and victimized families in their own homes,” said Special Agent in Charge Abbate. “Combating violent crime is among the highest of priorities for the FBI. There is nothing more important than protecting our communities and keeping law abiding citizens safe in their own homes. The FBI, along with our law enforcement partners, will maintain its resolve and continue the fight against violent criminal offenders.”
Chaka LeChar Castro, 40, Juan Olaya, 35, and Octavius Scott, 22, all of Houston, and Jakeyra Augustus, 21, of La Marque, Texas, are each charged with engaging in a RICO conspiracy, four counts of assault with a dangerous weapon in aid of racketeering, and four counts of use and carrying of a firearm in furtherance of a crime of violence. Rodney Granger, 19, and Johnisha Williams, 19, both of Houston, are each charged with engaging in a RICO conspiracy. All of the defendants are currently in custody.
According to the indictment, the defendants committed four armed home invasion robberies in the greater Ann Arbor area over the Thanksgiving weekend in 2014, as well as additional armed robberies in the greater Dallas area in early December 2014. The crews allegedly utilized a similar modus operandi in each of the robberies. According to the indictment, they typically used female decoys to knock on the victims’ doors and gain entry, or they merely forced entry themselves. Once inside, members of the robbery crew—disguised with bandanas and masks—allegedly brandished firearms to gain control of their victims, including children, and then forced them at gunpoint into a single room of the home. Some members of the crew were allegedly assigned to bind the victims with duct tape, or otherwise maintain control over them. At the same time, other members of the crew allegedly ransacked the homes in search of cash, jewelry and electronics.
According to allegations in the indictment, Castro was the leader of the enterprise. In that capacity, she allegedly coordinated with Olaya to generate lists of robbery targets by conducting research on the Internet, among other methods, to identify families of Asian and Indian ancestry. Castro then assigned crews to carry out the armed robberies of these targeted families. Olaya allegedly led the robberies themselves, and Scott, Augustus, Granger and Williams were allegedly members of the robbery crew.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by a collaboration of local, state and federal law enforcement in Michigan and Texas, including the FBI, ICE-HSI, Washtenaw County Sheriff’s Office, the Ann Arbor Police Department and the Canton Police Department. The case is being prosecuted by Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Douglas C. Salzenstein of the Eastern District of Michigan.
Seven Springfield residents among 13 indicted for $340,000 in false tax claimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that seven Springfield, Mo., residents are among 13 defendants who have been indicted for their roles in a conspiracy to receive more than $340,000 in fraudulent income tax refunds.
Cherie Christine Dupuis, 42, Claudia Dorsey, 33, Travis L. Ashmead, 29, Amanda Leigh Boyd, 32, Johnny L. Cooper, 25, Lisa Lorre Dehaven, 34, and Jeannie Marie Rhodes, 33, all of Springfield; Shawna Marie Hughey, 36, of Joplin, Mo.; Delbert L. Allen, 36, of Pleasant Hope, Mo.; William Joseph Coonce, 28, of Otterville, Mo.; Asia Michelle Couchman, 26, of Oak Grove, Mo.; Heather Nicole Drennen, 31, of Cameron, Mo.; and Jeannette R. Dunn, 47, of Huntsville, Ark., were charged in a 30-count indictment returned by a federal grand jury in Springfield on Tuesday, March 31, 2015.
The federal indictment alleges that 12 of the 13 defendants participated in a conspiracy to defraud the government by filing false claims for income tax refunds from February 2009 to March 2012, and all of the defendants filed false claims for income tax refunds, which resulted in them receiving a total of $340,630 in fraudulent refunds.
According to the indictment, conspirators obtained the identification information of individuals, including their names and Social Security numbers, and used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators allegedly shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information, the indictment says, to enable them to falsely claim dependents on their returns.
According to the indictment, Dupuis received a $5,135 refund in 2009, a $9,174 refund in 2010, a $9,437 refund in 2011 and a $10,507 refund in 2012. All of these refunds were fraudulent, the indictment says, because they claimed employment income and withholdings that were false. Other conspirators received fraudulent refunds of similar or larger amounts, the indictment says, then gave Dupuis as much as half of their illegal proceeds.
Dorsey allegedly made false claims by filing fraudulent income tax returns for herself and two others. Dorsey also allegedly allowed Dupuis to use her laptop computer to file false federal income tax returns and allegedly allowed Dupuis to list her mailing address on false federal income tax returns filed by the defendants. Conspirators allegedly provided false and misleading statements to law enforcement officers when they were questioned about their roles and actions in the conspiracy.
Drennen is charged in a single count of making a false claim by filing a fraudulent income tax return in the name of another person, claiming a refund to which she was not entitled. In addition to the conspiracy, each of the other defendants is charged in various counts of making false claims by filing fraudulent income tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Settlement Agent Found Guilty of Federal Charges in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Edward Dacy, 76, most recently of West Melbourne, Fla., has been found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.
The verdict, returned March 25, 2015, was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Julie DeMello, Acting Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for June 19, 2015. This completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial.
“Mortgage fraud victimizes innocent homeowners and weakens our economic future,” said Acting U.S. Attorney Cohen. “This settlement agent was supposed to be a check on mortgage fraud, but he instead joined this multi-million dollar rip-off scheme. This guilty verdict demonstrates our commitment to bringing justice to the fraudsters who fall lure to the promise of easy money and in the process harm innocent people and businesses.”
“Edward Dacy is a prime example of a real estate professional who believes that he can act above the law, regardless of what loss that causes to others,” said Special Agent in Charge Acevedo. “However, justice has prevailed, and Dacy has appropriately been found guilty. Our office is committed to ferreting out mortgage fraud directed at Fannie Mae and Freddie Mac, which subsequently impacts every American taxpayer.”
“The verdict against Edward Dacy should send a strong message to anyone connected with fraudulently originating FHA insured loans that the United States Department of Housing and Urban Development, Office of Inspector General will aggressively investigate loan origination fraud and seek prosecution when possible,” said Acting Special Agent in Charge DeMello.
“This verdict sends a clear message to the real estate and mortgage business community that law enforcement is united in our efforts to investigate those who bilk financial institutions out of millions of dollars,” said Assistant Director in Charge McCabe. “By joining in the scheme to defraud, which involved false loan applications, forged documents and fraudulent statements, Mr. Dacy took advantage of mortgage lenders and banks by falsely leading them to believe that they were supporting homeownership. Together with our federal, state and local law enforcement partners, the FBI will remain vigilant in investigating mortgage fraud schemes and will hold individuals accountable for their fraud schemes.”
The government’s evidence at trial included testimony from conspirators who were involved in the scheme to defraud banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, and ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
The trial evidence included information about conspirators who purchased properties in the names of general partnerships. They then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, according to the evidence, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns and letters from a Certified Public Accountant, and fraudulent deeds conveying title to the nominee buyers.
According to the trial evidence, Dacy handled the settlements of the real estate transactions. The settlement company received the funding from the mortgage lenders and should have collected the buyers’ cash contributions; it was under the obligation to disburse the money only if all of the mortgage lenders’ conditions were met and the buyers’ financial contributions collected. Only then would the settlement company be authorized to release the lenders’ money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the evidence, Dacy joined the multi-million dollar fraud conspiracy by managing and overseeing the straw buyers’ settlements of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
In announcing the verdict, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Acting Special Agent in Charge DeMello, and Assistant Director in Charge McCabe commended the work of the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales and Assistant U.S. Attorneys Anthony Saler and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys, David A. Last and Virginia Cheatham, who prosecuted the case.
Senator Robert Menendez and Salomon Melgen Indicted for Conspiracy, Bribery and Honest Services FraudRead the Press Release
Robert Menendez, a U.S. Senator, and Salomon Melgen, a Florida ophthalmologist, were indicted today in connection with a bribery scheme in which Menendez allegedly accepted gifts from Melgen in exchange for using the power of his Senate office to benefit Melgen’s financial and personal interests, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
“Government corruption – at any level of elected office – corrodes the public trust and weakens our democratic system,” said Assistant Attorney General Caldwell. “It is the fundamental responsibility of the Department of Justice to hold public officials accountable by conducting thorough investigations and seeking an indictment when the facts and the law support it.”
“The job of an elected official is to serve the people,” said Special Agent in Charge Frankel. “The citizens of New Jersey have the right to demand honest, unbiased service and representation from their elected officials at all levels of government. The charges and activity alleged in this indictment are another example of the FBI's commitment to aggressively and tenaciously pursue public corruption in the state of New Jersey.”
Menendez, 61, of Paramus, New Jersey, and Melgen, 60, of Palm Beach, Florida, were indicted in the District of New Jersey for one count of conspiracy, one count of violating the travel act, eight counts of bribery and three counts of honest services fraud. Menendez was also charged with one count of making false statements.
According to allegations in the indictment, between January 2006 and January 2013, Menendez accepted close to $1 million worth of lavish gifts and campaign contributions from Melgen in exchange for using the power of his Senate office to influence the outcome of ongoing contractual and Medicare billing disputes worth tens of millions of dollars to Melgen and to support the visa applications of several of Melgen’s girlfriends.
Specifically, the indictment alleges that, among other gifts, Menendez accepted flights on Melgen’s private jet, a first-class commercial flight and a flight on a chartered jet; numerous vacations at Melgen’s Caribbean villa in the Dominican Republic and at a hotel room in Paris; and $40,000 in contributions to his legal defense fund and over $750,000 in campaign contributions. Menendez never disclosed any of the reportable gifts that he received from Melgen on his financial disclosure forms.
According to allegations in the indictment, during this same time period, Menendez allegedly engaged in three efforts to use his Senate office and staff to advocate on behalf of Melgen’s personal and financial interests. First, Menendez allegedly pressured executive agencies in connection with a conflict between Melgen and the government of the Dominican Republic relating to a disputed contract that Melgen purchased to provide exclusive screening of containers coming through Dominican ports. Second, Menendez allegedly advocated on behalf of Melgen in connection with a Medicare billing dispute worth approximately $8.9 million to Melgen. Third, Menendez allegedly took active steps to support the tourist and student visa applications of three of Melgen’s girlfriends, as well as the visa application of the younger sister of one of Melgen’s girlfriends. Throughout these efforts, Menendez allegedly engaged in advocacy for Melgen all the way up to the highest levels of the U.S. government, including meeting with a U.S. cabinet secretary, contacting a U.S. Ambassador, meeting with the heads of executive agencies and other senior executive officials and soliciting other U.S. Senators, all in order to assist Melgen’s personal and pecuniary interests.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI. The case is being prosecuted by Deputy Chiefs Peter Koski and J.P. Cooney, and Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section.
Menendez and Melgen Indictment
Saudi Arabian Citizen Pleads Guilty to Physically Assaulting TSA Officer at Orlando International AirportRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mohammed Abdullah Alomaim (43, Saudi Arabia) today pleaded guilty to physically assaulting a Transportation Security Administration (TSA) officer, a felony under federal law. U.S. District Judge Gregory A. Presnell sentenced Alomaim to the time that he has already served since the offense, and a two-year term of supervised release. As a result of his conviction, Alomaim will be deported from the United States.
According to the plea agreement, on January 18, 2015, Alomaim came into contact with TSA officers at an Orlando International Airport checkpoint. Over the course of approximately two hours, he began behaving erratically, making other visitors at the airport uncomfortable, and repeatedly left his bags unattended. As a TSA officer approached Alomaim to speak with him, he struck the officer in the face. Alomaim was immediately taken into custody.
This case was investigated by the Federal Bureau of Investigation and the Orlando Police Department, with assistance from the Transportation Security Administration. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Readout of Justice Department Officials' Trip to Ferguson, MissouriRead the Press Release
Justice Department spokeswoman Dena Iverson released the following statement today regarding the latest visit to Ferguson, Missouri, by Justice Department officials:
“Members of the Civil Rights Division of the Department of Justice have completed three days of meetings in Ferguson, Missouri, with a broad variety of individuals and community groups regarding the department’s findings in the investigation of the Ferguson Police Department and the next steps for institutional reform. The meetings generated thoughtful and constructive recommendations for changes to address the unconstitutional practices identified by the investigation. Community members were overwhelmingly committed to assist in the effort to achieve meaningful police and court reform as quickly as possible. In the coming weeks, department officials will continue to meet with these and other individuals, including Ferguson police officers, to solicit ideas for potential solutions.
“As department officials with the Civil Rights Division explained to the community groups and individuals with whom they met, the division looks forward to meeting in the coming weeks with Ferguson city leaders to begin to work collaboratively towards sustainable reform in the form of a court enforceable consent decree to achieve the necessary changes. If the city agrees to this process, the Department of Justice stands ready to meet with the city to begin negotiations. If the city does not agree to negotiate a consent decree, the Department of Justice retains the option of filing suit to ensure that the unconstitutional practices identified in our findings are remedied.
“During the meetings with community members and organizations, department officials saw a high level of constructive engagement, thoughtfulness and dedication to meaningful improvement of Ferguson’s police and court system. The department encourages the city to work with these well-intentioned and creative individuals and groups.”
Raynham Man Sentenced for National Fraudulent Invoicing SchemeRead the Press Release
BOSTON – A Raynham man was sentenced today for engaging in a fraud scheme involving the creation of phony invoices for annual dues that purported to come from legitimate business and trade associations.
Darren Stokes, 43, of Raynham, Mass., was sentenced today by U.S. District Court Judge Richard G. Stearns to four years in prison, three years of supervised release, and was ordered to pay $1,170 in restitution. In November 2014, Stokes pleaded guilty to eight counts of wire fraud and seven counts of mail fraud.
From 2008 to 2012, Stokes caused tens of thousands of fraudulent invoices to be faxed to businesses throughout the United States. The invoices purported to be from business or trade associations and sought payment for annual membership dues or inclusion in a business directory. In fact, Stokes had no authorization from any business or trade association to collect such payments. Stokes caused invoices to be sent to members of associations, including the American Dental Association, the National Association of Manufacturers, the Automotive Parts Remanufacturers Association, the American Trucking Association, the Associated General Contractors of America, and the American Hospital Association. Hundreds of businesses were deceived by Stokes’ scheme and mailed checks to addresses he controlled. Stokes cashed them at a check-cashing business, and pocketed the proceeds for himself.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard of Ortiz’s Economic Crimes Unit, and Doreen M. Rachal of Ortiz’s Asset Forfeiture Unit.
Portales Man Pleads Guilty to Federal Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Brandon William Wood, 35, of Portales, N.M., entered a guilty plea today in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Wood will be sentenced to a range of eight to ten years in prison followed by a term of supervised release to be determined by the court.
Wood and co-defendant, Justin Thomas Shipley, 30, also of Portales, N.M., were arrested on April 24, 2014, in Otero County, N.M., on a criminal complaint charging them with methamphetamine trafficking charges. They subsequently were indicted on methamphetamine trafficking and firearms charges in a six-count indictment filed on July 16, 2014.
The indictment alleged that in April 2014, Shipley and Wood participated in a conspiracy to distribute large quantities of methamphetamine, and also charged the two men with possession of methamphetamine with intent to distribute. The indictment further charged Wood and Shipley with using and carrying firearms in relation to a drug trafficking crime and Wood with being a felon in possession of firearms and ammunition.
In July 2014, Wood was prohibited from possessing firearms and ammunition because he had been convicted of several felony offenses, including conspiracy to sell controlled substances, manufacturing, sale and possession of controlled substances, conspiracy to cultivate marijuana, and driving while intoxicated.
During today’s plea hearing, Wood pled guilty to a four-count felony information charging him with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, using a carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm and ammunition. In entering his guilty plea, Wood admitted that beginning on April 18, 2014, he conspired with his co-defendant to acquire 80 grams of methamphetamine which was to be distributed in Portales, N.M. Wood admitted that they completed their transaction on April 22, 2014. Wood and his co-conspirator were transporting the drugs from Arizona to Portales on April 24, 2014, when they were arrested at the U.S. Border Patrol checkpoint near Alamogordo, N.M., after Border Patrol agents found 80 grams of methamphetamine, a hand gun, a shotgun and ammunition in their vehicle during a routine vehicle inspection. Wood admitted to having a gun and ammunition because he was transporting methamphetamine even though he knew that he not allowed to possess the firearms and ammunition because he had been convicted of at least four felonies.
On Dec. 12, 2014, Shipley also pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy, distribution of methamphetamine; and using and carrying a firearm in relation to a drug trafficking crime. Shipley has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo Station of the U.S. Border Patrol. Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Pittston Man Sentenced to 41 Months in Prison for Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Pittston man was sentenced to 41 months in prison today by Senior U.S. District Court Judge Edwin M. Kosik in Scranton, for conspiring with others to distribute heroin in the Luzerne County area during a four-year time period.
According to United States Attorney Peter Smith, the defendant, Sal Biscotto, previously pleaded guilty to committing the crime during 2010 through February 2014.
Biscotto was charged in a Criminal Information filed by the United States Attorney on October 7, 2014, following an investigation by special agents of the Federal Bureau of Investigation.
Judge Kosik ordered Biscotto to be placed on three years of supervised release following his prison sentence. Biscotto must also pay a $100 special assessment.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Paterson City Council Member and Former City Council President Sentenced to Two Years in Prison for Taking BribesRead the Press Release
NEWARK, N.J. – A Paterson City Council member and former council president was sentenced today to 24 months in prison for accepting bribes from a purported developer in exchange for his official help, New Jersey U.S. Attorney Paul J. Fishman announced.
Anthony Davis, 50, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On April 20, 2012, Davis accepted $5,000 in cash from an individual who was cooperating with federal authorities and who purported to be an out-of-state real estate developer. Davis accepted the bribe in exchange for his official action as Paterson City Council president to foster the developer’s business interests. Between July 6, 2012, and July 25, 2012, Davis had meetings with the developer, during which Davis discussed the possibility of accepting additional money from the developer in exchange for a letter from Davis to the developer’s lender indicating that the Paterson City Council supported the developer with respect to certain business endeavors in Paterson. On July 25, 2012, Davis agreed to accept, and did accept, $5,000 in cash from the developer in exchange for such a letter.
In addition to the prison term, Judge Walls sentenced Davis to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Randy Davenport Esq., Piscataway, New Jersey
Parsonsburg Man Sentenced to 16 Years in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Edward James Maycock, Jr., age 28, of Parsonsburg, Maryland, today to 16 years in prison followed by a lifetime of supervised release for distribution of child pornography. Judge Russell ordered that upon his release from prison, Maycock must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Wicomico County Sheriff Michael A. Lewis.
According to his plea agreement, on November 8, 2013, Maycock uploaded files containing child pornography to a website. After linking the IP address used to upload the files to Maycock’s residence, law enforcement executed a search warrant on February 6, 2014 and seized a notebook computer and several external hard drives from Maycock’s home which contained thousands of files depicting children, including prepubescent minors, engaged in sexually explicit conduct. Some of the files included images of sadistic and masochistic conduct, or other depictions involving violence. Maycock actively traded the child pornography files with other individuals via the internet. The total volume of child pornography from Maycock’s computer and hard drives was roughly the equivalent of 1,000 gigabytes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Maryland State Police and Wicomico County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
North Stonington Man Pleads Guilty to Tax Evasion and Structuring Cash TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN ZELEPOS, 48, of North Stonington, pleaded guilty yesterday in Bridgeport federal court to tax evasion and financial structuring offenses.
According to court documents and statements made in court, ZELEPOS is the sole owner of Mystic Pizza, LLC, a Schedule C retail restaurant business in Mystic, Connecticut. From 2006 to 2010, ZELEPOS regularly diverted Mystic Pizza’s cash business gross receipts totaling approximately $567,435. Approximately $330,005 in the diverted cash was deposited into his personal bank account ($113,360) and his and his wife’s personal checking account ($102,580) at Chelsea Groton Bank, his wife’s personal checking account at Washington Trust Company ($74,865), and passbook savings accounts in the name of each of his three minor children at Chelsea Groton Bank ($39,200).
With respect to his 2006 tax return, on June 14, 2007, ZELEPOS willfully attempted to evade and defeat a large part of the income tax due and owing to the United States for 2006 by, among other things, (1) diverting approximately $130,060 in cash from Mystic Pizza, LLC, (2) depositing the diverted cash into his personal bank account and his and his wife’s personal checking account at Chelsea Groton Bank, his wife’s personal checking account at Washington Trust Company, and passbook savings accounts in the name of each of his three minor children at Chelsea Groton Bank at various times in amounts less than $10,000, (3) deducting as business expenses wages paid to two no-show employees, (4) not disclosing to his tax return preparer receipt of the diverted cash and the two no-show employees, and (5) filing and causing to be filed with the IRS a false and fraudulent 2006 federal tax return. In his 2006 tax return, ZELEPOS stated that his taxable income was $388,957 when in fact, as he knew, in 2006 his total taxable income was $551,858 (an additional $162,901 which included the diverted income, deductions for no-show employees, and other statutory adjustments), upon which he owed the United States approximately $180,765 (an additional $54,655) in federal income tax.
As part of the plea agreement, ZELEPOS agreed that he similarly evaded the payment of his federal taxes in 2007, 2008, 2009, and 2010 and that the total federal tax loss for 2006 to 2010 based on his conduct is $234,407. He has agreed to make restitution in the amount of $234,407, plus interest and penalties.
ZELEPOS also pleaded guilty to intentionally structuring financial transactions so as to avoid having the bank file Currency Transaction Reports (“CTRs”). He engaged in 61 currency transactions in amounts less than $10,000 from January 5, 2010 through January 24, 2011, totaling $522,658. He deposited cash into the business account, his personal account, his and wife’s personal bank account, and his three children’s bank accounts at Chelsea Groton Bank in amounts ranging from $3,000 to $9,998 on sequential days or multiple cash deposits on the same day. ZELEPOS knew that the bank was required to issue a report for a currency transaction in excess of $10,000 and by conducting his financial transactions in amounts less than $10,000, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a CTR for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law. Structured funds are subject to forfeiture to the United States.
As part of the plea agreement, ZELEPOS is forfeiting $522,658 of the money he intentionally structured between January 2010 and January 2011.
On January 2012, pursuant to a court-authorized federal seizure warrant, IRS Special Agents seized $63,084.49 from a payroll account Mystic Pizza held at Chelsea Groton Bank. Those funds are being applied to the forfeiture, reducing the remaining forfeiture amount to $459,573.51.
"Our voluntary system of self-reported tax liability depends upon people to honestly report their income and pay their taxes," stated U.S. Attorney Daly. "Those who willfully hide their income and purposefully evade paying their taxes steal from the public and damage our nation’s system of taxation. Violators will be prosecuted, punished, and obligated to repay their taxes along with applicable penalties and interest. The tax fraud was more egregious in this case because the defendant sought to hide some of the diverted business funds by depositing cash in amounts less than the reportable $10,000 so as to prevent the bank from filing currency transaction reports reporting the multiple cash transaction to the IRS."
U.S. District Judge Victor A. Bolden will sentence ZELEPOS on June 23, 2015, at which time ZELEPOS faces a maximum term of imprisonment of 15 years and a fine of up to $500,000. He was released pending sentencing.
This matter was investigated by the Internal Revenue Service - Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
North Carolina Man Sentenced to Prison for Role in Check Fraud RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LANGSTON XAVIER NEAL, 37, of Charlotte, North Carolina, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a check fraud ring. NEAL was also ordered to pay $104,070.94 in restitution.
According to court documents and statements made in court, between July 2010 and May 2011, NEAL, Benjii Carr and Brandon Key Bentley obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
On December 1, 2014, NEAL pleaded guilty to one count of conspiracy to commit bank fraud.
Carr and Bentley, both of New Haven, previously pleaded guilty to the same charge and await sentencing.
This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments. U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
North Carolina Man Pleads Guilty to Federal Charges of Production and Possession of Child PornographyRead the Press Release
WASHINGTON – David Wendell Pilcher, 50, of Granite Falls, N.C., pled guilty today to production and possession of child pornography, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Pilcher entered the plea in the U.S. District Court for the District of Columbia. The Honorable Gladys Kessler is to sentence him on July 8, 2015. Pilcher faces a mandatory minimum of 15 years in prison and a maximum of 30 years, as well as a fine of up to $250,000.
According to the government's evidence, on or about Feb. 18, 2014, Pilcher contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Pilcher engaged in text message conversations with the undercover officer, whom Pilcher believed was the father of an under-aged girl. Pilcher and the undercover officer arranged to meet at a hotel room for the purpose of engaging in sexual acts with the child.
During the course of their conversation on Feb. 18, 2014, Pilcher sent the undercover officer two pornographic images of an under-aged child that Pilcher had produced using a cellular telephone. Based on a search of electronic items seized from Pilcher subsequent to his arrest, law enforcement recovered approximately 50 videos and 300 still images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case and Assistant U.S. Attorney Courtney Randall of the Western District of North Carolina, who assisted in the investigation.
Nine Defendants Plead Guilty in $20 Million Stolen Identity Refund Fraud RingRead the Press Release
Identities Stolen from the U.S. Army, Various Alabama State Agencies and Georgia Call Center
Alabama and Georgia residents pleaded guilty for their roles in a $20 million stolen identity refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
The defendants pleaded guilty on the following dates to the following charges:
-
Talarius Paige on March 31, to one count of conspiracy to file false claims and one count of aggravated identity theft;
-
Tracy Mitchell on March 30, to one count of conspiracy to file false claims, one count of wire fraud and one count of aggravated identity theft;
-
Latasha Mitchell on March 30, to one count of conspiracy to file false claims and one count of aggravated identity theft;
-
Demeisha Mitchell on March 26, to one count of conspiracy to file false claims and one count of aggravated identity theft;
-
Keisha Lanier on March 5, to one count of wire fraud and one count of aggravated identity theft;
-
Sharondra Johnson on Feb. 17, to one count of conspiracy to file false claims;
-
Cynthia Johnson on Dec. 17, 2014, to one count of conspiracy to file false claims; and
-
Patrice Taylor on July 18, 2014, to one count of conspiracy to file false claims.
The defendants are scheduled to be sentenced on June 30. Mequetta Snell-Quick, another co-conspirator, is scheduled to appear in court on April 6. In a related case, on Oct. 2, 2014, Tamika Floyd pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft and is scheduled to be sentenced on May 19. The defendants each face a statutory maximum sentence of 10 years in prison for each count of conspiracy to file false claims, a statutory maximum sentence of 20 years in prison for each wire fraud count, and a statutory mandatory minimum sentence of two years in prison for each aggravated identity theft count.
“The guilty pleas of the nine defendants who participated in this conspiracy send a clear message that the Tax Division, along with its law enforcement partners, will vigorously pursue and prosecute individuals involved at every level of these extensive criminal schemes,” stated Acting Assistant Attorney General Ciraolo. “The division will seek significant jail time and restitution from offenders who choose to victimize unsuspecting American taxpayers, including the dedicated men and women serving in the U.S. military, and steal from the U.S. Treasury.”
“Stealing a person’s identity is a horrendous crime,” said U.S. Attorney Beck. “It can take months or years for a victim of identity theft to correct the damage that these criminals reaped upon him or her. But these defendants stole identities from military men and women who have volunteered to protect our country. That is inexcusable and will not be tolerated.”
According to court documents, between January 2011 and December 2013, the defendants ran a large-scale identity theft ring in which they filed more than 7,000 false tax returns that included fraudulent claims for refunds in excess of $20 million. In order to file false returns, the defendants obtained stolen identities from various sources. Tracy Mitchell worked at a military hospital located at Fort Benning, Georgia, and as a hospital employee, she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. Tracy Mitchell stole soldiers’ personal information and used that information to file false tax returns.
“This case is an excellent example of Army CID working shoulder-to-shoulder with our fellow law enforcement partners to protect the nation’s soldiers,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command’s (CID) Computer Crime Investigative Unit. “It demonstrates our vigilance against cybercrime and an unswerving commitment to dismantle criminal operations impacting the U.S. Army.”
Floyd stole personal information from two Alabama state agencies and provided those names to Lanier. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others for use in filing false tax returns. Lanier also obtained stolen identities from the Alabama Department of Corrections that were then used to file false tax returns. Also, Paige and Taylor worked in a call center for a Columbus, Georgia, company and stole identities from that company. Paige, in turn, used those identities to file false tax returns and filed some of the returns from Tracy Mitchell’s residence.
In order to file the false tax returns, Floyd applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs so that the defendants could print refund checks.
The defendants cashed the tax refund checks at several businesses located in Alabama, Georgia and Kentucky. Sharondra Johnson worked at the Walmart money center in Columbus, Georgia, and as part of her employment, she cashed checks for customers of the money center. Demeisha Mitchell approached Sharondra Johnson about cashing tax refund checks issued in the names of other individuals. Sharondra Johnson agreed to cash these refund checks and was paid a fee for her role in the scheme.
“Taking advantage of innocent citizens, especially service members and their families, is disgraceful,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS Criminal Investigation is committed to stopping those who would prey on others by stealing their identities. As criminals continue to become more sophisticated, we will continue to work with our law enforcement partners to bring them to justice.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS - CI and the U.S. Army – CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama, for prosecuting the case. Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
-
Newport News Man Convicted of Robbing Lonestar Steakhouse in HamptonRead the Press Release
Steward planned the robbery with his girlfriend
NEWPORT NEWS, Va. – Christopher Steward, 24, of Newport News, Va, was convicted today following a three day jury trial on charges of conspiracy to commit robbery, robbery, and use, carry and brandish a firearm in relation to a crime of violence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the verdict was accepted by U.S. District Judge Arenda Wright Allen.
Steward faces a maximum penalty of twenty years on the conspiracy conviction, twenty years on the robbery conviction, and a mandatory consecutive seven years in prison on the firearm conviction when he is sentenced on July 1, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to court records and evidence at trial, in June, 2014, two masked men entered the Lonestar Steakhouse in Hampton, Virginia armed with firearms. Various employees, as well as the infant child of an off duty employee were in the restaurant at the time. The robbery was planned by Cynthia Presley, a Lonestar employee, and her boyfriend, Christopher Steward. Presley advised Steward by text message as to the timing of the robbery which was passed onto Steward by two unknown conspirators. Presley pled guilty in December, 2014, and testified against Steward at trial. Presley was sentenced on March 10, 2015, to 87 months in prison.
This case was investigated by the Federal Bureau of Investigation, as well as Norfolk and Hampton Police Departments. Assistant U.S. Attorney Brian J. Samuels, and Jennifer Sykes from the Organized Crime and Gang Section of the Justice Department’s Criminal Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR75.
New York Man Indicted for Smuggling Cocaine at AirportRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Edward Adames-Tavares (30, New York) with smuggling cocaine into the United States. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to court documents, on March 6, 2015, Adames-Tavares flew from the Dominican Republic to the Orlando International Airport. Upon going through U.S. Customs inspection, he was selected for a secondary inspection of his luggage. A U.S. Customs and Border Patrol officer found 11 wooden hangers inside Adames-Tavares’ checked luggage. The officer ran the hangers through an x-ray machine, which revealed that something was inside the hangers. Upon further inspection, the officer found a white powdery substance wrapped in plastic. The substance tested positive for cocaine. The remaining hangers were opened and each contained a white powder wrapped in plastic.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Patrol. It will be prosecuted by Assistant United States Attorney Bruce S. Ambrose.
New York Attorney Charged in Multimillion-Dollar Fraud Scheme to Purchase Nationally Circulated MagazineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert J. Sica, the Special Agent-in-Charge of the New York Office of the United States Secret Service, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HARVEY NEWKIRK, formerly counsel at a law firm in Manhattan, was arrested today for participating in a scheme to fraudulently induce lenders to provide millions of dollars to a company associated with a co-conspirator (“CC-1”) for the attempted purchase of a nationally circulated magazine and related assets (the “Magazine”). NEWKIRK surrendered this morning to the Secret Service, and was presented this afternoon in Manhattan federal court before U.S. Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Harvey Newkirk shirked his ethical responsibilities as a lawyer when he participated in a multimillion-dollar fraud scheme, in which deception and misrepresentations were legion, in order to obtain the funds to purchase a national magazine. Fortunately, thanks to our law enforcement partners at the Secret Service and the FBI, Newkirk was apprehended and must now answer for his alleged conduct.”
Secret Service Special Agent-in-Charge Robert Sica said: “The arrest of Harvey Newkirk is another example of the Secret Service's expertise in combating fraud and financial crimes. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Lying to lenders, creating fictitious documents, and purporting to be someone’s attorney are serious crimes. Newkirk’s alleged elaborate fabrications – in a ridiculous attempt to purchase a nationally circulated magazine – have finally been unveiled.”
According to the allegations contained in the Complaint filed today in Manhattan federal court:
From August 2013 to February 2014, in connection with the potential purchase of the Magazine by a media company (the “Media Company”) associated with CC-1, NEWKIRK and CC-1 made a series of misrepresentations to lenders to induce these lenders to provide millions of dollars in capital to the Media Company for the purchase of the Magazine.
As part of the scheme, in order to mislead lenders into believing that they would receive sufficient collateral for their loans, NEWKIRK falsely promised lenders that assets owned by the father of CC-1 (the “Executive”) would be pledged as security for the loans. NEWKIRK made these promises without the authorization or knowledge of the Executive. In one instance, NEWKIRK and CC-1 provided a lender with account statements that purported to show the Executive’s holdings in the stocks of at least three publicly traded companies. NEWKIRK misled the lender into believing that the Executive’s alleged stock holdings in these companies, as reflected in the account statements, would serve as collateral for the loan. In truth, however, the account statements were fake documents and the Executive was not providing any financial support for the purchase of the Magazine.
Furthermore, after one of the lenders (“Lender-2”) placed approximately $5.5 million in escrow at the Manhattan law firm at which NEWKIRK was then counsel (the “Law Firm”), CC-1 arranged for a fraudulent email to be sent that purported to have been from Lender-2 to NEWKIRK. In response to that fraudulent email, NEWKIRK released approximately $4.9 million of Lender-2’s money from the escrow account to fund the Media Company’s purchase of the Magazine. NEWKIRK also attempted to forward $535,000 of Lender-2’s money to a different potential lender, in order to pay a debt owed to that potential lender. NEWKIRK did so without Lender-2’s knowledge or authorization.
Throughout the course of the scheme, NEWKIRK repeatedly lied to lenders regarding his relationship with the Executive, falsely purporting to be the Executive’s attorney despite having met the Executive on only one prior occasion. In addition, NEWKIRK attempted to hide from the Executive the existence of a lawsuit filed by one lender, in which that lender sought to obtain the Executive’s assets that NEWKIRK had pledged to the lender without the Executive’s knowledge. NEWKIRK also falsely represented to another lender, from whom NEWKIRK and CC-1 were seeking $20,000,000 in financing for the Magazine purchase, that approximately $12,000,000, representing funds provided by, or secured by the personal assets of, the Executive for the Magazine purchase, had been placed in escrow at the Law Firm. In fact, no funds were ever held in escrow at the Law Firm in connection with the Magazine purchase, other than the $5.5 million placed in escrow by Lender-2, and subsequently misappropriated by NEWKIRK.
In March 2015, during a consensual interview with law enforcement, NEWKIRK admitted that the Executive had not been NEWKIRK’s client despite NEWKIRK’s multiple representations to the contrary to various lenders throughout the course of the attempted purchase of the Magazine.
On November 4, 2014, CC-1 pled guilty before the Honorable Jed S. Rakoff to, among other things, charges related to CC-1’s participation in the scheme to defraud lenders for the attempted Magazine purchase.
NEWKIRK, 39, of New Rochelle, New York, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison. He is also charged with one count of aggravated identity theft, which carries a mandatory minimum and maximum sentence of two years in prison. 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 investigative work of the United States Secret Service and the FBI.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew C. Adams and Sarah E. Paul are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Harvey Newkirk Complaint
Monroe County Man Charged with Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton indicted a Monroe County man late yesterday on charges of distribution and possession with intent to distribute heroin.
According to United States Attorney Peter Smith, the grand jury alleges that Ronald Walker, age 22, of Tobyhanna, Pennsylvania, distributed and possessed with intent to distribute heroin on four separate occasions in July and August 2014, in Monroe County.
The charges stem from an investigation by special agents of the Drug Enforcement Administration, the Pennsylvania State Police, and the Monroe County Drug Task Force.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Minnesota Man Arrested and Charged for Producing Nude Photos of Seven-year-oldRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging SEAN PENONCELLO, 41, with production of child pornography.1 PENONCELLO was ordered detained pending trial after a hearing today before Magistrate Judge Brisbois in United States District Court in Duluth, Minn.
According to the complaint and documents filed in court, on April 3, 2014, in an unrelated investigation, thousands of images and hundreds of videos depicting child pornography were recovered from two computers at the home of an unrelated defendant in Dayton, Ohio. The images and videos were submitted to the National Center for Missing and Exploited Children (NCMEC) which, in a subsequent report, identified three nude images of an unidentified minor. The NCMEC assigned a name to this series of images for identification in future cases.
According to the complaint and documents filed in court, the photos from this named series were taken on or around September 15, 2012, at a residential address belonging to PENONCELLO. Several images were discovered on PENONCELLO’s iPhone, which included images and videos of a couch that appeared to be an exact match to the couch in the named series depicting the unidentified minor.
According to the complaint and documents filed in court, two minor children and a parent visited PENONCELLO several times at his home, located in a rural area near Cherry, Minn. On September 15, 2012, during a visit to PENONCELLO’S house, the two children were left alone at the house with PENONCELLO. One of those children is the subject of the named NCMEC series referenced above. PANONCELLO is alleged to have taken the sexually explicit photographs.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the St. Louis County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Information:
SEAN PENONCELLO, 41
Iron, Minn.
Charges:
• Production of child pornography, 1 countThe charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican National Charged with KidnappingRead the Press Release
McALLEN, Texas ‐ Martin Margarito-Casimiro, 28, of Camargo, Tamaulipas, Mexico, has been charged with conspiracy to commit kidnapping, kidnapping and being an alien in possession of firearms, announced U.S. Attorney Kenneth Magidson.
Margarito-Casimiro was originally charged in February 2015 on the firearms charge and was remanded to custody pending further criminal proceedings. A federal grand jury in McAllen returned the superceding indictment adding the conspiracy and kidnapping allegations today. He is expected to make his initial appearance before a U.S. magistrate judge on these charges in the near future, at which time the government will again request his continued detention.
The indictment alleges that from Jan. 20 - 22, 2015, Margarito-Casimiro held two individuals against their will in a residence in McAllen. The victims were allegedly bound and forced to call family members and arrange payment for their release.
If convicted of these charges, Margarito-Casimiro could face up to life in prison.
The investigation leading to the charges was conducted by Homeland Security Investigations and McAllen Police Department. Assistant U.S. Attorney Kristen Rees and Leo J. Leo are prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Member of Cherry Hill Group “UDH” Sentenced to over 10 Years in Prison for Conspiracy to Distribute Heroin and Crack CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Demond Pinkney, a/k/a “Cal,” age 30, of Baltimore, today to 121 months in prison, followed by five years of supervised release, for conspiracy to distribute and possesses with the intent to distribute heroin and crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, since the late 1990s Pinkney has been distributing powder cocaine, crack cocaine and heroin in the Cherry Hill area of Baltimore. Pinkney is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in disputes with members and associates of organizations known as “Coppin Court” and “Little Spelman,” that are involved in criminal activity in the part of Cherry Hill known as “Down the Hill.” UDH members and associates committed various crimes to include distribution of drugs, such as crack cocaine, heroin, cocaine and oxycodone. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in their part of Cherry Hill. Some of these acts of violence include the January 22, 2011 murder of Little Spelman member Harry Hicks; the August 28, 2011 murder of Little Spelman member Dewayne Jones; and the January 20, 2012 murder of Little Spelman leader Dominic Hope. Pinkney himself was shot on June 1, 2008, by persons from “Down the Hill,” leaving Pinkney paralyzed. Pinkney continued his association with UDH, renting a stash house in the UDH area and selling narcotics.
In the earlier part of Pinkney’s drug distribution years, he sold crack cocaine with a group of individuals associated with “Down the Hill.” Pinkney later became a member of the UDH group and as a teenager, sold crack and heroin for various UDH leaders. Pinkney was a right-hand man to a UDH drug supplier for a period of time and later worked for a UDH member who supplied Pinkney with crack cocaine and heroin. Throughout the course of Pinkney’s involvement in the UDH drug conspiracy, the conspirators distributed between three and 10 kilograms of heroin and at least 840 grams but less than 2.8 kilograms of crack cocaine.
In addition to distributing narcotics, Pinkney participated in two bank robberies with fellow UDH members. In each robbery, Pinkney wrote the demand note used by the robbers and shared in the proceeds of the robberies.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Massachusetts Doctor and Medical Practice Resolve Allegations Concerning Medically Unnecessary Stress TestsRead the Press Release
BOSTON – A Massachusetts cardiologist and his practice entered into an agreement with the United States yesterday to resolve allegations that they improperly billed Medicare for medically unnecessary stress tests.
Primary Care Specialists, Inc., and Terrence C. Hack, M.D. agreed to pay $24,000 to resolve the government’s claim that Dr. Hack and Primary Care Specialists improperly billed Medicare for medically unnecessary myocardial perfusion studies, also known as nuclear stress tests, in violation of the False Claims Act. Performing these unnecessary stress tests results in patients’ needless exposure to radiation as well as wasting Medicare dollars. Dr. Hack is a cardiologist licensed in Massachusetts, and Primary Care Specialists, Inc. is his Ayer, Mass. practice. In agreeing to settle this claim, Dr. Hack has not admitted liability.
“We protect the integrity of Medicare by scrutinizing billing practices that burden the Medicare fund, such as when reimbursement is sought for medically unnecessary tests,” said United States Attorney Carmen M. Ortiz. “We take every opportunity to investigate, eliminate, and deter waste and fraud in this vital government program.”
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General. It was handled by Assistant U.S. Attorneys Sonya A. Rao and Rosemary Connolly, Chief of Ortiz’s Civil Division.
Man Sentenced in Federal Court for Domestic Violence Assault on the Warm Springs Indian ReservationRead the Press Release
PORTLAND, Ore. – William Clements, Sr., 44, of the Warm Springs Indian Reservation, was sentenced today to 21 months in federal prison by U.S. District Judge Michael W. Mosman. In November 2014, Clements pled guilty to the felony offense of assault resulting in serious bodily injury. Clements has remained in the custody of the U.S. Marshals Service since his arrest in May of 2014.
“The epidemic of domestic violence in Tribal Nations must stop,” stated Acting U.S. Attorney Billy J. Williams. “Mr. Clements’ crime caused serious and dangerous injuries to his wife. But we know that domestic violence also negatively impacts children, families, and the entire community.”
After Clements has completed his 21 months in prison, he must serve three years of federal supervised release. While on supervised release, Clements will be required to attend drug and alcohol rehabilitation, participate in mental health treatment, and successfully complete a domestic violence counseling program.
According to the public filings in the case, on May 16, 2014, Clements intentionally assaulted his wife, causing her to suffer serious physical injuries. The investigation began when the Warm Springs Police Department responded to a report of domestic violence. The police found the victim at home, and she described how Clements had slammed her into the ground and repeatedly hit her. The victim suffered bruising and lacerations from the assault, and she was transported to the St. Charles Medical Center in Madras for treatment. Clements had fled the scene before the police arrived, but he was arrested the following week. During an interview with the police, Clements admitted to hitting the victim with his fists and elbows, and kicking her with his feet. Clements also confessed to pulling the victim by her hair.
Prior to imposing his sentence, Judge Mosman addressed Clements. “I think a man beating his wife is a terrible thing,” said Judge Mosman. “So I take that crime very seriously.”
The case was investigated by the Warm Springs Police Department and FBI Special Agents in Bend. Assistant U.S. Attorney Craig J. Gabriel prosecuted the case.