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Wednesday 1 April 2015
Bradenton Man Convicted for Illegal Reentry After DeportationRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Leonel Hernandez-Lopez (36, Bradenton), a/k/a Jose Luis Carbajal, guilty of illegal re-entry after deportation. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for June 18, 2015. Hernandez-Lopez was indicted on September 5, 2013.
According to evidence presented at trial, on December 12, 2002, Hernandez-Lopez was deported from the United States to Mexico. On August 16, 2013, U.S. Immigration and Customs Enforcement agents found him in Bradenton. Hernandez-Lopez had not requested permission to re-enter the United States after his deportation.
This case was investigated by U.S. Immigration and Customs Enforcement’s Customs Investigative Service and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Michael V. Leeman.
Aredale Woman Sentenced to Federal PrisonRead the Press Release
A woman who committed perjury while testifying in federal proceedings was sentenced on March 31, 2015 to six months in federal prison.
Ashley Tufte, 29, from Aredale, Iowa, received the prison term after a January 9, 2015, guilty plea to one count of perjury.
In a plea agreement, Tufte admitted she lied while testifying before a federal grand jury.
Tufte was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Tufte was sentenced to 6 months’ imprisonment and fined $1,000. A special assessment of $100 was imposed. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Tufte was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by the Drug Enforcement Agency (DEA).
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-131.
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Adams County Man Pleads Guilty to Making False Claims to IRSRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mitchell Orewiler, age 34, of Adams County, pleaded guilty today before U.S. District Court Judge Sylvia Rambo in Harrisburg, to making false claims with the Internal Revenue Service (IRS).
According to United States Attorney Peter Smith, on or about April 14, 2009, Orewiler filed a 2007 tax return in which he falsely claimed federal income tax had been withheld on interest he had earned. In his 2007 tax return, Orewiler requested a refund of approximately $288,000 to which he knew he was not entitled. The IRS sent Orewiler the $288,000 refund.
Orewiler was indicted by a federal grand jury in March 2014, as a result of an investigation by the IRS. Edward Wirth, Internal Revenue Service, Criminal Investigation, Assistant Special Agent in Charge, said “As we rapidly approach the April 15th filing deadline, it is important for the public to note the ramifications of filing false and fictitious federal income tax returns. The Internal Revenue Service, Criminal Investigation and the United States Attorney’s office are committed to aggressively pursuing those who attempt to enrich themselves at the expense of the American public.”The government also filed a plea agreement in the case, which is subject to approval by the court. Assistant U.S. Attorney Joseph J. Terz 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 5 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Tuesday 31 March 2015
Wheeling man to serve one year in prison for selling crack cocaineRead the Press Release
WHEELING, WEST VIRGINIA – William “B.J.” Farmer, 39, of Wheeling, was sentenced today to 12 months in prison for distributing crack cocaine in Ohio County, West Virginia in June 2014, United States Attorney William J. Ihlenfeld, II, announced.
Farmer admitted to the cocaine trafficking allegation when he pled guilty in February 2015 to a criminal Information charging him with one count of “Distribution of Cocaine Base” following an investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative.
The twelve month sentence imposed today will run consecutively to an eighteen month sentence imposed in February 2015 after Farmer violated a previously imposed period of supervised release.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presid
Vivian man, Texan plead guilty to cocaine and methamphetamine chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Vivian man and a Texan pleaded guilty to cocaine conspiracy and methamphetamine distribution charges in Caddo and Bossier parishes.
Eugene O’Neal Cross, 39, of Marshall, Texas, pleaded guilty to one count of distribution of methamphetamine, and Anthony D. Jackson, 24, of Vivian, La., pleaded guilty to one count of conspiracy to distribute cocaine. United States District Judge Donald E. Walter presided over the hearing. According to evidence presented at the guilty plea, from February 21, 2014 until July 26, 2014, Jackson conspired to possess and distribute more than 500 grams of cocaine. Cross admitted to distributing more than 50 grams of methamphetamine on January 21, 2014. Using surveillance and controlled buys, agents recorded the defendants at various times possessing, distributing and/or planning to distribute drugs in Caddo and Bossier parishes.
Cross faces 10 years to life in prison, five years of supervised release, and a $10 million fine for the methamphetamine charge. Jackson faces five to 40 years in prison, four years of supervised release and a $5 million fine. A sentencing date of July 9, 2015 was set.
The defendants were arrested as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Cross the Line. The DEA and the Caddo-Shreveport Narcotics Task Force investigated the case. The OCDETF program is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations, coordinating the necessary law enforcement entities and resources, and disrupting and dismantling of major drug trafficking organizations.
Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Union City, New Jersey, Inspector Admits Conspiring to Rig Contractor Selection Process for Community Development ProjectsRead the Press Release
NEWARK, N.J. – An inspector at the Union City Community Development Agency (UCCDA) today admitted conspiring with contractors to rig the selection process for home improvement, sidewalk replacement and other projects, causing losses of at least $400,000, U.S. Attorney Paul J. Fishman announced.
Johnny Garces, 52, of Union City, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of conspiring with others to obtain by fraud funds provided by Union City.
According to documents in this case and statements made in court:
Between April 2007 and July 2011, Garces was an inspector at the UCCDA, a government agency that receives funding from the U.S. Department of Housing and Urban Development (HUD) under a federal block grant that provides money for home improvement projects, sidewalk replacement and other projects.
From 2007 through 2011, Garces conspired with contractors Joseph Lado, 66, of Fort Lee, New Jersey, Leovaldo Fundora, 53 of Guttenberg, New Jersey, and others to rig the selection process for HUD-funded projects through false and misleading bids. In addition to instructing Lado and Fundora to submit phony, higher bids from competitors, Garces also fabricated higher bids from numerous fictitious companies so that Lado, Fundora and others would secure the projects.
The conspiracy charge to which Garces pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Garces is scheduled to be sentenced on July 7, 2015. Lado and Fundora have both pleaded guilty for their roles in the scheme and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Two Plead Guilty in Scheme to Distribute Synthetic MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two defendants have pleaded guilty in federal court to crimes related to the distribution of thousands of kilograms of synthetic marijuana, commonly referred to as K2.
Sharon Elizabeth Harrington, 27, of Bunceton, Mo., and Chadwick James Schlicht, 44, of Osage Beach, Mo., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, March 31, 2015.
Harrington pleaded guilty to participating in a mail fraud conspiracy in Boone County, Mo., from March 2011, to December 2013. Harrington, who was the manager and ran the day-to-day operations of Impulse Market, LLC, was responsible for overseeing the manufacturing process for what was falsely labeled as “incense” or “potpourri” and was labeled “not for human consumption.” Harrington admitted that this “incense” or “potpourri” was actually synthetic cannabinoids mixed with acetone then sprayed onto a plant-like material. These substances, which were mailed or delivered by commercial carrier, were intended for human consumption as a drug in order to obtain a physiological effect of a high. Harrington admitted that she conspired to defraud the Food and Drug Administration and the public by mailing products that were misbranded and bore false and misleading labeling.
Based upon the invoices, bank records, and products seized by law enforcement, Harrington (through her employment with Impulse Market), oversaw the manufacture, sale and distribution of synthetic cannabinoid products, which were produced from approximately 167 kilograms of synthetic cannabinoids obtained from China. Harrington admitted that she sold, in aggregate, multiple kilogram quantities of synthetic cannabinoid products.
In one example cited in the plea agreement, Harrington mailed a parcel of synthetic marijuana to a business in Oklahoma on May 6, 2013. In return for the products, Impulse Market was paid $89,458.
Schlicht pleaded guilty to participating in a conspiracy to distribute a controlled substance.
Schlicht admitted that items seized from his residence by Missouri State Highway Patrol troopers were intended for the manufacture of synthetic marijuana. State troopers executed a search warrant at Schlicht’s residence on Oct. 27, 2012. They seized $1,840, three firearms, numerous packages of synthetic marijuana, and numerous materials related to the manufacture of synthetic marijuana (including packaging materials, bulk amounts of plant-like materials, labels, cans of acetone and two bags containing a total of more than 1.4 kilograms of synthetic powder that is a controlled substance analogue.
Under federal statutes, Harrington and Schlicht are each subject to a sentence of up to 20 years in federal prison without parole. 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 Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
Two New Jersey Doctors Sentenced to Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Two New Jersey doctors were each sentenced today to prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Wayne Lajewski, 51, of Madison, New Jersey and Glenn Leslie, 60, of Ramsey, New Jersey, were sentenced to 14 months and 24 months in prison, respectively. Lajewski and Leslie previously pleaded guilty before U.S. District Judge Stanley R. Chesler to separate informations charging them each with one count of accepting bribes. Judge Chesler imposed the sentences today in Newark federal court.
Including Lajewski and Leslie, 37 people – 24 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.
According to documents filed in this and other cases and statements made in court:
Lajewski admitted he accepted cash bribes of $2,000 per month over two years in return for referring patient blood specimens to BLS, for which BLS received more than $850,000. Leslie admitted accepting $5,000 per month in return for referring patient blood specimens to BLS, for which BLS received $380,000.
In addition to the prison term, Judge Chesler sentenced both Lajewski and Leslie to one year of supervised release and fined them $10,000 each. As part of their guilty pleas, Lajewski must forfeit $48,000 and Leslie must forfeit $350,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS– Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
Lajewski: Thomas Calcagni Esq., Newark
Leslie: Michael J. Beatrice Esq., Mahwah, New Jersey
Two More Defendants from Georgia Plead Guilty in Credit Card Fraud SchemeRead the Press Release
BOISE – Clarence Collins, 34, of Douglasville, Georgia, and Mikki Williams, 24, of Atlanta, Georgia, each pleaded guilty today in United States District Court for their roles in a credit card fraud scheme that targeted local retailers in October of 2014, U.S. Attorney Wendy J. Olson announced. They were indicted by a federal grand jury on November 13, 2014.
Collins pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. According to the plea agreement, Collins traveled to Idaho, along with his co-defendants, for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded onto stock debit cards. Collins admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores on October 5, 2014. In all, Collins admitted to traveling to five separate retail stores, and making eight total purchases, using five different credit card numbers that he was not authorized to use. Upon his arrest, Collins was found in possession of seven debit cards encoded with unauthorized credit card numbers. Sentencing is set for June 17, 2015, before Chief U.S. District Judge B. Lynn Winmill.
Conspiracy to commit wire fraud is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not more than three years, and a $100 special assessment. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100. As part of his plea, Collins also agreed to forfeit $49,953.41 in cash proceeds of the charged offenses.
Williams pleaded guilty to misprision of a felony. According to the plea agreement, Williams admitted knowing that her co-defendants were engaged in a conspiracy to commit wire fraud by using stolen credit card numbers encoded onto Vanilla debit cards. Williams admitted receiving Visa debit cards that were the proceeds of the fraud scheme. Upon her arrest, she was found in possession of eight pre-paid debit cards that were the proceeds of fraud. Williams admitted that, despite her knowledge of the fraud scheme, she did not report the offense to the authorities, but rather provided false information about her knowledge of the offense and the source of the fraud proceeds, and concealed the proceeds of the fraud.
Misprision of a felony is punishable by up to three years imprisonment, a fine of up to $250,000, up to one year of supervised release, and a $100 special assessment. Sentencing is scheduled for June 16, 2015, before Chief U.S. District Judge B. Lynn Winmill.
Collins and Williams were indicted, along with Rakeen Anderson, 31, of Atlanta, Georgia; Kyandre Banks, 34, of Lilburn, Georgia; Terrance Barimah, 26, of Floranceville, Georgia; Jean Estinville, 26, of Lawrenceville, Georgia; Rashine Kale, 38, of Lawrenceville, Georgia; Charles Moore, 25, of Stone Mountain, Georgia; Jonathan Penn, 20, of Suwanee, Georgia; and Brian Treadwell, 25, of Buford, Georgia, on charges relating to a wire fraud and identity theft scheme. Banks, Estinville, Kale, Moore, Penn, and Treadwell were each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson was charged with conspiracy to commit wire fraud and wire fraud. Barimah was charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
Co-defendant Brian Treadwell is scheduled for sentencing before Chief U.S. District Judge B. Lynn Winmill on June 16, 2015. Co-defendant Jonathan Penn is scheduled for a change of plea hearing before Chief U.S. Magistrate Candy W. Dale on April 23, 2015. Co-Defendant Rakeen Anderson is pending a change of plea hearing to be scheduled. Co-Defendants Barimah, Estinville, Kale, and Moore are currently scheduled for a jury trial on April 27, 2015. Co-defendant Kyandre Banks remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
Two Former Cay Clubs Executives Sentenced to Prison Terms in Connection with Fraud Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Two South Florida residents were sentenced to 60 months imprisonment, followed by three years of supervised release, by United States District Judge Jose E. Martinez, for their involvement in a fraud scheme involving vacation rental units.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
According to court documents and statements made in court, Barry J. Graham, 59, and Ricky Lynn Stokes, 54, both of Ft. Myers, Florida, participated in a $300 million Ponzi scheme involving the sale of Cay Clubs Resorts and Marinas (Cay Clubs) vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere. The Cay Clubs business operated from 2004 through 2008, out of offices in the Florida Keys and Clearwater, Florida. Graham was the Director of Sales for Cay Clubs from 2004 through late 2007. From September 2005 to 2008, Stokes was one of Cay Clubs’ highest-producing sales agents and was Cay Clubs’ Director of Investor Relations.
Cay Clubs marketed vacation rental units, in seventeen locations throughout Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs promised to develop dilapidated properties into luxury resorts. They also promised investors an upfront “leaseback” payment of 15 to 20% of the unit’s sales price, at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs arranged for a real estate closing and lender financing. Clay Clubs would not disclose the leaseback payment and other financial inducements to the borrowers, on paperwork submitted to lending institutions.
Graham and Stokes conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales. Graham, Stokes and other insiders purchased units from Cay Clubs without disclosing their affiliation with Cay Clubs. Thereafter, these insider sale prices were used on marketing materials to make it appear to investors that the Cay Clubs units were rapidly increasing in price. Stokes, Graham, and others created and distributed marketing materials that contained false and misleading statements in order to induce investors to purchase units. Furthermore, as Cay Clubs experienced financial difficulties, Graham, Stokes and others conspired to fraudulently market the Cay Clubs investment to new investors by making false and misleading statements, including by concealing Cay Clubs’ failure to convert dilapidated properties into luxury resorts.
During the course of the fraud scheme, Graham and Stokes received approximately $6.5 and $6.2 million, respectively, in real estate commissions or referral fees from Cay Clubs’ affiliated accounts.
On September 16, 2014, co-conspirators Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, both formerly from Monroe County, were charged by Superseding Indictment with conspiracy to commit bank fraud and substantive counts of bank fraud, in connection with their alleged participation in the Cay Clubs Ponzi scheme. Dave Clark and Cristal Clark are scheduled for trial before United States District Judge Jose E. Martinez, in Miami, on June 1, 2015.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Thomas A. Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tribal Member Sentenced for Robbery on Coeur d'Alene ReservationRead the Press Release
COEUR D'ALENE - David Ray Crowe, Sr., 46, of Worley, Idaho, was sentenced today to 84 months in prison followed by three years of supervised release for robbery of a smoke shop on the Coeur d’Alene Reservation, U.S. Attorney Wendy J. Olson announced. During the term of supervised release, Crowe will have to submit to searches of his person, home and automobile, he will have to refrain from bars and alcohol consumption, and submit to drug testing up to five times per month. U.S. District Judge Edward J. Lodge also ordered Crowe to pay restitution in the amount of $20,348.44 to the store and victim. Crowe pleaded guilty to the charge on November 20, 2014.
According to the plea agreement, Crowe admitted that on January 3, 2014, he went into the Stubby Lake Smoke Shop in the early morning hours and threatened an employee with a knife. He demanded money, her car keys and told the employee not to scream or he would kill her. Crowe took cash, cartons of cigarettes, a laptop computer and the employee’s 2012 Subaru Forester. The United States prosecuted the case because the events occurred within the boundaries of the Coeur d’Alene Indian Reservation and Crowe is an enrolled tribal member.
“I commend the collaborative efforts of the tribal and federal law enforcement officers,” said Olson. “My office will continue to vigorously prosecute violent crimes in Indian Country and work with the tribal authorities to make the reservations safer places to live and work.”
The case was investigated by Coeur d’Alene Tribal Police and Federal Bureau of Investigation.
Texas Company Charged with Violations of the Federal Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GARCIA SHRIMP CO., LLC, a Texas Limited Liability Company headquartered in Brownsville, Texas, was charged today in a one-count Bill of Information for falsely labeling shrimp that it sold to a New Orleans seafood distributor in violation the Federal Lacey Act.
According to the Bill of Information, on or about October 9, 2012, GARCIA SHRIMP purchased 35,000 pounds of Mexican shrimp from Mexican businessmen. After taking receipt of the shrimp, company personnel removed Mexico labels from the packages and attached new tags indicating that the shrimp was caught in U.S. waters. Company personnel also created false records and bills of lading to make it appear that the shrimp was caught by a U.S. flagged fishing vessel. On or about October 12, 2012, GARCIA SHRIMP sold the shrimp to a New Orleans based seafood distributor for $120,800.
If convicted, GARCIA SHRIMP CO., LLC faces a maximum fine of $500,000 and an organizational probationary term of five years.
U. S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S Department of Commerce NOAA Office of Law Enforcement, in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis and Department of Justice Trial Attorney Christopher L. Hale with the Environmental Crimes Section in Washington D.C. are in charge of the prosecution.
Tahlequah Man Sentenced to 60 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that NATHANQUE LANORT SAVAGE, a/k/a Nathan Lenard Savage, a/k/a Nathan Leonard Savage, age 39, of Tahlequah, Oklahoma, was sentenced to 60 months imprisonment, followed by 5 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. SAVAGE was Indicted and pled guilty in October, 2014.
The Indictment alleged that on or about October 29, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm and ammunition, to-wit: a Black .380 Bryco, model Bryco 38 Semi-Automatic handgun and two rounds of .380 caliber ammunition marked CBC, one round of .380 caliber ammunition marked Federal, one round of .380 caliber ammunition marked PMC, one round of .380 caliber ammunition marked WIN, which had been previously shipped and transported in interstate commerce.
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. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Swiss Asset Manager Pleads Guilty in Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax ReturnsRead the Press Release
A Swiss citizen and former asset manager at a Swiss asset management firm pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the Internal Revenue Service (IRS), and to evade U.S. taxes on the income earned in those accounts, the Justice Department announced.
Peter Amrein, 53, a Swiss citizen, pleaded guilty before U.S. District Judge Sidney H. Stein of the Southern District of New York pursuant to a plea agreement to one count of conspiracy to defraud the IRS, to evade federal income taxes and to file false federal income tax returns. Amrein faces a maximum sentence of five years in prison at his July 1 sentencing before Judge Stein.
“Peter Amrein’s guilty plea today is another example of individuals being held culpable, in addition to institutions, for their criminal violations of U.S. tax laws,” said U.S. Attorney Preet Bharara of the Southern District of New York. “Regardless of the elaborate scheme you might employ, we will use all of our investigative powers to ensure that all citizens pay their fair share, and that those who assist them in evading our laws are also held responsible.”
According to the allegations in the superseding Information and the prior indictment, as well as statements made during the plea proceeding and other documents filed in federal court in Manhattan, New York:
Amrein worked as a client advisor at a Swiss bank (Swiss Bank No. 3) and, later, as an asset manager at a Swiss asset management firm (the Swiss Asset Management Firm). In those roles, between 1998 and 2012, Amrein helped U.S. taxpayers evade taxes and hide millions of dollars in undeclared accounts at various Swiss banks, including Wegelin & Co., which was charged and pleaded guilty in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes. Amrein, among other things, worked with an attorney based in Zurich, to establish sham foundations, which were organized under the laws of non-U.S. countries such as Liechtenstein, so that the undeclared assets of certain of Amrein’s U.S. taxpayer-clients could be maintained in the names of these foreign foundations rather than in the clients’ own names. Amrein did so in order to help his clients conceal their ownership of these undeclared accounts from the IRS.
In 2008, it became publicly known that UBS AG (UBS) was being investigated by U.S. law enforcement for helping U.S. taxpayers maintain undeclared accounts in Switzerland. Because of the investigation of UBS, one of the Swiss banks where Amrein had opened undeclared accounts for U.S. taxpayers (Swiss Bank No. 4) informed Amrein that it was going to close these undeclared accounts. In order to assist his clients in continuing to maintain undeclared accounts, Amrein searched for other banks in Switzerland that, despite the public investigation of UBS, were still willing to open undeclared accounts for U.S. taxpayers. Amrein found such a bank (Swiss Bank No. 1). Thereafter, Amrein opened undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 1 in the name of sham foundations, and transferred the clients’ undeclared assets from Swiss Bank No. 4 to these accounts at Swiss Bank No. 1.
For some of these clients, Amrein, with the assistance of others, helped send funds back to the United States and to other foreign jurisdictions in ways that were designed to ensure that U.S. authorities would not discover the existence of the clients’ undeclared accounts. For instance, Amrein instructed a client advisor at Swiss Bank No. 1 (the Swiss Bank No. 1 Client Advisor) to empty one of the accounts by sending checks in amounts smaller than $9,900 to the beneficial owner of the account, i.e., the U.S. taxpayer. On another occasion, Amrein instructed the Swiss Bank No. 1 Client Advisor to transfer the balance of one of the accounts, which was then valued at more than $2.4 million, to another account controlled by the U.S. taxpayer in Belize City, Belize. Moreover, as late as 2011, Amrein continued to look for other Swiss banks that were still willing to open undeclared accounts for U.S. taxpayers. For example, in June 2011, Amrein met with a client advisor at a Swiss bank (Swiss Bank No. 2), to discuss opening undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 2.
Mr. Bharara praised the outstanding investigative work of the IRS-Criminal Investigations. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul, Jason H. Cowley, and Daniel B. Tehrani are in charge of the prosecution.
Swiss Asset Manager Pleads Guilty in Manhattan Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax ReturnsRead the Press Release
Preet Bharara, the U.S. Attorney for the Southern District of New York, announced today that PETER AMREIN, a Swiss citizen and former asset manager at a Swiss asset management firm, pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the Internal Revenue Service (IRS), and to evade U.S. taxes on the income earned in those accounts. AMREIN pleaded guilty before U.S. District Judge Sidney H. Stein.
U.S. Attorney Preet Bharara said: “Peter Amrein’s guilty plea today is another example of individuals being held culpable, in addition to institutions, for their criminal violations of U.S. tax laws. Regardless of the elaborate scheme you might employ, we will use all of our investigative powers to ensure that all citizens pay their fair share, and that those who assist them in evading our laws are also held responsible.”
According to the allegations in the Superseding Information and the prior Indictment, as well as statements made during the plea proceeding and other documents filed in Manhattan federal court:
AMREIN worked as a client advisor at a Swiss bank (Swiss Bank No. 3) and, later, as an asset manager at a Swiss asset management firm (the Swiss Asset Management Firm). In those roles, between 1998 and 2012, AMREIN helped U.S. taxpayers evade taxes and hide millions of dollars in undeclared accounts at various Swiss banks, including Wegelin & Co., which was charged and pleaded guilty in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes. AMREIN, among other things, worked with an attorney based in Zurich, Switzerland, to establish sham foundations, which were organized under the laws of non-U.S. countries such as Liechtenstein, so that the undeclared assets of certain of AMREIN’s U.S. taxpayer-clients could be maintained in the names of these foreign foundations rather than in the clients’ own names. AMREIN did so in order to help his clients conceal their ownership of these undeclared accounts from the IRS.
In 2008, it became publicly known that UBS AG (UBS) was being investigated by United States law enforcement for helping U.S. taxpayers maintain undeclared accounts in Switzerland. Because of the investigation of UBS, one of the Swiss banks where AMREIN had opened undeclared accounts for U.S. taxpayers (Swiss Bank No. 4) informed AMREIN that it was going to close these undeclared accounts. In order to assist his clients in continuing to maintain undeclared accounts, AMREIN searched for other banks in Switzerland that, despite the public investigation of UBS, were still willing to open undeclared accounts for U.S. taxpayers. AMREIN found such a bank (Swiss Bank No. 1). Thereafter, AMREIN opened undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 1 in the name of sham foundations, and transferred the clients’ undeclared assets from Swiss Bank No. 4 to these accounts at Swiss Bank No. 1.
For some of these clients, AMREIN, with the assistance of others, helped send funds back to the United States and to other foreign jurisdictions in ways that were designed to ensure that U.S. authorities would not discover the existence of the clients’ undeclared accounts. For instance, AMREIN instructed a client advisor at Swiss Bank No. 1 (the Swiss Bank No. 1 Client Advisor) to empty one of the accounts by sending checks in amounts smaller than $9,900 to the beneficial owner of the account, i.e., the U.S. taxpayer. On another occasion, AMREIN instructed the Swiss Bank No. 1 Client Advisor to transfer the balance of one of the accounts, which was then valued at more than $2.4 million, to another account controlled by the U.S. taxpayer in Belize City, Belize. Moreover, as late as 2011, AMREIN continued to look for other Swiss banks that were still willing to open undeclared accounts for U.S. taxpayers. For example, in June 2011, AMREIN met with a client advisor at a Swiss bank (Swiss Bank No. 2), to discuss opening undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 2.
Mr. Bharara praised the outstanding investigative work of the IRS-Criminal Investigations. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
AMREIN, 53, a Swiss citizen, pleaded guilty pursuant to a plea agreement to one count of conspiracy to defraud the IRS, to evade federal income taxes, and to file false federal income tax returns. AMREIN faces a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. AMREIN is scheduled to be sentenced before Judge Stein on July 1, 2015.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul, Jason H. Cowley, and Daniel B. Tehrani are in charge of the prosecution.
Sun City Pediatrician Sentenced to 14 Years for Distributing Child PornographyRead the Press Release
PHOENIX– On March 30, 2015, Emilio Luna, 44, of Sun City, Ariz., was sentenced by U.S. District Judge David G. Campbell to 14 years in federal prison, to be followed by a lifetime term of supervised release. Luna previously pleaded guilty on two counts of distribution of child pornography during a time when he was a practicing pediatrician. Luna is also required to register as a sex offender and prohibited from working as a pediatrician.
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 United States 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.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Melissa Karlen and Sharon Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-10-1305-PHX-DGC
RELEASE NUMBER: 2015-027_Luna
Shreveport man sentenced to more than 8 years in prison for firearms chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 105 months in prison for possessing firearms and ammunition after being convicted of multiple felonies.
Donzell Joseph Samuels Jr., 36, of Shreveport, was sentenced by U.S. District Judge Donald E. Walter on one count of possessing a firearm and ammunition after being convicted of a felony. He was also ordered to serve three years of supervised release. According to evidence presented at the December 15, 2014 guilty plea, Samuels was on probation when law enforcement received information that he had a firearm at his residence. The Caddo Parish Sheriff’s Office contacted Samuels at home in October of 2013 and found him in possession of a .380 caliber pistol, a .357 caliber revolver, two 9 mm pistols, and a 16 gauge shotgun. They also found ammunition with each firearm, an additional 16 rounds of 9 mm ammunition in an extended magazine, and .22 caliber ammunition.
Samuels has three prior felony convictions in the First Judicial District Court for Caddo Parish. In 2008 he was convicted of possession of a Schedule II controlled substance, cocaine, and was sentenced to three and a half years at hard labor. In 2001 he was convicted of accessory after the fact – manslaughter and criminal conspiracy to commit a simple burglary, and was sentenced to four years at hard labor. In 2000 he was convicted of simple burglary and was sentenced to two years at hard labor, suspended with one year of supervised probation.
The ATF and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of the Project Safe Neighborhoods Program, which is a Department of Justice initiative designed to prosecute those who are prohibited from possessing firearms and those who use firearms to commit violent crimes.
Second EZ Mart Shooter Pleads GuiltyRead the Press Release
Second Shooter From Southside Richmond Convenience Store Convicted of Illegally Possessing a Firearm and Drug Trafficking
RICHMOND, Va. – William Bell, 30, of Richmond, Virginia, pleaded guilty today to possession of a firearm by a convicted felon in connection with a June 12, 2014 shootout at the EZ Mart convenience store and to possession with the intent to distribute cocaine base related to a September 22, 2014, vehicular pursuit with the Virginia State Police.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck.
A federal grand jury indicted Bell on February 3, 2015. He faces maximum sentences of 10 years in prison on the firearm charge and 20 years on the drug charge when he is sentenced on June 29, 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.
In a statement of facts filed with his plea agreement, Bell admitted that on June 12, 2014, a masked gunman later identified as DeAndre Yellardy fired multiple shots into a vehicle occupied by Bell in the parking lot of the South Richmond EZ Mart convenience store. Both Bell and his passenger were wounded. Bell returned fire with a .40 caliber pistol, but failed to hit Yellardy. Bell also admitted in his statement of facts that on September 22, 2014, he refused to stop for a Virginia State Police Trooper in Richmond related to a traffic offense. During the ensuing pursuit, Bell threw the .40 caliber pistol and approximately 13 grams of cocaine base from his vehicle. The firearm and cocaine were later recovered. Shell casings from the EZ Mart shooting scene were later matched to the gun recovered from Bell. At the time of both incidents, Bell was a convicted felon, and, as a result, was prohibited from possessing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearm, and Explosives, the Virginia State Police, and the Richmond Police Department. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-20.
Sandpoint Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE - Brent Anthony Stevens, 31, of Sandpoint, Idaho, pleaded guilty today in federal court to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Stevens was indicted by a federal grand jury in Coeur d'Alene on August 19, 2014.
According to the plea agreement, between July 22, 2013, and September 12, 2013, investigators with the Idaho Internet Crimes Against Children Task Force (ICAC) observed that a computer in Sandpoint, Idaho, was making sexually explicit images of minors available on the internet. ICAC investigators were able to determine that the images were being shared from a computer at Stevens’ residence and obtained a search warrant.
Stevens was present during the search warrant’s execution. He admitted to downloading child pornography and told investigators they would find it on his computer. A computer forensic examiner later found child pornography on a computer and a thumb-drive seized from Stevens. The National Center for Missing and Exploited Children determined that Stevens’ child pornography collection included images of minors from multiple states, including Washington, Colorado, California, and Utah, as well as several foreign countries.
The charge of possession of sexually explicit images of minors is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to lifetime supervised release.
Sentencing is set for July 21, 2015, before United States District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated through the collaborative effort of the Kootenai County Prosecutor’s Office, Bonner County Sheriff’s Office, Coeur d’Alene Police Department, Idaho Attorney General’s Office, United States Secret Service, Federal Bureau of Investigation, U.S. Marshals Service, and the U.S. Department of Homeland Security. These agencies participate in the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icactaskforce.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Robert Bosch GmbH Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
Robert Bosch GmbH, the world’s largest independent parts supplier to the automotive industry, based in Gerlingen, Germany, has agreed to plead guilty and to pay a $57.8 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, oxygen sensors and starter motors sold to automobile and internal combustion engine manufacturers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court of the Eastern District of Michigan, Bosch conspired to allocate the supply of, rig bids for, and to fix, stabilize and maintain the prices of, spark plugs and oxygen sensors sold to automobile and internal combustion engine manufacturers such as DaimlerChrysler AG, Ford Motor Company, General Motors Company and Andreas Stihl AG & Co., among others, in the United States and elsewhere. Bosch’s involvement in the conspiracy lasted from at least as early as January 2000 until at least July 2011. Bosch is also charged with participating in a conspiracy to allocate the supply of, rig bids for, and to fix, stabilize and maintain the prices of, starter motors sold to Volkswagen AG and certain of its subsidiaries in the United States from at least as early as January 2009 until at least June 2010. Bosch has agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“The participants in this conspiracy were not located in just one country or region of the world,” said Deputy Assistant Attorney General Brent Snyder of the Antitrust Division’s Criminal Enforcement Program. “Collusion related to automotive parts was global in nature as are our efforts to hold responsible companies and individuals accountable for the resulting harm to U.S. consumers and businesses.”
According to the charge, Bosch and others participating in the scheme conspired through meetings and conversations in which they discussed and agreed upon bids and price quotations on bids to be submitted to certain automobile and internal combustion engine manufacturers and to allocate the supply of the products to those manufacturers. Bosch, which manufactures and sells numerous automotive and internal combustion engine parts, sold spark plugs, oxygen sensors and starter motors at non-competitive prices to customers in the United States and elsewhere in furtherance of the agreement.
A spark plug is an internal combustion engine component for delivering high electric voltage from the ignition system to the combustion chamber. Oxygen sensors are located in the exhaust system and measure the amount of oxygen in the exhaust. Starter motors are small electric motors used in starting internal combustion engines.
The charge against Bosch is the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry. Bosch is the third European-based company charged in this investigation.
Including Bosch, 34 companies and 29 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of nearly $2.5 billion in criminal fines.
Bosch is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office with the assistance of the FBI Headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Bosch Information
Republic Man Pleads Guilty to Stealing Guns from Pawn ShopRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man pleaded guilty in federal court today to stealing 21 handguns from an Ozark, Mo., pawn shop.
Michael Cameron Heston, 26, of Republic, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to aiding and abetting in the theft of a firearm from a licensed firearm dealer.
Co-defendant Daryl Bradley Maples, 28, of Springfield, Mo., has pleaded guilty to the same charge. Heston and Maples admitted that they broke into Sutton Gun and Pawn, 3994 N. 20th St., Ozark, by breaking out the glass front door on Dec. 21, 2012. They stole 21 handguns and various amounts of ammunition. They then went to Maples’s residence, where they divided the spoils of the burglary and made plans to trade the stolen firearms for cash or drugs.
When Maples was arrested on Dec. 26, 2012, he had in his possession two of the firearms that were stolen in the pawn shop burglary, an F.N. 9mm pistol and a Colt .38-caliber revolver, as well as assorted ammunition.
Under federal statutes, Heston and Maples are each subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.
Prominent Businessman for Private Consulting Group Sentenced to Federal Prison After Bilking Elderly Victim of $1.1 MillionRead the Press Release
PORTLAND, Ore. – Robert L. Keys, 65, an Oregon resident, was sentenced today by U.S. District Judge Marco Hernandez to serve 70 months in prison, after pleading guilty to wire fraud, money laundering, and bankruptcy fraud. Keys was also ordered to serve three years supervised release, and he must pay restitution in the amount of $1.1 million. Keys was a prominent businessman who ran a company called Private Consulting Group, which at one time had assets of $400 million and managed investments for high net worth individuals around the country.
“People who prey upon our elderly citizens in this manner will be held accountable and are deserving of a lengthy prison sentence,” stated Acting U.S. Attorney Billy Williams. “This office is committed to prosecuting individuals for conduct that destroys the trust necessary for safe investments.”
Keys pled guilty to two counts of wire fraud, two counts of money laundering, and one count of bankruptcy fraud at his change of plea hearing held on September 9, 2014. At that hearing, the government contended that in 2008, as Keys’ business ventures were failing, he turned to one of his long-term clients, a widow in her mid-80s, and persuaded her to loan $1.1 million to co-defendant William Kearney, now deceased. Keys lied to his client about the terms of the loan, such as the existence of treasury bonds as collateral for the loan, and he failed to disclose important facts to her in order to fraudulently obtain money for his benefit and that of Kearney.
Keys also received over $100,000 in kickbacks as part of the scheme to defraud his long-time client. Those kickbacks were wired to him by Kearney the day after Keys persuaded his client to loan Kearney the $1.1 million.
In addition to the wire fraud and money laundering charges, Keys and his wife filed for bankruptcy in 2010, and Keys fraudulently attempted to discharge $148 million in debt by lying to the Bankruptcy Court, concealing assets and income, and filing false documents with the Court.
This case was investigated by the Internal Revenue Service, Criminal Investigation, and the United States Trustees Office. The case was prosecuted by Assistant United States Attorney and Senior Litigation Counsel Allan M. Garten.
Portland Man Pleads Guilty to Immigration Fraud and False Statement ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam Mack, 39, of Portland, Maine, pleaded guilty yesterday in U.S. District Court to aiding and abetting visa and marriage fraud and making false statements.
According to court records, between October 2009 and January 2012, Mack unlawfully assisted foreign nationals who were seeking to become a lawful permanent residents, or green card holders, by engaging in marriage and visa fraud and he made false statements regarding his employment of them to the U.S. Citizenship and Immigration Service.
Mack faces up to 10 years in prison on the visa fraud charges, and up to five years on the marriage fraud and false statement charges. He also faces fines of up to $250,000 on each charge. He will be sentenced after completion of a presentence investigation report by the United States Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of State, Bureau of Diplomatic Security.
Phoenix Man Sentenced to 96 Months Imprisonment for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
PHOENIX, Ariz. – Kenneth Wayne Becketts, Jr., 32, of Phoenix, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to 96 months’ imprisonment and five years of supervised release after pleading guilty to conspiracy to commit sex trafficking of a minor. Becketts was also ordered to register as a sex offender.
As part of the plea agreement, Becketts admitted to recruiting the underage victim to work as a prostitute, and posting advertisements on various web sites in December of 2011.
U.S. Attorney John S. Leonardo stated, “We will not tolerate those who sexually exploit young women for financial gain. This substantial prison sentence indicates to all that such acts of victimization will be vigorously prosecuted.”
The investigation in this case was conducted by the Federal Bureau of Investigation and the Phoenix Police Department. The prosecution was handled by Christine Ducat Keller, Rachel R. Stoddard, and Krissa Lanham, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-01637-PHX-SRB (DKD)
RELEASE NUMBER: 2015-026_Becketts
Panamanian Woman Heads to Prison for Illegal Re-entry into the United StatesRead the Press Release
LAREDO, Texas – Alicia Larrier, 47, has been ordered to prison for more than eight years following her conviction of illegal re-entry, announced United States Attorney Kenneth Magidson. A Laredo jury convicted the Panamanian citizen on Nov. 17, 2014, after less than a day of trial and approximately one hour of deliberations.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Larrier the 97-month sentence. At the hearing, Judge Marmolejo ruled Larrier obstructed justice and lied at trial. Additionally, the United States articulated that Larrier had an extensive criminal history, inclusive of aggravated robbery with a gun and practicing dentistry without a license. She is expected to face deportation proceedings following his release from prison.
U.S. Border Patrol (BP) agents apprehended Larrier on March 18, 2014, as part of a group of nine individuals in the Hernandez Ranch near Laredo. Upon investigation, agents determined she was an illegal alien - previously ordered deported in 1993 after multiple convictions for armed robbery, forgery, grand theft and practicing dentistry without a license. She had been sentenced to more than 15 years imprisonment and ultimately deported early to the country of Panama in October 2002.
At trial, the government presented testimony from BP processing and arresting agents, as well as representative of the Department of Homeland Security. Larrier testified, but gave multiple versions of stories on the witness stand to include the claim that she had been drugged, kidnapped and smuggled into the United States against her will.
The jury ultimately did not believe her story and found her guilty as charged.
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by BP and U.S. Citizenship and Immigration Services. Assistant U.S. Attorneys Sanjeev Bhasker and Adam Goldman prosecuted this case.
PR Department of Health Employee and Another Individual Indicted for Theft of Government Records and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned an eight-count indictment charging two individuals for conspiracy, theft of government records, unlawful transfer of means of identification, aggravated identity theft, and wrongful disclosure of individually identifiable health information, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Internal Revenue Service (IRS) Criminal Investigation Division and Health and Human Services, Office of Inspector General are in charge of the investigation. The Puerto Rico Department of Health Medicaid Office, Fraud Unit provided significant assistance during the investigation.
Defendants Mercedes C. Bodden-Fontana and Raymond I. Ramos-Reyes stole personal identifying information of Mi Salud recipients from the MEDITI database to sell those records to unjustly enrich themselves.
As an employee of the Puerto Rico Department of Health Medicaid Office, Mercedes C. Bodden-Fontana would access to the MEDITI database on her work computer and take photographs of the screen depicting in list form Mi Salud participants’ names, social security numbers and dates of birth. She would subsequently print the pictures of the screen shots. She would then provide the information to defendant Raymond I. Ramos-Reyes. Ramos-Reyes would sell each individual’s information to a third party for approximately $3 per name, date of birth and corresponding social security number. Reyes-Ramos would then provide Bodden-Fontana the proceeds of the sale; in return, she would provide Reyes-Ramos a commission for the sale.
“This indictment underscores our determination to hold accountable those who take advantage of vulnerable populations, commit fraud, and place the safety of others at risk for illicit financial gain,” stated Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “These defendants stole names, social security numbers and dates of birth of more than 5,000 Mi Salud recipients, to later sell these records for profit; we have stopped their illegal activities with today’s arrests. The investigation continues.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Miami Field Office, stated, “It is unfortunate that an employee of the Puerto Rico Department of Health Medicaid Office would steal the identities of innocent Mi Salud participants for a profit. Today’s indictment should serve as a strong warning to those who are considering similar conduct of using their position at an employer to commit identity theft. IRS Criminal Investigation and its law enforcement partners are serious about investigating these crimes and holding accountable those who steal and then sell other peoples’ identities to commit tax fraud and other offenses.”
“The Medicaid program provides health care benefits to low-income individuals and families, and the illegal and unauthorized use of Medicaid participants’ personal identifiers is unacceptable. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by victimizing participants of the Medicaid program,” said Scott Lampert, Special Agent in Charge of HHS-OIG New York Regional Office.
If convicted, the defendants face a maximum possible sentence of five years on the conspiracy charge, 10 years for theft of government records and two consecutive years in prison for the aggravated identity theft charge.
The case is being investigated by IRS-CID, HHS-OIG with the collaboration of the Puerto Rico Department of Health Medicaid Office, and prosecuted by Assistant United States Attorney Julia Meconiates. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
PR Department of Health Employee and Another Individual Indicted for Theft of Government Records and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned an eight-count indictment charging two individuals for conspiracy, theft of government records, unlawful transfer of means of identification, aggravated identity theft, and wrongful disclosure of individually identifiable health information, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Internal Revenue Service (IRS) Criminal Investigation Division and Health and Human Services, Office of Inspector General are in charge of the investigation. The Puerto Rico Department of Health Medicaid Office, Fraud Unit provided significant assistance during the investigation.
Defendants Mercedes C. Bodden-Fontana and Raymond I. Ramos-Reyes stole personal identifying information of Mi Salud recipients from the MEDITI database to sell those records to unjustly enrich themselves.
As an employee of the Puerto Rico Department of Health Medicaid Office, Mercedes C. Bodden-Fontana would access to the MEDITI database on her work computer and take photographs of the screen depicting in list form Mi Salud participants’ names, social security numbers and dates of birth. She would subsequently print the pictures of the screen shots. She would then provide the information to defendant Raymond I. Ramos-Reyes. Ramos-Reyes would sell each individual’s information to a third party for approximately $3 per name, date of birth and corresponding social security number. Reyes-Ramos would then provide Bodden-Fontana the proceeds of the sale; in return, she would provide Reyes-Ramos a commission for the sale.
“This indictment underscores our determination to hold accountable those who take advantage of vulnerable populations, commit fraud, and place the safety of others at risk for illicit financial gain,” stated Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “These defendants stole names, social security numbers and dates of birth of more than 5,000 Mi Salud recipients, to later sell these records for profit; we have stopped their illegal activities with today’s arrests. The investigation continues.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Miami Field Office, stated, “It is unfortunate that an employee of the Puerto Rico Department of Health Medicaid Office would steal the identities of innocent Mi Salud participants for a profit. Today’s indictment should serve as a strong warning to those who are considering similar conduct of using their position at an employer to commit identity theft. IRS Criminal Investigation and its law enforcement partners are serious about investigating these crimes and holding accountable those who steal and then sell other peoples’ identities to commit tax fraud and other offenses.”
“The Medicaid program provides health care benefits to low-income individuals and families, and the illegal and unauthorized use of Medicaid participants’ personal identifiers is unacceptable. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by victimizing participants of the Medicaid program,” said Scott Lampert, Special Agent in Charge of HHS-OIG New York Regional Office.
If convicted, the defendants face a maximum possible sentence of five years on the conspiracy charge, 10 years for theft of government records and two consecutive years in prison for the aggravated identity theft charge.
The case is being investigated by IRS-CID, HHS-OIG with the collaboration of the Puerto Rico Department of Health Medicaid Office, and prosecuted by Assistant United States Attorney Julia Meconiates. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Ohio-Based Health System Pays United States $10 Million to Settle False Claims Act AllegationsRead the Press Release
Robinson Health System Inc. has agreed to pay $10 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Robinson is a nonprofit corporation based in Ohio that operates a number of health care facilities in Portage County, Ohio, including Robinson Memorial Hospital.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today involved Robinson’s financial relationships with a number of referring physicians that allegedly violated the Anti-Kickback Statute and the Stark Statute, both of which restrict the financial relationships that hospitals may have with doctors who refer patients to them. These relationships included management agreements that Robinson had with two physicians groups. These physicians allegedly failed to provide sufficient bona fide management services to have justified the payments that they received. Robinson disclosed these issues to the government.
“Referrals should be made to the best qualified physicians, and must be based on what’s best for the patient,” said U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. “Improper financial relationships between hospitals and referring doctors can lead to clouded judgments, which is why the Department of Justice will continue to police such matters vigorously.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act, which prohibits false claims for federal funds, including claims submitted in violation of the Anti-Kickback Statute and the Stark Statute. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Ohio, and the Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York City Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
A federal grand jury in the Eastern District of New York returned an indictment yesterday against a Staten Island, New York, tax return preparer and business owner, charging him with 31 counts of aiding and assisting in the preparation of false federal income tax returns and three counts of filing false personal federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Alabi Gbangbala was the operator of Broadfield, a tax return preparation business located in Staten Island. For tax years 2008 and 2009, Gbangbala allegedly prepared false individual income tax returns for Broadfield clients by, among other things, failing to report accurate exemptions, falsifying business receipts and losses on Schedules C and inflating or fabricating charitable contributions and unreimbursed employee expenses. Gbangbala also filed false individual income tax returns on behalf of himself for tax years 2008 through 2010, in which he failed to disclose his total income for each calendar year.
If convicted, Gbangbala faces a statutory maximum sentence of three years in prison and a fine of $250,000 on each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Christopher O’Donnell and Mark McDonald of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Gbangbala Indictment
New Hampshire Man Sentenced to over Three Years on Child Exploitation ChargeRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Chad Amodio, 43, of Milton, New Hampshire, was sentenced today in U.S District Court by Judge John A. Woodcock, Jr. to 40 months in prison, to be followed by 5 years of supervised release for interstate travel to have sex with a minor. Amodio pled guilty on November 7, 2014.
Court records and proceedings reveal that in March 2014, Amodio began having inappropriate sexual conversations on a chat website with a 13-year-old girl. Police were alerted and an undercover officer took control of the minor’s account. Amodio communicated with the undercover officer and made plans to travel from his home in New Hampshire to Maine in order to have sex at the girl’s home. Shortly after arriving at the Penobscot County address provided by the undercover officer, Amodio was arrested. Alcohol and a bottle of lubricant were found in his vehicle which he admitted purchasing in anticipation of the planned sexual encounter.
The investigation was conducted by the Bangor Police Department, the Federal Bureau of Investigation, the Penobscot County Sheriff’s Office, and the Maine State Police.
New Hampshire Man Pleads Guilty to Social Security FraudRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Rodrigo Schumacker, 30, of Seabrook, New Hampshire, pled guilty today in U.S. District Court to social security fraud.
According to court records, in March 2010, Schumacker, a Brazilian citizen, completed an application requesting that U.S. Citizenship and Immigration Services grant him permanent resident status. On the application, Schumacker claimed that he had been assigned a certain social security number, when in fact he had never been assigned a social security number. The number Schumacker used had been assigned to a woman in Florida who was deceased at the time he used it. He later admitted to investigators that he knew the number he had used was not assigned to him
Schumacker faces up to 5 years in prison, a $250,000 fine, and supervised release of up to 3 years. He will be sentenced after the completion of a presentence investigation report by the United States Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Nebraska Man Sentenced for Distribution of Materials Involving the Sexual Exploitation of MinorsRead the Press Release
Fargo – Acting U.S. Attorney Christopher C. Myers announced that on March 30, 2015, Robert Vangorden, Age 41, Omaha Nebraska, was sentenced before U.S. District Judge Daniel L. Hovland, to serve 17 years and 6 months in prison for distributing materials involving the sexual exploitation of a minor. Judge Hovland also sentenced Vangorden to 10 years of supervised release following his incarceration and ordered him to pay a $100 special assessment to the Crime Victims’ Fund and $5,000 in restitution.
This case was initiated by the Dickinson Police Department and later transferred to the Department of Homeland Security. During the summer of 2013, the Dickinson Police Department conducted an operation to identify child predators online, using a fictitious persona as a 14-year-old girl on various different social network sites. The undercover officer from the Dickinson Police Department began communicating with Vangorden on a social media site known as "Chat Avenue" and later communicated with him via Yahoo Messenger. Vangorden engaged in sexually explicit conversations with the officer’s persona, as well as sending the persona multiple images and videos containing child pornography.
The Department of Homeland Security continued the investigation for a period of two weeks and, during that time period, Vangorden continued communications with the persona and sent additional child pornography images as well as a sexually-explicit webcam video of himself.
The case was investigated by the Department of Homeland Security; Dickinson Police Department; and the North Dakota Bureau of Investigations.
Assistant U.S. Attorney Gary L. Delorme prosecuted the case.
Navajo Man from Beclabito Pleads Guilty to Federal Arson ChargeRead the Press Release
ALBUQUERQUE – Benjamin Joe Begay, Jr., 45, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a federal arson charge.
Begay was arrested on Aug. 19, 2014, on a criminal complaint charging him with arson, and was indicted on that same charge on Aug. 26, 2014. According to court filings, Begay set fire to the residence he shared with his wife and children on July 31, 2014, following an argument with his family. The residence, its contents and a grey truck were a total loss to the fire.
During today’s proceedings, Begay admitted willfully and maliciously setting fire to the home he shared with his wife and family on July 31, 2014, on the Navajo Indian Reservation in San Juan County, N.M. At sentencing, Begay faces a statutory maximum penalty of life in prison and up to five years of supervised release. His sentencing hearing has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. This case is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nampa Woman Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – Tara Noelle Rivera, 30, of Nampa, Idaho, pleaded guilty today in federal court in Boise to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Rivera was indicted on November 13, 2014.
According to court documents, Rivera admitted to selling methamphetamine to a police informant on three separate occasions in March 2014. Rivera also admitted to selling a 9 millimeter pistol to the informant. Rivera’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
Distribution of methamphetamine is punishable by up to 20 years imprisonment, a $1,000,000 fine, and at least three years of supervised release.
Sentencing is set for June 17, 2015, before Chief U.S. District Judge B. Lynn Winmill.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Woman Sentenced to 60 Months Probation for Concealing Person from ArrestRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JACLYN CAMPBELL, age 24, of Muskogee, Oklahoma was sentenced to 5 years of probation for Concealing Person from Arrest, in violation of Title 18, United States Code, Section 1071.
The charge is a result of an investigation by the United States Marshal Service. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about October 2, 2014, in the Eastern District of Oklahoma, the defendant, JACLYN CAMPBELL, did willfully and knowingly harbor and conceal Joshua Allen Barnett, a person for whose arrest a warrant and process had been issued under the provisions of a law of the United States, so as to prevent the discovery and arrest of Joshua Allen Barnett, after notice and knowledge of the fact that a warrant and process had been issued for the apprehension of Joshua Allen Barnett, and which warrant had been issued on a felony charge.
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.
Miami-Dade, Florida, Police Officer Admits Role in Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A former lieutenant with the Miami-Dade Police Department, Internal Affairs, today admitted his role in a narcotics conspiracy, including purchasing six firearms for a drug trafficking organization and smuggling those weapons through security checkpoints at the Miami International Airport, U.S. Attorney Paul J. Fishman announced.
Ralph Mata, 45, a/k/a “the Milk Man,” of Broward County, Florida, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of aiding and abetting a narcotics conspiracy, one count of conspiring to distribute cocaine and one count of engaging in monetary transactions in property derived from unlawful activity. Judge Wigenton continued Mata’s release on bail pending sentencing.
According to documents filed in this case and statements made in court:
From June 2012 through November 2012, Mata purchased at least six firearms from a gun store in Florida, which ultimately were provided to members of the Juan Arias Drug Trafficking Organization. Using his prior experience as a lieutenant assigned to the Miami International Airport, as well as his law enforcement contacts at the airport, Mata and others smuggled the six firearms through airport security checkpoints and onto a commercial airliner destined for the Dominican Republic.
Mata also provided advice, guidance and counsel to Juan Arias regarding the means and methods the drug trafficking organization should use to import and distribute cocaine. Mata transported narcotics proceeds for the organization.
He also engaged in monetary transactions in property derived from the sale of narcotics. On March 28, 2013, Mata traveled from Miami to New Jersey and received approximately $60,000 in narcotics proceeds from Juan Arias and others. Using a portion of that $60,000, Mata made separate $10,000 cash deposits at two different bank locations in Fort Lee, New Jersey. As payment for his assistance to the drug trafficking organization, Mata accepted a total of approximately $100,000 in cash and gifts from the Juan Arias drug trafficking organization.
The charges of aiding and abetting a narcotics conspiracy and conspiring to distribute cocaine each carry a minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a maximum fine of $10 million. The money laundering charge is punishable by a maximum term of 10 years in prison and a $250,000 fine. As part of his plea, Mata also agreed to forfeit the $75,405.17 seized on April 9, 2014. Sentencing is scheduled for July 14, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked the Miami FBI, the Miami-Dade Police Department, the Miami-Area Corruption Task Force and the U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, New York, for their assistance with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Mary E. Toscano and José R. Almonte of the Special Prosecutions Division in Newark, and Barbara Ward of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Jay V. Surgent Esq., Parsippany, New Jersey, and Bruce H. Fleisher Esq., Miami
Manhattan U.S. Attorney Announces Indictment of Former President of Law Enforcement Labor Union for Defrauding Union of FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Andriana Vamvakas, the New York District Director of the U.S. Department of Labor's Office of Labor Management Standards ("DOL-OLMS"), announced the indictment of former union president JOHN EARVIN for engaging in a fraudulent scheme to embezzle funds from the United Federation of Law Enforcement Officers (“UFLEO” or the “Union”). The UFLEO represents Special Inspectors employed by the Metropolitan Transportation Authority of New York (“MTA”). EARVIN was arrested today and will be arraigned later today in Manhattan federal court before Judge Gabriel W. Gorenstein. The case has been assigned to Judge Paul A. Engelmayer.
According to the allegations in the Indictment filed in Manhattan federal court yesterday:
From February 2007 through April 2010, EARVIN was the Union’s president, supervising the affairs of the Union and managing the Union’s finances, including through sole control of the Union’s bank account (the “Account”). Through his presidency, EARVIN allegedly perpetrated a scheme to defraud the Union by diverting Union dues payments deposited into the Account for his own benefit, principally by making hundreds of ATM withdrawals at off-track betting facilities and other locations and making personal use of the funds. In furtherance of the scheme, and to prevent its discovery, EARVIN, as alleged, repeatedly lied to Union members about the Account by, for example, claiming that he could not provide an accounting of funds to Union members because an independent auditor was reviewing the Union’s finances. As a result of the scheme, EARVIN is accused of defrauding the Union and its members of approximately $48,012.
EARVIN, 67, of New Rochelle, New York is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The Indictment also seeks forfeiture of crime proceeds. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Preet Bharara thanked the DOL-OLMS for its work in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen and Jennifer Gachiri are in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
U.S. v. John Earvin Indictment
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges Against Founder of Non-Profit Organization for Defrauding Parents of Abducted ChildrenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced charges against PETER SENESE, the Founding Director of the I CARE Foundation (“I CARE”), which advertises itself as a “self-funded non-profit organization dedicated to preventing child abduction and trafficking.” Since at least 2013, SENESE allegedly defrauded parents whose children were victims of international abduction by falsely representing that he, working with the worldwide resources of I CARE, could rescue their children and return to them to the United States in exchange for money for his purported rescue operation expenses. SENESE was arrested this morning in Brooklyn, New York, and will be presented later today before U.S. Magistrate Judge Gabriel W. Gorenstein.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Peter Senese fed a pack of lies to desperate parents by telling them, among other things, that he and his company could, for a price, locate and recover their internationally kidnapped children. In fact, he could do no such thing, but that didn’t stop him from allegedly repeatedly reaching out to the parents for more money to fund his non-existent rescue mission. This type of alleged fraud that preys on the especially vulnerable and desperate is a top priority for us, and we will work to ensure those who commit these outrageous crimes are held to strict account.”
FBI Assistant Director Diego Rodriguez said: “As alleged, Senese’s supposed self-funded corporation to prevent child abduction and trafficking turned out to be nothing more than a ruse. He allegedly preyed on the anguish of suffering families, left them open to be victimized a second time, and accepted their payments to fund his personal venture without ever having access to the worldwide resources of which he spoke. Fortunately, his journey ends today. The FBI and our law enforcement partners often work hand in hand on cases involving the mysterious disappearance of a child, and we will continue to protect the welfare of those faced with this terrible tragedy. ”
According to the allegations in the Complaint filed today in Manhattan federal court:
Through his websites (www.stopchildabduction.org and www.petersenese.com) and elsewhere, SENESE promotes I CARE as “a self-funded not-for-profit 501-C-3[sic] corporation” that “does not accept outside financial contributions and has reunited numerous internationally kidnapped children while preventing an exponentially larger number of children from abduction.” SENESE also represents that I CARE includes “some of the leading figures in the world dedicated to protecting children from abduction and trafficking” and that “there have been many, many children of international parental child abduction who have been reunited and returned home due directly to the great efforts, financial, legal, and investigative resources” of I CARE.
Between at least November 2013 and February 2015, SENESE specifically represented to victims that he could recover their children from other countries by working with a team of former members of the U.S. Army component Delta Force (“Delta Force”), of which SENESE claimed to have also been a member. SENESE repeatedly represented to one victim (“V-1”) that he could recover V-1’s child (“Child-1”) from India in a matter of weeks, but that he needed a few thousand dollars from V-1 to cover his operational expenses. In the months that followed, SENESE repeatedly represented that he was very close to recovering Child-1, appeared on a local radio program with V-1, and sent numerous text messages and emails stating, in part, that he was either in India or an unspecified “remote location” and that Child-1 would be returned to the United States in a matter of hours or days. During the same period, SENESE repeatedly asked for additional funds, typically ranging from $3,000 to $5,000 per month to cover his operational expenses.
In fact, SENESE has not traveled outside of the country for years. While SENESE represented that he was in foreign locations, he was actually in Miami, Florida; New York, New York; or Los Angeles, California. SENESE also has never had any affiliation with the United States military, and the children SENESE promised to recover have not been recovered.
SENESE, 49, of Brooklyn, New York, is charged with one count of wire fraud, which carries a maximum sentence of 30 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the FBI for its investigative efforts and ongoing support and assistance with the case.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Peter Senese Complaint
Man Sentenced to 65 Months in Prison for Sexual Assault on Menominee ReservationRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that Avery A. Gomeyosh, (age: 36), of Green Bay, Wisconsin, was sentenced on February 16, 2015, to 65 months of imprisonment, followed by a 10 year term of supervised release. The sentence was the result of a guilty plea by Gomeyosh on October 21, 2014, to a federal indictment charging him with the aggravated sexual abuse of an adult female who was at the time incapable of appraising the nature of the conduct and physically incapable of declining participation in that sexual act
The investigation revealed that on May 31, 2014, Gomeyosh sexually assaulted an adult female, who was asleep at the time of the assault, at a residence on the Menominee Indian Reservation. Law enforcement officials interviewed Gomeyosh and he admitted that he sexually assaulted the victim.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
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Leader of Meth for Mail Ring Pleads Guilty to 16 Counts of Drug Dealing and FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man pled guilty in federal court in Anchorage to 16 counts of drug dealing and fraud.
Jonathon Escalante, a/k/a “Superman”, 45, of Anchorage, pled guilty in front of Chief United States District Court Judge Ralph R. Beistline.
According to pleadings filed in the case, from September 2013 through September 2014, Escalante was the leader of a mail theft ring in Anchorage. Escalante recruited others to help him commit the crimes of Possession of Stolen Mail, Bank Fraud, Credit Card Fraud, Aggravated Identity Theft, and Possession of a Counterfeit Security. Escalante and his co-conspirators used checks, credit cards and personal identification information stolen from the mail and from vehicle break-ins to obtain funds and merchandise to which they were not entitled. Escalante recruited his co-conspirators by providing them with methamphetamine and a portion of the items and cash obtained from the stolen checks and credit cards. Escalante and his co-conspirators obtained over $40,000 in cash and retail goods during the course of this scheme. The scheme covered all of Anchorage from Eagle River to Hillside, from the Jewel Lake area to Muldoon, and even as far south as Soldotna.
In addition to the mail theft ring, Escalante was also a drug dealer who sold methamphetamine throughout Anchorage. Escalante carried a 9mm Ruger pistol for protection while committing all of these crimes. Escalante had three prior felony convictions for similar types of fraud and was thus prohibited, as are all felons, from possessing a firearm. Escalante possessed one of the pistols while shooting at a victim from whom he had stolen a motorcycle.
Three of Escalante’s co-conspirators have pled guilty and are awaiting sentencing. A fourth co-conspirator is scheduled to change her plea on April 7, 2015.
Escalante faces a mandatory minimum five years in prison and a maximum of 40 years in prison and a $5 million fine.
The case was prosecuted by Assistant U.S. Attorney Aunnie Steward together with Special Assistant U.S. Attorney Erin Bennett who is a Municipality of Anchorage Prosecutor working with the U.S. Attorney’s office to assist in the prosecution of recidivist and violent criminals in the Anchorage area.
Ms. Loeffler commends the U.S. Postal Inspection Service, assisted by the Bureau of Alcohol Tobacco, and Firearms and the Anchorage Police Department for the investigation of this case.
Leader in Residential Mortgage Fraud Scheme Sentenced to 57 Months in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, today to 57 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud and aggravated identity theft, arising from a residential mortgage fraud scheme. Judge Hazel also ordered Tibakweitira to pay restitution of $2,482,856.05.
Also today, Judge Hazel sentenced Nsane Phanuel Ligate, age 43, of Ashburn, Virginia, to five months in prison, followed by five months of home detention as part of three years of supervised release for conspiracy to commit wire fraud, in connection with a separate, but related mortgage fraud scheme. Ligate was also ordered to pay restitution of $352,091.82.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According his plea agreement, from March 2007 to November 2008, Tibakweitira, who was a real estate agent, and his co-conspirators sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira recruited his wife Flavia Makundi, and others, including Mokorya Cosmos Wambura, Cane Mwihava and Annika Boas, to act as straw purchasers of homes.
Tibakweitira admitted that he procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Co-conspirator Carmen Johnson, through her company CJ Lending, created fictitious lines of credit for the straw buyers to fraudulently enhance their credit worthiness. Large amounts of the proceeds of the fraudulently obtained loans were disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made to the properties. These funds were paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.
As a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of almost $2.5 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.
In the second scheme, between April and July 2008, real estate agent Nsane Phanuel Ligate conspired with Carmen Johnson and others in a similar mortgage fraud scheme involving two properties in Baltimore, resulting in losses to HUD and the lender of $352,091.58.
Tibakweitira co-conspirators Flavia Makundi, age 43, of Severn Park, Maryland, Ayoub Luziga, age 36, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, pleaded guilty to their roles in the first scheme. Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726. Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution. Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution. Makundi was sentenced to time served. Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial. Boas was sentenced to 27 months in prison and ordered to pay restitution of $511,147.
Ligate co-conspirators Cane Mwihava, age 44, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland also pleaded guilty to their roles in the second mortgage fraud scheme. Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091. Silaa was sentenced to six months home detention and ordered to pay $378,602 in restitution. Mwihava was sentenced to six months home detention and ordered to pay $352,091 in restitution.
Carmen Johnson, age 48, of Gambrills, Maryland, was convicted after trial for her participation in both schemes. Johnson is scheduled to be sentenced on June 3, 2015 at 10:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin Di Gregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Lawrence Man Charged with Conspiracy to Import Methylone (“Molly”)Read the Press Release
BOSTON – A Lawrence man was arraigned yesterday on one count of conspiring to import controlled substances from China, including Methylone and a-PvP.
In August 2013, Stanislav Nestorov, 24, allegedly conspired with others to import controlled substances from China, including Methylone and a-PvP. Methylone, also known as “Molly,” and a-PvP, are synthetic drugs, meaning they are created in a laboratory. A-PvP is a controlled substance analog that is substantially similar in make-up and effect on the central nervous system to other Schedule I drugs and, like Molly, is highly dangerous to those who consume it.
The charging statute provides a sentence of no greater than 20 years in prison, a lifetime of 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 Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The case is being handled by Assistant U.S. Attorney Susan Winkler of Ortiz’s Drug Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lapwai Woman Admits to Concealing Person from ArrestRead the Press Release
COEUR D'ALENE - Nicole Shannon Rose Two Moon, 30, of Lapwai, Idaho, pleaded guilty today in federal court in Coeur d’Alene to concealing a person from arrest, U.S. Attorney Wendy J. Olson announced. Two Moon was indicted by a federal grand jury on November 18, 2014.
According to the plea agreement, Two Moon admitted that in April and May of 2014, she allowed Delbert George to stay at her house knowing a federal warrant had been issued for his arrest in March of 2014. Two Moon let him stay there to help George avoid detection on the warrant.
The charge of concealing person from arrest is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for July 21, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“I commend the collaborative efforts of law enforcement,” said Olson. “Harboring a fugitive is a serious crime which creates a potentially dangerous situation for all of those involved.”
The case was investigated by the Nez Perce Tribal Police and the Federal Bureau of Investigation.
Keshena Man Sentenced to 121 Months in Prison for Sexual AssaultRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that Michael P. Cantrell Sr., (age: 46), of Keshena, Wisconsin located on the Menominee Indian Reservation, was sentenced on March 27, 2015, to 121 months of imprisonment, followed by a 15 year term of supervised release. The sentence was the result of a guilty plea by Cantrell on December 2, 2014, to aggravated sexual abuse of an adult female by force.
The investigation revealed that on April 24, 2014, Cantrell, used force to sexually assault a female, at a residence on the Menominee Indian Reservation. Law enforcement officials interviewed Cantrell and he admitted that he sexually assaulted the victim.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
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Justice Department Asks Federal Court to Shut Down Detroit Area Mother-Daughter Tax Return PreparersRead the Press Release
The United States filed a complaint seeking to permanently bar a Detroit-area woman, her daughter, and the tax preparation businesses they operate from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint against Denise Pope and Janise Jones, which was filed in the U.S. District Court of the Eastern District of Michigan, alleges that Pope and Jones prepare federal income tax returns for customers that understate their correct tax liabilities.
Denise Pope, also known as Denise Miller, operates CDP Tax Services Inc., CDP Accounting Service, PC, dba CDP Tax and Uneek Business Solutions — each of which was named as a defendant, according to the suit.
The government’s suit alleges that the understatements are the result of improper earned income tax credits, education credits, charitable deductions, unreimbursed employee business expense deductions and Schedule C (Profit or Loss From Business) expenses and income, which the defendants claim for their customers despite any supporting documentation. Because some of these credits are refundable, the improper claims often result in larger than appropriate tax refunds, according to the suit. The complaint alleges that the Internal Revenue Service (IRS) interviewed several of the defendants’ customers, who stated that the improper deductions, credits and Schedule C business expenses and income were not based on information they provided to the defendants.
According to the complaint, the IRS estimates that the defendants, using these business entities, have prepared more than 3,000 tax returns since 2011. The complaint alleges that the IRS has completed examinations of 87 of those returns, and the total tax deficiency for those returns alone exceeds $460,000. Based on the number of returns these defendants prepared, the complaint alleges that the harm to the U.S. Treasury far exceeds $460,000.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Pope Complaint
International Shipping Company Pleads Guilty to Smuggling Endangered Sea Turtle ShellsRead the Press Release
SAN FRANCISCO, Calif.- London-based Hedley’s Humpers, Ltd., pleaded guilty in federal court in San Francisco today to smuggling two sea turtle shells into the United States in violation of the Endangered Species Act, announced United States Attorney Melinda Haag and U.S. Department of Commerce, National Oceanic and Atmospheric Administration Special Agent in Charge William Giles.
In pleading guilty, the corporate defendant admitted to fraudulently importing from Europe the shells, as well as other protected wildlife articles. The company further admitted it facilitated the concealment and transportation of the sea turtle shells to the United States. The shells were from the species Green Sea Turtle (Chelonia mydas) that are listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora and are therefore are not permitted to be transported into the United States. The species of Green Sea Turtle also were identified as an endangered species under the Endangered Species Act. Notwithstanding the laws protecting the turtles and prohibiting transportation of the shells into the United States, Hedley’s Humpers imported the turtles’ shells from Europe and facilitated their concealment and transportation to the Northern District of California. Among the acts in which Hedley’s Humpers engaged was to falsely describe the sea turtle shells on an invoice as “2 mottled oval sculptures” and enclose the shells in a package labeled “1x armchair.” Heldey’s Humpers also admitted it smuggled other protected wildlife items in previous years, with a total market value of more than $70,000.
Hedley’s Humpers was indicted by a federal grand jury on July 15, 2014. On August 5, 2014, the grand jury issued a superseding indictment charging Hedley’s Jumpers with four counts of violating smuggling laws: one count of smuggling and aiding and abetting smuggling, in violation of 18 U.S.C. § 545; two counts of conspiracy to traffic and smuggle wildlife, in violation of 18 U.S.C. § 371; and one count of wildlife trafficking in violation of 16 U.S.C. §§ 3372(d) and 2273(d). Pursuant to today’s agreement, Hedley’s Humpers pleaded guilty to one count of smuggling in violation of 18 U.S.C. § 545.
Pursuant to the plea agreement, Hedley’s Humpers agreed to a three-year period of probation, a $75,000 fine, $25,000 in community service payments, and a $400 mandatory special assessment, although those sentencing provisions will have to be approved by the federal court. Sentencing is scheduled for July 7, 2015, at 2:00 p.m. before the Honorable William H. Alsup, U.S. District Judge, in San Francisco. Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Hartley M.K. West is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration, and the U.S. Homeland Security Investigations Border Enforcement Security Task Force.
Husband and Wife Members of Sports Betting Ring SentencedRead the Press Release
PHILADELPHIA – Joseph and Anna Rose Vitelli, of Conshohocken, PA, were sentenced today for their roles in a Racketeering conspiracy involving the Mastronardo Bookmaking Organization. Joseph Vitelli, 71, was sentenced to five months in prison and three years of supervised release, with the first five months served on house arrest. His wife, Anna Rose, 67, was sentenced to five months in prison and three years of supervised release, with the first five months served on house arrest. Harry Murray, 62, of Boca Raton, FL, was also sentenced today for his role in the Racketeering conspiracy. Murray was sentenced to eight months in prison and two years of supervised release, with the first eight months served on house arrest. U.S. District Court Judge Jan E. DuBois handed down the sentences.
The Mastronardo Bookmaking Organization was a multi-million dollar sports betting operation with bettors throughout the U.S. At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. The Vitellis and Murray were among 15 defendants charged by indictment with Racketeering conspiracy in the case. All 15 of those defendants pleaded guilty prior to trial. The government will forfeit approximately $3.7 million as a result of the guilty pleas in this case.
Joseph Vitelli and Anna Rose Vitelli owned J & A Check Cashing in Philadelphia. From 2005–2010, J & A Check Cashing laundered over $500,000 of checks to assist the Mastronardo Bookmaking Organization. And, in 2005 and 2006, the couple allowed the Mastronardo Bookmaking Organization to use a second floor office to run the illegal gambling business.
Murray was a bookmaker in Florida. He pleaded guilty to his role in three separate money laundering conspiracies, including the use of J & A Check Cashing to launder gambling proceeds. In March 2010, Joseph V. Mastronardo, Jr., in a conversation with Murray, commented “Well times like this I’m happy I’m a bookmaker,” to which Murray responded, “Me too.”
Between January 1, 2005 and January 1, 2011, the organization utilized internet websites and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet and telephone sites. Members of the organization used telephone, Skype, email, text messaging, and in-person communication to take bets and collect or deliver payments that ranged from $1,000 to more than $100,000.
Prior to today’s hearings, four other defendants had been sentenced. Joseph Vito Mastronardo, Jr., was sentenced to 20 months in prison and a $100,000 fine. His son, Joseph F. Mastronardo, was sentenced was sentenced to five months in prison, three years of supervised release, with the first five months served on house arrest, and a $5,000 fine. His brother, John Vito Mastronardo, was sentenced to nine months in prison, three years of supervised release, with the first five months served on house arrest, and a $5,000 fine. An associate, Eric Woehlcke, was sentenced to eight months in prison, three years of supervised release, with the first eight months served on house arrest, and a $3,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna.
Humble Woman Pleads Guilty in Second Fraud SchemeRead the Press Release
HOUSTON - Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, 37, of Humble, has been convicted of engaging in a conspiracy to commit bank, mail and wire fraud as well as making false statements to a bank and wire fraud, announced U.S. Attorney Kenneth Magidson.
From approximately January 2005 through February 2014, Johnson illegally used various Social Security numbers not assigned to her by the Commissioner of Social Security. She would use those numbers in order to obtain loans from banks and other lending institutions to purchase houses and vehicles.
Johnson was also previously convicted in a second conspiracy related to tax fraud, including conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS) and making a false claim to the IRS. In this scheme, Johnson and others claimed more than $2.2 million in false first time home buyer credits on 2008 returns they filed with the IRS. The fraudulent claims resulted in Johnson and her co-conspirators claiming more than $2.3 million in fraudulent refunds.
Johnson will be sentenced in both cases by U.S. District Judge Gray Miller on Aug. 7, 2015.
For the convictions today, she faces up to 30 years and a possible $1 million fine for conspiracy to commit bank, mail and wire fraud as well as the false statements conviction. For wire fraud, she also faces a possible maximum term of 20 years imprisonment and a possible $250,000 fine. In the second case, she will also face up to 20 years for the conspiracy to commit mail and wire fraud, another possible 10 years for the conspiracy to make false claims and up to five years for making the false claims.
She will remain in custody pending that hearing.
Both cases are the result of investigations conducted by the U.S. Postal Inspection Service and IRS - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Greece Man Charged with Child Pornography and Enticement ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jason Cortese, 33, of Greece, NY, was arrested and charged by criminal complaint with attempted production of child pornography, enticement of a minor, distribution and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a fine of $250,000.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, a family member of a 12-year old minor notified law enforcement officials after seeing the contents of the 12-year-old’s cell phone which included chats between the minor and the defendant. A forensic examination was conducted which revealed sexually explicit conversations between the 12-year-old and Cortese. The defendant was known to the 12-year-old minor as a family friend. The minor disclosed that the two started chatting directly with one another through Facebook and then through Kik and Instagram. The chats revealed that the defendant attempted to get sexually explicit photos from the minor, sent pictures of his private area to the minor, and sent images to the minor that appeared to depict child pornography.
“This Office consistently encourages parents and guardians to monitor any technology use by their children and those in their care,” said U.S. Attorney Hochul. “This case is a perfect example of why that is so important. It also shows that once adults alert law enforcement, we can and will follow up on any and all leads, wherever they take us.”
Cortese made an initial appearance this morning before U.S. Magistrate Judge Jonathan W. Feldman. The defendant is being held pending a detention hearing on April 2, 2015 at 10:30 a.m.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn and the Irondequoit Police Department, under the direction of Chief Richard Tantalo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Governor, Goodwin and state and local officials unveil West Virginia Center for Children's JusticeRead the Press Release
Center will serve as a statewide clearinghouse for information, resources, training and technical assistance
CHARLESTON, W.Va. – Governor Earl Ray Tomblin, United States Attorney Booth Goodwin, and West Virginia State Police Colonel Jay Smithers, and other state and local officials, along with school, law enforcement, and child advocacy and mental health professionals, came together today to unveil the West Virginia Center for Children’s Justice. The Center, a collaborative effort between Goodwin’s office, West Virginia State Police and West Virginia Department of Health and Human Resources, Bureau for Children and Families, will serve as a statewide clearinghouse for information, resources, training and technical assistance.
The Center, located at the West Virginia State Police Professional Development Center in Dunbar, West Virginia, will house the West Virginia Defending Childhood Initiative Task Force (Handle With Care), West Virginia Children’s Justice Task Force, and the West Virginia Drug Endangered Children’s Task Force. All three task forces are charged with improving the investigation, prosecution and judicial handling of child abuse and neglect cases, strengthening prevention and intervention efforts, and promoting school-community partnerships aimed at ensuring that children who are exposed to trauma in their home, school or community receive appropriate interventions to help them achieve academically at their highest levels despite whatever traumatic circumstances they may have endured.
“I’m proud of the continued collaboration by our state’s law enforcement, Department of Health and Human Resources and educators to provide at-risk children with the support they need to heal, thrive and achieve long-term success in West Virginia,” Gov. Tomblin said. “I’m confident the West Virginia Center for Children’s Justice—through its partnership with schools and communities across the state—will play a significant role in expanding prevention and intervention services to ensure a promising future for our kids now and for years to come.”
The Center will promote safe and supportive homes, schools and communities that protect children, and help traumatized children heal and thrive. “This Center will improve communication and collaboration between law enforcement, prosecutors, schools, advocates and mental health providers, and help connect families, schools and communities to mental health services. We can no longer work in our silos focused on one piece of a child’s life puzzle. We must work together to make systemic improvements that can truly change the trajectory of a child’s path,” stated Goodwin.
Colonel Jay Smithers commented, “Child abuse is a community problem. No single agency can intervene effectively -- it takes a team. As law enforcement, we can play a crucial role in helping to link child victims to essential services and counseling. The West Virginia State Police is proud to house the Center for Children's Justice which will strengthen the multidisciplinary team response to child victims across the state.”
For more information about the West Virginia Center for Children’s Justice, visit www.handlewithcarewv.org.