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Monday 23 March 2015
Detroit-Area Business Owners Plead Guilty to Filing a False Tax ReturnRead the Press Release
Two West Bloomfield, Michigan, residents and Detroit-area business owners pleaded guilty today in the U.S. District Court for the Eastern District of Michigan in Detroit to one count of filing a false federal income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the court filings, Todd and Stephen Schlussel each filed a false 2008 tax return that failed to report a significant amount of income. The unreported income was from several Detroit-area businesses that they operated and controlled, including Phoenix Real Estate Company, Phoenix Preferred Properties LLC, Phoenix Office Plaza-II LLC, the Lumber Company and FS Investments LLC.
U.S. District Judge Arthur J. Tarnow scheduled sentencing for Sept. 28. Both face a statutory maximum sentence of three years in prison and a fine of up to $250,000.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Mark McDonald and Christopher O’Donnell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for their assistance on the case.
Department of Justice Releases Report on Philadelphia Police Department's Use of Deadly ForceRead the Press Release
Office of Community Oriented Policing Services Releases 48 Findings and 91 Recommendations to Implement Best Practices at the Philadelphia Police Department
Note: The report, Collaborative Reform Initiative—An Assessment of Deadly Force in the Philadelphia Police Department can be found HERE on the COPS Office website.
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced the release of its initial report on the Philadelphia Police Department’s use of deadly force policies and practices.
In 2013, in response to an increase in officer-involved shootings, Philadelphia Police Commissioner Charles Ramsey requested technical assistance from the COPS Office. Launched in November 2013, the Collaborative Reform Initiative in Philadelphia focuses on the use of deadly force over a seven-year period.
“I applaud Commissioner Ramsey for stepping forward to take a more critical look at the use of force policies and practices within the Philadelphia Police Department,” said COPS Office Director Ronald Davis. “Through enhanced training, improved transparency of deadly force investigations, and strengthened use of force review processes, I am confident the Philadelphia Police Department will see great improvement to its law enforcement policies. The recommendations presented today benefit not only this department, but can serve as a guide for other police agencies across the country facing similar challenges.”
The COPS Office’s training and technical assistance provider for the assessment, CNA, reviewed hundreds of departmental policies, manuals and training plans; conducted 164 interviews with community members and department civilian and sworn personnel; facilitated focus groups with city and department stakeholders; and directly observed operations, including the use of force review board hearings of 20 officer-involved shooting incidents.
Through its 48 findings, the assessment identifies serious deficiencies in the department’s use of force policies and training, including a failure to maintain a certified field training program; deficient, inconsistent supervision and operational control of officer-involved shooting investigations and crime scenes; and oversight and accountability practices in need of improvement, the most notable being the need for the department to fully cooperate with the Police Advisory Commission.
To address these issues, the report prescribes 91 recommendations to help the department improve with respect to the use of force and implement industry best practices. The COPS Office will work with the Philadelphia Police Department over the next 18 months to help them implement these recommendations and will provide two progress reports during this time.
The report, Collaborative Reform Initiative—An Assessment of Deadly Force in the Philadelphia Police Department can be found on the COPS Office website.
The assessment was administered as part of the COPS Office's Collaborative Reform Initiative for Technical Assistance, designed to provide technical assistance to agencies facing significant law enforcement-related issues. Using subject matter experts, interviews and direct observations, as well as conducting extensive research and analysis, the COPS Office assists law enforcement agencies with enhancing and improving their policies and procedures, their operating systems and their professional culture. The COPS Office can issue a series of recommendations and be instrumental in assisting agencies with the implementation of those recommendations.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 126,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about COPS, please visit the COPS Office website.
Convicted felon pleads guilty to unlawfully possessing a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a convicted felon from the Washington, D.C. area pleaded guilty today in federal court in Charleston to unlawfully possessing a firearm. Sean Anthony Nalle, 30, of Washington, D.C. entered a guilty plea to pawning a semiautomatic pistol at Carl’s Pawn Shop on Dudley Avenue in Parkersburg, West Virginia. Nalle was prohibited from possessing the firearm because of prior federal drug trafficking convictions in the District of Columbia in 2006 and 2009.
Nalle faces up to ten years in federal prison, and is scheduled to be sentenced on June 23, 2015.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Joshua C. Hanks is in charge of the prosecution.
The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Convicted Felons Charged with Unlawfully Possessing FirearmsRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury returned a 13-count indictment charging Linda M. Taylor, 35, and Donnie N. Whitfield, 24, both of Panama City, with possessing firearms as convicted felons. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, on six different occasions between December 2014 and February 2015, Taylor possessed a Smith and Wesson .40 caliber pistol, a Phoenix Arms .22 caliber pistol, a Lorcin .380 caliber pistol, a Maverick 12-gauge shotgun, a Sig Sauer 9 millimeter pistol, and ammunition. The indictment further alleges that the Smith and Wesson .40 caliber pistol and the Phoenix Arms .22 caliber pistol were stolen and sold. Taylor is also charged with trafficking in methamphetamine, and Whitfield is charged with possessing the same Maverick 12-gauge shotgun. The arraignment and initial appearance are scheduled for 1:30 p.m. today before Magistrate Judge Larry A. Bodiford at the U.S. Courthouse, 30 West Government Street, Panama City, Florida.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Gayle E. Littleton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Collin County Man Sentenced to 151 Months for Multimillion-dollarRead the Press Release
SHERMAN, Texas – A 35-year-old Allen, Texas man has been sentenced to federal prison for mail fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Brian Curry pleaded guilty on July 29, 2014 to mail fraud and was sentenced to 151 months in federal prison today by U.S. District Judge Amos L. Mazzant. A hearing to determine restitution will be held in approximately 90 days. A date for the hearing has not been set.
According to information presented in court, from June 2006 to February 2014, Curry, the owner and operator of South Coast Group, L.P., a real estate company located in Allen, Texas, devised a scheme to defraud certain homeowners and buyers. To facilitate the scheme, Curry solicited distressed homeowners who were facing possible foreclosure through mail advertisements and his website, www .soldthismonth.com, and convinced them they could protect their credit by transferring the title to their homes to him with the promise he would assume responsibility for making the mortgage payments. Curry then solicited buyers with below average credit through his website, www .allcreditisokay.com, and would then sell the property to a new buyer representing that Curry was the true owner of the property, omitting that there was still an original lien holder, and in most cases, not paying the mortgage payments to the original lien holder as promised. In order to conceal the existing lien from the buyer, Curry financed the mortgage himself, set up “land trusts” pertaining to each transaction, designated himself as the “trustee,” and had the new buyer send payments to a private mail box under his control with the understanding that Curry, as trustee, would then make the mortgage payments.
After approximately six to ten months the buyer learned that the mortgage payments were delinquent pursuant to (1) either a delinquent notice from the true lending institution that held the note on the property or (2) from the original homeowner after the original owner had been contacted by the true lending institution. In turn, the lending institution often made a demand for payment-in-full for the remaining balance of the mortgage – despite the buyer’s submission of monthly payments to Curry. When the buyer was unable to make the full payment to the lending institution, the lending institution initiated the foreclosure process and the buyer was often evicted.
As part of the fraud scheme, more than 50 homeowners and buyers relied on Curry’s false material representations. As a result of his fraudulent actions, Curry personally gained $1,574,900, and caused a loss to homeowners, buyers and lending institutions of approximately $2,362,350.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
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Chicago Man Pleads Guilty to Heroin ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Dominque A. Burwell, 21, of Chicago, Illinois, pled guilty today to Conspiracy to Distribute Heroin from September 2012 through October 2014 in Marion County (Count 1); and Distribution of Heroin on July 29, 2014, in Marion County (Count 7).
Count 1 carries a maximum penalty of not less than 5 years’ in prison, up to 40 years’ in prison, a $5 million fine, and at least 4 years’ supervised release. Count 7 carries a maximum penalty of 20 years’ in prison, a $1 million fine, and not less than 3 years’ supervised release. Both counts require an assessment of $100.
According to court documents, Burwell agreed with his co-defendants, a cousin and a friend, to distribute heroin for profit in Centralia, Marion County, Illinois. Burwell and the others shared a cell phone which customers would contact to order heroin. Burwell often answered the shared cell phone, took the order, and then sent the others to complete the transaction with the customer at whatever location Burwell designated.
Information leading to the charges against Burwell was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Man Sentenced to Federal Prison for Multi-State Bank Fraud SchemeRead the Press Release
ALBUQUERQUE – Kevin Cohn, 31, of Rialta, Calif., was sentenced this morning to 33 months followed by three years of supervised release for his conspiracy to commit bank fraud conviction. Cohn was also ordered to pay $30,514.16 in restitution.
Cohn’s co-defendants, Denny Smith, 51, of Hesperia, Calif., and Michael Anthony Bjornethun, 40, of Riverside, Calif., were charged with bank fraud offenses in a criminal complaint filed on Jan. 13, 2014. The two subsequently were indicted on Jan. 22, 2014, and charged with conspiracy to commit bank fraud and five counts of bank fraud.
Cohn was added as a defendant to the case in a 12-count superseding indictment filed on March 26, 2014. Count 1 of the indictment charged Smith and Cohn with conspiracy to commit bank fraud and Count 2 charged Smith and Bjornethun with the same offense. Counts 3 through 12 charged the three men with individual bank fraud offenses. According to the superseding indictment and other court filings, Cohn, Smith and Bjornethun perpetuated a scheme in Jan. 2014, to defraud a bank by using counterfeit debit cards to purchase items from U.S. Post Offices in New Mexico, Arizona and Texas.
On Dec. 9, 2014, Cohn pled guilty to Count 1 of the superseding indictment charging him with conspiracy to commit bank fraud. In entering his guilty plea, Cohn admitted that in Jan. 2014, he traveled with Smith from California to Arizona, New Mexico and Texas, where they visited various post offices and purchased stamps, gift cards and other items with counterfeit debit cards. Cohn admitted that the purpose of the trip was to commit fraud. In his plea agreement, Cohn admitted that he and his co-conspirators perpetuated fraud in the amount of $30,505.52 during the life of their bank fraud scheme.
Cohn’s co-defendants previously entered guilty pleas and have been sentenced. Smith entered a guilty plea on June 24, 2014, to Counts 1 and 2 of the superseding indictment. He was sentenced on Aug. 25, 2014, to 27 months in federal prison followed by three years of supervised release. Bjornethun plead guilty to the original indictment without the benefit of a plea agreement on March 19, 2014. On June 30, 2014, he was sentenced to 172 days of time served followed by two years of supervised release.
This case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistants U.S. Attorney Samuel A. Hurtado and C. Paige Messec.
California Man Indicted for Attempted Armed Robbery of Humboldt BancorpSouth and Assaulting A Bank EmployeeRead the Press Release
Jackson, TN – A former California resident has been charged in a federal indictment that accuses him of attempted armed robbery of BancorpSouth in Humboldt, TN, and use of a dangerous weapon.
Dominic Williams, 39, recently of Humboldt, TN, was named today in a three-count indictment charging one count of using a dangerous weapon; one count attempted bank robbery; and one count of being a felon in possession of a firearm.
According to court documents, at approximately 7:00 a.m. on March 18, 2015, Williams, who had recently relocated to Humboldt, TN from California, hid in the carport of a bank employee’s residence. Williams approached the bank employee at gunpoint when she was about to get into her car and drive to work. He then forced the victim to drive to BancorpSouth and open the exterior doors of the bank.
Once inside the bank, Williams attempted to force the victim at gunpoint to open the bank safe, but she was unable to do so. He then shot the victim and fled through a back window of the bank.
Williams is scheduled for a detention hearing at 10:00 a.m. today. If Williams is convicted, he will face a statutory maximum sentence of life in federal prison.
This case was investigated by the Humboldt Police Department; Gibson County Sheriff’s Office; West Tennessee Violent Crime and Drug Task Force (28th, 29th, 30th Judicial Districts; and the Federal Bureau of Investigation – Memphis Jackson Resident Agency. The government’s case is being prosecuted by Assistant U.S. Attorney Matthew Wilson.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Brighton Man Charged in Child Pornography CaseRead 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 Joseph Lamica, 25, of Brighton, NY, was arrested and charged by criminal complaint with attempted production of child pornography and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a fine of $250,000.“Thanks to a parent’s willingness to inquire further into conduct which seemed questionable, this case was brought to a rapid conclusion,” said U.S. Attorney Hochul. “The case further serves as a reminder of how important it is for parents to exercise caution when entrusting their children to strangers.”
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, Lamica was a babysitter who advertised his services on Care.com and Craigslist.com. A family the defendant was working for discovered that Lamica was engaging in inappropriate behavior with nine-year-old son and terminated the babysitting contract. Thereafter, the defendant attempted to approach the boy at school.
The Monroe County Sheriff’s Office obtained a search warrant and searched Lamica’s residence. Deputies found materials and notebooks with writings expressing the defendant’s interest in young boys. Another search warrant was obtained for Lamica’s digital media hardware which contained images of child pornography, and a video of another minor the defendant babysat in 2014.
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, and the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
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.
Baltimore Felon Sentenced to 10 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony Miles, a/k/a “Bigs,” and “Fat Boy,” age 30, of Baltimore, late on March 20, 2015, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, as part of an investigation into a drug trafficking organization that operated primarily in Baltimore City and Baltimore County, Miles was intercepted in text messages, telephone calls and other recordings arranging heroin transactions. On numerous occasions a cooperating witness drove Miles to locations in the Baltimore area to meet co-conspirators. At the meetings, Miles delivered heroin to the co-conspirators and collected payment for the drugs. For example on February 15, 2013, after delivering heroin to at least three co-conspirators and collecting money, Miles reportedly raised up a large stack of cash, holding it with both hands, and screamed that he just made $20,000 in an hour.
Over the course of the conspiracy Miles was responsible for the distribution of more than one kilogram of heroin. Miles’ participation in the heroin conspiracy violated the conditions of his supervised release for a previous federal drug conviction.
A total of 12 defendants, including Miles, Enzo Blanks, a/k/a “Zo,” age 29, and Marlow Bates, a/k/a “Low,” age 33, both of Baltimore, have been convicted for the heroin distribution conspiracy. Blanks and Bates were also sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department and Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Arrest Made in Investigation of Explosive Device Left in Vickery Creek ParkRead the Press Release
ATLANTA - Michael C. Sibley made his initial appearance on federal charges that he intentionally conveyed false information relating to the unlawful use of an explosive device, and attempting to damage federal property by use of an explosive device, in connection with a device found in Vickery Creek Park in Roswell, Georgia, in November, 2014. Sibley was arrested by the FBI pursuant to a criminal complaint on March 21, 2015.
“The defendant allegedly placed a bag containing what appeared to be pipe bombs in Vickery Creek Park. This arrest should reassure the community that serious crimes like this will be investigated thoroughly and all leads followed to identify the perpetrator,” said Acting U. S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Reports of backpacks containing possible explosive devices are obviously taken seriously by the FBI and its Joint Terrorism Task Force (JTTF). The law enforcement response by Roswell Police, the FBI and its JTTF, as well as a significant response by area Explosives Ordnance Disposal units, was not only time consuming but costly to the taxpayers.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: On November 4, 2014, a citizen reported the presence of a suspicious package in Vickery Creek Park, located in Roswell, Georgia. That day, Roswell, Georgia, police officers found a backpack along a trail in the park that contained two partially assembled improvised explosive devices, also referred to as pipe bombs. The backpack also contained a Falcons schedule, a MARTA schedule and other papers, books and clothing.
On March 20, 2015, FBI agents identified Sibley as the individual who placed the device in the park and arrested him on a criminal complaint. The complaint charges Sibley with 1) intentionally conveying false information under circumstances where such information reasonably indicated that a violation of a federal statute prohibiting the unlawful use of an explosive device would take place, in violation of 18 U.S.C. Section 1038; and 2) attempting to damage federal property by use of an explosive device, in violation of 18 U.S.C. Section 844(f)(1).
Michael C. Sibley, 67, of Marietta, Georgia, appeared today before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the Criminal Complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Appellate Court Affirms 50-Year Sentence for Donald J. Jones, IIIRead the Press Release
PROVIDENCE, R.I. – The United States Court of Appeals For the First Circuit in Boston today affirmed the sentence of 50-years in federal prison imposed on Donald J. Jones, III, on charges of interstate travel to engage in illicit sexual acts with a minor, aggravated sexual assault, enticement of a minor, and distribution of child pornography. Jones was convicted by a jury at trial in May 2012. U.S. District Court Chief Judge William E. Smith imposed a sentence of 50-years in prison on September 11, 2014.
Today’s Appellate Court decision, the government’s motion for summary disposition and press releases issued at the time of Jones’ conviction and sentencing hearing are attached.
Assistant U.S. Attorney Donald C. Lockhart represented the Government in this matter before the United States Court of Appeals For the First Circuit.
The case was prosecuted in U.S. District Court in Providence by First Assistant United States Attorney Stephen G. Dambruch and Assistant U.S. Attorney Leslie J. Kane.
No. 14-2037
UNITED STATES,
Appellee,
v.
DONALD J. JONES, III, a/k/a Don Juan,
Defendant, Appellant.
Before
Torruella, Howard and Barron,
Circuit Judges.
__________________
Entered: March 23, 2015Appellant Donald J. Jones, III, challenges his 50-year sentence for six convictions stemming from his attempt to engage in a sex act with a child across state lines and his possession and interstate transport of child pornography. Having thoroughly reviewed relevant portions of the record and each of Jones' arguments, we conclude that the district court's sentencing methodology was procedurally and substantively sound and that the district court did not abuse its discretion by imposing the sentence it did. See United States v. Politano, 522 F.3d 69, 72-73 (1st Cir. 2008) (setting out standard of review and general principles). Accordingly, the government's motion for summary disposition is , and the judgment of the district court is .
By the Court:
/s/ Margaret Carter, Clerk###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Anchorage Man Convicted of Child Exploitation ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was convicted on Monday, March 23, 2015, in a case involving an American exploiting children in Cambodia.
A federal jury found Jason Jayavarman guilty of two counts: attempted sexual exploitation of children, in violation of 18 U.S.C. 2251(c), and attempted travel with intent to engage in illicit sexual conduct in a foreign place, in violation of 18 U.S.C. 2423(b).
Jayavarman, 45, was tried before U.S. District Court Judge Sharon L. Gleason in Anchorage. According to Assistant U.S. Attorney Audrey J. Renschen and U.S. Department of Justice, Child Exploitation and Obscenity Section, Trial Attorney Ravi Sinha, who prosecuted the case, the evidence presented at trial established that Jayavarman produced multiple videos of child pornography in Cambodia, between 2010 and 2013, which he then transported to the United States.
The evidence also established that, at the time of his arrest, Jayavarman planned a trip to Cambodia with the intent that, upon arrival, he and another individual, later revealed to be an undercover FBI agent, would engage in commercial sex acts with children as young as 12.
Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers. Jayavarman remains in custody pending sentencing. Based on the charges of conviction, Jayavarman faces a mandatory minimum of 15 years and a maximum of 60 years in prison, as well as lifetime registration as a sex offender.
United States Attorney Karen L. Loeffler noted, “These verdicts are the result of our committed efforts, working with all of our law enforcement partners, to fight exploitation of children, wherever it occurs, with all resources at our disposal and to prosecute those who prey on children to the fullest extent of the law".
Ms. Loeffler commends the Federal Bureau of Investigation, the Anchorage Police Department, and Crime Stoppers for the investigation leading to the successful prosecution of Jayavarman.
4 Convicted in Sex Trafficking of Minors CaseRead the Press Release
HOUSTON – Four people have been convicted for their roles in a sex trafficking of minors conspiracy in which young females were forced and/or coerced to engaged in commercial sex acts, announced U.S. Attorney Kenneth Magidson.
Emanuel Dandre Wade, 25, pleaded guilty to two counts of sex trafficking of minors. Charmaine Henderson, 26, and Ashley Shawntal Williams, 22, both entered guilty pleas to conspiracy to commit sex trafficking, while Henderson also pleaded to one count of sex trafficking of minors. Darquesha Perry, 27, entered a plea of guilty to misprision of a felony.
Wade and Henderson claimed to own a modeling agency, which, in reality, was a front for prostitution. Wade admitted he coerced minor females to engage in prostitution under the initial guise of “modeling.” He took pictures of the minors and advertised their services on websites.
One of the girls was continually beaten by Wade and forced to continue to prostitute. She indicated that on one occasion, she was beaten for simply giving Wade the wrong number of cigarettes. She was eventually recovered by law enforcement.
After the victim’s rescue, Williams contacted her and lied to her, stating she was no longer associating with Wade and to come “hang out” with her. She then took her to a hotel room where Wade was waiting. The victim claimed Wade beat her again, but was eventually able to contact her mother who took her to a hospital to receive treatment.
Wade had also reached out to another victim via a social networking site under the guise of looking for a model. He eventually coerced her into prostitution and kept all of the monies she earned.
Williams admitted to transporting victims to “dates” in her vehicle and had rented motel rooms for the commercial sex acts. She knew the women were minors.
Perry had also provided transportation and allowed Wade to move into her apartment while running his criminal enterprise.
United States District Court Judge Gray Miller accepted the pleas today and has set sentencing for July 10, 2015. At that time, Wade, Henderson and Williams each face up to life in federal prison for each of their counts of conviction. Perry faces up to three years in prison.
Wade and Henderson are in custody, while Perry and Williams remain on release pending their sentencing hearings.
The charges are the result of an investigation conducted by the Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
Friday 20 March 2015
Week in Review –south BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Jason C. Roames, 35, of Michigan City, Indiana pled guilty to the felony offense of possession of child pornography. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the FBI. Sentencing has been set for June 28, 2015. This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
- Ewing Teal, 26, of South Bend, Indiana pled guilty to the felony offense of possession with intent to distribute cocaine base (crack). The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by DEA. Sentencing has been set for June 24, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Jordan Gutkowski, 28, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to distribute heroin. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by DEA. Sentencing has been set for June 25, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Miguel Gregory Vera, 23, of South Bend, Indiana pled guilty to the felony offenses of false statements on acquisition of a firearm and drug user in possession of firearms. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for June 17, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Justin Bowles, 25, of South Bend, Indiana was sentenced to 60 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of possession with intent to distribute cocaine base over 28 grams. According to documents filed in this case, on April 10, 2014, in a residence located in South Bend, Bowles possessed a package containing a white rocklike substance that was cocaine base (crack). It was Bowles intent to sell this substance. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Keandria C. Jones, 25, of Gary, Indiana pled guilty to the felony offense of making a false statement in connection with the acquisition of a firearm in violation of 18 U.S.C ' 922(a)(g). This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for June 25, 2015. This case is being prosecuted by Assistant United States Attorney Nicholas J. Padilla
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Robinson Morales, 37, of East Chicago, Indiana, was sentenced to 24 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on March 15, 2013, Morales possessed a .22 caliber pistol after having been convicted of crime punishable by imprisonment exceeding one year. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
- Jose L. Ruiz-Medina, 49, of Hammond, Indiana was sentenced to time served and will face immigration removal proceedings after pleading guilty to the felony offense of illegal re-entry. According to documents filed in this case, the defendant had been previously deported to Mexico from the United States after having been convicted of a felony offense in the State of California. On or about October 2014, the defendant, a citizen of Mexico, illegally re-entered the United States and eluded and evaded immigration officials until found and arrested by law enforcement. This case was the result of an investigation by the Homeland Security Investigations. This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review –fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Ashley Taylor, 26, of Fort Wayne, Indiana was sentenced to 1 year probation and ordered to pay $370.33 in restitution after pleading guilty to the felony offense of theft or receipt of stolen mail matter. According to documents filed in this case, on or about July 23, 2014, Taylor unlawfully possessed mail matter which had been stolen. Postal customers in the 46845 zip code had filed numerous complaints with the Allen County Sherriff’s Department and the United States Postal Inspector about missing or stolen mail, or about finding open, discarded mail in their area. This case was the result of an investigation by the United States Postal Inspection Service and the Allen County Police Department. This case was prosecuted by Assistant United States Attorneys Tina L. Nommay and Nathaniel C. Henson.
- Pedro Castaneda, Jr., 41, of Fort Wayne, Indiana was sentenced to 57 months imprisonment with 1 year supervised release and ordered to forfeit $1,000, after pleading guilty to the felony offense of conspiracy to distribute and possess with intent to distribute cocaine. According to documents filed in this case, from on or about November 8, 2010, and continuing to on or about April 13, 2011, Castaneda knowingly and intentionally conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
U.S. Attorney to Moderate Panel of Experts on Cybercrime and SecurityRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance on Monday will moderate a panel of cyber security experts discussing cybercrime and what businesses can do to minimize the threat of intrusion into their computer systems.
In conjunction with the non-profit technology association, TechBirmingham, the U.S. Attorney's Office is presenting the Panel on Cybercrime and Cyber Prevention: The Partnership between Government and Business. The event will be from 8:30 a.m. to 11 a.m. in the Alabama Power Headquarters Auditorium, 600 18th Street North, in Birmingham.
The panelists include:
Lt. Gen. Ronald L. Burgess Jr., who retired from the U.S. Army as director of the Defense Intelligence Agency and now works for Auburn University as senior counsel for national security programs, cyber programs and military affairs;
David H. Laufmann, chief of the Counterespionage Section in the National Security Division of the Department of Justice;Jenny Durkan, former U.S. Attorney in Seattle, who ran the cyber program for U.S. Attorneys nationwide and is now global chair of the Cyber Law and Privacy Group;
Michele Cantley, who recently retired as chief information security officer at Regions Bank.
The panel will address the nature of cyber threats, possible prevention and mitigation steps, and best practices for working with federal law enforcement.
"Cybercrime is becoming pervasive and it is important to build awareness and plan in advance of an event," Vance said. "This is true, despite the nature or size of your organization, if you have information on your system you wish to protect," she said.
The event is free to attend. For more information and to register visit: techbirmingham.com/events/
U.S. Attorney Fardon Hosts Second Roundtable to Discuss Building Community TrustRead the Press Release
CHICAGO — Members of the community including religious, civic, and business leaders, youth leaders, and top law enforcement met yesterday to continue discussions around building community trust in the neighborhoods of Chicago. This is the second of such meetings, hosted by U.S. Attorney Zachary T. Fardon, and is a follow up to the original roundtable held in December 2014 with United States Attorney General Eric Holder. Among those participating in today’s meeting were Ronald Davis, Executive Director of President Obama’s Task Force on 21st Century Policy, Cook County State’s Attorney Anita Alvarez, Chicago Police Superintendent Garry McCarthy, and Deputy Chief Janey Rountree of the Mayor’s office.
The Department of Justice has made the issue of community policing and trust a top priority. Yesterday’s roundtable facilitated a candid dialogue about policing and trust issues, and focused on next steps for improving relationships between law enforcement and the community.
Mr. Davis, who is also Director of the Department of Justice’s Community Oriented Policing Services in Washington D.C. (known as “COPS”) led a discussion about the recently issued Interim Report from the President's Task Force on 21st Century Policing. In that report, the Task Force seeks to identify best practices and makes recommendations to the President on how policing practices can promote effective crime reduction while building public trust. The Task Force specifically examined, among other issues, how to foster strong, collaborative relationships between local law enforcement and the communities they protect.
As part of their ongoing dialogue, yesterday’s roundtable participants shared several important ideas for strengthening the relationship between law enforcement and our communities, and they committed to continue the dialogue going forward.
Two sentenced for manufacturing methamphetamine in Gilmer CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – James L. Ash, 44, of Glenville, West Virginia, and Sarah Snyder, 37, of Spencer, West Virginia, were sentenced today for manufacturing methamphetamine in Gilmer County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
Ash pled guilty in November 2014 to one count of "Aiding and Abetting Manufacture of Methamphetamine.” He was sentenced today to 63 months in prison.
Snyder admitted that she utilized her residence to produce methamphetamine when she pled guilty in November 2014 to one count of “Maintaining a Drug-Involved Premises.” She was sentenced today to 57 months in prison.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The West Virginia State Police led the investigation.
U.S. District Judge Irene M. Keeley presided.
Two Twin Cities’ Restauranteurs Plead Guilty to Hiring Undocumented WorkersRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of MING GUO, 46, owner of two Twin Cities restaurants, both named Hibachi Grill and Supreme Buffet, and BIJIAN WENG, a/k/a “Wilson,” 28, manager of the restaurants, for employing unlawful aliens. GUO and WENG were charged on January 26, 2015, with one count each of Knowingly Hiring Ten or More Unlawful Aliens. GUO and WENG appeared earlier today in U.S. District Court in St. Paul, Minn.
“Undocumented workers are vulnerable to exploitation,” said Assistant U.S. Attorney Laura Provinzino. “Those who intentionally employ undocumented immigrants allow for these workers to be taken advantage of. Disrupting labor trafficking and punishing those who don’t follow the law is critical to ensure the safety of both legal and unauthorized workers.”
“The guilty pleas today should send a strong message to the Minnesota business community – companies that knowingly employ unauthorized aliens subject themselves to investigation and they will be punished accordingly.” said Special Agent in Charge J. Michael Netherland, of HSI St. Paul. “Our goal is to protect job opportunities for the nation’s legal workers and to level the playing field for those businesses that play by the rules.”
According to the defendants’ guilty plea and documents filed in court, from September 30, 2013 through September 30, 2014, GUO and WENG knowingly hired and employed at least 17 individuals who were not authorized to be employed or lawfully admitted for permanent residence in the United States. On September 30, 2014, HSI agents executed search warrants at the restaurants in Spring Lake Park and West St. Paul, Minnesota. They identified 17 undocumented workers working in the restaurants.
According to the defendants’ guilty plea and documents filed in court, GUO and WENG were aware that the employees were not authorized to work in the United States. Moreover, the defendants did not ask the employees to fill out paperwork, including I-9 Employment Eligibility Verification forms. GUO and WENG also failed to report the unauthorized workers to the Minnesota Department of Economic Development. The employees were paid in cash “off the books.”
This case is the result of an investigation conducted by Homeland Security Investigations.
Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino are prosecuting this case.
Defendant Information:
MING GUO, 46
North Miami Beach, Fla.
Convicted:
• Knowingly Hiring Ten or More Unlawful Aliens, 1 count
BIJIAN WENG, 28
Spring Lake Park, Minn.
Convicted:
• Knowingly Hiring Ten or More Unlawful Aliens, 1 countTwo Jacksonville Men Charged with Investment FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Joshua Gilliland (31) and Chawalit (“Chow”) Wongkhiao (28), both of Jacksonville, with conspiracy to commit wire fraud and conspiracy to commit money laundering. If convicted on all counts, each faces a maximum penalty of 30 years in federal prison. The indictment also notifies both men that the United States intends to seek forfeiture of $1.13 million, which represents the proceeds of the wire fraud offense, and $4,104,823, the amount of money involved in the money laundering offense.
According to the indictment, Gilliland and Wongkhiao, doing business as Allied Markets LLC, solicited money for purported investments in foreign currency exchange (“forex”) transactions. Between March 2012 and July 2014, based on their representations, investors gave them substantial amounts of money. Contrary to their representations, Gilliland and Wongkhiao allegedly invested only about one-fifth of the total investors’ funds in forex transactions, which resulted in a loss. A large portion of the funds were used for personal expenses, including cash withdrawals, rent, furnishings, clothing, travel, food, and entertainment. They also used some of the funds received from later investors to pay off earlier investors.
An indictment is merely a formal charge that a defendant has committed a violation of one of more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Florida Office of Financial Regulation, and the Jacksonville Beach Police Department. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Former U.S. Army Soldiers Sentenced for Stealing $2.7 Million in Government Funds While Stationed in Saudi ArabiaRead the Press Release
NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.
“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn. “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so. While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S. Military Training Mission. They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”
“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”
“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.
In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds.Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97. Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.
Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.
This case was investigated by the United States Army Criminal Investigation Division, the Federal Bureau of Investigation, the United States Air Force Office of Special Investigations, and the Department of Defense, Office of the Inspector General.
Assistant United States Attorney Jamie Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Town of Oyster Bay Commissioner Frederick Ippolito Indicted for Six Years of Tax EvasionRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Frederick Ippolito, a resident of Syosset, New York, with six counts of tax evasion. Ippolito is the Commissioner of Planning and Development for the Town of Oyster Bay (TOB). Ippolito is scheduled to be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the federal courthouse in Central Islip.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).
According to the indictment, from 2008 to 2013, Ippolito received over $2 million in consulting fees from Carlo Lizza & Sons, Paving, Inc., a company located in Old Bethpage, New York, as well as from a principal of that company. Ippolito allegedly evaded taxes on that income by willfully failing to report it on his personal tax returns or the tax returns of entities he controlled. Ippolito is the President of CAI Associates, LTD, a consulting and snow removal business, and a former officer of CAI Restaurant, Inc., d/b/a Christiano’s, in Syosset, New York. If convicted, Ippolito faces a statutory maximum sentence of five years in prison and a fine of up to $250,000 on each of the six counts.
“Tax evasion victimizes every taxpaying American,” stated United States Attorney Lynch. “We and our partners in the IRS will continue to aggressively identify and pursue all individuals – including public officials – who evade their taxes. No one is above the law.”
IRS-CI Special Agent-in-Charge Kitchen stated, “The public expects their elected and appointed officials to obey the same laws as it does. IRS-Criminal Investigation is committed to ensuring that everyone pays their fair share. Public officials will be held accountable for their actions before they took office, while they serve the public, and after they leave office. They must meet their tax obligations just like the people they serve.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney.
The Defendant:
FREDERICK IPPOLITO
Age: 76
Syosset, New York
E.D.N.Y. Docket No. 15-CR-129
Three Sentenced in Income Tax Refund SchemeRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Ivon Martinez, age 40 of West Columbia, Alonzo Leon Ortega, age 42 of Lexington, and Francisco Campos Aguilar of Woodruff were sentenced in connection to a scheme to receive over $1.4 million dollars in fraudulent income tax refund checks from the United States Treasury. Leon-Ortega and Campos-Aguilar each entered guilty pleas to one count of conspiracy in violation of 18 United States Code, Section 371. Martinez pleaded guilty to unlawful identification document transfer in violation of 18 United States Code, Section 1028(a)(2) and aggravated identity theft in violation of 18 United States Code, Section 1028A. According to facts presented during the guilty plea hearing, Martinez bought or stole IRS form W-2s from migrant workers in and around the Lexington County area. Martinez and other members of the conspiracy used the W-2 forms to file fraudulent income tax returns, often adding multiple fictitious dependents to inflate the amount of the refunds. Ortega and Aguilar would then use forged Mexican Consular Identification Cards to cash the refund checks at retail locations around Lexington County. Martinez received a sentence of 42 months of incarceration, Leon Ortega received a sentence of 1 year of incarceration and Campos Aguilar received 8 months of home confinement and 5 years’ probation. In addition, all three defendants face possible deportation. Sentencing dates for the other members of the scheme have not been set.
“The IRS is aggressively pursuing those who steal others' identities in order to file false returns,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers in South Carolina from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.” The case was investigated by Special Agents with the IRS, the Department of Homeland Security/HSI, The United States Postal Service and the South Carolina Law Enforcement Division and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.####
Three Individuals Plead Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Three individuals, including a former employee of the U.S. Postal Service, have pled guilty based on their participation in an identity theft tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Shawn Hawes, 34, of Miami, Florida, Toni Sophia Yates, 28, of Hollywood, Florida, and Kelly Urseles Roberts, 39, of Miami, Florida, each pled guilty to one count of aggravated identity theft. Hawes and Yates also pled guilty to one count of possession of fifteen or more unauthorized access devices. Roberts also pled guilty to one count of theft of government property.
According to court documents, law enforcement executed a search warrant at a storage unit rented to Yates. Hawes used this storage unit with Yates. During a search of the unit, law enforcement found, among other things, notebooks containing handwritten personal identifying information, including the social security numbers of approximately 600 individuals. In addition, law enforcement found equipment capable of creating false identification documents and credit/debit cards, and actual false identification documents and credit/debit cards. Yates name was embossed on a number of the cards. Inside one of the notebooks was the social security number of an individual who had a tax return filed on his behalf in 2014. The refund associated with this return had been direct deposited into Hawes’ bank account. This individual did not authorize Hawes or Yates to possess or use his personally identifiable information.
Defendant Hawes was arrested for, among other things, possession of stolen tax refund checks issued by the United States Treasury Department. Following Hawes’ arrest, law enforcement began focusing on who provided the treasury checks to Hawes. Law enforcement suspected that this source was a mail carrier because Hawes had referred to the course as the “postman.” Yates called a cooperating defendant and asked him if he was interested in buying more checks from the postman. The cooperating defendant said that he was interested. Ultimately, Roberts met with the cooperating defendant on three separate occasions and sold him a total of nine treasury checks.
Yates is scheduled to be sentenced on May 12, 2015 at 8:30 a.m. Roberts is scheduled to be sentenced on May 13, 2015 at 8:30 a.m. Hawes is scheduled to be sentenced on May 27, 2015 at 8:30 a.m. Each defendant will be sentenced by U.S. District Judge Cecilia M. Altonaga. At sentencing, each defendant faces a maximum of ten years in prison for the theft of government property and access device charges, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, USPIS, and United States Postal Service Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tennessee Corporation and Employees Indicted by Federal Grand Jury for BriberyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Herschell Becker, John Becker aka Jack Becker, and ADA Station Communication, Inc. were indicted by a federal grand jury in Anchorage for bribery of a public official. The offenses charged occurred from June 2014 through August 2014.
Herschell Becker, 48, of Grandview, Tennessee, and ADA Station Communication, Inc., based in Crossville, Tennesse were charged with three counts of bribery of a public official together with a criminal forfeiture allegation. Jack Becker, 53, of Crossville, Tennessee was charged with two counts of bribery of a public official together with a criminal forfeiture allegation.
According to the indictment, ADA Station Communication, Inc. was founded in 1995 and has been a telecommunication company, specializing in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video, and data networks, obtaining approximately 65% of its business from federal entities. ADA Station Communication, Inc. has had, and continues to have, subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. Herschell Becker has been the Vice President of ADA Station Communication, Inc. since 1995 and Jack Becker has been an employee of ADA Station Communication, Inc. since approximately 2003.
The indictment alleges that on June 18, 2014, the defendants offered $10,000 to a U.S. Air Force Cable/Antenna Work Leader to accept work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER as complete. The indictment further alleges that on August 28, 2014, the defendants gave $5,000 to a U.S. Air Force Cable/Antenna Work Leader to accept work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER. The indictment also alleges that Herschell Becker and ADA Station Communication, Inc. offered a U.S. Air Force Cable/Antenna Work Leader that it would be well worth his while if he recommended ADA Station Communication, Inc. as subcontractors for future work on JBER.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Air Force Office of Special Investigations conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Plead Guilty to Tax FraudRead the Press Release
Jackson, Miss - Jeffery Jamison, 57, of Brandon, and Ashley Davis, 30, of Jackson, pled guilty on Thursday, March 19, 2014 before Senior U.S. District Judge Tom S. Lee to intentionally failing to file a FORM 8300 with the U.S. Department of the Treasury in relation to their business activities at a Jackson used car dealership known as Spirit Automotive, announced U.S. Attorney Gregory K. Davis and Jerome R. McDuffie, Acting Special Agent in Charge of IRS Criminal Investigation.
According to the facts disclosed during the guilty plea, Jamison, the owner of Spirit Automotive, and Davis, his employee, accepted $13,400 in cash from an undercover special agent posing as a drug dealer. Jamison and Davis arranged the purchase of the car to make it appear that Spirit Automotive had received less than $10,001 in cash for the vehicle by creating a false financing agreement.
IRS Criminal Investigation Acting Special Agent in Charge, Jerome R. McDuffie, stated: "It is a violation of the law to accept over $10,000.00 in currency for the purchase of a vehicle and not file the required forms for federal reporting purposes. Jeffrey Jamison and Ashley Davis regularly conducted business at Spirit Automotive in a manner that violates federal statute. Individuals who engage in this type of activity often provide opportunity for drug dealers and others who traffic in illegally obtained currency to launder their money at the expense of honest citizens and taxpayers. The Special Agents of IRS - Criminal Investigation stand ready to pursue prosecution in these instances, and remain committed to upholding the legal statutes that are in place to protect the sanctity of our economy."
The defendants will be sentenced by Senior U.S. District Judge Tom S. Lee on June 4, 2015 at 9:30. They each face a maximum penalty of five years in prison and a $250,000 fine.
Statement by U.S. Attorney Damon P. Martinez on the Fatal Shooting of Navajo Tribal Police Officer Alex YazzieRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez released the following statement today regarding the fatal shooting of Alex Yazzie, a Police Officer with the Navajo Nation Division of Public Safety who was commissioned as a Special Federal Officer by the BIA’s Office of Justice Services:
“Officer Alex Yazzie was a dedicated law enforcement officer and a courageous public servant. Although he was taken from us so suddenly and far too soon, Officer Yazzie leaves behind an indelible legacy that will live on in the lives he touched through the work that the BIA, the Navajo Nation Division of Public Safety and all tribal police officers continue to perform to safeguard and protect our tribal communities. His loss is a tragic reminder that the work of our law enforcement officers is profoundly heroic and deserving of our most emphatic support. The thoughts and prayers of the law enforcement community will be with Officer Yazzie’s family and loved ones throughout this difficult time. And as we go forward, the Department of Justice and the U.S. Attorney’s Office intend to honor his service and his sacrifice by continuing to fight for the values he protected every day, and to protect the tribal communities for whom he gave his life.”
Statement by Attorney General Holder on the Departure of B. Todd Jones as the Director of the Bureau of Alcohol, Tobacco, Firearms and ExplosivesRead the Press Release
Attorney General Eric Holder released the following statement on the departure of Director B. Todd Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives:
“Throughout his tenure as Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Todd Jones has cemented his reputation as an exemplary leader, a consummate professional, and an outstanding public servant. Since 2011, when I asked Todd to serve as Acting Director of ATF, he has made bold changes, advanced forward-looking policies, and taken innovative steps to strengthen ATF’s investigative capabilities—including ballistic imaging technology that recently played a critical role in the investigation of the shooting of two police officers. With his guidance, ATF has implemented its Frontline business model—a data-driven approach designed to ensure the agency can focus its resources to achieve maximum impact. The agency has developed groundbreaking law enforcement initiatives across the country to combat violent crime and bring dangerous criminals to justice. And as a result of Todd’s leadership, ATF has built a proactive, creative, and effective team that is well-prepared to drive the agency into the future.
“As a former officer in the United States Marine Corps, a highly talented prosecutor, and a proven leader who has been named a U.S. Attorney by two different presidents, Todd Jones has never hesitated to answer the call to serve his community and his country with exceptional integrity and uncommon distinction. As the first ever Senate-confirmed Director of ATF, his indelible legacy will serve as an inspiring example for all those who follow him. On behalf of the Department of Justice, I thank him for his extraordinary service and wish him all the best as he takes the next steps in his already remarkable career.”
Speech Therapist Guilty of Health Care FraudRead the Press Release
HOUSTON – Rebecca Lee Rabon, 44, of Houston, has pleaded guilty to one count of conspiracy to commit health care fraud and five counts of health care fraud in relation to a health care fraud scheme that billed Tricare and Blue Cross and Blue Shield of Texas more than $3.7 million, announced U.S. Attorney Kenneth Magidson.
Rabon is a licensed speech therapist and the owner and operator of Rabon Communication Enhancement (RCE), a speech therapy clinic for children.
At the hearing today, she admitted that she worked together with Tiffany Nicole Thompson, 31, to submit claims to insurance providers for services that were not medically necessary and not provided. Rabon further admitted that between March 29, 2009, and Nov. 11, 2013, her clinic did not have the equipment or supplies to provide treatment for dysphagia - a swallowing and oral feeding dysfunction - and that neither she, nor any speech therapist employed at RCE, provided any of those treatments to children at the clinic.
Rabon further admitted she submitted $925,140 in false and fraudulent claims for herself and Thompson and three unsuspecting RCE employees for various medical and speech therapy services that were not provided, and including $110,550 in false and fraudulent claims under the medical insurance of one unsuspecting employee. Rabon admitted she and Thompson sent a forged letter to Blue Cross and Blue Shield of Texas with a false address for the employee to prevent the employee from discovering the fraud.In total, Tricare and Blue Cross and Blue Shield of Texas received approximately $3,784,642 in false and fraudulent claims from Rabon and paid her approximately $1,285,827 on those claims.
Rabon has been in custody since Jan. 23, 2015, for violating the terms of her pre-trial release.
U.S. District Judge Melinda Harmon has set sentencing for June 19, 2015, at which time Rabon faces up to 10 years in prison and a possible $250,000 maximum fine.
Thompson, of Katy, has also pleaded guilty to conspiracy and health care fraud charges related to the scheme and will be sentenced April 17, 2015.
The investigation into Rabon and Thompson was the result of an investigation conducted by agents from the Department of Defense - Criminal Investigative Service with assistance of Blue Cross and Blue Shield of Texas – Special Investigations Department. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Six Arrests in City of Miami Public Corruption/Kickback CaseRead the Press Release
Two former City of Miami Public Service Aides (PSA) and four two truck drivers were arrested this morning for their alleged participation in a kickback/bribery scheme, in which the four tow truck drivers allegedly paid the PSAs thousands of dollars in a series of bribes over a multi-year period. In exchange for the payment, the PSAs allegedly provided to the drivers real-time accident location information that they had obtained from police computer software programs.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
City of Miami PSA Aristides Paulino, 31, City of Miami PSA Keri Dixon, 27, Jesus Tello, 29, Reinaldo Martin Cruz, 30, Ronald Alfaro, 27, and Michael Perez, 22, were charged by complaint with conspiring to commit wire fraud and pay bribes related to local agencies receiving federal funds.
According to the facts set forth in the complaint affidavit, the City of Miami has established a wrecker operator system for the purpose of protecting drivers and preventing corruption. For example, when a car is disabled because of an accident, the driver must call a tow company himself or herself, have his or her insurance company arrange a tow, or ask the responding officer or PSA to arrange a tow. If an officer or PSA is asked to arrange the tow, almost every police department, including MPD, has strict regulations on how that tow referral must be made.
As further alleged, the information provided by PSAs Paulino and Dixon to tow truck operators Tello, Martin Cruz, Alfaro and Perez, and other unnamed co-conspirators, enabled the tow truck operators to arrive first at accident scenes, often times even before the arrival of law enforcement. Once there, the tow truck operators would illegally solicit stranded accident victims for towing and steer those victims to a particular collision repair business.
The complaint also alleges that at the times when PSAs Paulino and Dixon were present at the accident locations, Paulino and Dixon actively assisted the tow truck operators in soliciting business from the stranded individuals. The particular collision repair business that profited from the illegal tows would then pay a kickback to the tow truck operators and PSAs so that they too would be enriched from their participation in the illegal scheme.
“After an accident, individuals are concerned with their well-being and the well-being of the other accident victims. The two Public Service Aides and four tow truck drivers arrested today used these concerns to violate their positions for illicit profit,” said U.S. Attorney Wifredo Ferrer. “The residents of Miami have a choice. If you are in an accident and a tow truck operator that you have not called arrives, know that you have the right to refuse that operator’s service. As the charges filed today demonstrate, we are committed to unraveling this scheme to bring those who target accident victims to justice.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the Internal Affairs Section of MPD. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Serial Bank Robber Sentenced to 25 Years in PrisonRead the Press Release
Former Broward County resident sentenced to 25 years imprisonment for robbing five banks located in Broward County, and his attempted robbery of a bank located in Tamarac.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
United States Judge James I. Cohn sentenced Jeffrey Ross, 28, to 199 months imprisonment, consecutive to a 101 month sentence Ross is currently serving out of the Eastern District of Michigan. The evidence established that in September 2012, Ross attempted to rob a bank in Tamarac. During the robbery, he displayed a firearm that was concealed in his waistband and demanded that the bank teller give him money. When the teller was slow to respond, Ross fled the bank to avoid apprehension. From October 19, 2012 through February 28, 2013, Ross robbed five banks in Broward County. During each of the robberies, Ross displayed a firearm that was concealed in his waistband. In total, Ross stole $9,646.
After the last robbery, Ross fled to Michigan where he committed another bank robbery in July 2013. During that robbery, Ross pointed a firearm at bank employees and stole $4,350. Ross then ordered all the employees into the bank vault before he fled the scene. After a foot pursuit and area canvas by the police, law enforcement apprehended Ross in the bushes next to a building located near the bank. After pleading guilty in Michigan and being sentenced to 101 month, Ross was extradited to South Florida to face charges.
U.S. Attorney Wifredo Ferrer commended the FBI’s Violent Crime Task Force, BSO, and the Ft. Lauderdale Police Departments for their investigative efforts on this matter. The FBI’s Violent Crime Task Force includes members from the FBI, BSO, and other local police departments. This case was prosecuted by Assistant U.S. Attorney Mark Dispoto.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Richland Man Sentenced to 15 Months for Tampering with Pill BottlesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Brian Francis Conover, 35, of Richland, Michigan, was sentenced to serve 15 months in federal custody. He was also ordered to pay $13,396 in restitution to Meijer Stores and will serve a year under court supervision after he is released from prison.
On November 3, 2014, Conover pleaded guilty to adulterating dietary supplements. From July 27, 2014 to August 15, 2014, he purchased over-the-counter dietary supplements from Meijer stores located in Kalamazoo, Allegan, and Calhoun counties. He then removed and substituted the contents of the pill bottles and returned the bottles to the store shelves, which he had repackaged and resealed in the original product boxes. The over-the-counter dietary supplements included Schiff Mega Red Omega-3 Krill Oil, Bayer Women’s One-A-Day, and Nature’s Bounty Biotin. Once discovered, Meijer removed all of the products from its shelves in the affected counties. Law enforcement officials examined the packages, bottles, and contents and discovered foreign substances, including pet food, raisins, chocolate chips, aspirin, prescription strength pain medication, such as acetaminophen and ibuprofen, and the prescription drugs Coumadin and Sotalol. Coumadin is a blood thinner and Sotalol is a medication to regulate heartbeats. Upon executing a search warrant on Conover’s apartment, on August 28, 2014, law enforcement found large quantities of the over-the-counter products, packaging, and bottles. Conover was arrested on September 2, 2014, and has remained in custody. In imposing sentence, Chief U.S. District Judge Paul L. Maloney expressed dismay at Conover’s lack of concern for others and noted that Coumadin could be fatal if taken by the wrong person. Judge Maloney stated that Conover does what he wants to do with little or no concern for others and the rules. Judge Maloney further stated that the dollar amount loss did not fully reflect the impact on the public and Meijer. U.S. Attorney Miles echoed Judge Maloney’s concerns, “Tampering with over-the-counter supplements and adulterating food can seriously harm or even kill people. Conover’s criminal actions were a blow to our trust and confidence in what we consume and put in our bodies. Americans rightfully demand that trust and confidence. Along with our federal and state law enforcement partners, we will vigorously investigate and prosecute this sort of criminal behavior.” The sentence imposed by the court in this matter reflects the seriousness of the potential harm the defendant’s actions could have inflicted on innocent consumers,” said Special Agent in Charge John J. Redmond, FDA Office of Criminal Investigations (OCI) Chicago Field Office. “OCI will continue to work with our law enforcement partners to pursue those who choose to put the public health at risk for their own personal gain.” Investigation of this case was conducted by the FBI, Food and Drug Administration – Office of Criminal Investigations, Portage Public Safety, Kalamazoo County Sheriff’s Department, with the assistance of FBI and FDA-OCI in Minneapolis, Minnesota. Assistant United States Attorney Daniel Mekaru prosecuted the case. ENDRequest for CoverageRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian, along with heads of the FBI, DEA, ICE/HSI, U.S. Marshals Service, U.S. Secret Service, U.S. Postal Inspection Service and Troy Police Department, will meet with TRIP – Troy Rehabilitation & Improvement Program – and TNAC – Troy Neighborhood Action Council – members to discuss how the federal and local law enforcement agencies work to keep them safe and address their crime concerns. The meeting is titled "Your Federal Tool Box". The meeting details are:
Monday, March 23rd
6 – 7:30 PM
Blitman Commons Residence Hall
1800 6th Ave.
Troy, NYRenton Man who Killed 18-Year-Old in Deadly Drug Deal Sentenced to 10 Years in PrisonRead the Press Release
A Renton man who shot and killed an 18-year-old as he ran from the scene of a failed drug robbery was sentenced today in U.S. District Court in Seattle to ten years in prison and four years of supervised release, announced Acting U. S. Attorney Annette L. Hayes. DAVID STEVEN ROSS, 36, pleaded guilty to three federal felonies: conspiracy to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and unlawful possession of a firearm. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, “The fact that you brought that firearm to a volatile situation, knowing it was suspicious…. You should have walked away.”
“This case is a grim reminder that drugs and guns don’t mix, said Acting U.S. Attorney Annette L. Hayes. “No matter what the drug, we will not allow the violence that comes from this dangerous combination to go unpunished. That is especially true when – as in this case – the gun is in the hands of a convicted felon.”
According to the records filed in King County Superior Court and federal court, ROSS and an associate arrived at a Federal Way apartment complex to sell two pounds of marijuana to two men – Lenny Brikn and his brother, Deshawn Boykin. ROSS was armed with a stolen gun, despite having two previous felony drug convictions that prohibited him from possessing a firearm. Brikn and Boykin drew “Mac 10” style semi-automatic pistols, ordered ROSS and his associate to lie on the ground, and attempted to rob them of the marijuana. ROSS claimed to be an undercover police officer, and scared Brikn and Boykin into running away. As the two would-be robbers fled, ROSS drew his gun, aimed and fired multiple times at the men. Boykin was hit twice in the back and died of his wounds at St. Francis Medical Center.
Lenny Brikn, Jr., 20, of Federal Way was sentenced last September to seven years in prison for Possession of a Firearm in Furtherance of a Crime of Violence & a Drug Trafficking Crime.
The case was investigated by the Federal Way Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Registered Sex Offender Sentenced to 23 Years in Prison for Photographing his Molestation of a Sleeping ChildRead the Press Release
A registered sex offender with a long history of sex crimes was sentenced today in U.S. District Court in Tacoma to 23 years in prison and 25 years of supervised release, announced Acting United States Attorney Annette L. Hayes. BLAINE K. NIPP, 37, from Vancouver, Washington, made sexually explicit videos and photographs of a 10-year-old girl who had been given pain medicine for a broken bone. The girl’s parents had no idea NIPP was a registered sex offender when they accepted his offer to care for their daughter while she recovered from the injury. At sentencing U.S. District Judge Robert J. Bryan said, “The defendant’s actions are harmful to others, so it is important to keep him in custody for a long period of time to protect the public from further crimes.”
“This horrifying betrayal of trust deserves a significant prison sentence,” said Acting United States Attorney Annette L. Hayes. “The defendant knew he was prohibited from having contact with children and yet he still did so to satisfy his prurient interests. To molest a child suffering from a serious injury, and under the influence of powerful pain medication, is outrageous. I commend the efforts of the DHS HSI agents and investigators whose careful investigative work uncovered the defendant’s crime and led directly to the sentence that the court imposed today.”
NIPP was convicted of his first sex offense nearly 20 years ago when he fathered a child with a 13-year-old girl. In the years that followed NIPP was convicted of child pornography offenses and of entering and trespassing in an apartment where a 10-year-old was home alone. In August 2013, NIPP volunteered to assist the family of a 10-year-old girl who had suffered a broken leg while riding her bike. The family was acquainted with NIPP, but did not know him well. While alone with the injured child, NIPP took sexually explicit pictures of her while she was asleep on pain medication. NIPP also made explicit videos of his own sexual arousal and the drugged child. The photos were later discovered on NIPP’s electronic devices, after he became the target of an investigation for trading child pornography over the internet. NIPP was arrested in January 2014 and has remained in custody since that time.
“Nipp’s trading of Internet child pornography was a symptom of a larger problem,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “As we later learned through our investigation, the defendant used his charm to manipulate his way into situations where he could victimize young girls. With this sentence, children will be safe from Nipp. However, his victims must live the rest of their lives with the scars of his sexual abuse.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Marci Ellsworth.
Prisoners Sentenced for Assaulting Fellow InmateRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that two prisoners at the U.S. Penitentiary in Pollock, La., were sentenced for beating a fellow inmate resulting in traumatic brain injury.
Jeffrey Lovell, 33, Evansville, Ind., and Christopher Simpson, 36, of Hendersonville, N.C., were sentenced by U.S. District Judge Dee D. Drell to 68 months and 71 months in prison respectively for one count of assault resulting in serious bodily injury. They were also sentenced to three years of supervised release. According to evidence presented at the guilty pleas, video cameras captured Lovell and Simpson assaulting a third inmate outside of his cell on June 11, 2013 at the U.S. Penitentiary in Pollock. The inmate was struck around his head and torso. The prisoner was later brought to a hospital where he was treated for traumatic brain injury, which required a feeding tube.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Powell County Couple Sentenced to 41 Months for Manufacturing Counterfeit BillsRead the Press Release
LEXINGTON — A Powell County couple, that previously admitted to selling nearly $3,000 in counterfeit money, have both been sentenced to 41 months in federal prison.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced Timothy Ray Profitt, 34, and his wife, Amanda Marie Profitt, 27, for counterfeiting securities of the United States. Under federal law, each defendant will have to serve 85 percent of their prison sentence.
According to their plea agreements, between September 26, 2013 and October 2, 2013, the Profitts manufactured 143 counterfeit bills, all in denominations of $20. They then sold $2,860 in counterfeit bills to others in Powell County, for less than the face value of the counterfeit money.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Craig Hutzell, Acting Special Agent in Charge, United States Secret Service, jointly announced the sentences.
The investigation was conducted by the U.S. Secret Service and the Winchester Police Department. Assistant U.S. Attorney Kate K. Smith prosecuted this case on behalf of the federal government.
Port Allen Man Convicted and Sentenced for Transporting Unlawfully Taken WildlifeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that ANDRE A. CHUSTZ JR., age 50, of Port Allen, Louisiana pled guilty and was sentenced for his violation of the Federal wildlife laws.
CHUSTZ was charged in a Bill of Information, filed on January 23, 2015, charging him with transporting unlawfully-taken wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2). At his guilty plea this morning, CHUSTZ admitted that in November 2013, he engaged in the unlawful hunting of deer in Breckenridge County, Kentucky without having first obtained the required non-resident hunting licence and permit. CHUSTZ admitted he killed a 12- point whitetail buck (pictured below) and then caused another person, a Kentucky resident, to falsely report that the buck had been legally harvested. CHUSTZ then knowingly transported the cape, antlers, and meat from Kentucky to Louisiana and had the shoulder mount prepared by a local taxidermist.
At today’s sentencing, United States Magistrate Judge Stephen C. Riedlinger sentenced CHUSTZ to a 1-year term of probation, during which time CHUSTZ is barred from any and all deer hunting. CHUSTZ was also ordered to pay a $500 fine, to make restitution in the amount of $190 to the Commonwealth of Kentucky, and to forfeit the shoulder mount of the buck.
U.S. Attorney Green stated: “Wildlife laws are designed to protect our natural resources and to ensure that, through mandatory license and permit fees, States are able to offer quality hunting experiences to all citizens. Today’s guilty plea and sentence reflect the seriousness of the defendant’s conduct and should act as a deterrent to others who might consider traveling from Louisiana to hunt in other States, without purchasing the required non-resident licences and permits.”
This investigation was handled by the U.S. Attorney’s Office and the United States Fish and Wildlife Service. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by USFWS Special Agent Ben Bryant.
Pittsburgh Man Sentenced to 5 Years in Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to five years imprisonment followed by four years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Donald Freeman, age 25.
According to information presented to the court, from in and around December 2013, and continuing thereafter to in and around March 2014, Freeman conspired with others to distribute and possess with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to successful prosecution of Freeman. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Streets Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Police Department. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Philadelphia Woman Charged with Stealing Dead Husband's Retirement BenefitsRead the Press Release
PHILADELPHIA - Shirley Goldwire, 68, of Philadelphia, Pennsylvania, was charged by information with two counts of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her husband, after her husband’s death in July 1998 until the defendant’s fraud was discovered in 2012. Additionally, the defendant is alleged to have also stolen money intended for a friend of her ex-husband, who was also deceased at the time of the defendant’s husband’s death. The defendant’s alleged actions resulted in a loss to the government of approximately $264,021.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, a three‑year period of supervised release, restitution to the government of $264,021, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Medical Equipment Supply Company Convicted for $3.5 Million Medicare and Medi-Cal Fraud SchemeRead the Press Release
A jury in federal court in Los Angeles convicted the former owner of a durable medical equipment supply company of health care fraud charges in connection with a $3.5 million Medicare and Medi-Cal fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Los Angeles Region, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office, and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
Sylvia Walter-Eze, 48, of Stevenson Ranch, California, was convicted of one count of conspiracy to commit health care fraud, four counts of health care fraud, and one count of conspiracy to pay and receive illegal kickbacks. Sentencing is scheduled for June 15, 2015, before U.S. District Judge R. Gary Klausner of the Central District of California.
The evidence at trial demonstrated that Walter-Eze, the then-owner of Ezcor Medical Supply, paid illegal kickbacks to patient recruiters in exchange for patient referrals. The evidence further showed that Walter-Eze paid kickbacks to physicians for fraudulent prescriptions, primarily for medically unnecessary—but expensive—power wheelchairs, that she then used to support her fraudulent bills to Medicare and Medi-Cal.
Between 2007 and 2012, Walter-Eze submitted $3,521,786 in claims to Medicare and Medi-Cal, and received $1,939,529 in reimbursement for those claims.
The case was investigated by the FBI, HHS-OIG’s Los Angeles Regional Office and the California Department of Justice, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Los Angeles Medical Supply Company Convicted in $3.3 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Los Angeles found the owner of a medical supply company guilty of four counts of health care fraud today in connection with a $3.3 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office made the announcement.
Hakop Gambaryan, 55, of East Hollywood, the owner of Colonial Medical Supply, was convicted of four counts of health care fraud. A sentencing hearing will take place before U.S. District Judge Otis D. Wright II of the Central District of California, and will be scheduled at a later date.
According to evidence presented at trial, between March 2006 and December 2012, Gambaryan paid cash kickbacks to medical clinics for fraudulent prescriptions for durable medical equipment, such as expensive power wheelchairs, which the patients did not need. Gambaryan then used these prescriptions to bill Medicare for the unnecessary power wheelchairs and other equipment.
At trial, the evidence established that Gambaryan personally delivered power wheelchairs to many beneficiaries who were able to walk without assistance. In one instance, Gambaryan carried a power wheelchair up a flight of stairs for a woman who lived in a second floor apartment with no elevator. In another instance, the power wheelchair would not fit inside the beneficiary’s home so Gambaryan put it in the beneficiary’s garage.
The evidence also demonstrated that Gambaryan generated false documentation to support the fraudulent claims, including fake home assessments that made it appear home assessments had occurred when they had not. In addition, Gambaryan photocopied beneficiary signatures hundreds of times to create the appearance that the beneficiaries consented to ongoing durable medical equipment rentals, when in reality, at least two of the beneficiaries had passed away prior to the date they supposedly signed the rental agreements.
The evidence showed that Gambaryan submitted approximately $3.3 million in false and fraudulent claims to Medicare, and received more than $1.7 million on those claims.
The case was investigated by the FBI and HHS-OIG. The case is being prosecuted by Trial Attorneys Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Tax Preparation Business Sentenced to Prison for Tax FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jennifer Rodriguez, age 41, of Hyattsville, Maryland today to a year and a day in prison followed by three years of supervised release for a fraud conspiracy arising from the filing of 283 false tax returns. Judge Motz entered an order that Rodriguez pay restitution of $983,382, the amount of fraudulent tax refunds paid by the IRS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The sole objective of Ms. Rodriguez’s identity theft scheme was to unjustly enrich herself at the expense of the American taxpayer,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today's sentencing of Ms. Rodriguez should serve as a stark reminder to others that criminal behavior comes with a cost, prison time.”
According to her plea agreement, Rodriguez owned Latin Multi Services, a tax preparation service located in Silver Spring, Maryland. From October or November 2010 to January 2012, Rodriguez filed false income tax returns using the stolen identities of Puerto Rico residents. The stolen identities of families, including minor children, were obtained from a co-conspirator residing in Puerto Rico. Rodriguez falsely listed the tax payers’ home addresses as her own home address in Maryland, or variations of her business address. These tax returns also included fabricated income and deductions. All of the fraudulent returns requested refunds to be deposited in bank accounts that Rodriguez or a co-conspirator controlled.
Over the course of the scheme, Rodriguez filed 283 false tax returns which caused IRS to pay $983,382 in fraudulent refunds.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
North Carolina Real Estate Investor Indicted for Conspiracy to Commit Mail FraudRead the Press Release
A federal grand jury in Raleigh, North Carolina, returned a one-count indictment against a real estate investor, charging him with conspiracy to commit mail fraud as part of a scheme related to public real estate foreclosure auctions, the Department of Justice announced today.
The indictment, filed in U.S. District Court of the Eastern District of North Carolina on March 18, 2015, charges real estate investor Rodney S. Daw, of Raleigh, with conspiracy to commit mail fraud affecting a financial institution. The department alleged that the scheme defrauded homeowners, financial institutions and others with a legal interest in selected foreclosure properties, for the unlawful purpose of obtaining money and property through fraudulent pretenses, representations or promises.
The indictment charges Daw with conspiring with others to, among other things, make and receive payoffs from co-conspirators in exchange for agreements not to compete in public auctions, and to divert money away from homeowners, financial institutions and others with a legal interest in selected properties. Several financial institutions suffered actual monetary losses as a result of the conspiracy. According to the indictment, Daw participated in the mail fraud conspiracy beginning at least as early as December 2002 and continuing until at least April 2005.
“This action marks the fourth state in which a defendant has been indicted in our ongoing investigation into illegal conduct at public real estate foreclosure auctions,” said Assistant Attorney General Bill Baer of the Antitrust Division. “We will continue to vigorously pursue those individuals who sought to capitalize on this nation’s financial crisis by seeking personal gain at the expense of homeowners and financial institutions.”
“This federal indictment illustrates the FBI’s commitment toward assisting the U.S. Department of Justice’s Antitrust Division in ensuring that those who engage in real estate investments and transactions do so on a level playing field,” said Special Agency in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “The FBI asks that anyone with information regarding such activities as alleged in this indictment contact their nearest FBI field office.”
To date, two individuals have pleaded guilty in connection with the department’s ongoing investigation into bid rigging and fraudulent schemes in the North Carolina real estate foreclosure auction industry.
The charge of conspiracy to commit mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine.
This charge stems from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Field Office, with the assistance of the U.S. Attorney’s Office of the Eastern District of North Carolina. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in North Carolina should contact the Washington Criminal II Section of the Antitrust Division at 202-598-2507, or visit www.justice.gov/atr/contact/newcase.htm.
These charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Non-Indian Man from Albuquerque Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Alex R. Alicea pleaded guilty today in federal court to assaulting an Indian man by threatening him with a firearm at a convenience store located in Albuquerque, N.M., on land held in trust by the United States for the 19 Indian Pueblos in New Mexico.
Alicea, 33, a non-Indian man who resides in Albuquerque, was arrested on Oct. 31, 2014, on a criminal complaint alleging that he assaulted an Oglala Sioux Indian man on Oct. 26, 2014, by brandishing a firearm at him. According to the criminal complaint, the assault occurred at the Four Winds Travel Center, which is next to the Indian Pueblo Cultural Center on land that is deemed as Indian Country in Albuquerque.
During today’s proceedings, Alicea pled guilty to a felony information charging him with aggravated assault with a deadly weapon. In entering his guilty plea, Alicea admitted that on Oct. 26, 2014, he assaulted the victim by intentionally and recklessly displaying a firearm in a threatening manner.
At sentencing, Alicea faces a statutory maximum penalty of 18 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing has not yet been scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Albuquerque Police Department. Assistant U.S. Attorney Novaline Wilson is prosecuting this case.
Mexican Man Sentenced for Misprision of a FelonyRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 20, 2015, Javier Gomez Zambrano, 21, a citizen of Mexico, was sentenced to 12 months and one day in prison for misprision of a felony, (failing to report actual knowledge of the commission of a felony as soon as possible). Gomez Zambrano was ordered to serve one year on supervised release following the prison term. However, he is expected to be deported upon completion of his prison sentence.
On the evening of April 21, 2014, Lincoln Police Department narcotics officers observed a meeting between persons in a car and a semi-tractor trailer truck in Lincoln. Persons were seen moving between the car and the truck. The car then returned to a nearby motel, and the truck headed eastbound on I-80. The truck was contacted at the Ashland/Waverly scales on eastbound I-80 and subjected to a Nebraska State Patrol Carrier Enforcement inspection. The driver admitted he had just delivered what he believed to be either money or drugs in Lincoln. A search warrant was served at the Lincoln motel room where Gomez Zambrano and two other persons were staying. Officers found an air compressor containing over 2.7 kilograms of methamphetamine which was found to be approximately 95% pure. The air compressor was covered by clothing belonging to all three occupants of the room.
One of those two occupants of the room later told officers he obtained the air compressor containing the methamphetamine from the truck driver and intended to deliver it to a customer in Lincoln. Prior to the search of their motel room, the witness said he told Gomez Zambrano and the third occupant of the motel room about the methamphetamine and about his plan to deliver it. Gomez Zambrano allowed his clothing to be used to conceal the air compressor containing the methamphetamine, and Gomez Zambrano failed to notify officers of its presence when they entered the room to serve the search warrant.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Maryland Man Sentenced to 10 Years in Prison for Shooting Outside Northwest Washington Night ClubRead the Press Release
WASHINGTON – Jonathan Blades, 30, of Suitland, Md., was sentenced today to 10 years in prison on charges stemming from a shooting outside a night club in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Blades was found guilty in January 2015, following a trial in the Superior Court of the District of Columbia, of charges of assault with intent to kill while armed, aggravated assault while armed and related firearms offenses. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Blades will be placed on five years of supervised release.
According to the government’s evidence, on Sunday, Feb. 2, 2014, at about 3 a.m., Blades and the victim engaged in a physical altercation after leaving a night club at 20th and K Streets NW. After the fight had stopped, Blades went to his car and retrieved a 40-caliber semi-automatic handgun. Then, as the victim ran from Blades, Blades shot nine times. The gunfire hit the victim, sending a bullet through his back and shoulder. The victim fled to a gas station several blocks away, at 22d and M Streets NW, where a citizen offered him first aid. He was hospitalized for his injuries. Blades was arrested on Feb. 5, 2014.
In announcing the sentence, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, the U.S. Marshals Service, and the Prince George’s County, Md. Police Department for their work on the case. He also acknowledged the work of Paralegal Specialist Allison Gregory Daniels, Victim/Witness Advocate Diana Lim, and Litigation Technology Specialist Leif Hickling, all of the U.S. Attorney’s Office. Finally, he commended Assistant U.S. Attorneys Scott Sroka and Christopher Macchiaroli, who tried the case.
Marketing Director for Local College Sentenced for Defrauding the CollegeRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Gregory A. DeRue of Granger, Indiana was sentenced to 21 months in prison for mail fraud. DeRue was also ordered to pay restitution of $208,133 to the victim of his scheme, Southwestern Michigan College, and agreed in a plea agreement that his asset forfeiture liability was $199,282. Following DeRue’s release from prison, he will serve a 24-month term of supervision by the Court. DeRue pleaded guilty to the charge before Chief U.S. District Judge Paul L. Maloney on November 17, 2014.
DeRue admitted in a plea agreement that while employed at Southwestern Michigan College as the Executive Director of Marketing, he contracted with DMG Media to handle all of the College’s television, radio, and billboard advertising. Unbeknownst to the College, DMG Media was a front company for DeRue himself, who invoiced the College for more than the gross amount of the services actually provided by DMG Media, invoiced the College for services DMG Media never provided, and failed to pay certain media outlets for services that had already been invoiced by DMG Media and paid by the College. The College discovered financial discrepancies in the summer of 2013 regarding DMG Media’s invoices, which totaled $487,427 over this period, and ultimately calculated the loss amount at $208,133 connected to DeRue’s mail fraud. Chief Judge Maloney adopted this loss amount number in calculating restitution owed and DeRue’s ultimate sentence.
The President of Southwestern Michigan College, Dr. David Mathews, spoke at sentencing about the negative impact on student enrollment and College finances from DeRue’s actions while Executive Director of Marketing.
U.S. Attorney Pat Miles commented that “People, like DeRue, who commit frauds not only face significant prison sentences and restitution orders, but they truly harm others. In this case, an institution of higher education and its students, faculty, and staff were harmed. I hope this conviction, sentence, and restitution will help deter others from committing selfish white collar crimes.”
“The defendant’s criminal actions, as a university employee, were selfish and inexcusable” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, together with our local, state, and federal partners will continue to fight white collar crime and corruption, and hold perpetrators accountable for their greedy actions.”
The Dowagiac Police Department and the Federal Bureau of Investigation investigated this case, with assistance from Southwestern Michigan College. Assistant U.S. Attorney Clay M. West prosecuted the case.