Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 12 March 2015
Audiologist Sentenced to Two Years in Prison for Tax Fraud Ordered to Pay over $1 Million in RestitutionRead the Press Release
SAN FRANCISCO – Michael Ryan Trythall was sentenced today to twenty-four months in prison for tax evasion, and ordered to pay restitution of $1,006,035, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Trythall, a 37 year-old resident of Los Angeles, pleaded guilty in November 2014 to tax evasion. According to the plea agreement, Trythall, a professional audiologist, embezzled more than $750,000 between 2009 and 2012 from his then-employer, a San Francisco audiology practice. During that period, Trythall performed bookkeeping services for his employer and had access to the business’s financial records. He was authorized to print business checks for others to sign, but he was not authorized to issue or sign checks on his own. Nevertheless, Trythall issued business checks payable to himself, forged the signature of authorized signers, and deposited the checks into his personal bank accounts. Trythall used the money he embezzled to pay for vacations and to shop at luxury retailers.
Trythall concealed his embezzlement by omitting payments to himself from the business’s books, making false entries into the business’s books, and failing to disclose his embezzlement, even when confronted by others. Also, Trythall did not pay income taxes on any of the money he embezzled resulting in tax due and owing of over $230,000 for calendar years 2009 through 2011.
Trythall was charged by Information on September 25, 2014, with three counts of tax evasion. He pleaded guilty to one count.
The sentence was handed down by the Honorable Edward M. Chen, United States District Judge, in San Francisco. In addition to the twenty-four month sentence, Trythall also was sentenced to a one-year period of supervised release and ordered to pay restitution of $1,006,035 ($756,577 of which is to be paid to his former employer and the remaining $249,458 to the Internal Revenue Service). In addition, Trythall agreed he owed $173,496 in civil fraud penalties to the Internal Revenue Service.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Attorney General Holder Statement on the Overnight Shooting of Two Officers in Ferguson, MissouriRead the Press Release
Attorney General Eric Holder released the following statement Thursday on the overnight shooting of two officers in Ferguson, Missouri:
“This heinous assault on two brave law enforcement officers was inexcusable and repugnant. I condemn violence against any public safety officials in the strongest terms, and the Department of Justice will never accept any threats or violence directed at those who serve and protect our communities—from this cowardly action, to the killing of an officer in Philadelphia last week while he was buying a game for his son, to the tragic loss of a Deputy U.S. Marshal in the line of duty in Louisiana earlier this week. Such senseless acts of violence threaten the very reforms that nonviolent protesters in Ferguson and around the country have been working towards for the past several months. We wish these injured officers a full and speedy recovery. We stand ready to offer any possible aid to an investigation into this incident, including the department's full range of investigative resources. And we will continue to stand unequivocally against all acts of violence against cops whenever and wherever they occur.”
Attorney General Holder Statement on the Overnight Shooting of Two Officers in Ferguson, MissouriRead the Press Release
WASHINGTON – Attorney General Eric Holder released the following statement Thursday on the overnight shooting of two officers in Ferguson, Missouri:
“This heinous assault on two brave law enforcement officers was inexcusable and repugnant. I condemn violence against any public safety officials in the strongest terms, and the Department of Justice will never accept any threats or violence directed at those who serve and protect our communities—from this cowardly action, to the killing of an officer in Philadelphia last week while he was buying a game for his son, to the tragic loss of a Deputy U.S. Marshal in the line of duty in Louisiana earlier this week. Such senseless acts of violence threaten the very reforms that nonviolent protesters in Ferguson and around the country have been working towards for the past several months. We wish these injured officers a full and speedy recovery. We stand ready to offer any possible aid to an investigation into this incident, including the department's full range of investigative resources. And we will continue to stand unequivocally against all acts of violence against cops whenever and wherever they occur.”
Attorney General Holder Remarks Announcing Six Pilot Cities for the National Initiative for Building Community Trust and JusticeRead the Press Release
Thank you all for being here this afternoon. I want to address the heinous attacks that occurred against two brave law enforcement officers in Ferguson, Missouri, last night.
I unequivocally condemn these repugnant attacks. I know that all of us in the law enforcement family—and all Americans across the country—are hoping and praying for a speedy recovery. And I stand ready to offer the full investigative resources of the Department of Justice to find the perpetrators of this attack and hold them accountable.
You know, seeing this attack last night turned my stomach—because in the week since the Justice Department released its pattern-and-practice report on Ferguson, we have begun to see really important signs of progress. There were good-faith steps being taken within the city’s leadership to move in a new, more cooperative direction that is beneficial to law enforcement and to community residents. We still have a long way to go to bring about the systemic change needed—but the early indications had been truly positive.
What happened last night was a pure ambush. This was not someone trying to bring healing to Ferguson, but someone who wants to stoke unrest. This disgusting and cowardly attack might have been intended to unravel any sense of progress, but I hope that doesn’t happen. Incidents like the one we have witnessed throw into sharp relief why conversations like the one we convened today—to build trust between law enforcement and community members—are so important.
One year ago, the Obama Administration launched the groundbreaking My Brother’s Keeper initiative, which seeks to create opportunities for all young people in this country to improve their lives and reach their full potential—no matter who they are or where they live. As a part of this effort, the My Brother’s Keeper Task Force recommended that the Justice Department establish a program to help resolve long-standing tensions between law enforcement officers and the communities they serve. And six months ago, I was proud to announce the National Initiative for Building Community Trust and Justice—a nationwide program designed to enhance procedural justice, reduce bias and support reconciliation.
Through the committed work of Department leaders like Assistant Attorney General Karol Mason of the Office of Justice Programs—who is here with us today—and with the partnership of Department components including the COPS Office, the Civil Rights Division, the Community Relations Service and the Office on Violence Against Women, we are redoubling our commitment to restoring faith in the integrity of law enforcement wherever that faith has been eroded.
Today, I am announcing three significant new steps we are taking as part of this exciting initiative. First, we have selected six cities to serve as pilot sites for innovative strategies to strengthen bonds between police and citizens they serve: Birmingham, Alabama; Stockton, California; Gary, Indiana; Minneapolis, Minnesota; Pittsburgh, Pennsylvania; and Fort Worth, Texas. By helping to develop programs that serve their own diverse experiences, these cities will stand on the leading edge of our effort to confront pressing issues in communities across the country.
Second, we have launched a new online resource, available at trustandjustice.org, which will advance cutting-edge research and information about best practices and trust-building policy.
Third, we’re offering training, mentoring, expert consultations, and assistance on racial reconciliation directly to police departments and communities across America through the Office of Justice Programs’ Diagnostic Center.
These are groundbreaking advances—but the Department of Justice will not accomplish these goals alone. We will continue to work side-by-side with law enforcement to identify opportunities for positive change. And we will work with communities to seek avenues for building more healthy environments.
From my own decades-long career in law enforcement, and as the brother of a retired police officer, I know that the overwhelming majority of America’s brave men and women in public safety do their jobs with integrity and at great personal risk. I have enormous respect for the vital role that they play in all of America’s communities – and for the sacrifices that they and their families are too often called to make on behalf of their country.
The dangers they face have been made clear recently not only with the attacks we experienced last night, but also with the killing of Officer Robert Wilson III in Philadelphia last week and with the tragic loss of Deputy U.S. Marshal Josie Wells in Baton Rouge, Louisiana, earlier this week. These devastating incidents serve as a reminder that our law enforcement officers perform a job that is extremely serious, deeply heroic, and deserving of our most emphatic support.
I am committed to ensuring that the reforms we put in place do not impose additional risks on our law enforcement officers in an already hazardous environment. There should be no situation in which an officer’s life is put in jeopardy because of concerns that by appropriately defending themselves, they might be viewed as committing a crime. That is why the Justice Department’s discussions about these matters have centered on proven, common-sense and evidence-based collaborative measures that protect our citizens, strengthen our neighborhoods, and keep our officers safe.
I recognize our goals will not be easy to achieve. Change will not occur overnight. But in conversations like this one—with law enforcement, civil rights, youth and community leaders–I have been struck not by our divisions, but by our common interest in creating the more just society that all Americans deserve. I know that we are undertaking the crucial and necessary work of our time—work that will make a lasting difference for generations to come.
Attorney General Holder Announces the First Six Pilot Sites for the National Initiative for Building Community Trust and JusticeRead the Press Release
As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve and protect, Attorney General Eric Holder on Thursday announced the first six cities to host pilot sites for the National Initiative for Building Community Trust and Justice. This $4.75 million initiative will seek to assess the police-community relationship in each of the six pilot sites, as well as develop a detailed site-specific plan that will enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded.
The six pilot sites announced Thursday are Birmingham, Alabama; Ft. Worth, Texas; Gary, Indiana; Minneapolis, Minnesota; Pittsburgh, Pennsylvania; and Stockton, California.
“The Department of Justice is committed to using innovative strategies to enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded,” said Attorney General Holder. “By helping to develop programs that serve their own diverse experiences and environments, these selected cities will serve on the leading edge of our effort to confront pressing issues in communities around the country.”
Attorney General Holder also announced that the Department of Justice is providing additional training and technical assistance to police departments and communities that are not pilot sites. Through the Office of Justice Program’s Diagnostic Center (www.OJPDiagnosticCenter.org), police departments and community groups can request training, peer mentoring, expert consultation and other types of assistance on implicit bias, procedural justice and racial reconciliation. Additionally, the initiative launched a new online clearinghouse that includes up-to-date information about what works to build trust between citizens and law enforcement. The clearinghouse can be found at www.trustandjustice.org.
“Restoring trust where it has eroded is one of the defining public safety challenges of our day,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “Trust-building is the responsibility of the police and the community, and the National Initiative’s goal is to build the bridge that will define a new era in public safety.”
The Justice Department established the National Initiative for Building Community Trust and Justice as part President Obama’s groundbreaking launch of the My Brother’s Keeper initiative, which seeks to create opportunities for all young people in this country—regardless of their background—to improve their lives and reach their full potential.
The three-year grant has been awarded to a consortium of national law enforcement experts from John Jay College of Criminal Justice, Yale Law School, the Center for Policing Equity at UCLA and the Urban Institute. The initiative is guided by a board of advisors which includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative simultaneously addresses the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative complements and is advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.
Attorney General Holder Announces Birmingham One of Six Pilot Sites for National Initiative for Building Community Trust and JusticeRead the Press Release
WASHINGTON – As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve and protect, Attorney General Eric Holder announced Birmingham, Ala.; Ft. Worth, Texas; Gary, Ind.; Minneapolis, Minn.; Pittsburgh, Pa.; and Stockton, Calif., to be the first six cities to host pilot sites for the National Initiative for Building Community Trust and Justice. As part of a larger effort, the National Initiative team will work with each pilot site to assess the police-community relationship as well as develop a detailed site-specific plan that will enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded.
“The Department of Justice is committed to using innovative strategies to enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded,” said Attorney General Holder. “By helping to develop programs that serve their own diverse experiences and environments, these selected cities will serve on the leading edge of our effort to confront pressing issues in communities around the country.”
"We are always committed to engaging with the community to ensure that we are serving them and hearing their concerns," said United States Attorney Joyce White Vance. "We want to do a good job of listening, so that we can work together to make the community safe. We appreciate the opportunity to be one of the six pilot sites in this initiative, and the recognition from Washington that we are trying to get it right down here," she said.
"We are truly honored that DOJ would select Birmingham as one of six national pilot sites," said Birmingham Police Chief A.C. Roper. "The mayor and I actually started discussing this initiative several months ago and knew there would be over a hundred cities vying for the limited opportunities.
"We are all aware of the modern day issues and national discussion on policing in America," Roper said. "Although we've worked extremely hard building bridges in our communities, we saw this initiative as an opportunity to strengthen relationships, increase public cooperation, and improve the perception of police legitimacy across our city," he said. "We truly recognize that the Birmingham Police Department cannot be successful without community support and community trust. This three-year project will allow us to serve as a national police model and increase our capacity to serve our citizens."
Attorney General Holder also announced that the Department of Justice is providing additional training and technical assistance to police departments and communities that are not pilot sites. Through the Office of Justice Program’s Diagnostic Center (www.OJPDiagnosticCenter.org), police departments and community groups can request training, peer mentoring, expert consultation and other types of assistance on implicit bias, procedural justice and racial reconciliation. Additionally, the initiative launched a new online clearinghouse that includes up-to-date information about what works to build trust between citizens and law enforcement. The clearinghouse can be found at www.trustandjustice.org.
“Restoring trust where it has eroded is one of the defining public safety challenges of our day,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “Trust-building is the responsibility of the police and the community, and the National Initiative’s goal is to build the bridge that will define a new era in public safety.”
The Justice Department established the National Initiative for Building Community Trust and Justice as part President Obama’s groundbreaking launch of the My Brother’s Keeper initiative, which seeks to create opportunities for all young people in this country—regardless of their background—to improve their lives and reach their full potential.
The three-year grant has been awarded to a consortium of national law enforcement experts from John Jay College of Criminal Justice, Yale Law School, the Center for Policing Equity at UCLA and the Urban Institute. The initiative is guided by a board of advisors which includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative simultaneously addresses the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative complements and is advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.
Attorney General Eric Holder Announces Selection of Stockton as A Pilot Site for National Initiative for Building Community Trust and JusticeRead the Press Release
SACRAMENTO, Calif. — As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve and protect, Attorney General Eric Holder announced that Stockton, California has been selected as one of only six cities to serve as a pilot site for the National Initiative for Building Community Trust and Justice.
United States Attorney Benjamin Wagner was present in Washington D.C. with the Attorney General when the formal announcement of Stockton’s selection was made earlier today. This $4.75 million national initiative will seek to assess the police-community relationship in each of the six pilot sites, as well as develop a detailed site-specific plan that will enhance procedural justice, reduce bias and support reconciliation. The other five pilot sites are Birmingham, Alabama; Ft. Worth, Texas; Gary, Indiana; Minneapolis, Minnesota; and Pittsburgh, Pennsylvania.
Stockton’s selection was based in part on its size, crime rates, and demographics. However, a critical element in its selection was the Stockton Police Department's willingness to openly participate in this initiative.
Stockton’s City Manager Kurt Wilson said, “Chief Eric Jones is one of the most respected law enforcement leaders in the country. He has been fully engaged locally, statewide, and nationally. We are thankful for his leadership, and by his team joining this initiative, we feel it will boost these leading edge efforts because some of his evidence-based strategies that are already underway fit into this model.”
“The Department of Justice is committed to using innovative strategies to enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded,” said Attorney General Holder. “By helping to develop programs that serve their own diverse experiences and environments, these selected cities will serve on the leading edge of our effort to confront pressing issues in communities around the country.”
“I am grateful for Stockton’s enthusiastic participation in this initiative,” said U.S. Attorney Wagner. “Recent events across the country highlight the profound consequences where there is a lack of trust between law enforcement and the communities it serves. Stockton is committed to building and maintaining trust with its community, and ensuring that the difficulties experienced elsewhere do not occur here. Through this initiative, Stockton will set examples that can be used throughout our District.”
“The Stockton Police Department places a high value on building strong relationships with our citizens, and many recent efforts have been undertaken in the City of Stockton to build community trust,” said Chief Eric Jones. “I am proud of the men and women of the Stockton Police Department because they have all helped us to be successful with our Ceasefire Crime-Fighting Strategy and our Police Legitimacy and Procedural Justice Training and application.”
Attorney General Holder also announced that the Department of Justice is providing additional training and technical assistance to police departments and communities that are not pilot sites. Through the Office of Justice Program’s Diagnostic Center (www.OJPDiagnosticCenter.org), police departments and community groups can request training, peer mentoring, expert consultation and other types of assistance on implicit bias, procedural justice and racial reconciliation. Additionally, the initiative launched a new online clearinghouse that includes up-to-date information about what works to build trust between citizens and law enforcement. The clearinghouse can be found at www.trustandjustice.org.
The Justice Department established the National Initiative for Building Community Trust and Justice as part President Obama’s groundbreaking launch of the My Brother’s Keeper initiative, which seeks to create opportunities for all young people in this country—regardless of their background—to improve their lives and reach their full potential.
The three-year grant has been awarded to a consortium of national law enforcement experts from John Jay College of Criminal Justice, Yale Law School, the Center for Policing Equity at UCLA, and the Urban Institute. The initiative is guided by a board of advisors that includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative simultaneously addresses the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative complements and is advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.Army Contracting Official Pleads Guilty in Pentagon Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, waived indictment and pleaded guilty to soliciting a $500,000 bribe from executives working for a private company on a contract that Warner managed out of the Pentagon.
According to court documents, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million. At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cell phone, which was passed around the table. Warner then passed a menu to the two executives. Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed. The Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents. Acting at the direction of law enforcement, a Company A executive then met with Warner on five subsequent occasions, paying Warner a total of $150,000 cash bribes out of the total $500,000 solicited by Warner. On January 28, 2015, at the last of these meetings, Warner was arrested while in possession of $100,000 in bribe payments.
Warner faces a maximum penalty of 15 years in prison, up to a $1.5 million fine, and mandatory forfeiture of criminal proceeds when he is sentenced on June 19, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, 701st Military Police Group, U.S. Army Criminal Investigation Command, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Kosta S. Stojilkovic and Mark D. Lytle are prosecuting the case.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-77.Arizona Woman Admits Operating Fraudulent Federal Income Tax Refund SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KENYA MALCOLM, 36, of Surprise, Ariz., pleaded guilty today in Bridgeport federal court to operating a fraudulent federal income tax refund scheme.
According to court documents and statements made in court, between November 2012 and May 2013, MALCOLM, Charles Ross, Bernard Brantley and others conspired to file false federal income tax returns in the names of individuals without the individuals’ knowledge. MALCOLM, who operated a business in Arizona called “Biggest Refund Taxes,” held herself out falsely to be a certified public accountant. As part of the scheme, MALCOLM paid Ross, also a resident of Surprise, to recruit individuals to her tax preparation business. Ross subsequently contacted Brantley, a resident of Waterbury, Conn., and offered him a portion of Ross’s recruitment earnings if Brantley would also recruit clients for MALCOLM. Instead of recruiting clients for tax preparation services, Brantley and individuals that Brantley hired recruited victims under false pretenses, telling them that they were eligible for government funding and not telling them that tax returns would be filed in their names. Brantley and his associates then collected victims’ Social Security numbers, dates of birth and other personal information and provided that information to MALCOLM.
MALCOLM and Ross knew that Brantley was recruiting individuals under false pretenses.
MALCOLM used the personal information she was provided, as well as false income and employment information for each victim, to file tax returns that generated large tax refunds. She then directed a portion of the tax refunds to herself, a portion to Ross and Brantley, and a portion to the victim, usually through a prepaid debit card.
Approximately $2.5 million in fraudulent federal income tax refunds were sought through this scheme, and more than $1 million in refunds were disbursed.
MALCOLM pleaded guilty to one count of conspiracy, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on June 4, 2015.
Ross and Brantley have also pleaded guilty and are scheduled to be sentenced on May 12, 2015.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala and Senior Litigation Counsel Richard J. Schechter.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Albuquerque Man Sentenced to Ten Years for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Mark Anthony Miller, 48, of Albuquerque, N.M., was sentenced this morning in federal court to 120 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Miller was arrested on Feb. 24, 2013, at the Amtrak train station in Albuquerque after a consensual search by DEA agents revealed that Miller had concealed bundles containing approximately .95 kilograms of methamphetamine in a backpack. Miller subsequently was indicted on March 5, 2013, and charged with possession of methamphetamine with intent to distribute.
Miller entered a guilty plea to the indictment on May 19, 2014. The guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office, which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorneys Holland S. Kastrin and Jon K. Stanford prosecuted the case.
Acoma Pueblo Man Pleads Guilty to Federal Sexual Assault ChargeRead the Press Release
ALBUQUERQUE – Eric Chino, 32, a member and resident of Acoma Pueblo, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an abusive sexual contact charge. Under the terms of his plea agreement, Chino will be sentenced to a range of 24 to 36 months in federal prison followed by a term of supervised release to be determined by court.
Chino was arrested on Nov. 26, 2014, on an indictment charging him with aggravated sexual abuse. The indictment alleged that Chino sexually assaulted an Acoma Pueblo woman on June 24, 2012, in Acoma Pueblo within Cibola County, N.M.
During today’s proceedings, Chino pled guilty to a felony information charging him with abusive sexual contact. In entering the guilty plea Chino admitted engaging in and attempting to engage in sexual contact with the victim by force. He admitted forcefully touching the victim’s breast and genitals despite the victim’s demands that he stop.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
3 Licking County Brothers Plead Guilty to Fraud, Money LaunderingRead the Press Release
COLUMBUS – Philip C. Clark, Jr., 66, David Clark, 59, and Christopher Clark, 61, all of Newark, pleaded guilty in U.S. District Court to bank fraud and money laundering. The three serve as president, treasurer and vice president of Clark Motor Company in Heath, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the plea entered into today before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, the brothers would make deposits and take withdrawals from two banks to make it appear as if they had $7.4 million, when in actuality they owed the banks $1 million. From July 2012 until January 2013, the Clarks unlawfully obtained money and property by false pretenses from Century National Bank and Ohio Heritage Bank.
“In January 2013, the brothers cross-deposited 214 non-sufficient checks between their accounts in order to artificially inflate the bank accounts at each respective bank, taking advantage of the float time in the bank system, thereby causing checks that would normally be returned for non-sufficient funds to be paid or honored by the issuing banks,” Financial Crimes Chief Brenda Shoemaker told the court.
The defendants would also enter into financial agreements and received advance money for the purchase of the same vehicles from more than one bank, and in doing so the three laundered more than $10,000 each by selling criminally derived property. For example, Century National Bank loaned the Clarks approximately $120,000 in January 2013 as an advance for the purchase of 5 vehicles. Unbeknownst to Century National Bank, the brothers had already received an advance from another lender to finance the purchase of at least one of those vehicles.
It was discovered that at that time only 5 of the 33 vehicles Century National Bank had financed were still on the lot at Clark Motor Company. Other lenders had already repossessed the other 28 vehicles because they had titles to the vehicles for the financing they provided the used car dealership.
Each brother pleaded guilty to one count of bank fraud and one count of money laundering.
“IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Bank fraud is a crime punishable by up to 30 years in prison and $1 million fine. Money laundering carries a maximum sentence of 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and IRS, as well as Financial Crimes Chief Brenda Shoemaker, who is representing the United States in this case.
10th Street Gang Member Pleads Guilty to Rico Conspiracy Involving A Murder; Five Others Also Plead Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member David Deynes, 33, of Buffalo, NY, who was convicted of Racketeering Influenced and Corrupt Organization (RICO) conspiracy, was sentenced to 84 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Deynes, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
The defendant is among 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Division.
10th Street Gang Member Pleads Guilty to Rico Conspiracy Involving A Murder; Five Others Also Plead Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Matthew Deynes, 33, of Buffalo, N.Y., who was convicted of Racketeering Influenced and Corrupt Organization (RICO) conspiracy, was sentenced to 125 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Deynes, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
The defendant is among 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Division.
Wednesday 11 March 2015
Weaubleau Man Sentenced to 17 Years for Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Weaubleau, Mo., man has been sentenced in federal court for exploiting a minor to produce child pornography.
Larry Allison, 51, of Weaubleau, Mo., was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, March 10, 2015, to 17 years in federal prison without parole.
On Oct. 20, 2014, Allison pleaded guilty to using a minor to produce child pornography. Allison admitted that he used a minor, identified in the federal indictment as “Jane Doe,” to produce child pornography in January 2014.
According to court documents, Allison contacted the minor victim through a Web site, and they began exchanging text messages, which became sexually explicit. Allison and the minor victim exchanged nude photos with one another and communicated about meeting at a local hotel for sex. The conversations ended when the victim’s mother took her daughter’s cell phone and contacted police.
A Springfield, Mo., police detective began texting Allison, according to court documents, portraying herself as the minor victim. Law enforcement officers executed a search warrant at Allison’s residence on Jan. 30, 2014.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Hickory County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Wapato Man Who Operated Vehicle During Drive by Shooting Sentenced to 10 Years ImprisonmentRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Morgan Moses Sampson, age 24, was sentenced for operating a vehicle during a gang related drive by shooting. United States District Judge Salvador Mendoza, Jr. sentenced Sampson to a ten-year term of imprisonment, to be followed by a three-year term of court supervision upon release from Federal prison
According to information disclosed during the court proceedings, on March 21, 2014, Sampson and three other individuals engaged in target shooting. Sampson consumed a great deal of alcohol and ingested marijuana. The four men decided to look for Sureno gang members. Sampson entered the driver’s seat and drove around a residential housing area. At approximately 5:00 p.m., the men spotted what they believed to be a rival gang member. Sampson drove the vehicle very slowly so that the shooter would have a better chance of hitting his target. The shooter fired eight rounds and mistakenly hit a young child who was playing outside. Sampson sped away in an effort to distance himself from the crime scene. However, a neighbor observed the shooting and immediately contacted the police. A short time later, police observed the suspect vehicle and all four men were arrested.
Michael C. Ormsby said, "Gang-related violence will not be tolerated in the Eastern District of Washington. The success of this investigation was the result of strong working partnerships among the Yakama Nation Tribal Police Department, the Yakima County Sheriff’s Office, the Washington State Patrol and the FBI. The United States Attorney’s Office will work in tandem with federal, state, local, and tribal law enforcement officers to prosecute aggressively anyone involved in such horrific acts of violence. Today’s lengthy prison sentences reflects the seriousness of this crime." Page -2-
The investigation was conducted by the Federal Bureau of Investigation, the Yakama Nation Tribal Police Department, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
U.S. Attorney’s Office Collects $88,000 for Costs of Suppressing Two Escaped Prescribed BurnsRead the Press Release
BOISE — U.S. Attorney Wendy J. Olson announced today that her office’s Affirmative Civil Enforcement Unit has settled a lawsuit for fire suppression costs against John Faulkner and Faulkner Land and Livestock Company. The office collected $88,000. The case involved two fires: the “Faulkner” fire in September, 2008 and the “Castlerock” fire in September, 2010. Both fires started when prescribed burns on Faulkner land near Gooding, Idaho escaped to federal land on a windy afternoon. Idaho burn permits require permit-holders to provide adequate containment equipment and personnel to contain private burns. The permits also require citizens to refrain from burning in windy conditions. Crews from the Bureau of Land Management and the United States Forest Service provided a ground and air attack to suppress the fires in dry and steep terrain.
The United States owns, manages, and administers various parcels of public lands through the Bureau of Land Management and the United States Forest Service. Both agencies suppress uncontrolled wildfires within their jurisdiction pursuant to mutual aid and cooperative agreements. The money collected will reimburse the agencies for funds expended.
“Tactics, communication and human safety are of the utmost importance in order to prevent putting firefighters and private citizens in harm’s way,” said Olson. “We are pleased that our agencies can work cooperatively with efficiency. We are also pleased to be able to recover more than $88,000 for future fire suppression efforts,” Olson added. “We will continue to make strong efforts to ensure that in appropriate cases private parties who cause fires reimburse the taxpayers for putting out fires that burn or threaten federally managed land.”
U.S. Attorney Launches Review of 25 Restaurants for Compliance with Americans with Disabilities ActRead the Press Release
PHILADELPHIA – The Office of United States Attorney for the Eastern District of Pennsylvania has launched a review of 25 of Philadelphia’s most popular restaurants to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”), announced United States Attorney Zane David Memeger. The initiative is in accordance with the Government’s congressionally-mandated responsibility to review compliance with the ADA. It is not in response to any specific complaint against a restaurant.
As part of the review, restaurant owners are being asked to complete a Survey Form, supplied by the Government, pertaining to their restaurant’s accessibility. Investigators may then conduct on-site inspections to confirm survey responses and to evaluate compliance with federal ADA regulations. Owners and operators found to be non-compliant will have the option of entering into a Voluntary Compliance Agreement with the Government whereby they voluntarily agree to upgrade their facilities to meet ADA requirements. Owners and operators found to be engaging in a pattern or practice of discrimination, or that fail to enter Voluntary Compliance Agreements, may face a civil lawsuit brought by the Government and/or be subject to penalties, including monetary penalties and civil fines.
The U.S. Attorney’s Office objectively selected the restaurants for this compliance review using recent third party restaurant rankings in order to review 25 of Philadelphia’s most popular and frequented restaurants.
The ADA prohibits discrimination on the basis of disability by places of public accommodation, including restaurants, and requires places of public accommodation to be “designed, constructed, and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations.
“People with disabilities who visit, work, or live in Philadelphia have the right to expect that all public accommodations in the city are accessible according to law,” said Memeger. “The Americans with Disabilities Act is an important civil rights law, and restaurant owners must comply with its accessibility provisions. We will take all reasonable steps within our power to ensure that any restaurants that fall short of compliance make the necessary changes, rather than face litigation.”
Two Plead Guilty to Federal Drug CrimesRead the Press Release
BOISE – Jose Manuel Menchaca, 35, and Nicole Danelle Nieto, 31, both of Nampa, Idaho, pleaded guilty in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
Nieto, who pleaded guilty yesterday, sold methamphetamine to a police informant on two occasions in June 2014, according to information presented in court. Law enforcement agents located additional methamphetamine when they searched Nieto’s residence on June 18, 2014. On that same date, Nieto admitted she was selling methamphetamine.
Menchaca, who pleaded guilty today, sold methamphetamine to a police informant on three separate occasions, according to the plea agreement.
A federal grand jury indicted Menchaca and Nieto in two separate indictments filed on October 15, 2014. Although charged separately, the cases are both part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
The charge against Menchaca is punishable by a minimum of 5 years and up to 40 years in prison, a fine up to $5 million, and a minimum of 4 years supervised release. He is scheduled for sentencing on May 28, 2015, before U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise.
The charge against Nieto is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least 3 years of supervised release. She is scheduled for sentencing on May 26, 2015, before U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise.
These cases and the other related cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Men Sentenced to Prison for Roles in Cross-Country Marijuana Distribution RingRead the Press Release
PHOENIX – On March 9, 2015, two defendants were sentenced by U.S. District Court Judge Neil V. Wake for their roles in a cross-country marijuana distribution ring. Darius Blackwell, 38, of Mesa, Ariz., was sentenced to over 9 years in prison and Grady Blackwell, 62, of Lithonia, Ga., was sentenced to 5 years in prison. Both defendants previously pleaded guilty to conspiracy to possess marijuana with intent to distribute and conspiracy to commit money laundering.
According to their plea agreements, the Blackwells participated in a conspiracy to distribute marijuana using the United States Postal Service. Their organization purchased marijuana in Arizona, mailed it throughout the United States, primarily to Georgia, and then arranged for the proceeds to be sent back to Arizona. Shipping records and seizures show that at least 50 kilograms of marijuana were mailed in this fashion. In addition, seven bank accounts were opened in March 2012 for the purpose of receiving and transferring the proceeds of the scheme. Nearly $410,000 was deposited into these accounts (largely via cash deposits in Georgia) and over $395,000 was withdrawn (largely via cash withdrawals in Arizona).
The investigation in this case was conducted by the United Postal Inspection Service, Internal Revenue Service - Criminal Investigation, and the Mesa Police Department. The prosecution was handled by Donald Pashayan, Brian Larson and Mark Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1462-PHX-NVW
RELEASE NUMBER: 2015-023_Blackwell
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two Men Plead Guilty to Tax Fraud Conspiracy Involving More Than 300 Stolen IdentitiesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of RICHARD J. SCHMIDT, 42, and MATTHEW KLEMMER, 47, for conspiring to prepare and file false individual income tax returns in order to obtain fraudulent income tax refunds. Both defendants were indicted on October 15, 2014. SCHMIDT pleaded guilty on December 17, 2014 before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. On March 9, 2015, KLEMMER also entered his guilty plea before Judge Doty.
“Filing false tax returns and using stolen identities is a serious crime that hurts innocent taxpayers,” stated Special Agent in Charge Shea Jones of the IRS Criminal Investigation St. Paul Field Office. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to the defendants’ guilty pleas and documents filed in court, from approximately January 2011 to April 2011, SCHMIDT and KLEMMER received refunds from income tax returns reporting false or inflated income, false employment, and other false items. Stolen personal identifying information, including names and social security numbers, was used to create the fraudulent tax returns, which included false or inflated withholding information. As part of the conspiracy, the defendants requested the tax refunds be deposited onto debit cards, allowing them immediate access to the cash. The defendants filed more than 30 fraudulent tax returns and received more than $100,000 in refunds.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division.
The case is being prosecuted by Assistant U.S. Attorney Robert Lewis.
Defendant Information:
RICHARD J. SCHMIDT, 42
Landfall, MN
Convicted:
• Conspiracy to Defraud the United States, 1 count
MATTHEW KLEMMER, 47
St. Paul, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 countTwo Indicted for Drug TraffickingRead the Press Release
A federal grand jury returned a one-count indictment charging Hortencia Decaldera, 55, of Indianapolis, and Rodolfo Rodriguez, aka Oscar Rodriguez, 32, of Los Angeles, with possession with the intent to distribute approximately three kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On February 14, 2015, Decladera and Rodriguez were stopped for speeding by the Ohio State Highway Patrol in Stark County, Ohio. A drug canine officer was called to the scene at which time the dog alerted on the vehicle. A search of the F-150 revealed a hidden compartment inside the cab. The occupants were arrested.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Ohio State Highway Patrol, the Stark Safe Street Task Force and the Cleveland Division of the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Travel Agent Sentenced for $360,000 Fraud Scheme, Stole from Willard High School BandRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent was sentenced in federal court today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.
Calliope R. Saaga, also known as “Ope,” 40, of Saratoga Springs, Utah, was sentenced by U.S. Chief District Judge Greg Kays to five years in federal prison without parole. The court also ordered Saaga to pay $782,480 in restitution.
On Oct. 15, 2014, Saaga pleaded guilty to wire fraud. Saaga has also pleaded guilty to a similar $272,500 fraud scheme involving a school district in Fort Smith, Ark. He will be sentenced on that conviction, as well as related conduct for a similar $149,980 fraud scheme involving a West Memphis, Ark., school district, on March 25, 2015, in the Western District of Arkansas. The total loss for the victims in these fraud schemes was $782,480.
Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for more than 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.
Saaga booked no reservations as required in the contract. Instead, as he received wire transfers from the band boosters, Saaga used the funds to finance his personal lifestyle, including at least 47 days spent gambling in Las Vegas, Nev.
As a result of Saaga’s diversion of funds, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.
While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, Saaga transmitted e-mails about details of the trip to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.
Three Appleton Men Indicted on Methamphetamine Distribution and Firearm ChargesRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin, announced that on March 10, 2015, a federal grand jury returned a three-count indictment against Kham Meng Vang a/k/a “K” (age: 32), Sa Xiong a/k/a “Fat Boy” (age: 24), and Bee Vang a/k/a “Skinny”(age: 23) of Appleton, Wisconsin, charging all three with conspiracy to distribute 500 grams or more of methamphetamine in violation of Title 21, United States Code, Section 846 and, further, charging Kham Meng Vang and Sa Xiong with possession of a firearm in furtherance of a drug crime. If convicted of the drug offense, each defendant faces a sentence of between ten years and life imprisonment, a ten million dollar fine, and between five years and a lifetime of supervised release. Conviction on the firearm offense carries a mandatory consecutive term of five years imprisonment.
According to the indictment, the defendants conspired amongst themselves and with others to sell over 500 grams of methamphetamine in the Fox Valley region. Kham Meng Vang and Sa Xiong are alleged to have done so while in possession of semi-automatic weapons.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, the Lake Winnebago Area Metropolitan Enforcement Group, the Appleton Police Department, the Fox Valley Metro Police Department, the Kaukauna Police Department, the Town of Menasha Police Department, the Menasha Police Department, the Neenah Police Department, the Oshkosh Police Department, the Calumet County Sheriff’s Department, and the Winnebago County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # # #
Statement by Attorney General Holder on Fatal Shooting of Deputy U.S. Marshal Josie WellsRead the Press Release
Attorney General Eric Holder released the following statement Wednesday regarding the fatal shooting of Deputy U.S. Marshal Josie Wells:
“Deputy Marshal Josie Wells was a dedicated law enforcement officer, a remarkable patriot and a courageous public servant. Though he was taken from us far too suddenly and far too soon, he leaves behind an indelible legacy that will live on in the lives he touched; in the work that the U.S. Marshals Service continues to perform; and in a world that is safer because of his devoted service. His loss is a deeply tragic reminder that the work of our law enforcement officers around the nation is extremely serious, profoundly heroic and deserving of our most emphatic support. The thoughts and prayers of the law enforcement community will be with the family and loved ones of Deputy Marshal Wells throughout this difficult time. And as we go forward, the Department of Justice intends to honor his service and his sacrifice by continuing to fight for the values he protected every day, and to defend the American people for whom he gave his life.”
Statement by Acting Assistant Attorney General for the Civil Rights Division Vanita Gupta on Developments in Ferguson, Missouri, Following Civil Rights Division's FindingsRead the Press Release
Acting Assistant Attorney General for the Civil Rights Division Vanita Gupta released the following statement Wednesday regarding developments in Ferguson, Missouri:
“The results of the Civil Rights Division’s investigation into the practices of Ferguson Police Department remain a top concern and priority. The division will continue to work with Ferguson Police and city leadership, regardless of whomever is in those positions, to reach a court enforceable agreement that will address their unconstitutional practices in a comprehensive manner. As part of this ongoing commitment, in the coming weeks the Civil Rights Division staff will travel to Ferguson, Missouri, to discuss the findings and next steps with community members and Ferguson city leadership.”
Sex Offender Sentenced to 6 Years in Prison on Felony Firearms ChargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 72 months in prison for possessing a firearm and ammunition after being convicted of a felony.
Eric Dwayne Williams, 39, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release and was ordered to forfeit the firearm and ammunition seized during the investigation. According to the October 10, 2014 guilty plea, Williams was arrested by deputy U.S. Marshals and Shreveport Police officers with the U.S. Marshals Violent Offender Task Force in June of 2014 on a warrant from California for a sex offender registration violation. Upon further investigation, it was discovered that Williams had been in possession of a Glock, model 27, .40 caliber pistol and ammunition. Federal authorities located and recovered the firearm and ammunition. It was unlawful for Williams to possess the firearm and ammunition because Williams had previously been convicted of nine felony convictions in California. These felony convictions include his failure to register as a sex offender, second degree burglary, receiving stolen property and possession of a firearm by a convicted felon.
The ATF; U.S. Marshals Service; the Louisiana Department of Corrections and Public Safety, Probation and Parole; and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program designed to reduce violence by aggressively enforcing existing federal firearms laws.
Settlement Reached in Patriots Park Renovations Civil CaseRead the Press Release
ALEXANDRIA, Va. – Lend Lease Construction, Inc., a global company locally based in Rockville, Maryland, and Cindell Construction Company, based in Frederick, Maryland, agreed to pay a total of $400,000 to settle False Claims Act allegations in connection with an agreement to perform construction work to renovate a property the government is currently leasing in Reston, Virginia known as “Patriots Park.”
“We encourage whistleblowers to come forward in instances where the government is a victim,” said Dana Boente, U.S. Attorney for the Eastern District of Virginia. “This case exemplifies the important role whistleblowers can play in recovering money for the government.”
The purpose of the construction work was to make the property at Patriots Park compliant with General Services Administration (GSA) and Department of Defense security regulations and requirements. Pursuant to the lease agreement, the construction work on the Patriots Park project is subject to the requirements of the Davis-Bacon Act and the Contract Work Hours and Safety Standards Act (CWHSSA). The Davis-Bacon Act requires government contractors to pay the prevailing wage to workers as set by the Secretary of Labor for the corresponding class of laborers and mechanics in the state in which they are employed. The CWHSSA requires that workers be compensated at time and a half their prevailing wage rate for all hours worked over 40 hours per week for contracts subject to the prevailing wage. Lend Lease was hired by the owner of the property to provide construction management services; Lend Lease, in turn, subcontracted with Cindell to perform drywall installation.
The United States will receive $400,000 to settle allegations that Lend Lease and Cindell submitted false claims to the government after lower-tier subcontractors hired by Cindell underpaid workers and failed to compensate the workers properly for overtime hours despite certifying compliance on weekly certified payrolls.
The investigation was initiated after a lawsuit was filed under the qui tam or whistleblowerprovisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government time to investigate allegations in qui tam complaints and to intervene in such lawsuits, when the government deems it appropriate. The whistleblower will receive $72,000 from the settlement.
This resolution in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Virginia, the Department of Labor Office of Inspector General, and the GSA Office of Inspector General. The matter was investigated by Assistant United States Attorney Monika Moore and former Special Assistant United States Attorney Erin Murdock-Park. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cv-1170.Settlement Reached in Patriots Park Renovations Civil CaseRead the Press Release
ALEXANDRIA, Va. – Lend Lease Construction, Inc., a global company locally based in Rockville, Maryland, and Cindell Construction Company, based in Frederick, Maryland, agreed to pay a total of $400,000 to settle False Claims Act allegations in connection with an agreement to perform construction work to renovate a property the government is currently leasing in Reston, Virginia known as “Patriots Park.”
“We encourage whistleblowers to come forward in instances where the government is a victim,” said Dana Boente, U.S. Attorney for the Eastern District of Virginia. “This case exemplifies the important role whistleblowers can play in recovering money for the government.”
The purpose of the construction work was to make the property at Patriots Park compliant with General Services Administration (GSA) and Department of Defense security regulations and requirements. Pursuant to the lease agreement, the construction work on the Patriots Park project is subject to the requirements of the Davis-Bacon Act and the Contract Work Hours and Safety Standards Act (CWHSSA). The Davis-Bacon Act requires government contractors to pay the prevailing wage to workers as set by the Secretary of Labor for the corresponding class of laborers and mechanics in the state in which they are employed. The CWHSSA requires that workers be compensated at time and a half their prevailing wage rate for all hours worked over 40 hours per week for contracts subject to the prevailing wage. Lend Lease was hired by the owner of the property to provide construction management services; Lend Lease, in turn, subcontracted with Cindell to perform drywall installation.
The United States will receive $400,000 to settle allegations that Lend Lease and Cindell submitted false claims to the government after lower-tier subcontractors hired by Cindell underpaid workers and failed to compensate the workers properly for overtime hours despite certifying compliance on weekly certified payrolls.
The investigation was initiated after a lawsuit was filed under the qui tam or whistleblowerprovisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government time to investigate allegations in qui tam complaints and to intervene in such lawsuits, when the government deems it appropriate. The whistleblower will receive $72,000 from the settlement.
This resolution in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Virginia, the Department of Labor Office of Inspector General, and the GSA Office of Inspector General. The matter was investigated by Assistant United States Attorney Monika Moore and former Special Assistant United States Attorney Erin Murdock-Park. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cv-1170.Sentencing in Assault on Federal OfficerRead the Press Release
POCATELLO - Caitlin Eagle, 25, of Fort Hall, Idaho, was sentenced today in United States District Court to twelve months and one day in prison, and six months in a halfway house, followed by three years of supervised release, for assault on a federal officer, U.S. Attorney Wendy J. Olson announced.
On February 18, 2014, Fort Hall police were dispatched to an area in Fort Hall after a report of shots fired. The caller said the persons involved were dressed in black and were running from the area. The responding officer arrived in the area and saw a person in a black coat. The officer tried to talk with the person, but she continued walking away from the officer. The person, later identified as Eagle, gave the officer a false name and was uncooperative. The officer smelled a strong odor of an alcoholic beverage on her person, a violation of Fort Hall tribal law, and the officer attempted to arrest her. As the officer tried to handcuff her, she became combative and struck the officer in the face several times. The officer was able to handcuff Eagle and with the help of another officer was able to get Eagle into the police car. The injured officer was treated at the hospital for abrasions on his cheek and nose.
The case was investigated by the Fort Hall Police Department.
Sentence and Guilty Plea in Cases Involving Theft of Military Equipment Returned from Iraq and AfghanistanRead the Press Release
SACRAMENTO, Calif. — One defendant pleaded guilty and another was sentenced today in two related cases involving the theft of military equipment that was being inventoried at the U.S. Army base in Herlong, California, United States Attorney Benjamin B. Wagner announced.
Tony Herrin, 36, of Reno, Nevada, pleaded guilty today to theft of government property, and Devon Biggs, 38, formerly of Reno, Nevada, was sentenced today by U.S. District Judge Kimberly J. Mueller to 16 months in prison and restitution of $200,000 for the theft of government property.
According to court documents, Herrin and Biggs worked as civilian employees at the Sierra Army Depot (SIAD) in Herlong. As part of their job responsibilities, Biggs and Herrin received, catalogued, and inventoried military equipment returned from Iraq and Afghanistan. Biggs and Herrin worked in the same building, and the two stole numerous items of sophisticated military equipment. Specifically, Herrin played a role in stealing 10 Taser devices, three Vectronix systems used to detect targets (total value $221,787), six military grade flashlights (total value $11,267), and 25 thermal imaging sights. The total value of all these items is approximately $411,000.
Biggs also stole numerous items of sensitive military equipment: machine gun components, night vision goggles, laser GHOST Illumination technology, and low-light video recording equipment.
These cases are the product of investigations by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith are prosecuting the cases.
Herrin is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on May 27, 2015. Herrin faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Revere Woman Sentenced for Defrauding Government Benefits ProgramsRead the Press Release
BOSTON - A Revere woman was sentenced today for fraudulently receiving over $88,000 in disability payments and rental assistance.
Emily Lardiero, 64, was sentenced by U.S. District Court Judge Rya W. Zobel to three years of probation, including six months of home confinement, and was ordered to pay $47,671 in restitution to the Social Security Administration (SSA) and $40,391 in restitution to the U.S. Department of Housing and Urban Development. In December 2014, Lardiero pleaded guilty to two counts of stealing public money.
In 2003, Lardiero began receiving Supplemental Security Income disability benefits from the SSA. Recipients of these benefits are required to inform SSA if they return to work or if they acquire money or property that might make them financially ineligible to continue receiving benefits. Lardiero did not report any work or income to SSA and stated during a benefits review in November 2013 that she was still disabled and had no income aside from her SSA benefits. In reality, Lardiero was working at Action Emergency Services, a family business in Revere. She also drew income from the business, which she did not report to SSA. By failing to disclose her work and income to SSA, Lardiero received $47,671 in benefits to which she was not entitled.
Additionally, since 2001, Lardiero was illegally receiving rental assistance benefits from the U.S. Department of Housing and Urban Development (HUD). Under this program, HUD pays a significant portion of the monthly rent to the landlord, and the tenant pays the remainder. To receive this subsidy, tenants are not allowed to have any ownership interest in the housing in which they live. In 2007, Lardiero became the sole trustee of the trust that owned the house she was living in and as such she could control the property as if she were the legal owner. Despite signing annual acknowledgements that she knew she could not have any interest in her housing unit, Lardiero continued to participate in the subsidy program. From 2007 to 2010, an acquaintance of Lardiero’s received the monthly landlord’s payments from HUD, and then forwarded the money to Lardiero each month. In this manner, Lardiero illegally received $40,391 in HUD benefits.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the SSA to investigate and prosecute fraud pertaining to Social Security disability benefits.
In July 2014, Charles Flynn and Steven Grondell of Georgetown were each sentenced to three years of probation, including six months of home confinement, and were ordered to serve 105 hours of community service and to pay $105,158 in restitution to SSA. Flynn received SSA disability benefits while working under Grondell’s identity, and with his permission, to conceal the work from SSA.
Also in July 2014, Carl Lynch, of Ware, was sentenced to three years of probation, including six months of home confinement, and was ordered to pay $50,264 in restitution to SSA. Lynch received SSA disability benefits while working under another man’s identity to conceal the work from SSA.
In January 2014, Antonio Pulinario Brea, of the Dominican Republic, was sentenced to ten months in prison and was ordered to pay $60,455 in restitution to SSA. Pulinario Brea used the identity of an American citizen to obtain SSA disability benefits that he would not have been entitled to receive under his true identity.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The Lardiero case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Rbs Trader Admits Defrauding Customers in Multimillion Dollar Securities Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MATTHEW KATKE, 34, of New York, New York, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme. KATKE also entered into an agreement to cooperate in the government’s ongoing investigation.
According to court documents and statements made in court, between April 2008 and August 2013, KATKE was a registered broker-dealer and managing director at RBS Securities Inc. RBS is a global securities firm with headquarters in Stamford, Connecticut. RBS also has a trading floor in Stamford where KATKE and other members of RBS’s Asset Backed Products division traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). In pleading guilty, KATKE admitted that he and others conspired to increase RBS’s profits on CLO bond trades at the expense of customers. As part of the scheme, KATKE and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for CLO bonds, all to benefit RBS.
The conspiracy was perpetrated in two ways. In certain transactions, KATKE misrepresented the CLO seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, KATKE misrepresented to the CLO buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller invented by KATKE, which allowed KATKE to charge the buyer an extra commission that RBS was not entitled to.
The investigation revealed numerous fraudulent transactions by KATKE that cost at least 20 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.
“Fraud in the fixed income markets is a secret and unfair tax on investors everywhere,” said U.S. Attorney Deirdre M. Daly. “Broker-dealers, and the people who work for them, need to understand that a market practice that is at odds with the securities law is a crime that carries serious repercussions. We urge others to follow Mr. Katke’s example and cooperate with investigators. We want to thank SIGTARP and the FBI for their efforts to date in this continuing investigation. Additionally, we acknowledge our other partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General and the Fraud Section of the Department of Justice for their hard work in the numerous ongoing investigations into this market.”
“As a result of an ongoing criminal investigation by SIGTARP, this afternoon, Katke, a former senior securities trader at investment bank RBS, pleaded guilty to conspiring to defraud bank customers—customers that included TARP banks—out of millions of dollars,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Katke lied to customers about the status of and the true prices paid and offered for securities as a way to boost profits for himself, others, and RBS. Defrauding a TARP recipient bank is the same as defrauding the American taxpayers who funded the TARP bailout. I want to commend U.S. Attorney Deirdre Daly and the team of prosecutors who stand united with SIGTARP to combat TARP bailout-related crime.”
KATKE pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years. He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on June 3, 2015.
This case is being investigated by the Federal Bureau of Investigation and the Special Inspector General for the Troubled Asset Relief Program, and is being prosecuted by Assistant United States Attorneys Jonathan Francis and Heather Cherry.
Today’s announcement is part of the ongoing efforts of the Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and the federal government’s subsequent bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.
The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General for the Criminal Division Leslie R. Caldwell, Acting Assistant Attorney General for the Civil Division Benjamin Mizer, U.S. Securities and Exchange Commission Director of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric T. Schneiderman.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]RBS Trader Admits Defrauding Customers in Multimillion Dollar Securities Fraud SchemeRead the Press Release
U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Inspector General Christy Romero for the Troubled Asset Relief Program (SIGTARP) and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division announced that Matthew Katke, 34, of New York City, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme. Katke also entered into an agreement to cooperate in the government’s ongoing investigation.
According to court documents and statements made in court, between April 2008 and August 2013, Katke was a registered broker-dealer and managing director at RBS Securities Inc. RBS is a global securities firm with headquarters in Stamford, Connecticut. RBS also has a trading floor in Stamford, where Katke and other members of RBS’s Asset Backed Products division traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). In pleading guilty, Katke admitted that he and others conspired to increase RBS’s profits on CLO bond trades at the expense of customers. As part of the scheme, Katke and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for CLO bonds, all to benefit RBS.
The conspiracy was perpetrated in two ways. In certain transactions, Katke misrepresented the CLO seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, Katke misrepresented to the CLO buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller invented by Katke, which allowed Katke to charge the buyer an extra commission that RBS was not entitled to.
The investigation revealed numerous fraudulent transactions by Katke that cost at least 20 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.
“Fraud in the fixed income markets is a secret and unfair tax on investors everywhere,” said U.S. Attorney Daly. “Broker-dealers, and the people who work for them, need to understand that a market practice that is at odds with the securities law is a crime that carries serious repercussions. We urge others to follow Mr. Katke’s example and cooperate with investigators. We want to thank SIGTARP and the FBI for their efforts to date in this continuing investigation. Additionally, we acknowledge our other partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General and the Fraud Section of the Department of Justice for their hard work in the numerous ongoing investigations into this market.”
“As a result of an ongoing criminal investigation by SIGTARP, this afternoon, Katke, a former senior securities trader at investment bank RBS, pleaded guilty to conspiring to defraud bank customers—customers that included TARP banks—out of millions of dollars,” said Special Inspector General Romero. “Katke lied to customers about the status of and the true prices paid and offered for securities as a way to boost profits for himself, others and RBS. Defrauding a TARP recipient bank is the same as defrauding the American taxpayers who funded the TARP bailout. I want to commend U.S. Attorney Daly and the team of prosecutors who stand united with SIGTARP to combat TARP bailout-related crime.”
Katke pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years. He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny of the District of Connecticut on June 3, 2015.
This case is being investigated by the FBI and the Special Inspector General for the Troubled Asset Relief Program, and is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry of the District of Connecticut.
Today’s announcement is part of the ongoing efforts of the Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and the federal government’s subsequent bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and state Attorneys General offices around the country.
The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Acting Assistant Attorney General Benjamin Mizer of the Civil Division, Director of Enforcement Andrew Ceresney for the SEC, U.S. Attorney John Walsh of the District of Colorado and New York Attorney General Eric T. Schneiderman.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.
Psychologist Sentenced to Six Years in Federal Prison and a $100,000 Fine for Role in Rocky Boy's Corruption ProbeRead the Press Release
GREAT FALLS – The former psychologist for the Rocky Boy Health Clinic in Box Elder has been sentenced to six years in prison for his leadership role in corruption ring that embezzled hundreds of thousands of dollars from federal programs on the reservation. Dr. James Howard Eastlick, 48, now of Coeur D’Alene, Idaho, was sentenced by U.S. District Judge Brian Morris to six years in prison despite the government’s recommendation for a more lenient sentence based upon what prosecutors termed “exceptional assistance” in the investigation and prosecution of others involved in the Rocky Boy’s corruption.
While the sentence represented a departure from the advisory guideline range, the sentence also reflected Eastlick’s central role in a myriad of corrupt deals with tribal officials that occurred over a three year period when the reservation saw a significant increase in federal funding.
In addition to the prison term, Judge Morris ordered Eastlick to pay a $100,000 fine, pay $424,800 in restitution and serve three years of supervised release when his term of imprisonment has ended.
Earlier in the day, Morris had sentenced Eastlick’s sister Tammy Kay Leischner, 43, and his brother-in-law, Mark Craig Leischner, 48, both of Laurel to two years in prison. Morris sentenced Eastlick’s father, James Howard Eastlick, Sr., 70, to a year in prison in September of 2014, and Eastlick’s nephew, Brenden Leischner, 24, to six months in custody and five years of probation for his role in a student financial aid fraud scheme at the University of Great Falls.
Bribery Relating to a Federally Funded Program
Dr. Eastlick plead guilty to providing Tony Belcourt, then the Chief Executive officer of the Chippewa Cree Construction Corporation, with a $100,000 payment as part of their on-going business relationship relating to the Tiber Reservoir water project which was funded in 2009 with $20 million in federal stimulus monies under the American Recovery and Reinvestment Act (ARRA) through the Bureau of Reclamation.
Prosecutors presented evidence that Hunter Burns Construction, LLC, was formed as a Native American / minority-owned preference business in June 2009 to do business on the Rocky Boy’s Indian Reservation, primarily on federally funded projects. The 51% majority owner of the company was Hunter Burns, and the other 49% of the company was owned by Dr. Eastlick, then a clinical psychologist with the Rocky Boy Health Board Clinic. Between June 2009 and October 2009, Tony Belcourt awarded four contracts to Hunter Burns Construction, totaling over $713,000, in connection of the expansion of the On-Reservation water district. These contracts were identified as the Box Elder Pipeline Project 1 ($361,300), the Box Elder Pipeline Project 2 ($143,440) the Middle Dry Fork Pipeline project ($155,108), and the Reseeding project to mitigate ground disturbance for these two pipelines ($54,000).
In December, 2011, Belcourt approached Eastlick for a large loan--$100,000—to keep the Bank from taking his ranching operation. Eastlick agreed to help Belcourt.
Belcourt approved and authorized a Chippewa Cree Construction Corporation payment to Hunter Burns Construction on November 21, 2009, in the amount of $148,972. Without the deposit from the Chippewa Cree Construction Corporation, there were insufficient funds in the Hunter Burns Construction account to get the money Belcourt needed to fix the problem with the auction company and Independence Bank caused by the illicit sale of secured cattle.
Two days later, on November 23, 2009, Hunter Burns Construction issued a $100,000 check to Hailey Belcourt.
Four months later, in March of 2010, Hunter Burns Construction was awarded a $1.7 million contract. Two weeks after the contract was entered into, Belcourt approved a $100,000 payment of federal ARRA funds to Hunter Burns Construction . The contract had called for a $15,000 payment for “mobilization”, but that payment was made weeks after the $100,000 payment; a payment that went unrecorded with the project engineers until many months later.
Bribery of Councilman John Houle
Eastlick also plead guilty to bribing Chippewa Cree Tribal Councilman John Chance Houle.
Prosecutors represented to the Court that between October 2007 and September 2012, the Chippewa Cree Tribe received $420,439,495.00 in federal funding. In addition to the over $420 million in federal funding, the Tribe also received a $25 million dollar insurance payment after the flooding of 2010, and an $8.4 million dollar award under the Cobell v. Salazar Settlement in July of 2012. The total money received by the Tribe during this five-year time period was over $450 million dollars.
Of that amount, between April 2009 and December 2011, the Rocky Boy's Health Clinic received over $40 million from HHS and EPA, mostly to operate the Health Clinic and rebuild sewage lagoons damaged by the floods of 2010. The Chippewa Cree Construction Corporation received over $40 million from the BOR as part of the Rocky Boy's/North Central Montana Regional Water System project (the Tiber project).
John Chance Houle, was a tribal councilman during this time and Vice-Chairman of the Rocky Boy Tribe Business Committee. In that capacity, Houle served on the Chippewa Cree Construction Corporation Board and on the Rocky Boy's Health Care Board. Houle had arranged for the Eastlick-Bums partnership with the understanding that if he lost his position on the Council, he would replace Eastlick and continue to use the construction company as a vehicle to obtain tribal funds. A long-time member of the tribal council who had also served as the Tribal Chairman, Houle exerted significant political control over the two boards as well as over the affairs of the Tribe as a whole.
During the period of the indictment-from July 28, 2009 through November 30, 2011, Houle engaged in a series of “business transactions” with Hunter Burns Construction including the rental of property to the company, the sale or lease of equipment to the company, and the performance of personal services to the company. The investigation revealed that many of the transactions were not legitimate but were merely labeled as such to provide cover to the participants. For example, equipment purportedly sold to Hunter Bums Construction would continue to appear on Houle's inventory of equipment for bank loans and credit long after it was allegedly sold. One transaction was for the potential and prospective lease of property over ten years paid in full up front-when the land was never used for any purpose by the construction company. Another payment was related to the disposal of hazardous waste which could not have been a legitimate transaction due to the regulatory requirements for the disposal of such material that Houle could not legally perform. Eastlick, Houle, and Hunter Burns all confirmed that the scheme was merely a device to funnel federal and tribal monies back to Councilman Houle in exchange for his continuing patronage in the giving of contracts to Hunter Burns Construction.
From July 28, 2009, through November 30,2011, Hunter Burns Construction made a total of $258,487 in l7 payments to Houle, his ranching business, or his children from the health clinic and water project contracts funded by EPA, BOR, and HHS.
Federal Income Tax Fraud
Eastlick was also sentenced on his guilty plea to income tax fraud.
According to prosecutors, Eastlick, in addition to his employment as a psychologist for the Health Clinic, operated a loan program-called the JE Loan Program-with the Chippewa Cree Tribe wherein he loaned money both to the Tribe in large amounts and to individual tribal employees in smaller amounts. Loans to the Tribe generally carried interest rates of l0 per cent, and were paid back within l0 weeks of Eastlick loaning the money. The annualized percentage rate (APR) for loans from the JE Loan program would constitute an 80% return.
With regard to the loans to the tribal employees, Eastlick had an arrangement with the Tribe that to repay those debts, money would be taken from the employee's paycheck, consolidated with other debtors of the JE Loan program, and then tribal checks would be regularly issued to Eastlick representing both interest and principal. These loans were also short-term loans that carried an interest rate of between l0 and 15 per cent with an annualized rate being significantly higher. Eastlick's accountant, who handled the tax affairs of Eastlick's other business interests, had no knowledge of the JE Loan program and did not include taxable income from that source on any of Eastlick's returns including during the years 2008-2011.
Returned principal on the loans made by Eastlick through the JE Loan Program would not be income subject to the Internal Revenue Service's reporting requirements, but interest on those loans is considered income and must be reported. Eastlick did not claim any interest income from his tribal loan program on his federal tax returns for 2008, 2010, or 2011, and only minimal interest in 2009.
Eastlick’s prison sentence on the tax conviction runs concurrently to the 72 months imposed on the other counts of conviction, but he was ordered to pay, of the total restitution amount, $66,313 to the IRS in taxes due and owing from his failure to disclose the interest income from the loan program.
Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that Eastlick will likely serve all of the time imposed by the court. In the federal system, defendants do have the opportunity to earn a limited reduction in time served for “good behavior,” a reduction for good conduct while incarcerated will not exceed 15% of the overall sentence.
Pikesville Man Pleads Guilty to Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – Zarakh Yelizarov, age 52, of Pikesville, Maryland, pleaded guilty today to a conspiracy to distribute over $6.6 million in contraband cigarettes. Yelizarov’s role in the scheme was to help launder the proceeds of the conspiracy.
The guilty plea 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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to his plea agreement, Yelizarov’s cousin, Elmar Rakhamimov, conspired with other family members and associates to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Rakhamimov, who was the leader and organizer of the scheme, purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
According to his plea agreement, Yelizarov joined the conspiracy in October 2012. Prior to that time, the first nine contraband cigarette transactions were for cash, and the number of cigarettes and amount of cash increased. Yelizarov and Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. During the course of the scheme, Yelizarov used his mobile phone to call his contacts and to discuss the amount and the timing of the wire transfers into the Maryland account. Many of these calls were captured on a court ordered wiretap.
From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions. Yelizarov and Rakhamimov received a fee of approximately 8% for the money laundering transactions, totaling $56,000.
Rakhamimov used his residence and his restaurant, Europe, to conduct the illegal transactions of contraband cigarettes and the money laundering.
Yelizarov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 14, 2015, at 1:00 p.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland; his brother, Salim Yusufov, age 43, of Reisterstown, Maryland; Adam Azerman, age 59, of Pikesville; and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Oxford Man Sentenced to 63 Months in Prison for Stealing $1.1 Million Through Ponzi SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT E. LEE, JR., 51, of Oxford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 63 months of imprisonment for operating a Ponzi scheme that defrauded investors of more than $1.1 million. Judge Meyer also ordered LEE to pay full restitution and a $10,000 fine.
According to court documents and statements made in court, LEE was employed as a broker and financial advisor for various financial investment firms until July 2013 when he was terminated by his most recent employer, Rockwell Global Capital, LLC. Between January 2011 and March 2014, LEE defrauded individuals of approximately $1,150,815 by claiming that he was investing their money in various investment vehicles when, in fact, he was maintaining custody of their funds in his personal bank account. He then used the money to make distributions to other investors, and for personal expenses. To conceal the scheme, LEE fabricated account statements and other documents, which he delivered to his victims.
As part of the sentence, Judge Meyer ordered LEE to forfeit $358,077.17 that was held in an online trading account at the time of his arrest.
LEE was arrested on May 12, 2014. On December 17, 2014, he pleaded guilty to five counts of wire fraud.
This matter was investigated by the Federal Bureau of Investigation was prosecuted by Assistant U.S. Attorneys David T. Huang and Christopher M. Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Okeechobee County Illegal Alien Pleads Guilty to Illegal Possession of FirearmRead the Press Release
An Okeechobee County man pled guilty today before U.S. Magistrate Court Judge Frank J. Lynch, Jr. to illegal possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OCSO), made the announcement.
Martin Alvarez-Moreno, 34, of Fort Pierce, Florida, pled guilty to an indictment charging him possession of a firearm by an alien illegally/unlawfully in the U.S.
According to the stipulated factual basis, on November 7, 2014, Okeechobee County Sherriff’s Office received a 911 call with a complaint of a domestic disturbance involving Alvarez-Moreno and a firearm. Upon arrival, OCSO Deputy Sheriffs encountered Alvarez-Moreno standing outside the location. After describing the dispute he was having with his wife, Alvarez-Moreno admitted to the deputies that there was a weapon in his nearby vehicle and provided the keys to the vehicle. An OCSO deputy recovered the Marlin Model 881 rifle from inside the vehicle. The complainant, who identified herself as Alvarez-Moreno’s wife did not want to prosecute. Because there were no other witnesses to the altercation, neither party wished to pursue charges, Alvarez-Moreno agreed to leave the premises and OCSO did not make any arrests at that time. The rifle was transported and placed into OCSO’s evidence for safekeeping.
In the following weeks, Alvarez-Moreno and his wife returned to OSCO four times, and provided written statements of Alvarez-Moreno’s ownership, in order for the return of the firearm. OCSO evidence custodians did not release the firearm because Alvarez-Moreno failed to provide documentation, proving that he was authorized to possess and own a firearm, which was manufactured outside the State of Florida. It was later discovered, that Alvarez-Moreno had illegally entered the U.S. by crossing the border in Arizona in March 2003.
Alvarez-Moreno is scheduled to be sentenced on May 8, at 9:30 a.m., before U.S. District Judge Kenneth A. Marra. He faces up to 10 years in prison, followed by up to three years of supervised release, and possible deportation.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, ATF, and OCSO. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Notice of Court ProceedingsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
When: Today, Wednesday, March 11, 2015 at 10:30 a.m Where: Matthew J. Perry Courthouse
Columbia, South Carolina – An evidentiary hearing is scheduled in United States v. Jonathan Pinson. 3: 12-974. United States District Court Judge David C. Norton will preside over the proceeding.
901 Richland Street, Courtroom # 1
Columbia, SC 29201 # # # #New York Man Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – Michael Angelo Perry, 46, of New York, NY, was sentenced today to 10 years in prison, followed by 3 years of supervised release for possession with intent to distribute heroin.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No.2:14-cr-144.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Perry pled guilty on November, 24, 2014. According to court documents, Perry operated throughout Norfolk. Perry was selling heroin from his vehicle using a Super 8 motel room in Ocean View. Perry was selling heroin at the Janaf Shopping Center when he was arrested on July 14, 2014. Investigators recovered 14.72 grams of heroin, $1,718 in U.S. currency, and paraphernalia from the trunk of his vehicle that day. At the time of his arrest, he gave investigators written consent to search his motel room. A search of Perry’s motel room resulted in the recovery of 34.22 grams of heroin and a large quantity of a cutting agent used to manufacture heroin for distribution.
This case was investigated by DEA’s Norfolk Resident Office with the assistance of the Norfolk Police Department. Assistant U.S. Attorney Kevin Comstock prosecuted the case on behalf of the United States.Neenah Dentist Pleads Guilty to Two Counts of Failing to Pay Income TaxRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin announced that on March 6, 2015, Eugene Darkow (age 58) of Neenah, Wisconsin appeared in federal court in Green Bay and pleaded guilty to two counts of willfully failing to pay his federal income taxes.
Darkow, who operates a dental practice in Neenah, filed tax returns for the years 2008 - 2011 on which he reported more than $1 million in income and owing more than $275,000 in taxes. Darkow, however, failed to pay more than $200,000 of these taxes. In fact, during the years 1998 - 2012, Darkow has failed to pay approximately $450,000 in federal income taxes.
The charges to which Darkow pleaded guilty each carry a maximum possible penalty of up to one year in prison and a fine of up to $250,000. Darkow is scheduled to be sentenced on June 1, 2015. He was released on bond pending his sentencing.
This case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
# # # # #
Navajo Man from Colorado Sentenced for Federal Child Abuse Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Staffred Kai Begay, 42, of Durango, Colo., was sentenced today to time served, 216 days in federal prison, followed by a year of supervised release for his federal child abuse conviction. He also was ordered to pay $256.11 in restitution to cover medical expenses for the victim.
Begay was arrested on Aug. 12, 2014, on a criminal complaint charging him with child abuse. According to the criminal complaint, on Aug. 7, 2014, a Navajo Indian juvenile (victim) called the authorities to report that Begay was assaulting his mother at a residence located on the Navajo Nation Indian Reservation in San Juan County, N.M. Officers of the Navajo Nation Division of Public Safety responded to the call, but found no one at the residence. The officers responded to a second call in the early morning hours of Aug. 8, 2014, and learned that Begay struck the victim with an axe and broke the victim’s arm.
On Dec. 15, 2014, Begay pled guilty to an indictment charging him with abuse of a child resulting in serious bodily injury. In entering the guilty plea, Begay admitted that on Aug. 7, 2014, he put a child in a situation that endangered the child’s life and resulted in serious bodily injury to the child.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Mt. Vernon, Il Man Indicted on Drug and Gun Related ChargesRead the Press Release
Torence D. Jones, 24, of Mt. Vernon, IL, was indicted on March 3, 2015, on drug and gun related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that on December 5, 2014, in Jefferson County, Jones knowingly and intentionally possessed with the intent to distribute crack cocaine. Count 2 charges that on December 4, 2014, in Jefferson County, Jones did knowingly possess a firearm from which he knew that the manufacturer's or importer's serial number had been removed, obliterated, or altered.
With respect to Count 1, Jones faces up to 20 years in prison, up to $1,000,000 fine, and supervised release of at least 3 years.
With respect to Count 2, Jones faces up to 5 years in prison, up to $250,000 fine, and supervised release of up to 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Mt. Vernon Man Indicted on Robbery and Gun Related ChargesRead the Press Release
David D. Weatherall, 25, of Mt. Vernon, IL, was indicted on March 3, 2015, on robbery and gun related charges in a four count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that on December 8, 2014, in Jefferson County, Weatherall while aiding and abetting another person, did unlawfully obstruct, delay and affect, and attempt to obstruct, delay and affect, commerce by robbery, in that Weatherall and another person did unlawfully take and obtain personal property consisting of United States Currency and cigarettes, belonging to Huck’s Convenient Food Store, 540 Fairfield Road, Mt. Vernon, Illinois, by means of actual and threatened force, violence and fear of injury, and by brandishing a firearm.
Count 2 charges that on December 8, 2014, in Jefferson County, Weatherall did knowingly aid and abet another person, who did knowingly brandish a firearm, during and in relation to a crime of violence as charged in Count 1.
Count 3 charges that on December 9, 2014, in Marion County, Weatherall did unlawfully obstruct, delay and affect, and attempt to obstruct, delay and affect, commerce by robbery, in that 2
Weatherall did unlawfully take and obtain personal property consisting of United States Currency and Hennessy Liquor, belonging to Biggies Cafe and General Store, 3858 State Route 161, Centralia, Illinois, by means of actual and threatened force, violence and fear of injury, and by brandishing a firearm.
Count 4 charged that on December 9, 2014, in Marion County, Weatherall did knowingly brandish a firearm during and in relation to a crime of violence as charged in Count 3.
With respect to Counts 1 and 3, Weatherall faces on each count up to 20 years in prison, up to a $250,000 fine, and supervised release of up to 3 years.
With respect to Counts 2 and 4, Weatherall faces on each count a minimum of 7 years in prison, up to life in prison, up to a $250,000 fine, and supervised release of up to 5 years. Any sentence on Count 2 or Count 4 must run consecutive to any other Count of which Weatherall is convicted.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Mt. Vernon Police Department, the Jefferson County Sheriff’s Office, the Marion County Sheriff’s Office, and the Centralia Police Department.
The case is being handled by Assistant United States Attorney George Norwood.
Money Launderer for Lottery Scam ConvictedRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
#####
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a federal jury sitting in Florence, South Carolina, found Woody Graham, 36, guilty of conspiracy to commit money laundering. Graham was wiring fraud proceeds to Jamaica on behalf of a group running a bogus lottery scam that targeted elderly victims around the country, notifying them that they had won a lottery or sweepstakes, but that they needed to pay fees or taxes in advance in order to receive their winnings. A total of 18 individuals have been indicted in the case; 15 have entered guilty pleas; three have been sentenced to prison terms. United States District Judge R. Bryan Harwell, of Florence, presided over the trial, which lasted two days.
The case was investigated by Special Agents with Homeland Security Investigations (HSI) and Inspectors with the United States Postal Inspection Service (USPIS). Assistant United States Attorneys A. Bradley Parham and Eric Klumb are prosecuting the case.Minnesota Sex Offender Sentenced to More Than 31 Years for Traveling to Engage in Sexual Activity with A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Matthew William McLean (26, Minneapolis) to 31 years and 6 months in federal prison for attempting to transport a minor with the intent to engage in criminal sexual activity, and for committing a felony sex offense as a registered sex offender. He pleaded guilty on November 20, 2014.
According to court documents, McLean, a registered sex offender from Minnesota, traveled to Tampa to meet a 14-year-old minor with whom he had been corresponding with over the Internet. McLean picked the minor up from her house, brought her to the Greyhound bus station, and purchased two bus tickets to Brownsville, Texas. Upon discovering that the minor was missing, her family contacted law enforcement, who determined that McLean and the minor were on a Greyhound bus that had stopped in Tallahassee. Law enforcement officers recovered the minor victim and arrested McLean. McLean and the minor admitted that they had engaged in sex acts on the bus while traveling from Tampa to Tallahassee.
This case was investigated by the Hillsborough County Sheriff’s Office, the Tallahassee Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc
Miami-Dade County Resident Sentenced in Stolen Identity Unemployment Insurance Fraud SchemeRead the Press Release
A North Miami Beach resident was sentenced today to 96 months imprisonment, to be followed by three years of supervised release, for filing fraudulent unemployment insurance claims using the personal identifying information (PII) of more than 90 individuals.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Thomas Caul, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Mario J. Musolino, Acting Commissioner, New York State Department of Labor, Jesse Panuccio, Executive Director, State of Florida Department of Economic Opportunity, and J. Scott Dennis, Chief, North Miami Beach Police Department, made the announcement.
According to court records, from at least as early as December 2013, through the summer of 2014, the unemployment insurance claims of more than 90 victims (utilizing the victims’ respective PII) were submitted online from the residence of Reginald Steele-Nelson, 28. In filing these claims, Steele-Nelson used the victims’ PII, including their names and social security numbers. A federal search warrant was obtained for Steele-Nelson’s residence and was executed on August 21, 2014. On that date, law enforcement officers discovered nearly two thousand pieces of unique PII inside the residence and on Steele-Nelson’s person. Law enforcement officers also located a credit card “skimmer,” a device specifically designed to assist in the creation of fraudulent credit and debit cards. Steele-Nelson filed fraudulent unemployment insurance claims with the states of Florida, New York, and Massachusetts. He also filed fraudulent Social Security claims and redirected legitimate Social Security claims from their intended recipients to accounts he controlled. The amount of the intended loss resulting from Steele-Nelson’s offense was nearly $900,000; when taken with the approximately $236,000 in funds actually paid out during the scheme, Steele-Nelson was held accountable for more than $1,100,000 in loss.
Steele-Nelson previously pled guilty to one count of use of one or more unauthorized access devices to obtain $1,000 in value or more during one calendar year, one count of possession of fifteen or more unauthorized access devices, one count of possession of device making equipment, and three counts of aggravated identity theft. Restitution in the full amount of actual loss, $236,371.45, was ordered by U.S. District Judge Kathleen M. Williams.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, USSS, SSA-OIG, the State of New York Department of Labor, the State of Florida’s Department of Economic Opportunity, and the North Miami Beach Police Department. This case is being prosecuted by Assistant United States Attorneys Ben Widlanski and Jamie R. Galvin.
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.
Miami Resident Sentenced in Identity Theft Tax Fraud Scheme Involving Medical Patients’ Personal Identifying InformationRead the Press Release
A Miami resident was sentenced to 16 months in prison, followed by two years of supervised release, and was ordered to pay joint and several restitution of $57,000.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Kenol Augustin, 36, was previously convicted by a federal jury of one count of conspiracy to commit access device fraud.
According to court documents and evidence presented at trial, in November 2014, an individual recruited into the scheme searched their employer’s database and accessed the names and Social Security numbers (personal identity information or PII) of individual medical patients. This employee then provided a list of individuals’ PII in exchange for a cash payment made by defendant Augustin. Augustin and his co-conspirators then caused false and fraudulent tax returns seeking refunds to be filed with the Internal Revenue Service using the PII that the conspirators had so obtained.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. These cases are being prosecuted by Assistant U.S. Attorneys James V. Hayes and Gera Peoples.
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.
Meth Conspirator Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Crystal LaSha-Renee Grider, 24, of Gonzalez, Florida, was sentenced in federal court today on her conviction for conspiracy to manufacture methamphetamine and to possess a List I chemical with knowledge it would be used to manufacture methamphetamine. Court documents showed that Grider was one of several individuals involved in methamphetamine manufacturing at a trailer on Roy Miller Road in Mobile County during the summer and fall of 2012. Grider was staying at the trailer with co-conspirators and she was also purchasing pseudoephedrine, a List I chemical, for use in the methamphetamine manufacturing. Pharmacy records showed that the conspirators, including Grider, had obtained more than 900 grams of pseudoephedrine to "cook" into methamphetamine.
United States District Court Judge William H. Steele imposed a sentence of 60 months imprisonment, to be followed by a four-year term of supervised release. Grider was ordered to undergo testing and treatment for drug abuse while she serves her supervised release term, which will commence as soon as she is released from her prison sentence. No fine was imposed, but Marks was ordered to pay the special mandatory assessments of $200.
The case was investigated by theMobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Metairie Resident Sentenced to 43 Months in Prison for His Role in $10 Million Tax Fraud Conspiracy, Aggravated Identity TheftRead the Press Release
OLSEN SARAVIA-HERNANDEZ, 48, a Honduran national who most recently resided in Metairie, Louisiana, was sentenced today for conspiracy to defraud the United States by filing false tax returns and for aggravated identity theft, announced U.S. Attorney Kenneth Allen Polite, Jr. and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
U.S. District Court Judge Helen G. Berrigan sentenced SARAVIA-HERNANDEZ to 43 months in prison and three years of supervised release, while ordering him to pay restitution to the United States of $1,000,000. In November 2014, JACQUELINE J. ARIAS, a tax return preparer from Spruce Pine, Alabama, was sentenced to serve 97 months in prison for her role in the scheme and ordered to pay more than $10,000,000 in restitution.
On December 19, 2013, SARAVIA-HERNANDEZ pled guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft. According to court documents, SARAVIA-HERNANDEZ and his coconspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a Social Security Number. The indictment charged that ARIAS filed false applications for ITINs, false income tax returns, and collected preparation fees from the fraudulently-obtained tax refunds. As alleged in the superseding indictment, SARAVIA-HERNANDEZ acted as a “runner” in the organization, obtaining identification documents in the Eastern District of Louisiana and ferrying them to ARIAS for use in filing false returns.
To date, seventeen defendants have pled guilty in the case, including one defendant who was arrested in Panama last year and is awaiting sentencing. Four defendants remain fugitives. All of the defendants in this case who pled guilty thus far were sentenced to terms of imprisonment, including: CESAR ALEJANDRO SORIANO (42 months); OSCAR ARMANDO PERDOMO, (42 months); YONI PERDOMO, (38 months); ARNULFO SANTOS-MEDRADO, (38 months); ELSIDES EDGARDO ALVARADO-CANALES, (36 months); ELIECER OBED RODRIGUEZ, (34 months); OCTAVIO JOSUE PERDOMO, (34 months); ELBER MENDOZA-LOPEZ, (34 months); AURELIO MONTIEL-MARTINEZ, (24 months); MILLER PERDOMO-ACEITUNO, ( 24 months); SANTOS MARTIN HERNANDEZ, (24 months); and SUSANA CARILLO MENDOZA, (19 months).
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Polite commended the agencies involved in investigating this matter, including: U.S. Immigration and Customs Enforcement, which oversees U.S. Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; the Social Security Administration, Office of the Inspector General; and the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments. Trial Attorney Hayden Brockett and Assistant United States Attorney David Haller are in charge of the prosecution.