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Tuesday 10 March 2015
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
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Columbia, South Carolina - United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Mauldin Middle School Teacher Indicted for Possession and Distribution of Child Pornography
Daniel Ray Archer, age 56, of Simpsonville, South Carolina, was charged in a 2-count indictment. Archer was charged with Possession of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(5)(B) and Distribution of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(2). The maximum penalty Archer could receive for each count is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and officers of the Greenville County Sheriff's Office and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury in Fort Wayne Returns Indictments in Large Scale Cocaine Distribution NetworkRead the Press Release
Fort Wayne, Indiana - The United States Attorney's Office announced today two indictments charging six persons in what is alleged to be the largest cocaine distribution network in the greater Ft. Wayne area.
These indictments were the result of an extensive law enforcement investigation led by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force. In addition to the FBI, that Task Force consists of the Allen County Sheriff’s Department, the Ft. Wayne Police Department and the Indiana State Police.
Charged with conspiracy to deliver more than 5 kilograms of cocaine were:
Allan L. Bates, age 37, of Fort Wayne, Indiana,
James W. Lepper, 66, of Butler, Indiana,
Larry J. Norton, 63 of Mission Texas, formerly of Fort Wayne,
Eric D. White, 52 of Fort Wayne, Indiana and
Ryan Bowman, 35 of Payne, Ohio.Charged in a separate indictment with possession with intent to deliver over 5 kilograms of cocaine is DeWayne Lewis, age 40, of Greenwood, Indiana.
All defendants are in custody and are being held without bond. During the course of this extensive investigation, law enforcement executed 17 federal searches in Indiana, Ohio and Texas. In addition, the DeKalb County and Johnson County Prosecutor’s offices obtained 2 state search warrants. All of these searches resulted in the seizure of more than 100 kilograms of cocaine, over $5.9 million in U.S. currency, and numerous firearms and vehicles.
Great assistance was also provided by the McAllen, Texas, and Toledo, Ohio, offices of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service – Northern and Southern Districts of Indiana, along with the Auburn Police Department, the Greenwood Police Department, the Kendallville Police Department, the Johnson County Sheriff’s Department, the Indiana Multi-Agency Group Enforcement (IMAGE) representing law enforcement in DeKalb, LaGrange, Noble and Steuben Counties, and the Northeast Indiana SWAT.
This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Doctor Charged with Passing Fraudulent PrescriptionsRead the Press Release
PHILADELPHIA – Dr. Cynthia Masso, 42, of Philadelphia, PA, was charged today by information with five counts of obtaining controlled substances by fraud, announced United States Attorney Zane David Memeger. Masso was a physician licensed in the Commonwealth of Pennsylvania and the State of New Jersey to practice medicine and was registered and authorized by the U.S. Drug Enforcement Administration (DEA) to write prescriptions for controlled substances for legitimate medical purposes within the scope of her professional medical practice.
According to the information, between January of 2010 and October of 2013, Masso wrote approximately 496 fraudulent prescriptions for oxycodone and oxycodone with acetaminophen in the names of various family members, in the name of another individual, and in the names of fictitious “patients,” in order to obtain quantities of those controlled substances. In no case were any family members aware of the writing of these prescriptions in their names. She then, allegedly, posed as a nurse named “Lisa Johns” in order to have the prescriptions filled at local pharmacies.
If convicted of all charges, the defendant faces a maximum possible sentence of of 20 years in prison, a $1.25 million fine, a maximum term of one year supervised release, and a $500 special assessment.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney James Pavlock.
Computer Industry Consultant Convicted for Using Identity of Deceased InfantRead the Press Release
BOSTON – A former Boston computer industry consultant was found guilty following a five-day jury trial on March 6, 2015, of assuming the identity of an infant who died in 1966 and using that identity to obtain a Social Security number.
Steven Nolte, 51, was convicted of passport fraud, aggravated identity theft, and use of a falsely-obtained Social Security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 28, 2015. He remains detained pending sentencing.
Nolte was born in Arizona in 1963 as Steven Nolte, but in 1997, he assumed the identity of a four-day-old infant who died in 1966. At the time Nolte adopted this identity, he was in the process of stealing over $571,000 from a real estate company for which he had provided computer consulting services. Nolte then obtained a passport in the assumed identity and traveled to Costa Rica, where proceeds of the theft had been wire-transferred. Nolte thereafter traveled extensively in the South Pacific and ultimately settled in the Boston area, where he worked in the computer industry for many years under his assumed identity. In 1999, he applied for a Social Security number by using the same false identity. Nolte’s true identity was discovered in May 2012 when he submitted an application for a replacement passport in Boston under his assumed name. State Department officials realized that the Social Security number Nolte was using had not been issued to Nolte in the assumed name until he supposedly was 33 years old. Upon further investigation, agents learned of the infant’s death in 1966, and ultimately uncovered Nolte’s true identity.
The charge of making false statements in a passport application provides for no greater than 10 years in prison and three years of supervised release; the charge of using a falsely-obtained Social Security number provides for no greater than five years in prison and three years of supervised release; and the charge of aggravated identity theft provides for a mandatory two years in prison, and one year of supervised release. All three charges provide for fines of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentenced are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutory sentencing factors.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Brian Pérez-Daple and Robert E. Richardson of Ortiz’s Major Crimes Unit.
CommerceWest Bank Admits Bank Secrecy Act Violation and Reaches $4.9 Million Settlement with Justice DepartmentRead the Press Release
The Justice Department announced today that it has agreed to a $4.9 million civil and criminal resolution with CommerceWest Bank, of Irvine, California, arising out of the department’s investigation into consumer fraud schemes facilitated by the bank. Today the United States filed a criminal charge and a civil complaint in the U.S. District Court for the Central District of California.
The criminal information charges the bank with a felony violation of the Bank Secrecy Act in connection with the bank’s relationship with a third-party payment processor. The civil complaint alleges that CommerceWest Bank knowingly facilitated consumer fraud by permitting the payment processor to make millions of dollars of unauthorized withdrawals from consumer bank accounts on behalf of fraudulent merchants. To resolve the department’s criminal and civil allegations, CommerceWest Bank has agreed to a total monetary resolution of more than $4.9 million, a deferred prosecution agreement and a permanent injunction that reforms the bank’s practices to prevent such fraud in the future.
“CommerceWest Bank ignored a parade of red flags indicating that a third-party payment processor was defrauding hundreds of thousands of innocent victims,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “As the civil and criminal actions filed against CommerceWest Bank today demonstrate, we will hold financial institutions accountable when they choose unlawfully to look the other way while fraudsters use the bank’s accounts to steal millions of dollars from American consumers.”
According to the civil complaint, from December 2011 through July 2013, CommerceWest Bank worked with V Internet Corp LLC, a third-party payment processor based in Las Vegas. V Internet processed transactions for fraudulent merchants that withdrew money from consumers’ bank accounts without authorization. These merchants included a fraudulent telemarketing company and a company that charged hundreds of thousands of victims for a payday loan referral fee they had never authorized. In early 2013, V Internet took over the payday loan referral scheme, operating as the payment processor and sole merchant from January 2013 through July 2013.
The complaint alleges that CommerceWest ignored clear warning signs indicating that V Internet and its merchants were defrauding consumers. V Internet’s debit transactions resulted in an abnormally high rate of rejected transactions. Approximately 50 percent of the transactions were returned by consumers and their banks. Many of those returned transactions included sworn affidavits, in which victims stated, under penalty of perjury, that the withdrawals on their accounts were unauthorized.
CommerceWest also received complaints and inquiries from other banks, which expressed their belief that V Internet’s transactions were fraudulent. Even in the face of these explicit warnings from other banks, CommerceWest did not terminate V Internet or file a Suspicious Activity Report, an alert banks are required to file with the government indicating the presence of suspicious illegal activity. Instead, CommerceWest and V Internet developed a practice of blocking transactions against accounts at those banks that complained, but allowing the transactions to continue against accounts at all other banks.
The complaint alleges that, by May 29, 2013, a CommerceWest official had determined that all of V Internet’s transactions appeared to be fraudulent and unauthorized. However, CommerceWest Bank did not make the decision to terminate V Internet until early July 2013. Even at that point, CommerceWest planned to allow V Internet an additional 30 days to wind down its processing activity. Only when the department notified CommerceWest that it intended to seek an emergency injunction did CommerceWest immediately terminate V Internet’s ability to access victims’ checking accounts.
The U.S. Postal Inspection Service (USPIS) seized more than $2.9 million from V Internet’s accounts at CommerceWest Bank. Postal inspectors additionally seized property purchased by V Internet’s owner with the proceeds of his fraudulent activity, including five airplanes, a Land Rover, a Dodge Charger, multiple tractors, five all-terrain vehicles and a fire truck.
“CommerceWest ignored warning signs and numerous complaints stemming from unauthorized withdrawals, and now it must pay the price for allowing innocent consumers to be ripped-off by fraudsters,” said Acting U.S. Attorney Stephanie Yonekura of the Central District of California.
“CommerceWest Bank not only failed to comply with its statutory obligation to notify the government of suspicious illegal activity involving consumer fraud,” said Inspector in Charge Gary Barksdale of the USPIS. “The bank also allowed fraudulent activity to continue through its accounts to the detriment of the American consumer.”
The criminal information filed today charges CommerceWest with willfully failing to file Suspicious Activity Reports, as required by the Bank Secrecy Act. The criminal charge will be deferred for two years under an agreement that requires CommerceWest Bank to admit to its wrongdoing, give up any claim to more than $2.9 million previously seized from V Internet’s bank accounts at CommerceWest, and cooperate fully in other civil and criminal investigations.
The department’s civil complaint alleges conduct that violates the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), a law enacted by Congress in 1989 as part of a comprehensive legislative plan to reform and strengthen the banking system and the federal deposit insurance system that protects the public from bank failures and that provides for the United States to recover civil monetary penalties. The department also alleges that CommerceWest Bank violated the civil anti-fraud injunction statute, which allows the government to seek a court order barring continued illegal conduct. According to the terms of the proposed civil consent decree, CommerceWest Bank will be required to pay $1 million to the U.S. Treasury as a civil monetary penalty and to forfeit $1 million to the USPIS Consumer Fraud Fund. CommerceWest Bank will also be required to implement a strict regime of underwriting and monitoring designed to prevent future consumer fraud by third-party payment processors.
The Justice Department’s case is being handled by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch in coordination with the U.S. Attorney’s Office for the Central District of California and with substantial investigative support from USPIS.
Centralia Man Pleads Guilty to Methamphetamine FeloniesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Walter James Henson, 38, of Centralia, Illinois, pled guilty on March 9, 2015, to charges filed against him in an indictment returned by a Federal Grand Jury in November 2014. Henson pled guilty to Possession of Equipment, Chemicals, Products and Materials with the Intent to Manufacture Methamphetamine (on March 5, 2014), in Marion County (Count 1), and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine (on March 5, 2014), in Marion County (Count 2). The charges are violations of the federal Controlled Substances Act.
Count 1 carries a maximum penalty of 10 years in prison, a $250,000 fine, and three years of supervised release. Count 2 carries a maximum penalty of 20 years in prison, a $250,000 fine, and three years of supervised release. Both counts require an assessment of $100.
Information leading to the charges against Henson was obtained in an investigation conducted by the FBI, and the Marion County Sheriff’s Office, assisted by the Illinois State Police Methamphetamine Response Team. The case is being handled by Assistant United States Attorney Kit Morrissey.
Carmichaels Man Charged with Damaging Natural Gas Well PadRead the Press Release
PITTSBURGH - A Greene County resident has been indicted by a federal grand jury in Pittsburgh on charges of damage of an energy facility, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on January 27, 2015, named Heath A. Rankin, 33, of Carmichaels, PA, as a defendant.
According to the information presented to the court, on or about March 26, 2014, Rankin damaged the Burchianti Pad, a pad of five natural gas wells operated by Chevron North America Exploitation and Production Company, a division of Chevron USA, Inc.
Rankin made an Initial Appearance in Federal Court on March 5, 2015. An arraignment and detention hearing are set for March 18, 2015, at 9:30 a.m. before Magistrate Judge Maureen P. Kelly. Rankin was ordered detained pending those proceedings.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Career Offender Admits Robbing Meriden BankRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MASLAR, 58, of Meriden, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of bank robbery.
According to court documents and statements made in court, on September 22, 2014, MASLAR, wearing a pillowcase with holes cut into it over his head, entered the TD Bank on East Main Street in Meriden, approached the teller counter and demanded that bank employees give him cash in $50 and $100 denominations. MASLAR also stated that he had a gun. Bank employees complied with MASLAR’s demands and gave him $5,658. MASLAR took the money, placed it inside a plastic bag and exited the bank. He was arrested shortly thereafter by Meriden Police.
MASLAR has been detained since his arrest on September 22. Judge Shea scheduled sentencing for June 2, 2015, at which time MASLAR faces a maximum term of imprisonment of 20 years.
MASLAR’s criminal history includes two prior federal convictions for bank robbery, as well as convictions for involuntary manslaughter and assault. In March 2003, MASLAR was sentenced in Hartford federal court to 165 months of imprisonment for robbing a bank in Meriden on September 11, 2001. He was released from prison in January 2014.
This matter is being investigated by the Federal Bureau of Investigation and the Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Burlington Man Convicted in Federal Court for Possession with Intent to Distribute Cocaine BaseRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Albert Johnson, 55, of Burlington, Vermont was sentenced on March 6, 2015 by Chief United States District Court Judge Christina Reiss, to 50 months in prison for possession with intent to distribute cocaine base in Vermont. Johnson was also sentenced to 5 years of supervised release following his release from prison.
According to Court records, on March 8, 2014, members of the Burlington Police Department executed a state search warrant at an apartment on College Street in Burlington, Vermont and arrested Albert Johnson, known on the street as “MD.” Johnson was in possession of crack cocaine that he intended to sell in Vermont. At the time Johnson was arrested, he was being supervised by the Office of Vermont Probation and Parole for a 2012 state drug conviction in Vermont.
Johnson was indicted by a federal grand jury on March 27, 2014. He pled guilty to conspiracy to distribute heroin and cocaine base on November 12, 2014. He has been detained in prison since his arrest.
This case was investigated by the Burlington Police Department. The Acting United States Attorney, Eugenia A.P. Cowles, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney Michael L. Desautels of the Office of the Federal Public Defender.
Bronx Drug Trafficker Convicted in Federal CourtRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Joe Young, 37, of the Bronx, New York, was sentenced on March 6, 2015 by Chief United States District Court Judge Christina Reiss, to 48 months in prison for conspiracy to distribute both heroin and cocaine base in Vermont. Young was also sentenced to 3 years of supervised release following his release from prison.
According to Court records, on March 8, 2014, special agents with the United States Drug Enforcement Administration (“DEA”) executed a federal search warrant at an apartment at 246 ½ Main Street in Winooski, Vermont and arrested Joe Young, known on the street as “Moe.” Young was in possession of both heroin and crack cocaine that he and others intended to sell in Vermont. The drugs had been brought to Winooski, Vermont by a courier hired by Young who took a bus to Plattsburg, New York. The courier was picked up and transported to Winooski at the direction of Young. At the time Young was arrested, he was on federal supervised release from a prior drug and gun conviction in the Southern District of New York. He was in Vermont without the knowledge or permission of his New York probation officer.
Young was indicted by a federal grand jury on March 20, 2014. He pled guilty to conspiracy to distribute heroin and cocaine base on November 6, 2014. He has been detained in prison since his arrest.
This case was investigated by the DEA. The Acting United States Attorney, Eugenia A.P. Cowles, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney David L. McColgin of the Office of the Federal Public Defender.
Beckley nurse pleads guilty to obtaining drugs by fraudRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Olivia Dixon, 31, of Midway, West Virginia, plead guilty today in federal court in Beckley to obtaining hydromorphone and morphine sulfate by fraud. Dixon, a former nurse at Raleigh General Hospital in Beckley, West Virginia, admitted that on November 10, 2014, she stole pain medications intended for patients, including morphine, for her own personal use.
Dixon faces up to 4 years in prison and a $250,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for June 24, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Angleton Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
HOUSTON – A Houston federal grand jury has returned an indictment charging Stanshelle Renique Gaul with 23 counts of preparing false client tax returns, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI)
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the IRS and U.S. Attorney’s office will continue their aggressive pursuit of those who are suspected of defrauding America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned March 3, 2015. Gaul surrendered to authorities this morning and made her initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.
According to the indictment, Gaul operated a tax return preparation business in the Angleton area. The indictment alleges she prepared dozens of materially false client tax returns for tax years 2007 through 2010. The indictment also alleges she included in these tax returns fraudulent charitable and real estate tax deductions, fictitious employment expenses, false fraudulent child and dependent care expenses for people not known to her clients and bogus “side business” losses in order to generate excessive refunds totaling approximately $285,000.
If convicted, Gaul faces up to three years in federal prison and a possible $250,000 fine on each count.The case, investigated by IRS-CI, is being prosecuted by Assistant U.S. Attorney Jimmy Sledge Jr.
Albuquerque Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Reynaldo Griego, 38, of Albuquerque, N.M., was sentenced this morning in federal court to 120 months in prison followed by four years of supervised release for his conviction on methamphetamine trafficking charges.
Griego was arrested on Feb. 28, 2014, on a three-count indictment charging him and co-defendant Danielle Lemos, 33, also of Albuquerque, with conspiracy and distribution of methamphetamine. The indictment alleged that the two codefendants conspired to distribute methamphetamine in Bernalillo County, N.M., in Jan. 2014 and Feb. 2014.
The indictment was superseded on Mar. 26, 2014, to include Lori Salgado, 27, of Rio Rancho, N.M., as a defendant and two additional methamphetamine distribution charges. The two new charges alleged that Griego, Lemos and Salgado distributed methamphetamine on Feb. 11, 2014, and that Salgado possessed methamphetamine with intent to distribute on Feb. 27, 2014.
Griego pled guilty on Sept. 10, 2014, to Count 1 of the indictment which charged him with conspiracy to distribute methamphetamine. In entering the guilty plea, Griego admitted that he agreed to sell methamphetamine with his co-defendants from Jan. 30, 2014 through Feb. 27, 2014, in Bernalillo County, N.M. H
Lemos entered a guilty plea on Sept. 10, 2014, to a felony information charging her with conspiracy to distribute methamphetamine, and was sentenced on March 3, 2015, to 33 months in federal prison followed by three years of supervised release.
Salgado pled guilty on Nov. 5, 2014, to a felony information charging her with conspiracy to distribute methamphetamine. Salgado remains in custody pending her sentencing hearing which is currently scheduled for March 24, 2015.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Shammara Henderson.
Monday 9 March 2015
Williamson County Man Charged with Methamphetamine OffensesRead the Press Release
A Williamson County man was indicted on March 3, 2015, for methamphetamine-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Jeremey A. Phillips, a/k/a "Jeremy Phillips," 28, of Marion, is charged in a two-count indictment charging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and February 2015, in Williamson, Jackson, and Jefferson Counties. Phillips made his initial appearance in federal court in Benton on March 9, 2015. He is currently being held without bond pending a March 10, 2015, detention hearing.
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 methamphetamine offenses carry a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and Marion Police Department.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Public Employees Indicted for Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that TROY HESTER, 42, of Hartford, and AJMAL JENKINS, 39, of Middletown, have been indicted for tax evasion. HESTER is employed by the Metropolitan District Commission and JENKINS is employed by the State of Connecticut’s Department of Mental Health and Addiction Services and works at the Connecticut Valley Hospital.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had no money withheld from their wages.
The six-count indictment against HESTER alleges that, during the 2008 through 2013 tax years, he paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480.
The four-count indictment against JENKINS alleges that, during the 2009 through 2012 tax years, he paid no federal income taxes on approximately $256,081 in income he received, resulting in a federal tax loss of approximately $46,265.
The indictments were returned by a federal grand jury in New Haven on March 4. HESTER and JENKINS are scheduled to be arraigned later today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Florida Women Sentenced to Prison for Check Cashing SchemeRead the Press Release
BOISE – Jennifer A. Gallagher, 32, of Margate, Florida, and Danielle M. Cook, 29, of Pembrooke Pines, Florida, were each sentenced to 12 months in federal prison for bank fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Gallagher and Cook to serve three years of supervised release, and to jointly pay $26,500 in restitution. Both women pled guilty on December 18, 2014.
According to the plea agreements, Cook and Gallagher admitted that, between August 9th and 13th, 2014, they traveled to the District of Idaho to participate in a scheme to defraud financial institutions by cashing stolen checks. In particular, Cook and Gallagher admitted to obtaining stolen checks and driver's licenses, altering their appearances, including by the use of wigs, such that they would closely resemble the photographs on the stolen driver's licenses, then cashing the stolen checks through the far lane of numerous banks in the Treasure Valley. At least twelve such checks were cashed by Cook and Gallagher.
The case was investigated by the FBI, the Ada County Sheriff's Office, the Meridian Police Department, and the Boise Police Department.
Total Petroleum Puerto Rico Corp. Agrees to Spend $1.6 Million to Improve Leak Detection in at Least 125 Gas Stations Across Puerto Rico and U.S. Virgin IslandsRead the Press Release
A settlement announced today between the U.S. and Total Petroleum Puerto Rico Corp. (Total Puerto Rico) resolves Resource Conservation Recovery Act (RCRA) violations alleged at 31 gas stations in Puerto Rico and four gas stations in the U.S. Virgin Islands that contain underground storage tanks (USTs) owned by Total Puerto Rico. These USTs typically hold large quantities of gasoline and can cause significant environmental damage if allowed to leak. Total Puerto Rico has agreed to pay a $426,000 civil penalty, implement compliance measures valued at approximately $1 million and undertake a supplemental environmental project (SEP) consisting of a centralized monitoring system estimated to cost approximately $600,000.
In the complaint filed simultaneously with the lodging of the consent decree, the U.S. alleged that Total Puerto Rico, as an owner of the USTs at the gas stations, violated RCRA and the Puerto Rico Underground Storage Tank Control Regulations (PRUSTR) by failing to report and investigate suspected leaks, monitor for leaks; provide adequate protection against corrosion and overflows, adequately secure dispensers and lines against tampering when facilities were temporarily closed, adequately secure monitoring wells against tampering and maintain records of release detection monitoring.
This settlement incorporates provisions consistent with the U.S. Environmental Protection Agency’s Next Generation enforcement efforts, which focus on increasing compliance with environmental regulations by combining the use of advanced technologies, such as pollution detection systems and information technologies, with traditional compliance measures. The centralized monitoring component of today’s agreement is a Next Generation technology that will enable Total Puerto Rico to rapidly identify and respond to actual or potential gas leaks at its gas stations with actively operating USTs, each of which will be equipped with on-site electronic release detection monitoring equipment that will be enhanced with the Next Generation capability to transmit monitoring data to one central location on a 24/7/365 basis.
“This settlement will require Total Puerto Rico to address the risk of gas leaks comprehensively by installing advanced electronic release detection monitoring equipment in all gas stations at which Total owns actively operating USTs,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The settlement also obligates Total Puerto Rico to install state-of-the art centralized monitoring technology, a Next Generation tool that will enable the company to provide around-the-clock surveillance from a single location for over one hundred gas stations.”
“Leaking underground petroleum tanks are a serious problem because they can contaminate groundwater with pollutants such as benzene, which is known to cause cancer,” said Regional Administrator Judith Enck for EPA. “This agreement includes an innovative centralized monitoring system, which will protect the environment by helping to ensure that the underground tanks at many gas stations across Puerto Rico and in the U.S. Virgin Islands will now be properly monitored and maintained.”
Total Puerto Rico will install, or upgrade to, a fully automated electronic release detection monitoring system at 137 facilities with Total-owned USTs in active operation and will operate the systems for at least three years. This compliance measure, valued at approximately $1 million, will connect lines with probing sensors within the USTs to an on-site computer console unit that has audible and visible alarms capable of alerting nearby gas station personnel of gas leaks and other potentially dangerous events. The obligation to install automated release detection monitoring systems will extend to any additional facilities with actively operating USTs acquired by Total Puerto Rico after the date of lodging of the consent decree. In addition, Total Puerto Rico’s voluntary undertaking of a SEP – the implementation, operation and maintenance of a centralized monitoring capability estimated to cost approximately $600,000 – will connect at least 125 of the facilities with electronic release detection monitoring systems to a central location. Total Puerto Rico will also provide quarterly reports to EPA regarding its operation of these systems and will be required to provide information regarding their operation upon EPA’s request.
This is the second judicial settlement in Puerto Rico requiring a defendant to implement company-wide automated electronic release detection with a centralized monitoring capability. A settlement in 2011 with Chevron Puerto Rico covered over 140 gas stations for a period of five years. With today’s proposed settlement with Total Puerto Rico, more than 250 gas stations throughout Puerto Rico will have electronic release detection equipment and centralized monitoring.
The settlement is subject to a 30-day public comment period and is conditioned upon approval by the U.S. District Court before becoming final.
Three Southern Illinois Residents Charged with Methamphetamine OffensesRead the Press Release
Three Southern Illinois residents were indicted on March 3, 2015, for methamphetamine-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
John G. Haslett, 40, of Willisville, Russell A. Stokes, 23, of Benton, and Michael A. Boyt, Jr., 19, of Marion, are charged in a three-count indictment charging conspiracy to manufacture methamphetamine. Haslett and Stokes are also charged with one count of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine The indictment alleges that the offenses occurred between 2013 and January 2015, in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Stokes made his initial appearance in federal court in Benton on March 9, 2015. He is currently being held without bond pending a March 10, 2015, detention hearing. Haslett and Boyt, Jr. are scheduled to make their initial appearances in federal court on March 16, 2015.
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 methamphetamine offense carries a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
Assistant United States Attorney Amanda A. Robertson will prosecute the case.
Three New York City Men Plead Guilty to Possession of Counterfeit Credit CardsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that 3 New York City men pleaded guilty today in United States District Court in Harrisburg, before Senior U.S. District Court Judge William J. Caldwell to charges they possessed 62 counterfeit credit cards.
According to United States Attorney Peter Smith, Danillo Vargas, age 26, Jeriel Delosangeles, age 25, and Miguel Almonte, age 22, all from the Bronx, NY, pleaded guilty to an Indictment in July of 2014 charging them with one count of possession of 15 or more counterfeit or unauthorized access devices.
The trio was arrested on November 19, 2013, following a PA State Police traffic stop for speeding on Route 30 near Hellam Township, York County. A consent search of the defendants’ vehicle yielded 26 counterfeit Mastercard, American Express and Visa credit cards plus a counterfeit Florida driver’s license. A subsequent search of the vehicle pursuant to a search warrant yielded another 36 counterfeit credit cards and a counterfeit Connecticut driver’s license. The drivers licenses bore the photographs of Almonte and Vargas. Fifty-Four of the 62 counterfeit credit cards were in Almonte’s name. The government’s investigation revealed no charges had been incurred on any of the counterfeit credit cards.
No date was set by Judge Caldwell for sentencing.
The investigation was conducted by the U.S. Secret Service and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Felons Sentenced to Prison for Kankakee Drug and Firearms OffensesRead the Press Release
Urbana, Ill. B Two men with prior felony convictions that designated them as career offenders, cousins Jermaine R. Speed and Rico J. Speed were sentenced today to 18 years in federal prison, and a third man, Charles D. Nance, was sentenced to nearly 10 years in prison, for illegal possession of firearms and distribution of crack cocaine, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. The men have been in the custody of the U.S. Marshals Service since their arrests in September 2014.
Jermaine R. Speed, 32, of the 900 block of Merchant Street, Kankakee, was ordered to serve 18 years (216 months) in prison. According to the government’s factual basis presented in court, between June 2010 and October 2011, Speed illegally sold crack cocaine to a confidential informant on four separate occasions. Speed has four prior felony drug convictions in Illinois.
Rico J. Speed, 27, of the 1100 block of E. Court Street, Kankakee, a cousin of Jermaine Speed, was also sentenced to 18 years (216 months) in prison. From July of 2011 to February of 2013, Speed illegally sold four different firearms – a .38 caliber revolver, a .32 caliber revolver, a .45 caliber semi-automatic pistol, and a .12 gauge shotgun – to a confidential informant, according to court records. During that same time frame, Rico Speed also sold the confidential informant over 28 grams of crack cocaine. Speed has prior Illinois convictions for possession of a controlled substance with the intent to deliver and delivery of a controlled substance.
Charles D. Nance, 42, of the 1400 block of N. 11th Avenue, Newton, Iowa, was ordered to serve 117 months (9 years, 9 months) in prison for drug and weapon charges. On two occasions, on August 6 and 25, 2010, Nance sold crack cocaine to a confidential informant, according to court documents. At the time of the August 25 drug sale, Nance was armed with a 9 millimeter semi-automatic pistol. On September 9, 2010, agents seized the 9 millimeter pistol, as well as a .45 caliber semi-automatic pistol and more than 100 rounds of ammunition, from Nance’s Kankakee apartment. Nance was ordered to forfeit the firearms and ammunition. Nance has prior felony convictions for unlawful possession of a controlled substance, unlawful delivery of a controlled substance, and maintaining a drug house.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the initial arrests in September 2014.
Taylor County, WV man convicted of possession of child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry V. Austin, Sr., 50, of Grafton, West Virginia, was convicted in federal court of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced today.
Austin was discovered in possession of multiple images and videos of child pornography in Barbour County, West Virginia during a West Virginia State Police investigation. He pled guilty to one count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Suspended Attorney Sentenced to Five Years in Prison for Using Law Firm to Launder Drug MoneyRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of ROBERT DAVID BOEDIGHEIMER, 52, to five years in prison. BOEDIGHEIMER was convicted by a jury on June 17, 2014, after a 12-day trial, of using his law firm to launder drug money, lying to investigators, and encouraging his brother-in-law to also lie to federal investigators. The defendant was sentenced on March 9, 2015, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Lawyers are officers of the court,” said Assistant United States Attorney Steven L. Schleicher. “This sentence is a step toward restoring trust in the legal profession by assuring the public that nobody gets special treatment because of their profession. Those who are sworn to uphold the law will be held accountable if they violate it. This case is the result of the hard work and dedication of the agents who worked tirelessly to see justice done.”
As proven at trial, BOEDIGHEIMER had his own personal injury practice since 1995. The law firm and the defendant began to experience financial problems in 2006. The defendant fell behind on several loans, bills, and taxes, and also had difficulty meeting payroll obligations for his law firm. In addition to the financial problems at the firm, the defendant spent lavishly on himself, frequent gambling and expensive travel. He also lived in a high-end home near a golf course in Stillwater, Minn.
As proven at trial, BOEDIGHEIMER’S brother-in-law, Brandon Lusk, was a distributor of high- end marijuana in and around Rochester, Minn. The defendant approached Lusk for a cash loan so that he could maintain his lifestyle. Lusk agreed to provide many loans to BOEDIGHEIMER, on the condition that the defendant repay the loans, plus interest, in checks issued from BOEDIGHEIMER’S law firm. Ultimately, BOEDIGHEIMER created a “no-show” job for Lusk at the law firm, which paid Lusk $48,000 per year. The defendant provided a box of business cards to Lusk listing him as an “investigator” for the firm.
As proven at trial, Lusk’s no-show job was entirely paid for through drug proceeds that Lusk funneled to BOEDIGHEIMER, and which the defendant laundered through his law firm. Between March 26, 2010 and January 28, 2011, nine payroll cash advances were provided to the defendant by Lusk, ranging from $5,000 to $10,000 each, and totaling approximately $55,000. In exchange, Lusk received payroll checks from the law firm. In March 2011, Lusk lost his source of income as a marijuana distributor when Richard Kay, who was Lusk’s supplier, discovered that he was under investigation. Lusk and a marijuana distribution associate approached the defendant for help in obtaining legal representation. Lusk was eventually interviewed by the US Attorney’s office, before which BOEDIGHEIMER advised Lusk not to tell investigators about the money laundering arrangement between the two of them. Lusk then withheld information from investigators about his employment and the disposition of the drug proceeds. Lusk was ultimately sentenced to 30 months imprisonment for distribution of marijuana and money laundering.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigation Division, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, Southeast Minnesota Narcotics & Gang Task Force, and Wabasha County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Steven L. Schleicher.
Defendant Information:
ROBERT DAVID BOEDIGHEIMER, 52
Stillwater, Minn.
Convicted:
• Money Laundering Conspiracy, 1 count
• Money Laundering, 1 count
• False Statement, 1 count
Sentenced:
• Five years in prison
• Three years supervised releaseSt. Louis Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
St. Louis, MO – MELVIN L. WILSON pled guilty to a charge involving transporting a minor under the age of 18 to travel to Illinois to engage in prostitution.
According to court documents, during an investigation into a report of a missing minor female, it was determined that in early 2013 Melvin Wilson began posting ads for the minor victim on www.backpage.com, which advertised her availability to perform sex acts in exchange for money. The investigation also revealed that Wilson verbally, physically and sexually abused her while she stayed with him and worked as a prostitute. He also provided her with marijuana alcohol and ecstasy pills.
Wilson, of St. Louis, Missouri, entered a guilty plea to one felony count of interstate transportation of an individual with the intent to engage in prostitution. He appeared before United States District Court Judge Henry Autrey. Sentencing has been set for June 8, 2015.This charge carries a penalty range of up to 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the Madison County Illinois Sheriff’s Department.
Spearfish Woman Sentenced for Theft of Public MoneyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, woman convicted of Theft of Public Money was sentenced on March 3, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Linda Lee Anderson, age 67, was sentenced to 1 year of unsupervised probation, ordered to pay $43,856 in restitution, and a $25 special assessment to the Federal Crime Victims Fund.
Anderson pled guilty to the charge on November 19, 2014. The conviction stems from Anderson stealing and converting to her own use, money and property of the United States, by using her position as a Representative Payee in connection with benefits administered by the United States Social Security Administration between 2010 and 2012.
This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Seattle Man Pleads Guilty to International Parental KidnappingRead the Press Release
A Seattle man who was the subject of an international manhunt last fall, pleaded guilty today in U.S. District Court in Seattle to International Parental Kidnapping, announced Acting United States Attorney Annette L. Hayes. JEFFREY FORD HANSON, 46, was taken into custody in late October 2014, on the South Pacific island of Niue, 1,500 miles northeast of New Zealand. HANSON had been sought by law enforcement since September 12, 2014, when he was charged with international parental kidnapping for leaving Seattle with his son in violation of a court approved parenting plan. U.S. District Judge James L. Robart scheduled sentencing in the case for June 8, 2014.
According to records filed in the case, on July 17, 2014, HANSON’s son arrived in Seattle with his mother’s permission to visit for the summer months. HANSON knew he was required to return the child to Hazelton, Pennsylvania prior to the start of school in early September 2014. On August 30, 2014, unbeknownst to the mother, HANSON departed the Seattle area aboard his sailboat, the Draco, with the child onboard and set sail across the Pacific Ocean. When the boy failed to return to Pennsylvania before school started, the boy’s mother alerted law enforcement. The Coast Guard and law enforcement agencies throughout the Pacific Rim were then asked to be on the lookout for the boat and the child.
According to the FBI, the Niue Police arrested HANSON on Wednesday, October 29, at his sailboat which was docked on Niue shores in violation of Niue immigration and customs laws. The Niue police knew of the warrant for Hanson's arrest because the FBI’s Legal Attaché office in Canberra, Australia, passed the missing person and wanted fliers to the Pacific Transnational Crime Coordination Center (PTCCC), a multi-national law enforcement network, of which the Niue Police Department is a member. Niue police publicized the search for Hanson in the country and alert members of the public provided the crucial tip that led authorities to the boat. The 9-year-old boy was safely returned to his mother in Pennsylvania.
International Parental Kidnapping is punishable by up to three years in prison. Under the terms of the plea agreement, prosecutors will recommend HANSON be sentenced to time served – approximately seven months in prison. Judge Robart is free to impose any sentence up to the maximum allowed by law.
The investigation was led jointly by the FBI’s Seattle Safe Streets Task Force (SSSTF), whose many Task Force Officers include members of the Seattle Police Department Major Crimes Task Force. The Hazleton Police Department, the FBI’s Philadelphia and Los Angeles field offices, the Port of Seattle Police Department, the U.S. Coast Guard, and the National Center for Missing and Exploited Children, collaborated on the investigation from the beginning. The FBI also values the tremendous assistance of the New Zealand Police, New Zealand Customs Service, and Immigration New Zealand.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.Scottsdale Chiropractor Sentenced to 30 Months Imprisonment for Filing More than $6 Million in False Tax Refund ClaimsRead the Press Release
PHOENIX– Today, Adrianne Marta Frazer, 62, a chiropractor practicing in Scottsdale, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 30 months in prison and ordered to pay $703,478 in restitution to the federal government. Frazer was previously found guilty by a federal jury of five counts of filing false and fictitious claims for tax refunds.
Evidence at trial showed that Frazer knowingly filed false tax returns utilizing a common scheme known as the Form 1099-OID scheme. Although many of Frazer’s tax returns were immediately rejected by the Internal Revenue Service, one was accepted, resulting in the issuance of a $593,651 refund. Within days of getting the refund check, Frazer began spending and transferring the money. Frazer also solicited others to attend seminars that taught participants on how to use the 1099-OID scheme and kept filing false returns after being put on notice that the Form 1099-OID scheme was fraudulent.
The investigation in this case was conducted by the Internal Revenue Service - Criminal Investigation. The prosecution was handled by Howard Sukenic and Monica Edelstein, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1836-PHX-GMS
RELEASE NUMBER: 2015-022_Frazer
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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.
Russian National Known as “Joga” Pleads Guilty to Online Fraud SchemeRead the Press Release
BOSTON – A Russian man known by the online nickname “Joga,” pleaded guilty today in U.S. District Court in Boston to participating in a scheme to acquire more than $400,000 in consumer goods and stored value cards using stolen credit and debit card information.
Alexey Svetlichnyy, 32, a Russian citizen living in Tewksbury, Mass., pleaded guilty to an Information charging him with one count of wire fraud conspiracy. U.S. District Court Judge Allison Dale Burroughs scheduled sentencing for June 3, 2015. Svetlichnyy was charged by complaint in May 2014.
As alleged in the charging document, Svetlichnyy, and others, obtained stolen credit and debit card data and related accountholder information over online forums dedicated to trafficking in stolen information, including Carder Planet, Vendorsname, and Direct Connect.
Svetlichnyy, and his co-conspirators, used the stolen data to make online purchases of numerous goods, including, Apple iPads, Samsung cell phones, laptop computers, servers, computer processors, scuba diving equipment, high-end camera lenses, and water filtration equipment. They also used the stolen data to make online purchases of stored value cards issued by or on behalf of American Express, Visa, Budget Rental Car, Frontier Airlines, Macy’s, and other retailers.
When making these online purchases, Svetlichnyy, and others, frequently used the names and billing addresses associated with the stolen data, but then shipped the goods and cards to addresses that Svetlichnyy controlled.
Svetlichnyy, and others, advertised over Russian language social networks to recruit individuals to receive the stolen consumer goods and stored value cards. Svetlichnyy, and others, paid the individuals to re-ship the items to addresses in Chelmsford and North Reading, Mass., among other places, where Svetlichnyy had opened private commercial mailboxes in the name of a Delaware company, Micaxr, LLC (Micaxr).
From March 2010 to October 2013, Svetlichnyy sold the stolen consumer goods and stored value cards for more than $427,000 on eBay. Svetlichnyy, and others, wired a portion of the criminal proceeds overseas, including to Russian bank accounts.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Ortiz also thanked the U.S. Secret Service’s Cyber Investigative Section, and the Tewksbury and Hickory Hill, Illinois, Police Departments for their involvement in the investigation that led to today’s plea. The case is being prosecuted by Seth B. Kosto of Ortiz’s Cybercrime Unit and Eric Christofferson of Ortiz’s Economic Crimes Unit.
Rochester Man Sentenced on Drug Trafficking and Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Roger Alexander, 42, of Rochester, NY, who was convicted of possession of marijuana with intent to distribute and possession of a firearm in furtherance of a drug trafficking offense, was sentenced to 144 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on September 7, 2012, officers of the Rochester Police Department executed a search warrant in the upstairs apartment at 1220 Clifford Avenue in Rochester. As officers entered the residence, they heard a window breaking and saw a person throwing an object from the window on the second floor. Officers searching the residence found a loaded handgun among broken glass on the ground outside. Alexander was arrested as he exited the bathroom of the residence. The defendant appeared to have fresh cuts and was bleeding from his forearms. Officers also arrested co-defendant Edward Jackson inside.
During the search, officers found and seized nearly a pound of marijuana and over $3,000 in United States currency. Officers also located multiple scales typically used to weigh controlled substances and ammunition in varying quantities and calibers, including .45 caliber and .38 caliber.
Co-defendant Edward Jackson was sentenced to 90 months in prison terms for his involvement in the conspiracy.
The sentencing is the result of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rochester Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Willie R. Wynn, 49, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of heroin with intent to distribute and possession of a firearm while being a previously convicted felon. The drug charge carries a maximum penalty of 30 years in prison, a fine of $2,000,000 or both. The firearms charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00, or both.Assistant U.S. Attorney Charles E. Moynihan who is handling the case, stated that on September 24, 2014, Rochester Police officers were investigating a stolen bicycle report which had occurred in the area of Franklin Street and Pleasant Street in Rochester. During the investigation, officers encountered Wynn near the Eastman School of Music at the intersection of East Main Street and Gibbs Street. The defendant matched the description given to the police of the person who took the bicycle so officers attempted to stop and speak with him. Wynn rode away from officers on his bicycle, forcing them to chase him. As officers caught the defendant and were taking him into custody, he fell to the ground. The officers saw a silver Cobra Enterprises CA-380, semi-automatic pistol on the ground next to Wynn’s waist. The handgun was loaded with six rounds of ammunition. Officers searched the defendant and found 20 individual bags of heroin in the pocket of his pants. Wynn was previously been convicted of Attempted Criminal Sale of a Controlled Substance in the Third Degree in 1991 and Manslaughter in the Second Degree in 1995.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 3, 2015 at 11:00 a.m. before Judge Wolford.
Ray Mubarak, Dianna Mubarak, and Blythe Bond Sanders, III Arrested and Arraigned in Bank Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. - Ray M. Mubarak, 54, of Knoxville, Tenn., Dianna Mubarak, 52, of Knoxville, Tenn., and Blythe Bond Sanders, III, 35, of Norris, Tenn., were arrested in Knoxville today by federal agents of the Internal Revenue Service - Criminal Investigation (IRS - CI) and Federal Bureau of Investigation (FBI) on arrest warrants based upon charges involving conspiracy and bank fraud.
Following their surrender to federal authorities, an initial appearance was held in U.S. District Court in Knoxville before the Honorable H. Bruce Guyton, U.S. Magistrate Judge, at which time the indictment was unsealed and the defendants were apprised of the charges. All three pleaded not guilty to the charges. Trial has been set for May 5, 2015, in U.S. District Court, Knoxville.
The details of the charges are outlined in the 39-page indictment which is on file with the U.S. District Court for the Eastern District of Tennessee at Knoxville.
The indictment alleges that Ray M. Mubarak, Dianna Mubarak, and Sanders engaged in a conspiracy to defraud five banks spanning from 2007 through 2011. The total face value of the fraudulent loans exceeded $6.7 million. Ray M. Mubarak was also charged with multiple counts of engaging in unlawful monetary transactions greater than $10,000 in bank fraud proceeds.
The investigation leading to these charges was conducted by IRS - CI and the FBI. Assistant U.S. Attorney Matthew T. Morris represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Pine Ridge Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on March 2, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jonathan Lee Twiss, age 31, was sentenced to 10 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Twiss pled guilty to the charge on November 20, 2014. The conviction stems from Twiss forcibly opposing an Oglala Sioux Tribe trooper by attempting to flee from him and refusing to obey commands. The incident happened near Pine Ridge on March 20, 2014.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Twiss was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Woman Admits She Exploited Six Year Old and InfantRead the Press Release
PHILADELPHIA - Christine Yoder, 32, of Philadelphia, PA, pleaded guilty today to charges in a case of child exploitation that involved the alleged sexual abuse of a six year old and a 16 month old. Yoder was charged with two counts of employing a child to produce images of the child engaged in sexually explicit conduct and two counts of distributing material involving the sexual exploitation of children. A sentencing hearing is scheduled for June 10, 2015.
In May of 2014, Yoder sent a photograph to an undercover FBI agent of a 6-year-old (“Minor #1”), which depicted that child engaging in sexually explicit conduct. Thereafter, Yoder offered to fly Minor #1 to Detroit for sexual activity. Yoder also produced pornographic photographs of a 16-month old.
Yoder faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison. She also faces a fine of up to $1 million, a special assessment of $400, and a mandatory minimum five-year term of supervised release up to a lifetime of supervised release.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.
Parmelee Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Richard Fool Bull, age 37, was indicted on February 10, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between November 14, 2014, and December 9, 2014, Fool Bull, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, knowingly failed to register and update his registration.
The charge is merely an accusation and Fool Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Fool Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Owner of Overland Park Hotel Sentenced to Prison for Employing Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - The owner of an Overland Park hotel was sentenced Monday to 27 months in federal prison for employing undocumented workers, who were paid less than other employees, U.S. Attorney Barry Grissom said. Last month, the defendant’s wife was sentenced to 21 months in the same case.
“I hope Kansas business owners are listening,” said Grissom. “You can go to prison for knowingly employing undocumented workers. Violating federal law is not a good business strategy.”
Munir Ahmad Chaudary, 53, and his wife, Rhonda R. Bridge, 42, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for financial gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo.
Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.
“The Chaudarys sought to game the system and gain an unfair business advantage over their legitimate competitors by hiring illegal aliens at cut-rate wages,” said Gary Hartwig, special agent in charge of HSI Chicago. “Homeland Security Investigations will continue to work with our federal, state, and local partners to keep the playing field level for all American business owners.”
“Employers who are covered by the Fair Labor Standards Act must pay minimum wages and overtime premiums to their employees. They must not be allowed to evade these provisions by hiring undocumented workers and paying them less than the statute requires,” said Ricky Robinson, Acting District Director of the Kansas City District Office of the Wage and Hour Division of the U.S. Department of Labor. “We will continue to enforce the FLSA without regard to whether an employee is documented or undocumented. Under the FLSA, the Department (or an employee) seeks back pay for hours an employee has actually worked, under laws that require payment for such work.”
According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who were not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.
In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.
Chaudary is the final defendant to be sentenced in the case. Judith Vanzant, a hotel manager, and Syed Naqvi, a Pakistani native who worked as a desk clerk, already were sentenced.
The government also is seeking forfeiture of the proceeds of the crime. The judge will take up that issue at a later time.
Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.
Omaha Woman Sentenced for Theft of Government Property and Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable Laurie Smith Camp sentenced LaTosha Bolton, age 48, of Omaha, Nebraska, to one year, three months imprisonment after a jury had previously found her guilty of theft of government property and mail fraud. Trial was held in October 2014. Ms. Bolton was also ordered to pay the Social Security Administration $124,960.90 and will serve a three-year term of supervised release after she completes her incarceration.
From 1993 until 2013 Ms. Bolton was receiving Supplemental Security Income benefits on behalf of one of her children. While it was clear the child did have a disability, by finding her guilty, the jury found that Ms. Bolton did not use the money for the benefit of her child as required by law. Ms. Bolton received $124,960.00 of government SSI funds and most of that money was sent through the United States mail.
The case was investigated by the Office of Inspector General, Social Security.
Oklahoma City Man Pleads Guilty to Child Sex TraffickingRead the Press Release
Oklahoma City, Oklahoma – Today, WILLIAM VONTRAIL JOHNSON, 28, from Oklahoma City, pleaded guilty to prostituting a 14-year-old girl in an Oklahoma City motel, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on June 13, 2014, a sting operation led by the Oklahoma Bureau of Narcotics Human Trafficking Division and the Oklahoma City Police Department Vice Unit recovered a 14-year-old girl from an Oklahoma City hotel where she was being prostituted by Mr. Johnson. An online advertisement for escort services led law enforcement to the girl. Shortly after the girl was recovered from the hotel room, Mr. Johnson was arrested in the parking lot with a key to the hotel room where the girl was recovered. Mr. Johnson also had $800 in cash and a smart phone, which was examined by law enforcement. Mr. Johnson’s internet history on his smart phone showed it had been used to post the online advertisement that law enforcement had responded to. The smart phone also stored numerous images of the girl and a video of Mr. Johnson engaging in sex acts with her.
Mr. Johnson was indicted by a federal grand jury on December 3, 2014. During the plea hearing today, Mr. Johnson admitted to child sex trafficking of the 14-year-old girl in Oklahoma City and Texas, including posting advertisements online and accepting money in exchange for her performing sex acts.
At sentencing, Mr. Johnson faces a mandatory minimum of ten years and up to life in prison. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by the Oklahoma Bureau of Narcotics Human Trafficking Division, the Oklahoma City Police Department Vice Unit, and the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorneys Brandon Hale and K. McKenzie Anderson.
Nevada Husband and Wife Sentenced for Social Security FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., couple was sentenced in federal court today for Social Security fraud.
Reta Jo Carpenter, 53, and her husband, Oren Daniel Carpenter, 52, both of Nevada, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Reta Carpenter was sentenced to 15 months in federal prison and Oren Carpenter was sentenced to five years of probation. The Carpenters were also ordered to pay $96,711 in restitution to the Social Security Administration.
On Oct. 7, 2014, the Carpenters pleaded guilty to making false statements to the Social Security Administration. Reta Carpenter, who was unemployed and disabled, had been receiving Supplemental Security Income (SSI) benefits since 1990. In 1997, she falsely claimed that Oren Carpenter no longer lived with her. When Oren Carpenter was interviewed by federal agents, he falsely stated that he did not share a residence with his wife and falsely claimed that he had been living with other family members.
As a result, Oren Carpenter’s annual income was no longer considered in determining Reta Carpenter’s eligibility for SSI benefits. This resulted in overpayments to Reta Carpenter totaling $99,411 as of Aug. 23, 2012.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Social Security Administration, Office of Inspector General.
Navajo Man Sentenced for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Adrian Lopez, 25, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced this morning in federal court to 15 months in prison followed by two years of supervised release for assaulting a federal law enforcement officer.
Lopez was arrested Sept. 12, 2014, on a criminal complaint charging him with assault on a federal officer. According to the complaint, Lopez assaulted a tribal officer who was commissioned as a special federal officer by the BIA on the Navajo Indian Reservation in San Juan County, N.M., on July 28, 2014, following a high speed vehicle pursuit. Lopez subsequently was indicted and charged with assaulting a federal officer.
On Dec. 10, 2014, Lopez pled guilty to the indictment. In his plea agreement, Lopez admitted being in a vehicle that was fleeing from tribal officers. Lopez admitted that he and another person fled from the vehicle after it crashed, and that they ignored commands from the officers. As officers attempted to arrest the couple, Lopez grabbed an officer’s belt and pulled him to the ground. Lopez then struck the officer in the head several times and pushed his head into the ground with his hands.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Linda Mott.
Monticello Man Charged with Attempted Enticement of A MinorRead the Press Release
Colton Rickels, age 19, of Monticello, Iowa, has been charged with one count of attempted enticement of a minor. The charge is contained in an Indictment filed on March 4, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that, in October 2014, Rickels attempted to persuade, induce, entice, and coerce a minor female to engage in criminal sexual activity.
If convicted, Rickels faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, a $100 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Rickels appeared for a detention hearing today in federal court in Cedar Rapids and was released on bond. Rickels’ next appearance for trial is set for May 4, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Monticello Police Department, and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-20.
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Montgomery County Man Gets Prison Term for Clean Air Act ViolationRead the Press Release
PHILADELPHIA - Anthony Biello II, 56, formerly of Ambler, Pennsylvania, was sentenced today to one year and one day in prison for violating the Clean Air Act. Biello failed to notify the City of Philadelphia’s Air Management Services division of the U.S. Environmental Protection Agency of the removal of asbestos-containing material from a former church located at 1133 Spring Garden Street in Philadelphia.
In addition to the prison term, United States District Court Judge Paul S. Diamond ordered a $100 fine, restitution to the City of Philadelphia of $12,000, a $100 special assessment and two years of supervised release. The court also ordered that the defendant not work in the asbestos removal industry during the period of supervised release.
“Asbestos must be removed and disposed of safely and legally,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in the Middle Atlantic States. “There is no 'safe' level of exposure to asbestos. It is a serious threat to the general public's health and safety. Today's sentencing demonstrates that those who try to make money by breaking the law and putting others at potential risk will be vigorously prosecuted.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case was prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from the EPA.
Mobile County Man Sentenced to 121 Months for Armed CarjackingRead the Press Release
The United States Attorney Kenyen Brown announces that Vincent Cole, a 26 year old, Mobile, Alabama resident, was sentenced today to 121 months incarceration for pointing a firearm in the face of a Mobile citizen and forcing that citizen to give Mr. Cole his 1993 customized Chevrolet Suburban and other items.
On December 2, 2014, Mr. Cole pled guilty to carjacking and using a firearm during an in relation to a crime of violence.
In detail, on November 4, 2012, at approximately 4 a.m., Cole approached a Mobile citizen as the citizen exited his vehicle in the driveway of the citizen’s home. Cole pointed a gun at the citizen and told him to give Cole all of his money and his vehicle. The citizen complied and gave Cole, not only the $40.00 cash in his pocket and the keys to his customized 1993 Chevrolet Suburban, but also his cell phone SIM card. Cole took the items then fled in the vehicle.
A short time later, the citizen gave a detailed description of Cole and what he was wearing, (including a gray hoodie) to police officers. Within hours, the citizen’s vehicle was found vehicle was found. The radio, speakers and amplifier and several high grade sound system items were
missing from the vehicle. The crime scene techs were able to lift comparable prints from the vehicle. The prints were run through a criminal fingerprint database and were matched to Cole. Officers showed a photo spread to the citizen with Cole’s photo included. The citizen positively identified Cole from the photo spread as the carjacker.
An Arrest warrant was obtained for Cole and he was arrested on November 6, 2012, at his residence without incident. A search warranted was obtained for his residence, and seized during the execution of the warrant were, ammunition, a car radio, speakers, an amplifier, and a gray hoodie. All items recovered were taken for the Chevy Suburban.
Detectives of the Mobile Police Department along with state task forces agents assigned to the Federal Bureau of Investigation’s violent crime unit investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Miami-Dade County Resident Convicted for Being a Felon in Possession of a FirearmRead the Press Release
A Brownsville resident was convicted by a jury for being a felon in possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Contrell Leo Floyd, a/k/a “Kevin Wells,” 34, was convicted in a two-day trial before U.S. District Judge Federico A. Moreno for being a felon in possession of a firearm. In the early afternoon of October 20, 2014, two Robbery Intervention Detail MDPD Detectives in an unmarked vehicle saw Floyd in front of Brownsville middle school and began to approach Floyd to ask him questions. Before they could speak with him, Floyd quickly stopped, turned toward the car, and pulled up his shirt to flash a handgun that was tucked in his waistband. Immediately upon seeing the gun, one detective drew his weapon and announced “police!” Floyd fled and threw the firearm into a public park in front of Brownsville middle school. The police officers apprehended Floyd after a short pursuit and recovered the loaded handgun.
Floyd had been previously convicted of state felony crimes, including armed robbery with a firearm.
Floyd is scheduled to be sentenced on May 11, 2015, at 10:00 a.m., and faces a minimum sentence of 15 years in prison as an armed career criminal.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. The case is being prosecuted by Assistant U.S. Attorneys Timothy Abraham and Vanessa Snyder.
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.
Mexican National Sentenced to Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Patsy Vega-Montoya, 25, a Mexican national from Sonora, Mexico, was sentenced this morning in federal court in Albuquerque, N.M., to 41 months in federal prison. Vega-Montoya will be deported after completing her term of imprisonment.
Vega-Montoya was arrested on Sept. 10, 2014, near Grants, N.M., after the New Mexico State Police found packages containing approximately 5.95 kilograms of heroin in her vehicle following a routine traffic stop. Vega-Montoya subsequently was indicted on Sept. 23, 2014, and charged with possession of heroin with intent to distribute.
On Dec. 8, 2014, Vega-Montoya pled guilty to a felony information charging her with possession of heroin with intent to distribute. In entering her guilty plea, Vega-Montoya admitted that on Sept. 10, 2014, when she was stopped by New Mexico State Police, she gave the officers permission to search her vehicle. During the search, the officers found 11 packages containing approximately 5.95 kilograms of heroin which Vega-Montoya was being paid to transport to Colorado.
This case was investigated by the Albuquerque office of the DEA and New Mexico State Police and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Madison Man Sentenced for Gun PossessionRead the Press Release
Dexter L. McClendon, 26, of Madison, IL, was sentenced Friday in the U.S. District Court for the Southern District of Illinois to 6 months in prison, followed by 12 months of home confinement on one count of Possession of a Weapon by a Prohibited Person, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
McClendon had previously been convicted of a misdemeanor Domestic Battery offense, which prohibited him from possessing any firearms or ammunition. On July 28, 2014, he had been in possession of a 7.62 caliber rifle.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorney Laura Reppert.
Louisiana Army National Guard Soldier Pleads GuiltyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Friday, March 6, 2015, PABLO E. PAZ, 45, of New Orleans, pled guilty to one count of conspiracy to commit theft of government funds.
According to court documents, PAZ was a recruiter for the Louisiana Army National Guard. In this capacity, Paz obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier. Paz provided the PII of potential soldiers to his co-defendant, Ramon Madrid, without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled. Madrid received approximately $30,000 in fraudulently obtained recruitment incentive payments, a portion of which he provided to PAZ.
PAZ faces a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release. U.S. District Judge Jay C. Zainey set sentencing for June 2, 2015.
U.S. Attorney Polite praised the work of the United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter. Public Integrity Unit Chief Tracey N. Knight is in charge of the prosecution.
Lackawanna Man Pleads Guilty to Drug ChargesRead 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 Carvis McCutcheon, 34, of Lackawanna NY, pleaded guilty to conspiracy to possess with the intent to distribute crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum five years in prison and a maximum of 40 years.Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that the defendant conspired with others to sell crack cocaine in Lackawanna. Some of the sales took place in the area of the Gates Housing Facility.
"As this case demonstrates, our Office will simply not allow a defendant to turn a facility created for the public good into a private prison of misery, said U.S. Attorney Hochul."
The plea is the culmination of an investigation on the part of the Lackawanna Police Department, under the direction of Chief James Michel and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, New York Field Division.
Sentencing is scheduled for before June 29, 2015 at 12:30 p.m. before Judge Arcara.
Kyle Woman Indicted for Abusing InfantRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, woman has been indicted by a federal grand jury for Felony Child Abuse & Neglect.
Jeannie Janis, age 29, was indicted on February 18, 2015. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 4, 2015, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that in June of 2014, at Pine Ridge, Janis intentionally caused serious injuries to her 5-week old baby boy.
The charge is merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Janis was released pending trial. A trial date has not been set.Justice Department Settles Lawsuit Against International Hotel Chain over Discrimination Against Foreign-Born WorkerRead the Press Release
The Justice Department announced today that it reached a settlement with Hilton Worldwide (Hilton), an international hotel chain, to resolve allegations that Hilton discriminated against a foreign-born worker. Specifically, the department found that a Hilton-owned hotel in Naples, Florida, discriminated against an asylee by improperly rejecting his Social Security card when the hotel reverified his employment authorization.
Under the anti-discrimination provision of the Immigration and Nationality Act (INA), employers cannot reject an employee’s work-authorization documents because of the employee’s citizenship, immigration status or national origin. When verifying or re-verifying an employee’s work authorization, employers must allow workers to choose which documents to present from the lists of acceptable documents, and employers cannot reject documents that reasonably appear to be genuine and relate to the worker.
This matter first came to the department’s attention through the worker hotline of the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC). By the time the parties reached a settlement, Hilton had rehired the worker who was harmed by the company’s practices. Under the settlement agreement, Hilton will pay the worker $12,600 for lost wages, pay a $550 civil penalty to the United States, change its employment policies and be subject to two years of monitoring by the Justice Department.
“Employers must ensure that they have non-discriminatory Form I-9 practices,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department will continue to work with employers to help implement best practices that comply with federal law.”
The department recently issued a document, How Employers Can Avoid Discrimination in the Form I-9 and E-Verify Processes, to help employers implement best practices that comply with federal law. OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to (1) different documentary requirements based on their citizenship, immigration status, or national origin, or (2) discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Justice Department Seeks to Permanently Shut Down California Tax Preparer and Convicted FelonRead the Press Release
The United States has asked a federal court in Sacramento, California, to bar a Ripon, California, man from preparing tax returns for others, the Justice Department announced today.
According to the government’s complaint, Sarad Chand has repeatedly prepared federal tax returns that understate his customers’ federal tax liabilities.
The complaint alleges that Chand, and others working with him under the business name S. Chand Tax & Accounting Services, prepared tax returns that falsely claimed inflated or fabricated tax credits or deductions. The suit notes that Chand most frequently prepared returns that falsely inflated unreimbursed employee business expenses. Chand also created Schedule Cs (Profit or Loss From Business) with false income, while for other clients he created false losses or inflated expenses, according to the suit. According to the complaint, these fabrications served to improperly reduce the customers’ taxable income and resulted in reduced tax liability or inappropriate tax refunds. Moreover, according to the complaint, Chand also led his customers to believe that he was a former Internal Revenue Service (IRS) employee, when he was not.
The suit also notes that on May 15, 2014, Chand pleaded guilty to aiding and assisting in the preparation and presentation of a false and fraudulent tax return in United States v. Chand, et al., Case No.1:12-CR-00425 (E.D. Cal.). As part of his plea agreement, Chand agreed to the entry of a permanent civil injunction, according to the complaint.
The suit alleges that the IRS has completed examinations of 919 of the approximately 8155 tax returns Chand prepared from 2008 to 2012, and that nearly all of the examined returns resulted in a finding of deficiency or denial of a refund claim. The total tax understatement from the 886 returns found to be inaccurate totaled more than $2.7 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Fayetteville Businessman Guilty of Bank FraudRead the Press Release
Fayetteville, Arkansas – The United States Attorney’s Office for the Western District of Arkansas, announced that Andrew C. Judkins, age 42, of Bixby, Oklahoma, formerly of Fayetteville, was found guilty on two counts of Bank Fraud following a five day jury trial. During the trial, the jury was presented with over 300 exhibits and heard from 39 witnesses. The Honorable Timothy L. Brooks presided over the trial in United States District Court.
According to evidence presented at the trial, in June of 2008, Judkins executed a scheme to obtain money and funds owned by and under the custody and control of First Security Bank by means of false and fraudulent pretenses, representations and promises. Namely, Judkins submitted a fake invoice representing A. Camp Equipment’s purchase of two dump trucks in the amount of $500,000.00 to First Security Bank. A. Camp Equipment was a business in Fayetteville, owned and operated by Judkins, which sold, rented, and serviced new and used heavy equipment such as dump trucks and bulldozers. Judkins purchased the two trucks in 2007 for $30,000.00 each, and in 2008, represented to First Security Bank that each truck was worth $250,000.00. In August of 2009, Judkins knowingly executed a scheme to defraud First Security Bank, by delivering to the First Security Bank representative conducting an on-site floor plan audit at A. Camp Equipment in Fayetteville, a false and fraudulent rental agreement that showed one of the dump trucks, in which First Security Bank held a $250,000.00 security interest, had been rented to Keepes Construction in Sallisaw, Oklahoma. This false rental agreement was delivered in order to conceal from First Security Bank that one of the dump trucks had actually been sold in July, 2008, for $74,000.00, without Judkins repaying First Security Bank.
Judkins was indicted by a Federal Grand Jury in December of 2013. Sentencing will be held at a later date. The maximum penalty for each count is not more than 30 years imprisonment, not more than $1,000,000.00 fine, or both imprisonment and fine. 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. The sentence will not exceed the statutory maximum for each count in this case, and in most cases will be less than the maximum.
This case was investigated by the Federal Bureau of Investigations. Assistant United States Attorneys Kyra Jenner and Steve Snyder prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov* * * E N D * * *