Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 6 March 2015
Alabama and Georgia Residents Sentenced to Prison for their Participation in $3 Million Identity Theft SchemeRead the Press Release
Montgomery, Alabama – A Phenix City, Alabama, resident was sentenced yesterday to serve 111 months in prison for her role in a more than $3 million Stolen Identity Refund Fraud (SIRF) tax scheme.
Carnesha Alexander was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $840,692. On Feb. 5, a co-conspirator in the scheme, Robert Walker, of Columbus, Georgia, was sentenced to serve 94 months in prison, three years of supervised release and ordered to pay restitution in the amount of $840,692. Alexander and Walker each previously pleaded guilty to conspiracy to defraud the government and one count of aggravated identity theft, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division.
According to court documents and statements made in court, between January 2011 and December 2013, Alexander, Walker and their co-conspirators used stolen identities to file more than 900 false tax returns that requested approximately $3.4 million in tax refunds. Alexander obtained stolen identities from various sources, including the identities of employees from a company in Columbus. In order to file the false tax returns, Alexander, Walker and their co-conspirators applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks. Walker and his co-conspirators cashed the fraudulent refund checks at several businesses located in Alabama and Walker deposited fraudulent refund checks into a bank account he controlled.
“One of the Tax Division’s highest priorities is prosecuting individuals such as Carnesha Alexander, Robert Walker and their co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and punish the offenders who view the Federal Treasury as their own personal bank account.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory P. Bailey of the Tax Division, who prosecuted the case with the assistance of Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama.
Alabama and Georgia Residents Sentenced to Prison for Their Participation in $3 Million Identity Theft SchemeRead the Press Release
Charnesha Alexander, a Phenix City, Alabama, resident was sentenced yesterday to serve 111 months in prison for her role in a more than $3 million Stolen Identity Refund Fraud (SIRF) tax scheme.
Alexander was also sentenced to three years of supervised release and order to pay restitution in the amount of $840,692. On Feb. 5, a co-conspirator in the scheme, Robert Walker, of Columbus, Georgia, was sentenced to serve 94 months in prison, three years of supervised release and ordered to pay restitution in the amount of $840,692. Alexander and Walker each previously pleaded guilty to conspiracy to defraud the government and one count of aggravated identity theft, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
According to court documents and statements made in court, between January 2011 and December 2013, Alexander, Walker and their co-conspirators used stolen identities to file more than 900 false tax returns that requested approximately $3.4 million in tax refunds. Alexander obtained stolen identities from various sources, including the identities of employees from a company in Columbus. In order to file the false tax returns, Alexander, Walker and their co-conspirators applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks. Walker and his co-conspirators cashed the fraudulent refund checks at several businesses located in Alabama and Walker deposited fraudulent refund checks into a bank account he controlled.
“One of the Tax Division’s highest priorities is prosecuting individuals such as Charnesha Alexander, Robert Walker and their co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and punish the offenders who view the Federal Treasury as their own personal bank account.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory P. Bailey of the Tax Division, who prosecuted the case with the assistance of Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama. Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Alabama and Georgia Residents Sentenced to Prison for Their Participation in $3 Million Identity Theft SchemeRead the Press Release
Marck 06, 2015Montgomery, Alabama - A Phenix City, Alabama, resident was sentenced yesterday to serve 111 months in prison for her role in a more than $3 million Stolen Identity Refund Fraud (SIRF) tax scheme.
Carnesha Alexander was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $840,692. On Feb. 5, a co-conspirator in the scheme, Robert Walker, of Columbus, Georgia, was sentenced to serve 94 months in prison, three years of supervised release and ordered to pay restitution in the amount of $840,692. Alexander and Walker each previously pleaded guilty to conspiracy to defraud the government and one count of aggravated identity theft, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division.
According to court documents and statements made in court, between January 2011 and December 2013, Alexander, Walker and their co-conspirators used stolen identities to file more than 900 false tax returns that requested approximately $3.4 million in tax refunds. Alexander obtained stolen identities from various sources, including the identities of employees from a company in Columbus. In order to file the false tax returns, Alexander, Walker and their co-conspirators applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks. Walker and his co-conspirators cashed the fraudulent refund checks at several businesses located in Alabama and Walker deposited fraudulent refund checks into a bank account he controlled.
“One of the Tax Division’s highest priorities is prosecuting individuals such as Carnesha Alexander, Robert Walker and their co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and punish the offenders who view the Federal Treasury as their own personal bank account.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory P. Bailey of the Tax Division, who prosecuted the case with the assistance of Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Thursday 5 March 2015
Woman Pleads Guilty to Role in 2001 Arson That Killed Her 15-Year-Old SonRead the Press Release
St. Louis, MO - SANDRA KAY BRYANT, Saint Louis County, pled guilty this afternoon and admitted setting fire to her family’s home at in Florissant, Missouri, on November 16, 2001. Bryant’s 15-year old son, Zachariah Andrew Kemper, became trapped in the basement and was killed during the fire. Bryant pled guilty to one-count of aiding and abetting the use of fire to commit mail fraud. She appeared before United States District Court Judge Audrey G. Fleissig to enter her guilty plea. A jury trial had been set for March 9.
The 2001 fire was originally the subject of state charges in which Sandra Bryant was charged with murder by arson. During the ensuing trial, the judge declared a mistrial after ruling that certain evidence relating to a polygraph examination indicating deception by Bryant had mistakenly been shown to the jury. The Missouri Supreme Court ultimately held that because the mistrial was declared over the defense objection, state prosecutors were barred from retrying the defendant in state court because of the United States Constitution’s "double jeopardy" provision. During the state trial, Bryant challenged her confession to detectives that detailed her involvement in the fire. With today’s guilty plea, Bryant unequivocally acknowledged and confirmed her participation in the arson scheme.
The federal indictment charged both Bryant and her ex-husband, Steven Kemper, for their involvement in the 2001 arson. On July 3, 2013, Steven Kemper, pled guilty to the same charge. Kemper’s sentencing has been set for April 8, 2015, at 1:30 p.m. Bryant’s sentencing has been set for June 11, 2015, at 2:00 p.m. Each defendant faces up to 10 years imprisonment.
This case was originally investigated by the Saint Louis County Police Department. The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives took up the investigation after the Missouri Supreme Court decision barring the retrial by state prosecutors. The St. Louis County Prosecutor’s Office also provided significant assistance.
Unsealed Indictment Details Cocaine Trafficking, Tax EvasionRead the Press Release
A 12-count federal indictment was unsealed today charging Lawrence E. Tipton, 48, Angela G. Tipton, 46, both of Copley, and Ebony Brown, 41, of Stone Mountain, Georgia, with conspiracy to defraud the United States of America, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment further charges Lawrence and Angela Tipton with conspiracy to evade payment of taxes and attempt to evade and defeat the payment of taxes. Ebony Brown and Lawrence Tipton are charged with conspiracy to distribute cocaine, and Brown is also charged with three counts of distributing cocaine.
Finally, all three defendants are charged in various counts with engaging in unlawful monetary transactions.
From around April 2003 through December 31, 2014, Lawrence and Angela Tipton conspired to evade the payment of assessed taxes. Their conduct involved failing to report income, creating various business entities to hide their income and assets from the Internal Revenue Service, according to the indictment.
Lawrence Tipton, Angela Tipton, and Ebony Brown conspired to use a trucking business known as Palmyra Acres as a means to mingle proceeds of drug trafficking with apparent legitimate proceeds of a trucking operation. Lawrence Tipton and Ebony Brown conspired to distribute cocaine they acquired in Texas and Florida and sold in Ohio, according to the indictment.
All three defendants are charged with engaging in monetary transactions using proceeds of drug trafficking.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Internal Revenue Service and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Robert E. Bulford and Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Women Sentenced for Roles in Health Care FraudRead the Press Release
NORFOLK, Va. – Lisa Marie Barrett, age 50, of Norfolk, and Jaqueline J. Harris, age 34, of Portsmouth, were both sentenced yesterday for their roles in a massive Medicaid fraud conspiracy. Ms. Barrett was sentenced to serve a term of 96 months in prison, followed by a three-year term of supervised release, and was ordered to pay $126,126 in restitution to the Virginia Department of Medical Assistance Services. Ms. Harris was sentenced to serve 60 months imprisonment, followed by three years of supervised release, and ordered to pay $237,570 in restitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office; Thomas J. Kelley, Special Agent in Charge, Internal Revenue Service-Criminal Investigations, Washington, D.C. Field Office; and Steven Anderson, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith.
Barrett pleaded guilty on December 1, 2014, to one charge each of health care fraud, aggravated identity theft, and perjury. According to court documents, Barrett worked for Progressive Counseling Services, LLC, as a qualified mental health professional responsible for providing mental health support services to Medicaid-eligible clients who purportedly suffered from severe psychiatric limitations. In reality, not only was Barrett not qualified to provide such services, she signed false progress notes in order to support reimbursement claims to Medicaid. Barrett signed progress notes that listed dates, times, and locations that conflicted with other progress notes, that consisted entirely of material copied verbatim from articles available on the Internet, and that contained descriptions of counseling sessions that were identical to the descriptions provided in other progress notes submitted by other counselors. Additionally, Barrett signed multiple notes that detailed counseling sessions that purportedly occurred while she was working as a parking attendant at a City of Norfolk parking garage. In total, Barrett personally signed 639 of these progress notes causing Medicaid to reimburse Progressive approximately $126,126.
Harris pleaded guilty on December 2, 2014, to one charge of health care fraud and one charge of perjury. According to court documents Harris was also not qualified to provide mental health support services, and signed fraudulent progress notes used in support of Medicaid billing. Harris personally signed 1,305 false and fraudulent progress notes, causing Medicaid to reimburse Progressive $237,570. The overwhelming majority of progress notes detailed meetings that never occurred. On the few instances when Harris actually met with clients, she merely drove them to appointments and on errands, provided transportation to their family members, and had them sign blank time sheets, which were then used to back up her false and fraudulent progress notes.
The total amount Medicaid overbilled Progressive as a result of all of its activities was approximately $2,483,752.00, according to the court documents.
In addition to their roles in Progressive’s Medicaid fraud conspiracy, Barrett and Harris also testified falsely under oath before the federal grand jury investigating Progressive’s Medicaid fraud conspiracy.
This case was investigated by the FBI’s Norfolk Field Office, the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, Homeland Security Investigations’ Norfolk Field Office, U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, and the Internal Revenue Service, Criminal Investigations Division. Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty are prosecuting the case for the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-137.Two Men from Crownpoint Plead Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Gabriel Largo, 27, and Joshua Largo, 20, both enrolled members of the Navajo Nation who reside in Crownpoint, N.M., pled guilty this morning in federal court to federal assault charges.
Gabriel Largo, Joshua Largo and their co-defendant Michael Benally, 31, a member of the Navajo Nation who resides in Littlewater, N.M., were arrested on Sept. 17, 2014, on a criminal complaint charging them with assaulting a Navajo man with a sledgehammer and a rock and causing him serious bodily injury. The complaint alleges that the assault took place in the Crownpoint Chapter of the Navajo Nation in McKinley County, N.M., on Sept. 5, 2014.
The three co-defendants subsequently were indicted on Oct. 7, 2014, in a four-count indictment. Count 1 charged Benally with assaulting the victim and causing him serious bodily injury on July 30, 2014. Count 2 charged Benally, Gabriel Largo and Joshua Largo with conspiring to assault the victim by chasing the victim, throwing rocks at him, kicking him, and striking him with a sledgehammer on Sept. 5, 2014. Counts 3 and 4 charged the three defendants with assault resulting in serious bodily injury and assault with a dangerous weapon.
During today’s proceedings, Gabriel Largo pled guilty to a felony information charging him with assault, and admitted that on Sept. 5, 2014, he and his co-defendants approached the victim, who was selling firewood. When the victim ran away from them, Gabriel Largo and his co-defendants chased the victim, threw rocks at him and knocked him down. The three men then hit and kicked the victim. In his plea agreement, Gabriel Largo admitted obtaining a sledgehammer from Benally and using it to strike the victim.
Joshua Largo also pled guilty to a felony information and admitted his participation in a conspiracy to assault the victim. Joshua Largo admitted joining his co-defendants in chasing the victim, throwing rocks at him and knocking him down, and hitting and kicking the victim.
At sentencing, Gabriel Largo faces a statutory maximum penalty of ten years in prison and Joshua Largo faces a statutory maximum penalty of five years in prison. Their sentencing hearings have yet to be scheduled.
Benally has entered a plea of not guilty and is pending trial. Charges in criminal complaints and indictments are merely accusations. Defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Linda Mott.
Two Defendants from Operation “Wild Wild East” SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that AMBROSE WILLIAMS, age 44, and ANTOINETTE KELLY, age 32, both of New Orleans, were sentenced today after having previously pled guilty to charges relating to their conspiracy to distribute and to possess with intent to distribute heroin.
U.S. District Judge Carl Barbier sentenced WILLIAMS, who pled guilty to one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, to 120 months incarceration, to be followed by five years of supervised release. KELLY, who pled guilty to one count of distributing a quantity of heroin, was sentenced to 15 months incarceration, to be followed by three years of supervised release.
WILLIAMS and KELLY were two of twelve defendants charged in a 23-count indictment on July 25, 2014. According to court documents, this indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area. As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
Third Louisiana Resident Indicted for Insider Trading in Connection with the Acquisition of the Shaw GroupRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green of the Middle District of Louisiana and Stephanie Finley of the Western District of Louisiana jointly announced that another individual has been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Western District of Louisiana has indicted BILLY J. ADCOX, JR, age 44, of Ruston, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, ADCOX faces significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from in or before July 2012, and continuing to at least December 2012, ADCOX, his close friend Jesse Roberts, along with John Doe, engaged in a scheme to profit from inside information about the upcoming merger between The Shaw Group (“Shaw”) and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, which was returned by the grand jury yesterday, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Zeringue was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The Indictment alleges that, prior to the public announcement and through his job at Shaw, Zeringue obtained inside information about the upcoming merger between Shaw and CB&I and passed the inside information to Roberts. The Indictment further alleges that Roberts subsequently passed the inside information to ADCOX, who, in turn, passed the inside information to John Doe and facilitated contact between Roberts and John Doe. Thereafter, ADCOX and John Doe allegedly purchased Shaw securities before the public announcement and sold their Shaw securities after the public announcement had caused Shaw’s stock price to rise, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that ADCOX made over $37,000 in proceeds from his illegal insider trading activities.
Prior to the Indictment announced today, Zeringue was charged in the Middle District of Louisiana with conspiracy to commit securities fraud. On June 27, 2014, Zeringue pled guilty as charged pursuant to a plea agreement with the United States.
Roberts, age 43, of Ruston, Louisiana, has also been charged with insider trading as part of the investigation. On Thursday, February 19, 2015, a federal grand jury sitting in the Middle District of Louisiana indicted Roberts, charging him with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1.
In announcing the Indictment, U.S. Attorneys Green and Finley praised the investigative work of the U.S. Secret Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation, and thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority for their assistance.
This matter is being handled by the U.S. Attorney’s Offices for the Middle and Western Districts of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones of the Middle District of Louisiana and Assistant United States Attorney Seth Reeg of the Western District of Louisiana.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Tampa Crack Cocaine Trafficker Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Lamar “Budda” Wilson (33) to 10 years in federal prison for possessing with the intent to distribute 28 grams or more of cocaine base, commonly known as “crack.” He pleaded guilty on November 14, 2014.
According to court documents, Wilson arranged to sell an ounce of crack cocaine to a DEA confidential informant (CI). On September 23, 2013, Wilson met the CI at a location in Hillsborough County, where he was paid $1,050 for an ounce of crack cocaine.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
St. Thomas Man Indicted on Child Pornography ChargesRead the Press Release
St. Thomas, USVI – A federal grand jury returned a four-count indictment on March 5, 2015, charging Donnie W. Williams, 31, of St. Thomas with federal child exploitation offenses, United States Attorney Ronald W. Sharpe announced today. The first three counts charge Williams with receipt of child pornography, and the last count charges him with possession of child pornography.
Williams was released on bond after his arrest on January 30, 2015, and is awaiting arraignment and advice of rights on the indictment. According to the indictment, Williams used his laptop computer to download child pornography images from a peer-to-peer sharing network. If convicted Williams faces a mandatory five years in prison and fines of up to $250,000.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Suspected child exploitation or missing children cases may be reported to the National Center for Missing and Exploited Children via its toll-free 24–hour hotline at 202-514-5678, or Homeland Security Investigations at (340) 693-2250.
This case is being investigated by the U.S. Department of Homeland Security Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
St. Petersburg Cocaine Trafficker Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Octavius R. Henderson (35, St. Petersburg) to 20 years in federal prison for conspiring with others to possess with the intent to distribute 5 kilograms or more of cocaine. He pleaded guilty on December 16, 2014.
According to court documents, Henderson and others were involved in a years-long drug conspiracy that was responsible for the distribution of at least 149 kilograms of cocaine in St. Petersburg. During a search of a St. Petersburg residence used by Henderson and others as a “stash house” for narcotics and money, agents located digital scales, mixing agents, containers with cocaine residue, and a “kilo” press. Agents also located 850 grams of cocaine and $71,930 in U.S. currency inside the stash house.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale. This case results from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Six Defendants Indicted on Federal Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury has returned separate indictments against Mikkey Santos, 18; Tyrone Smith, 19; Javier Lamadrid, 33; Humberto Garcia, 23; and Michael Johnson, 35, all of Fresno; and Samuel Zaragoza-Villanueva, 37, of Mexico, for violating federal firearm laws, United States Attorney Benjamin B. Wagner announced today.
The indictments resulted from joint investigations by the Fresno Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Homeland Security/Homeland Security Investigations (HSI), and the Federal Bureau of Investigation (FBI). The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. The cases are being prosecuted by Assistant U.S. Attorney Kimberly Sanchez.
Samuel Zaragoza-Villanueva was charged with being an alien in possession of ammunition. According to court documents, on February 26, 2015, members of the Multi-Agency Gang Enforcement Consortium (MAGEC) conducted a search at the defendant’s residence and seized ammunition. The government alleges that the defendant is a citizen and native of Mexico, and is unlawfully present in the United States.Mikkey Santos was charged with possession of an unregistered firearm. According to court documents, on February 12, 2015, Fresno Police Department officers served a search warrant at the defendant’s apartment in Fresno. An unregistered rifle, with a barrel length of less than 16 inches and an overall length less than 26 inches, was recovered during the search.
Tyrone Smith was charged with being a felon in possession of a firearm. According to court documents, on February 16, 2015, Fresno Police Department officers attempted to stop a vehicle in which the defendant was a passenger. The vehicle fled at high speed and officers pursued it. The defendant threw a handgun out of the window during the pursuit, and was ultimately apprehended.
Javier LaMadrid was charged with being a felon in possession of a firearm. According to court documents, on February 4, 2015 Fresno Police Department officers made a traffic stop on a vehicle in which the defendant was a passenger. A small child and another adult female were also in the car. Police found a loaded handgun between the passenger-side door and the passenger seat where the defendant was seated.Humberto Garcia was charged with being a felon in possession of a firearm. According to court documents, on February 21, 2015, the defendant was in possession of a shotgun. The defendant has multiple prior felony convictions.
Michael Johnson was charged with being a felon in possession of a firearm. According to court documents, on February 19, 2015, the defendant was in possession of a Glock, .40 caliber firearm. The defendant has multiple prior felony convictions.
“ATF remains committed to working with Fresno Police Department and our other federal partners to combat gun violence and remove violent offenders from the streets of Fresno,” said Joseph M. Riehl, Special Agent in Charge of the ATF San Francisco Field Division. “Project Safe Neighborhoods is one way that ATF agents are working to remove guns from the hands of convicted felons and violent criminals.”
If convicted, the defendants face up to 10 years imprisonment, a $250,000 fine (except for Santos, who faces up to a $10,000 fine), and 3 years of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.Settlement of Trespass Claims Against Statoil Oil & Gas LP and Statoil Oil & Gas Services, Inc.Read the Press Release
BISMARCK - U.S. Attorney Timothy Purdon today announced Statoil Oil & Gas LP and Statoil Oil & Gas Services, Inc., of Austin, Texas (collectively "Statoil") have agreed to pay the United States $1,989,560.72 to resolve civil claims against Statoil relating to mineral trespass.
The North Dakota Field Office of the Bureau of Land Management routinely reviews data regarding existing oil wells to assess whether the wells are impacting federally owned minerals. In October 2013 information was developed indicating that an oil well operated by Statoil drilled into unleased federally owned minerals located in McKenzie County, North Dakota. A joint investigation by the United States Department of the Interior’s Office of Inspector General and the Bureau of Land Management's Special Investigations Group confirmed that on or about December 16, 2011 Statoil began drilling a well which later entered into unleased federally owned minerals. The well, designated Jay 24-13 #1H, had been planned by Statoil’s predecessor, Brigham Oil & Gas L.P., and was drilled approximately two weeks after Statoil acquired Brigham Oil & Gas L.P. Statoil later produced and sold federally owned oil and natural gas from the well valued at nearly $2,000,000. Statoil has fully cooperated with the United States in its investigation of this incident.
Under the terms of the settlement, the United States will recover the full value of the federal oil and natural gas.
The case was investigated by Special Agent T. Lynn Gannon, United States Department of the Interior Office of Inspector General, Energy Investigations Unit.
Assistant United States Attorney James Patrick Thomas handled the matter for the United States.
Sentencings for February 26 - March 2, 2015Read the Press Release
Jorge Gonzalez-Gonzalez, aka Jorge Luis Diego, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 26, 2015, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine, heroin and marijuana. Gonzalez-Gonzalez was arrested in Sheridan, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, was ordered to pay a $400.00 fine and a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation.
Joseph Jovon Dawson, 31, of Aurora, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 2, 2015, for transporting a minor for illegal sexual activity. Dawson was arrested in Casper, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Casper Police Department; the Federal Bureau of Investigation; and the Denver Police Department.
Russian Man Sentenced in Ransomware SchemeRead the Press Release
BOSTON – A Russian man was sentenced yesterday to three years in prison for laundering profits from a scheme in which computer hackers essentially took people’s computers “hostage” electronically until a ransom was paid.
Aleksei Shushliannikov, 23, was sentenced by U.S. Senior District Judge Mark L. Wolf to three years in prison, three years of supervised release, forfeiture of profits and equipment, and restitution. In November 2014, Shushliannikov pleaded guilty to one count of conspiracy to commit money laundering, one count of using a fictitious name and address in connection with the U.S. mail, and one count of identity fraud. He was charged in October 2013.
The scheme began with computer hackers who actually, or seemingly, took over victims’ computers with a virus. The hackers told the victims that they would restore the computers’ function if the victims bought a MoneyPak and sent the MoneyPak number to the hackers. Sometimes the hackers posed as the FBI, saying that the FBI was freezing the victims’ computers as part of a law enforcement action, and that the victims could avoid arrest by paying a criminal fine via MoneyPak. A MoneyPak is a product or service that allows a customer to load cash onto a prepaid debit card that is associated with a MoneyPak number; therefore, a MoneyPak number is almost equivalent to cash. With that number, the customer, or anyone else, can transfer funds from one prepaid debit card to another electronically and with relative ease and anonymity.
But the hackers faced a problem. If they transferred the ransom to physical debit cards, they risked being caught on videotape while withdrawing the ransom as cash at banks and ATMs. So they sold the ransomed MoneyPak numbers over the Internet.
Shushliannikov participated in the scheme from December 2012 until February 2013 when he was caught. The conspiracy bought the ransomed MoneyPak numbers and, in order to cash them with relative anonymity, opened prepaid debit cards using the identities of other, uninvolved people, whose names, dates of birth, and other information he had bought on the Internet. The conspiracy then had the debit cards mailed to mail drops that Shushliannikov employed throughout New England.
Shushliannikov was responsible for finding appropriate mail drops at unsuspecting homeowners’ mailboxes. To avoid discovery, Shushliannikov selected houses throughout Massachusetts and New Hampshire that looked unoccupied, especially those with a “for sale” sign out front. Shushliannikov collected the debit cards from these houses’ mailboxes and brought the cards to his co-conspirator who then loaded the cards with the ransom money. Shushliannikov and the conspiracy then withdrew the funds as cash. Shushliannikov also deposited the ransom in other people’s bank accounts, from which the funds were periodically wired to accounts outside the United States.
Shushliannikov was discovered while removing mail from another person's mailbox in New Hampshire. His GPS linked him to other mail drop addresses used in the scheme. His apartment contained 246 prepaid debit cards, $26,000 in cash, and a money-counting machine, all of which have been forfeited. In total, the conspiracy had opened about 1,100 prepaid debit cards and laundered or intended to launder between $400,000 and $1 million.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Hampton, New Hampshire Police Department. The case was prosecuted by Assistant U.S. Attorney Scott L. Garland of Ortiz’s Anti-Terrorism and National Security Unit.
Russian Man Sentenced in Ransomware SchemeRead the Press Release
BOSTON – A Russian man was sentenced yesterday to three years in prison for laundering profits from a scheme in which computer hackers essentially took people’s computers “hostage” electronically until a ransom was paid.
Aleksei Shushliannikov, 23, was sentenced by U.S. Senior District Judge Mark L. Wolf to three years in prison, three years of supervised release, forfeiture of profits and equipment, and restitution. In November 2014, Shushliannikov pleaded guilty to one count of conspiracy to commit money laundering, one count of using a fictitious name and address in connection with the U.S. mail, and one count of identity fraud. He was charged in October 2013.
The scheme began with computer hackers who actually, or seemingly, took over victims’ computers with a virus. The hackers told the victims that they would restore the computers’ function if the victims bought a MoneyPak and sent the MoneyPak number to the hackers. Sometimes the hackers posed as the FBI, saying that the FBI was freezing the victims’ computers as part of a law enforcement action, and that the victims could avoid arrest by paying a criminal fine via MoneyPak. A MoneyPak is a product or service that allows a customer to load cash onto a prepaid debit card that is associated with a MoneyPak number; therefore, a MoneyPak number is almost equivalent to cash. With that number, the customer, or anyone else, can transfer funds from one prepaid debit card to another electronically and with relative ease and anonymity.
But the hackers faced a problem. If they transferred the ransom to physical debit cards, they risked being caught on videotape while withdrawing the ransom as cash at banks and ATMs. So they sold the ransomed MoneyPak numbers over the Internet to people like Shushliannikov and his co-conspirator.
Shushliannikov participated in the scheme from December 2012 until February 2013 when he was caught. His co-conspirator bought the ransomed MoneyPak numbers and, in order to cash them with relative anonymity, opened prepaid debit cards using the identities of other, uninvolved people, whose names, dates of birth, and other information he had bought on the Internet. The co-conspirator then had the debit cards mailed to mail drops that Shushliannikov employed throughout New England.
Shushliannikov was responsible for finding appropriate mail drops at unsuspecting homeowners’ mailboxes. To avoid discovery, Shushliannikov selected houses throughout Massachusetts and New Hampshire that looked unoccupied, especially those with a “for sale” sign out front. Shushliannikov collected the debit cards from these houses’ mailboxes and brought the cards to his co-conspirator who then loaded the cards with the ransom money. Shushliannikov and his co-conspirator then withdrew the funds as cash. Shushliannikov also deposited the ransom in other people’s bank accounts, from which the funds were periodically wired to accounts controlled by co-conspirators outside the United States.
Shushliannikov was discovered while removing mail from another person's mailbox in New Hampshire. His GPS linked him to other mail drop addresses used in the scheme. His apartment, which he shared with his co-conspirator, contained 246 prepaid debit cards, $26,000 in cash, and a money-counting machine, all of which have been forfeited. In total, he and his co-conspirator had opened about 1,100 prepaid debit cards and laundered or intended to launder between $400,000 and $1,000,000.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Hampton, New Hampshire Police Department. The case was prosecuted by Assistant U.S. Attorney Scott L. Garland of Ortiz’s Anti-Terrorism and National Security Unit.
Rochester Man Admits Carrying Gun While Selling DrugsRead the Press Release
CONTACT: Karen Brown
PHONE: (716) 843-5836
FAX: (716) 551-3051Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jesus Velez, 21, of Rochester, New York, pleaded guilty before U.S. District Court Judge Charles J. Siragusa, to felony charges of Possession With Intent to Distribute Cocaine and Possession of a Firearm During and in Relation to a Drug Trafficking Crime. The drug charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000 or both. The firearm charge carries a maximum penalty of line prison, a fine of $250,000 or both.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant was observed by members of the Rochester Police Department carrying a loaded firearm while possessing cocaine that he intended to sell on July 11, 2014, in the City of Rochester.
The plea was 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, and officers of the Rochester Police Department under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 5, 2015, at 9:15 A.M. EST, in Rochester, N.Y., in front of Judge Siragusa.
Registered Sex Offender Sentenced for New Sex CrimesRead the Press Release
BOISE - William Clarence Brower, 51, of Hazelton, Idaho, was sentenced yesterday by Chief United States District Judge B. Lynn Winmill to 110 months in prison, followed by 10 years of supervised release, for two counts of transfer of obscene images to minors and possession of child pornography, U.S. Attorney Wendy J. Olson announced. Brower pled guilty on November 25, 2014.
According to the plea agreement, the investigation began in February 2014, when the Idaho Internet Crimes Against Children Task Force (ICAC) received a request for assistance from the Massachusetts State Police regarding an unknown adult male using the social media website “Kik” messenger to send photographs of an erect penis to a 10-year-old female in Massachusetts. An undercover detective took over the child’s online identity and made the suspect aware that “she” was 10 years old. The suspect replied, “C00000l. I don't mind that you are so young,” followed by sexually explicit comments. After having learned he was communicating with a ten-year-old, the suspect continued to send similar pictures and sexual comments directed at the child.
Meanwhile, in an unrelated investigation, sheriff’s deputies in Maricopa County, Arizona, received a complaint from a family in Mesa, Arizona, that their 13-year-old daughter had been receiving unsolicited sexually explicit text messages from an unknown individual using “Kik” messenger. The messages were accompanied by images of an erect penis. The investigators in Massachusetts and Arizona independently developed information suggesting that an individual with last name Brower in Hazelton, Idaho, was responsible.
According to the plea agreement, Idaho ICAC investigators learned that the suspect, William Clarence Brower, of Hazelton, is a registered sex offender. He had been convicted in 2008 of felony indecent exposure in Twin Falls County. They served a search warrant at Brower’s residence on February 21, 2014. A forensic examiner found more than 24,000 digital images considered relevant to the investigation on Brower’s cell phone. These included pictures depicting child pornography, child erotica, images of a male subject wearing female undergarments, numerous images of a male exposing his penis, and non-pornographic images of numerous young females that appear to have been obtained through a social media application or web site. Brower was interviewed and took responsibility for using his cell phone to send using “Kik” messenger hundreds of sexually explicit photos of himself to random persons, most of whom he knew were under the age of 18. Brower also admitted that he possessed images and videos of child pornography.
The case was investigated by the Idaho Attorney General’s Office, Internet Crimes Against Children Task Force, the Boise Police Department, the Maricopa County Sheriff’s Department, the Department of State Police of the Commonwealth of Massachusetts, and the Jerome County Sheriff’s 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.”
Operators of Cleveland Ambulette Company Charged with Health Care FraudRead the Press Release
Three people were indicted on five counts of health care fraud and one count of conspiracy to commit health care fraud in connection with the operation a Cleveland-based ambulette company, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Nedal "Mark" Hasan 45, of North Olmsted, Kim Gullie, 56, of Cleveland, and Nancy Pyles, 68, of Roanoke, Texas. Together they operated Eman Transportation Services in Cleveland.
Ambulette services contract with the Ohio Medicaid program to transport patients in vehicles known as ambulettes. An ambulette is a specially equipped van designed for wheelchair passengers. Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as: (1) the patient rides in a wheelchair; (2) a medical doctor certifies the need for the wheelchair and ambulette; and (3) the ambulette itself otherwise meets safety specifications.
The defendants are charged with scheming to defraud Medicaid of approximately $245,000 by charging Medicaid for rides of patients who did not use or need wheelchairs and for transporting Medicaid recipients to non-covered appointments.
If convicted, the defendants’ sentences will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
The indictment is the result of an investigation by Ohio Attorney General Mike DeWine’s Medicaid Fraud Control Unit and the Office of the Inspector General, United States Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Maritsa Flaherty, an Assistant Attorney General for the State of Ohio.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Operator of Third Party Payroll Company Pleads Guilty to Federal Charges for Embezzling $11 Million from Client CompaniesRead the Press Release
CHARLOTTE, N.C. – James William Staz has pleaded guilty to federal charges for defrauding more than $11 million from clients of the third-party payroll company he jointly operated with his father, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. James Staz, 44, of Iron Station, N.C. appeared before U.S. Magistrate Judge David S. Keesler today and pleaded guilty to wire fraud, transactional money laundering and tax evasion. James Staz’s father, William James Staz, 72, of Huntersville, N.C., pleaded guilty in January 2015 to wire fraud and tax evasion charges.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to court documents and today’s plea hearing, William and James Staz operated the third-party payroll company, “Employee Services.Net, Inc.” (ESN) and provided various services to client companies, including processing payroll, collecting and paying employment taxes, and preparing and filing employment tax forms. At its height, ESN had approximately 500 client companies nationwide. Court records show that James Staz was ESN’s vice president and later the company’s president. William Staz was a company shareholder and, through 2008, managed ESN’s day-to-day operations. According to court documents, ESN had access to the clients companies’ bank accounts and directly drafted the funds needed to cover expenses associated with the services it provided.
According to court records, from 2008 to March 2014, the two men defrauded at least 113 ESN clients of approximately $11 million dollars intended for payroll and employment tax payments and used it to support their personal lifestyles. According to the charging documents, during that time period, James Staz stole at least $3.7 million in client funds and directed the money to his personal bank account. In order to conceal his embezzlement, James Staz made false entries into ESN’s accounting system to make it appear as though the funds were used for legitimate client expenses. According to court records, James Staz used the money to pay for alcohol, strip club entertainment, jewelry, a Mercedes Benz and a luxury home. Court records also show that over the course of the scheme, William Staz drew a salary from ESN as high as $200,000, even for the time period he was serving a nine-month federal prison sentence.
James Staz has been detained since his arrest in October 2014. William Staz has been released on bond pending sentencing. They each face a maximum of 20 years in prison and a $250,000 fine for the wire fraud charge and five years in prison and a $100,000 fine for the tax evasion charge. James Staz also faces a maximum of 20 years in prison and a $500,000 fine or twice the amount of the criminally derived proceeds, whichever is greater, for the money laundering charge. As part of the plea agreement, both defendants have agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendants has not been set yet.
The investigation for the case was handled by the FBI and IRS-CI. The prosecution of the case is being handled by Assistant U.S. Attorney Kelli H. Ferry of the U.S. Attorney’s Office, in Charlotte.
New Orleans Woman Sentenced for Making False Statements on Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JULIE MERLIN ZANCO, age 44, of New Orleans, was sentenced today after previously pleading guilty to making false statements on income tax returns.
U.S. District Judge Carl J. Barbier sentenced ZANCO to serve three years probation and pay $9,838 in restitution.
According to the court documents, in or about May 2012, ZANCO’S husband learned that someone had opened a brokerage account in his name and used that account to acquire collateralized mortgage obligations (CMOs), a type of bond that bore value from interest generated upon its sale, by fraudulent means. Even though they knew that the CMOs were not theirs, ZANCO and her husband gained control of the accounts and arranged for the interest proceeds of the CMOs to be diverted to other financial accounts under their control. Between about March 18, 2013, and November 18, 2013, ZANCO used the funds, totaling approximately $54,980, to engage in a variety of financial transactions for her personal use, including purchasing a boat. ZANCO failed to report the $54,980.00 as taxable income on her Tax Year 2013 tax return. As a result of her failing to report this income on her tax return, she received an $838 refund, while she should have been obligated to pay approximately $9,000 in tax to the Internal Revenue Service.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
New Jersey Resident/Nigerian National Sentenced to 37 Months for New Hampshire Bank Fraud and ConspiracyRead the Press Release
CONCORD, NEW HAMPSHIRE – Olowaseun Adekoya, 29, a Nigerian National living in Sewaren, NJ, was sentenced in United States District Court for the District of New Hampshire to 37 months in prison, after being convicted by a jury of bank fraud and conspiracy to commit bank fraud in New Hampshire, announced United States Attorney John P. Kacavas.
Between September 26, 2013 and October 2, 2013, Adekoya communicated on-line with an undercover agent who had taken over the identity of a criminal with whom Adekoya had previously done business. The undercover agent advised Adekoya that he could create counterfeit ATM cards which Adekoya could use to fraudulently obtain money from banks in New Hampshire. As a result of those discussions, on October 1, 2013 Adekoya sent four individuals from New Jersey to Manchester, New Hampshire to engage in what he thought would be a $960,000 ATM bank fraud. The undercover agent and Adekoya had agreed that Adekoya would come to Manchester, NH and bring four “soldiers” with him, and that all five of them would each take 40 counterfeit ATM cards and travel to ATMs in Manchester, under cover of darkness, and fraudulently withdraw almost a million dollars.
Late on the evening of October 1, 2013 Adekoya’s four co-conspirators flew to New Hampshire and went to an agreed upon location where they picked up what they thought were 200 counterfeit ATM cards. In the early morning hours of October 2, 2013, the four then proceeded to ATM machines, where they were arrested. Mr. Adekoya, having not flown to New Hampshire with his confederates, was arrested at his home in Sewaren, NJ. The four co-conspirators, Darrell Harris, Adebayo Adegbesan, Kamau Brown and Aubrie Banks, all pled guilty before trial and two of them testified against Adekoya.
The case was investigated by the U.S. Secret Service with assistance from the United States Postal Inspection Service and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Arnold H. Huftalen.
Missouri Woman Guilty of Tax Scheme to Obtain “Free Money”Read the Press Release
Tanya Nichols, 33, of St. Louis, Missouri, pleaded guilty on March 5, 2015, in US District Court for participating in an income tax refund scheme, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Nichols, and her half-brother Justin Durley, 30, of Hazelwood, Missouri, were indicted by the federal grand jury on August 20, 2014. They were charged in lengthy indictment that alleges Nichols functioned as a dishonest tax preparer who filed false tax returns to claim inflated refundable tax credits for low-income tax filers.
Nichols pleaded guilty to conspiracy to obstruct or impair the Internal Revenue Service in the lawful assessment and collection of income taxes and distribution of tax refunds, three counts of mail fraud and one count of theft of government property. Durley is charged with theft of government property. Durley is scheduled for trial on May 11, 2015.
The scheme to defraud was described as an ongoing federal income tax refund scheme where Nichols
prepared fraudulent income tax returns for individual tax filers in order to generate "refundable tax credits," such as the earned income tax credit (EIC) and the child tax credit, which were refunded to the filer. The false information contained in the income tax returns prevented the IRS from making an accurate ascertainment, computation, and assessment of tax liabilities. It also prevented the IRS from making a correct distribution of income tax refunds. The false tax returns generated a larger tax refund than the filer was entitled to receive. Nichols shared the proceeds generated from the fraudulent returns with the tax filers, while collecting a fee in excess of that typically charged by legitimate tax preparers.
Nichols also paid finders’ fees to those who recruited tax filers to participate in the scheme. The indictment charges that Nichols and her coconspirators solicited low-income individuals residing in St. Louis, Missouri and East St. Louis, Illinois to become participants in this refund scheme by promising IRS tax refunds, sometimes marketed as "free money."
The indictment explains that "refundable tax credits" are vulnerable to abuse because they have cash value to tax filers. That means a filer can receive "refund" payments for refundable credits even when the person filing the tax return has never paid any income tax whatsoever. In the case of low-income tax filers, it is common for a person to have little or no federal tax liability while still qualifying to receive these valuable refundable tax credits. This means that a low-income filer can receive a tax "refund" that exceeds the amount of income tax the filer actually paid. In that situation, the filer is not receiving a refund of their money; but rather they are actually profiting from the tax code by receiving thousands of dollars’ worth of refundable tax credits that exceed the filer’s tax obligations. The indictment alleges that Nichols took advantage of this system by falsifying income, employment, dependents, and other factors, to fraudulently generate these large refundable tax credits.
2
Conspiracy is punishable by not more than 5 years’ imprisonment, a $250,000 fine, and not more than 5 years supervised release. Theft of government property is punishable by not more than 10 years’ imprisonment, a $250,000 fine and not more than three years supervised release. Each count of wire fraud is punishable by not more than 20 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Nichols is scheduled to be sentenced on June 12, 2015.
The investigation is being conducted by agents from the Internal Revenue Service / Criminal Investigations. The case is being prosecuted by Assistant United States Attorneys Steven D. Weinhoeft and Norman R. Smith.
An indictment is a formal charge against a defendant. Under the law, Justin Durley is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Mexican National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that APOLINAR MONJE-SANCHEZ, age 42, a native of Mexico, was sentenced today after previously pleading guilty to a one-count indictment for illegal entry of a removed alien.
U.S. District Court Judge Susie Morgan sentenced MONJE-SANCHEZ to time served, which was five months. MONJE-SANCHEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, the defendant was encountered by federal agents at the Union Passenger Terminal in New Orleans on October 1, 2014. MONJE-SANCHEZ had previously been removed from the United States on April 29, 2010.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Metro-East Resident Pleads Guilty to Participating in Fraudulent Tax Refund SchemeRead the Press Release
Sylvia Baker, 30, from Fairview Heights, Illinois, pled guilty to conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns, and also pled guilty to five additional counts for making false claims for federal tax refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Baker faces a prison sentence of up to 35 years, a fine of up to $1,500,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Her sentencing has been scheduled for July 10, 2015.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Marshalltown Man Sentenced to 210 Months in Prison for Transportation of Child PornographyRead the Press Release
DES MOINES, IA – On February 19, 2015, John Vivian Sims, age 36, of Marshalltown, Iowa, was sentenced to 210 months in prison, followed by 5 years of supervised release, by United States District Court Senior Judge Robert W. Pratt for transportation of child pornography, announced United States Attorney Nicholas A. Klinefeldt.
Sims had been under investigation in the Summer of 2012 by local law enforcement for a string of burglaries committed in Marshalltown, Iowa. When Sims fled the area, the investigation into his whereabouts revealed he had used his cell phone to persuade four minors from Oregon, Texas, New Jersey, and Florida, respectively, to take nude photographs of themselves and send them to him via email. Sims was federally charged in May 2014 with three counts of production of child pornography and one count of transportation of child pornography. He pleaded guilty to the transportation charge in October of 2014.
Any persons having knowledge of a child being sexually abused, or of a person committing child pornography crimes, are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
The investigation was conducted by the Marshalltown, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Marquette Felon Sentenced to Prison for Possessing FirearmRead the Press Release
MARQUETTE, MICHIGAN – Joseph Glenn Etheridge, 37, of Marquette, Michigan, was sentenced to 70 months (6 years) in prison followed by three years of supervised release, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. District Judge Robert Holmes Bell handed down the sentence.
On November 21, 2014, Etheridge pleaded guilty to an indictment charging him with being a felon in possession of a firearm. The charge arose from an investigation surrounding the discharge of a shotgun in Skandia, Michigan on February 10, 2014. Etheridge had been seen with a shotgun earlier in the day and was found hiding in a nearby residence he had broken into after firing the shotgun. Etheridge had previously been convicted of two felony home invasion charges in Michigan’s Third Circuit Court in Detroit.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Michigan State Police investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
Managing Director of Venture Capital Firm Arrested and Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Andrew Vale, the Special Agent in Charge of the Albany Division of the FBI, announced today that GREGORY W. GRAY, JR., was arrested yesterday in Florida on securities fraud, wire fraud, and perjury charges stemming from his scheme to defraud investors in multiple funds created and controlled by GRAY of approximately $5 million dollars.
Among other illicit activity, GRAY allegedly fraudulently induced an investor (“Investor-1”) to invest $5 million in a fund controlled by GRAY, based on the false representation that GRAY would invest that money, through the fund, in shares of Uber Technologies, Inc. (“Uber”). In fact, GRAY allegedly did not invest any of Investor-1’s $5 million in Uber, instead using that $5 million investment to repay investors who believed they had invested in shares of Twitter, Inc. (“Twitter”), including Investor-1 himself, who also believed he had invested in Twitter. In support of the scheme, GRAY allegedly forged a stock transfer agreement, which he provided to Investor-1, purporting to show that GRAY, through a fund he controlled, had used the $5 million investment to purchase over 175,000 shares of Uber. In fact, and as GRAY well knew, he had purchased no Uber shares whatsoever.
GRAY was presented today before a United States Magistrate Judge in federal court in West Palm Beach, Florida.
U.S. Attorney Preet Bharara said: “As alleged, Gregory Gray dangled the opportunity to invest in new companies like Twitter and Uber to entice his victims into fraudulent investment schemes and, in an effort to extricate himself from one scam, he devised another. Then, as the Complaint charges, he made things worse by lying about it to the SEC. The investments Gray allegedly offered were fake but the charges he faces are real.”
FBI Assistant Director in Charge Diego Rodriguez said: “With the cachet of Uber and Twitter, Gray allegedly convinced investors to join his fund. Instead of making real investments, he allegedly used the money to pay off old debts. Mr. Ponzi may be dead, but the illicit behavior for which he is known is alive and well. We will continue policing our markets to protect their integrity and investors.”
FBI Special Agent in Charge Andrew Vale said: “Yesterday’s arrest is the result of the hard work and cooperation between the FBI, SEC and the U.S. Attorney’s Office to bring this individual to justice. This multimillion-dollar fraud scheme demonstrates the significant impact white collar criminals can have on the hard-working individuals of our communities, and the FBI, in concert with our federal partners, will continue the dedicated pursuit of those who violate the law for personal gain.”
According to the three-count Complaint unsealed yesterday in Manhattan federal court:
From at least April 2014 through February 2015, GRAY engaged in a Ponzi scheme to defraud investors who believed they had invested in funds GRAY controlled at Archipel Capital, LLC (“Archipel”), where GRAY was the Senior Managing Director.
From June 2012 through November 2013, GRAY raised over $5.2 million, from approximately 52 investors, for four Archipel “Social Media Funds.” GRAY promised to use that capital to purchase shares of Twitter before the company’s initial public offering (“IPO”). Based on GRAY’s representations to investors, GRAY promised to purchase over 200,000 pre-IPO Twitter shares.
GRAY frequently commingled funds of the various Archipel investment vehicles that he managed. Ultimately, GRAY’s withdrawals from the Social Media Funds left those funds with insufficient money to purchase the full complement of pre-IPO Twitter shares he had promised investors.
On November 6, 2013, Twitter had its IPO and began trading on the New York Stock Exchange. At that time, contrary to his representations to investors, GRAY had purchased only 80,000 pre-IPO Twitter shares for a total cost of $1,875,000. GRAY accordingly owed his investors millions of dollars’ worth of Twitter shares.
In an attempt to make up the shortfall of Twitter stock, in April 2014, GRAY persuaded Investor-1 to invest $5 million in Archipel’s “Late Stage Fund,” which GRAY also controlled. GRAY promised that, through that fund, he would use Investor-1’s $5 million investment to purchase a purported multimillion-dollar, privately held allotment of Uber shares. However, instead of using the $5 million as promised, GRAY instead used the money to make cash payments to investors in the Social Media Funds and to purchase post-IPO Twitter shares for those same investors, including Investor-1 himself.
When Investor-1 requested documentation of the purchase of Uber shares as promised, GRAY provided Investor-1 with a fabricated stock transfer agreement (the “Uber Stock Transfer Agreement”) that purported to show that the Late Stage Fund had purchased 175,438 Uber shares. In truth and in fact, and as GRAY well knew, the fund had not purchased any Uber shares.
On February 24, 2015, GRAY gave sworn testimony to the SEC. During his testimony, GRAY falsely stated, in substance and in part, that the Uber Stock Transfer Agreement reflected a bona fide purchase of Uber shares by the Late Stage Fund.
GRAY, 39, was arrested yesterday at his home in Lake Worth, Florida. He is charged with one count of securities fraud, one count of wire fraud, and one count of perjury in connection with his testimony to the SEC. The securities fraud count and the wire fraud count each carry a maximum sentence of 20 years in prison. The perjury count carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Damian Williams and Michael Ferrara are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Gregory Gray Complaint
Man Charged for Failing to Register as a Sex OffenderRead the Press Release
A grand jury returned a one-count indictment charging Scott Ray Moon, age 48, of Bartow, Florida, with failing to register as a sex offender in Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a 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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Cleveland office of the United States Marshals Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Las Cruces Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Anthony Calderon, 40, of Las Cruces, N.M., pleaded guilty this afternoon in federal court to heroin and methamphetamine trafficking charges. Under the terms of his plea agreement, Calderon will be sentenced to a prison term in the range of 24 to 36 months.
Calderon was arrested on Aug. 8, 2014, in Las Cruces on an indictment charging him with two counts of distributing heroin and one count of distributing methamphetamine in Doña Ana County, N.M. The indictment also charged Calderon’s co-defendant Orlando Roman, 34, also of Las Cruces, with one count of heroin distribution. Roman was arrested on Oct. 9, 2014.
During today’s proceedings, Calderon pled guilty to all three counts of the indictment and admitted that on April 15 and April 16, 2014, he distributed approximately 75.3 grams of heroin to a person working under the supervision of law enforcement. Calderon also admitted that on May 27, 2014, he distributed approximately 101.1 grams of methamphetamine to a person working under the supervision of law enforcement.
Co-defendant Roman has entered a plea of not guilty. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
This case is being 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.
Lambert Family Sentenced to Federal Prison for Brockton Embezzlement SchemeRead the Press Release
GREAT FALLS - Four members of a Brockton family were sentenced to federal prison terms today for their role in the embezzlement of over $130,000 from the Town of Brockton on the Fort Peck Indian Reservation, the latest development in the ongoing probe into public corruption involving federally funded programs known as the Guardians Project.
The United States Attorney’s Office announced that Desiree Lambert, 59, Bernard Lambert, 66, Kaycee Lambert, 35, and Kayla Lambert, 30, were all sentenced to prison during a federal court hearing on March 5, 2015, before U.S. District Judge Brian M. Morris.
The Lambert family was indicted in August of 2014 by a federal grand jury for wire fraud, public corruption, and aggravated identity theft. At the changes of plea, Assistant U.S. Attorney Ryan G. Weldon outlined the embezzlement scheme spearheaded by Desiree Lambert, then the Business Manager for the Town of Brockton. In her role as Business Manager, Desiree Lambert handled the municipality’s finances, books and records. Beginning in December 2012, Desiree Lambert began writing illegitimate checks to herself, her husband (Bernard Lambert), and her daughters (Kaycee and Kayla Lambert) and forging the signature of the Mayor of Brockton. The embezzlement scheme netted the Lamberts $132,563 over approximately a year-and-a-half time period. When interviewed, the Lamberts admitted to spending the money on gambling and other household items.
At sentencing, Weldon requested stiffer prison sentences for Bernard and Desiree Lambert due to their previous criminal history. In 2006, Bernard and Desiree Lambert embezzled $12,000 from the Department of Education while Bernard Lambert was the Superintendent of the Brockton School District and Desiree Lambert was the Director of the Fort Peck Department of Education. Desiree Lambert authorized four payments to her husband for writing ten grant applications on behalf of the Ft. Peck Department of Education. The alleged grant applications were for grants from various corporations and a 21st Century Grant from the U.S. Department of Education (DOE). Investigation revealed, through contact with the various corporations and the DOE, that none of the grant applications that Bernard Lambert was paid to write were ever received or funded. As a result of their past fraud, Bernard and Desiree Lambert each served a year in federal prison. After the pair was released from federal supervision in 2011, Desiree Lambert was hired to handle the finances of Brockton.
Weldon told the Court that “[u]ndeterred, this time the Lamberts regrouped and increased their criminal efforts with more vigor. As a result, they embezzled $132,563.95—many times more than that of the first conviction. Worse yet, they used their children to move money and feed their gambling addictions.”
Judge Morris sentenced Desiree Lambert to 44 months of prison, and Bernard Lambert received 20 months of prison. Desiree Lambert received an increase in her sentence, in part, because she abused and used her position with the Town of Brockton in order to embezzle public funds. Judge Morris also ordered Desiree and Bernard Lambert to serve three years of supervised release and to repay $132,563.95 in restitution.
Kayla Lambert and Kaycee Lambert facilitated the embezzlement and public corruption scheme by cashing fraudulent checks on behalf of their mother and father. Judge Morris sentenced Kayla Lambert to 5 months in federal prison, followed by two years of supervised release. Of the two years on supervised release, Kayla Lambert must spend 5 months in home confinement. Kaycee Lambert was sentenced to one more month in federal prison than Kayla. As a result, Kaycee received a federal prison sentence of 6 months, which will be followed by two years of supervised release. Of the two years on supervised release, Kaycee Lambert must spend 6 months in home confinement. Kayla Lambert was ordered to pay $93,656.00 in restitution, and Kaycee Lambert was ordered to pay $39,774.07 in restitution.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that the Lamberts will serve all of the time imposed by the court. In the federal system, Bernard and Desiree Lambert do have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by the Federal Bureau of Investigation and the Department of Justice Office of Inspector General.
Jury Convicts Major Tobacco Distributor in $16 Million Excise Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Moo Hoon “Steve” Kim, 54, resident of Cypress, Calif., guilty today of mail fraud, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.
Between 2006 and 2009, Kim was responsible for bringing over $35 million in untaxed other tobacco products (“OTP”) into the State of California. OTP is any tobacco product other than cigarettes, and consists primarily of cigars, chewing tobacco, and leaf tobacco.
The evidence at trial showed that Kim went to great lengths to conceal his OTP purchases from the State. He used front companies, set up by others at his direction, to disguise his illegal purchases and subsequent sales of untaxed OTP from out-of-state sources. These companies included KS Wholesale located in Vernon, Calif., and Cheap Cig Distributor located in Paramount, Calif. Kim also used another front company as a retail outlet for some of the untaxed OTP that he sold through his company, Jobber’s Wholesale. That business was Discounted Tobacco located in Long Beach, Calif. As a result of Kim’s scheme, the State of California was defrauded of over $16 million in excise taxes. A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California.
This case is the product of investigations by a specialized task force comprising the U.S. Attorney’s Office, the California Attorney General’s office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California State Board of Equalization. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. In 2007, the BOE estimated that the state lost approximately $90 million in unstamped tobacco excise taxes to contraband distributors, and approximately $120 million in excise taxes for taxed stamped tobacco like cigarettes. Because California has a relatively high tobacco excise tax rate, it is a frequent target for contraband tobacco smugglers and tax evaders. Assistant United States Attorney Michael D. Anderson and U.S. D.O.J. Antitrust Division Trial Attorney Richard A. Powers, designated as a Special Assistant United States Attorney, prosecuted the case.
“The fraudulent importation and sale of untaxed tobacco punishes honest merchants who play by the rules, and it deprives the State of California of needed tax revenue,” said U.S. Attorney Wagner. “We are gratified by the jury’s verdict, as the conviction of Steve Kim is a significant milestone in our ongoing partnership with the State of California and the ATF to put an end to this practice.”
“ATF works diligently to investigate and disrupt tobacco traffickers. These investigations are arduous and require a long-term commitment from members of our task force and prosecution team,” stated ATF Special Agent in Charge, Joseph M. Riehl. “Today’s guilty verdict is a win for law enforcement, the state of California, and our community.”
“Today’s verdict is a significant win in our battle against the underground economy,” said Board of Equalization Chairman Jerome E. Horton. “It reinforces the need for continued, persistent, and intelligent prosecution of these types of crimes."
Kim is scheduled to be sentenced by Judge Shubb on June 1, 2015. Kim faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Italian Shipping Company Fined $2.75M for Environmental CrimesRead the Press Release
WASHINGTON – Carbofin S.p.A., an Italian domiciled company that owned and operated the M/T Marigola was sentenced to pay an overall criminal penalty of $2.75M by the Honorable Virginia M. Hernandez Covington for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), announced the Department of Justice Environment and Natural Resources Division and the United States Attorney’s Office for the Middle District of Florida.
Out of the $2.75M criminal penalty, $600,000.00 will be paid to the National Marine Sanctuary Foundation for the benefit of Florida’s only national marine sanctuary: the Florida Keys National Marine Sanctuary. The funds are to be used to support the protection and preservation of natural resources located in and adjacent to the sanctuary, including the cleanup and remediation of pollution in the sanctuary; restoration of injured resources, particularly coral reefs and seagrass beds and species dependent on those habitats. The funds will also support scientific research in, and public education about, the Florida Keys National Marine Sanctuary
During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment. On April 16, 2014, the vessel called upon the Port of Tampa to load anhydrous ammonia. Coast Guard inspectors boarded the vessel and were approached by two junior engineering crew members who showed the inspectors a video of the “magic pipe” hooked up between piping leading to the bilge tank and the vessel’s boiler blow down valve. The boiler blow down valve is a discharge point for the boiler to release hot water and steam. The inspectors had the valve removed and an oily black substance was discovered. Oil samples taken from the “magic hose”, the bilge piping and the boiler blow down valve matched. The Chief Engineer, Carmelo Giano, and the Second Engineer, Alessandro Messore, had previously pleaded guilty and were sentenced for their role in ordering the use of the “magic hose” to illegally discharge oily waste into the sea.
"We are extremely grateful to the U.S. Department of Justice in supporting the work of the National Marine Sanctuary Foundation on behalf of the nation's marine sanctuaries, including here at the Florida Keys National Marine Sanctuary," said Jason Patlis, President and CEO of the National Marine Sanctuary Foundation. "These funds will go to critical education, research and restoration activities, including deployment of mooring buoys, coral reef restoration, and study and mitigation of invasive species impacts."
"Marine environmental protection is one of the Coast Guard's primary missions," said Capt. Gregory Case, Captain of the Port at Sector St. Petersburg. "The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future illegal oil discharges into the sea."
Consistent with requirements in the APPS regulations, a vessel like the M/T Marigola, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person or persons in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS). Waste oil and sludge can only be disposed of using an on-board incinerator or by discharging the waste to a shore-side facility, barge or tanker truck. Giano and Messore falsified the oil record book by not recording that oily waste was being disposed of through the boiler blow down valve.
During the course of the investigation, it was revealed that the oil record book for the M/T Marigola was falsified since at least June 16, 2013. The investigation also revealed that illegal oily waste discharges had occurred from two other vessels owned and operated by Carbofin, the M/T’s Marola and Solaro. On the M/T Marola, a “magic hose” was used between on or about December 2012 and April 2013 and on the M/T Solaro between on or about February to August 2013.
The case was investigated by U.S. Coast Guard Sector St. Petersburg and the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and Matthew Mueller of the U.S. Attorney’s Office for the Middle District of Florida.
Inmate Sentenced for Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CINCINNATI, OHIO -- James Jeremy Savage, 41, originally from Springfield, Ohio, was sentenced to 30 months in prison, three years of supervised release, and was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $148,307.04 for filing false claims for income tax refunds with IRS. Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he committed this crime. Savage previously pleaded guilty one count of a multi-count indictment charging Savage with this scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, during the 2007 through 2011 income tax years Savage participated in a scheme to defraud the IRS relative to filing false claims for income tax refunds for his jailmates serving prison terms.
From approximately October 22, 2008 to August 24, 2011 while incarcerated, Savage prepared fictitious income tax returns for fellow inmates. The income tax returns prepared by Savage reported false wages not supported by Forms W-2 or other income documentation and the tax refunds were calculated based on false federal income tax withholdings as well as various tax credits.
Savage knew the inmates, for whom he prepared income tax returns, had not worked and in some cases had been incarcerated for multiple years. In many instances, Savage prepared multiple income tax returns for the inmates, including returns for the prior tax years that had not been filed. In an effort to convince the inmates that they were entitled to an income tax refund, Savage said the money was “free money,” a result of “stimulus money” provided by the President, as well as money from back taxes.
Savage caused at least ninety-nine (99) false claims for income tax refunds to be filed with the IRS totaling at least $148,307.04.
Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office stated, “This 30-month sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers. We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”
U.S. Attorney Stewart commended the investigation by special agents of IRS-Criminal Investigation, and Assistant United States Attorneys Anne L. Porter, who prosecuted the case.
Independence Business Owner Plead Guilty to Filing a False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of an Independence, Mo., business has pleaded guilty in federal court to failing to report business income on her federal income tax return.
Peggy Hennon, 57, Independence, the owner and operator of Peggy’s Tow, pleaded guilty before U.S. Magistrate Judge John T. Maughmer on Monday, March 2, 2015. Hennon pleaded guilty to filing a false income tax return for the 2007 tax year. The government contends that Hennon failed to report more than $192,000 in business income.
Peggy’s Tow purchased vehicles as scrap and sold them to scrap yards in the Kansas City metro area. After the vehicles were sold to the scrap yard, Hennon either deposited the check into one of her checking accounts or cashed the check at a gas station or bank.
According to the plea agreement, Hennon engaged in a scheme to falsely under-report the gross receipts for her business in order to significantly reduce her tax liability. Although Hennon used a professional tax preparer, she provided the information regarding her income and expenses. Hennon cashed a significant amount of checks she received from the sale of scrap vehicles and failed to include those cashed checks on her tax returns for tax year 2007.
Hennon filed her federal income tax return for 2007 on Oct. 16, 2008. Hennon substantially understated her gross receipts in the amounts of $192,201 for tax year 2007. Hennon stated that she received $168,549 in gross receipts in tax year 2007 when she actually knew her gross receipts were at least $360,750. The additional tax due and owing for 2007 is $57,726.
Under federal statutes, Hennon is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.
Husband and Wife Arraigned on Charges of Fraud and Money Laundering Related to Classic Car SchemeRead the Press Release
Law Enforcement Seeking Assistance From Potential Victims
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Travis Allen Blount, Jr., aka Travis Allen, or Allen Blount, age 56, of Kirbyville, Missouri and his wife Sandra J. Blount, age 47, of Kirbyville, Missouri, each appeared separately this week in United States District Court for arraignment on charges related to a scheme to defraud involving classic and vintage cars. The Honorable Mark E. Ford presided over both hearings; each defendant pleaded not-guilty to all charges. Travis Blount previously lived in Harrison and Hot Springs, Arkansas. Prior to moving to Arkansas, Blount lived in Louisiana. The defendants are scheduled for trial on April 6, 2015 before United States District Judge P.K. Holmes III.
U.S. Attorney Eldridge stated, “We are committed to identifying and prosecuting all types of fraudulent schemes that prey on innocent people. We ask for the public’s help with identifying all of the victims in this case, to ensure that justice is pursued for all fraudulent conduct involved. Potential victims should contact Law Enforcement at the telephone number below with any relevant information.”
As alleged in the complaint, the Blounts operated two car lots, “Corvettes and Classics” in Harrison, Arkansas and “Al’s Hot Rods” in Kirbyville, Missouri. The Blounts made agreements with victims to sell classic and vintage vehicles on consignment. Instead of compensating victims, the Blounts frequently sold cars without paying the owners and accepted payments from buyers without delivering the vehicle or title. Please contact Special Agent Tim Arsenault at 479-571-9763 if you have any information in this case.
A Federal Grand Jury charged Travis A. Blount, Jr. with the following: one count of Conspiracy to Defraud, three counts of Mail Fraud, four counts of Wire Fraud, two counts of Interstate Transportation of Goods to Conceal a Scheme to Defraud, and four counts of Money Laundering. Sandra J. Blount was charged with the following offenses: one count of Conspiracy to Defraud, one count of Aiding and Abetting Mail Fraud, one count of Aiding and Abetting Wire Fraud, one count of Aiding and Abetting Interstate Transportation of Goods to Conceal a Scheme to Defraud, and one count of Aiding and Abetting Money Laundering.
This case is being investigated by the Financial Crimes Task Force in the Western District of Arkansas, the Internal Revenue Service - Criminal Investigation Division, Homeland Security Investigations, the Fayetteville Police Department, and the Harrison Police Department. Assistant U.S. Attorney Kyra Jenner is prosecuting the case for the United States.
The charges in the complaint are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FELIX HUMBERTO FIGUEROA-LOPEZ, age 42, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced FIGUEROA-LOPEZ to 15 months imprisonment followed by three years of supervised release, and a $100 special assessment. Following his incarceration, FIGUEROA-LOPEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about August 16, 2014, Jefferson Parish Sheriff deputies arrested FIGUEROA-LOPEZ for disturbing the peace/fighting. The deputies then contacted agents of the U.S. Immigration and Customs Enforcement, who discovered that FIGUEROA-LOPEZ was a Honduran national who had been previously deported from the United States in 1999 and 2004. ICE agents confirmed that FIGUEROA-LOPEZ had again illegally reentered the United States without inspection by a United States Immigration official. Agents placed an ICE detainer on FIGUEROA-LOPEZ in order to hold him for criminal prosecution.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters was in charge of the prosecution.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE EDGARDO CANALES-MADRID, age 25, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced CANALES-MADRID to times served, which was approximately three months imprisonment, and a $100 special assessment. CANALES-MADRID will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, CANALES-MADRID was found in the United States on December 1, 2014 after having been officially deported and removed on or about October 6, 2011.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Gretna Woman Charged with Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that THERA ELLISON, age 58, a resident of Gretna, was charged today with theft of government funds.
According to the Indictment, ELLISON received Federal Emergency Management Agency assistance in order to replace a Hurricane Katrina-damaged school building. It is alleged that ELLISON spent some of the funds on improper purposes, including her own personal benefit, even though she had represented that the funds would be used to pay specific expenses related to the replacement of the building.
If convicted, ELLISON faces up to ten years’ incarceration and a fine of up to $250,000. U.S. Attorney Polite reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Department of Homeland Security - Office of Inspector General in investigating this matter and thanked the Office of Louisiana Legislative Auditor for its assistance. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
Getaway Driver in Bank Robbery SentencedRead the Press Release
Gregory Gilmer, Jr., 34, of Belleville, was sentenced today by Chief United States District Court Judge Michael J. Reagan to 70 months in federal prison for armed bank robbery and conspiracy to commit bank robbery, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
According to court documents, Gilmer, Cortez Beckman, and Jimmie Rhodes agreed to rob the Gateway Metro Federal Credit Union in Swansea, Illinois on April 30, 2013. Gilmer served as the getaway driver, while Beckman and Rhodes went inside the credit union armed with a BB gun and stole $10,092.00. The three men fled the scene. Law enforcement in Belleville attempted to stop the getaway car. When the car would not, a vehicle chase ensued. The getaway car crashed, and the three men fled on foot. Beckman was found under a chicken coup with the robbery proceeds and arrested. Rhodes and Gilmer were arrested a short time later. All three men pled guilty and are serving time in the Bureau of Prisons.
Chief Judge Reagan sentenced Gilmer to a total of 70 months in federal prison: 60 months for the conspiracy to commit bank robbery and 70 months for armed bank robbery to run concurrently. There is no parole in the federal prison system. In addition to the prison sentence, Judge Reagan also sentenced Gilmer to serve 3years of supervised release. United States Attorney Wigginton stated, "I am pleased with sentence imposed by Chief Judge Reagan. The prosecution of this bank robbery demonstrates my office’s sincere commitment to doing everything we can to assist law enforcement in targeting, investigating, and prosecuting those individuals that seek to profit from violent crimes. Hopefully my Armed Robbery Initiative, coupled with prosecutions of any kind of theft or robbery, will make our communities safer places to live and work."
The Swansea, Illinois, Police Department and the Federal Bureau of Investigation investigated this case with the assistance of the Belleville, Illinois, Police Department and the Illinois State Police. Assistant United States Attorney Monica A. Stump prosecuted the offense.
Former Georgia Department of Corrections Employees and Accomplice Indicted for Stealing State Restitution FundsRead the Press Release
ATLANTA - Tammi Stephens, Daynna Gregory, and Richard Cantrell have been arraigned on federal charges of theft of public funds and conspiracy stemming from an alleged check fraud scheme to steal from a victims’ restitution fund controlled by the Georgia Department of Corrections, where Stephens and Gregory worked until recently.
“These defendants are charged with stealing from a fund set up to compensate victims of crime,” said Acting U.S. Attorney John Horn. “At the time of their alleged actions, Stephens and Gregory were Georgia Department of Corrections employees, holding positions in which they were responsible for issuing checks to crime victims.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The allegations contained within this federal indictment involve a serious breach of trust by these defendants. The FBI remains committed toward investigating and presenting for prosecution those individuals who would use their positions of trust within government for personal gain.”“The abuse of public trust by Stephens and Gregory as state employees, and their betrayal of the victims we serve are actions that won’t be tolerated,” said Homer Bryson, Commissioner of the Georgia Department of Corrections. “We appreciate the swift response by the FBI, and the diligence of our staff in identifying this serious breach. We are committed to fully cooperating and assisting with the investigation and prosecution of these former employees,” added Bryson.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: From September 2013 to June 2014, Stephens and Gregory used their positions as clerks in the Georgia Department of Corrections’ banking unit to issue fraudulent checks drawn on a fund established to provide restitution to victims of other crimes. The indictment further alleges that Stephens and Gregory made the checks payable to a flower shop owned by Cantrell, who was not an employee of the Department. The defendants purposely issued fraudulent checks to the flower shop in order create the appearance that the restitution checks were being paid to real crime victims. After printing the fraudulent checks, Stephens and Gregory allegedly altered the Department’s financial records to hide their theft. The fraudulent checks were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory. In total, the defendants allegedly stole more than $232,000, which they then spent at big box stores and department stores.
Tammi Stephens, 37, of Forsyth, Georgia, Daynna Gregory, 41, of Lithonia, Georgia, and Richard Cantrell, 54, of Marietta, Georgia were indicted by a federal grand jury on March 3, 2015. All three defendants were arraigned this afternoon before Magistrate Judge E. Clayton Scofield, III.Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Kurt R. Erskine and Special Assistant United States Attorney Trevor C. Wilmot are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Final Defendant in Multi-State Drug Trafficking Organization Enters Guilty PleaRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that William Hunt, Jr., 55, Abingdon, Virginia, entered a plea of guilty today in the United States District Court for the Western District of Virginia in Abingdon. Hunt pleaded guilty to one count of use of a communications facility in furtherance of a drug trafficking offense. Hunt’s guilty plea brings the total number of defendants found guilty to twenty-eight as a result of “Operation Saltvegas”, a multi-agency investigation into methamphetamine trafficking in Southwest Virginia and Northeast Tennessee.
According to evidence presented at multiple hearings by Assistant United States Attorney Zachary T. Lee, the drug trafficking organization led by Richard Shaw, Mountain City, Tennessee, was a supplier of large quantities of methamphetamine to more than twenty-seven sub-distributors in both Northeast Tennessee and Southwest Virginia. The drug trafficking organization was uncovered as part of a multi-agency investigation involving federal, state and local law enforcement in both Virginia and Tennessee. As a result of the investigation twenty-eight individuals have pleaded guilty and agreed to forfeit more than $200,000. To date, twenty-five individuals have been sentenced as a result of the investigation. The defendants that have been sentenced are:- Richard Shaw 59, Mountain City, TN – 210 months imprisonment
- Jeramiah Yates, 34, Vilas, NC – 37 months imprisonment
- Melvin Campbell, 45, Mountain City, TN – 7 months imprisonment
- Daniel Reece, 46, Mountain City, TN – 72 months imprisonment
- Linda Walters, 46, Mountain City, TN – 12 months and 1 day imprisonment
- Russell Wayne Cassell a/k/a “Rusty”, 44, Glade Spring, VA – 41 months imprisonment
- Kenneth Craig Buchanan a/k/a “Bubba”, 50, Glade Spring, VA – 24 months imprisonment
- Stephanie Patrick, 40, Glade Spring, VA – 24 months imprisonment
- Roger Lawson, 65, Glade Spring, VA – 46 months imprisonment
- Toby Mock, 44, Glade Spring, VA – 6 months imprisonment
- Rachel Peake, 44, Atkins, VA – 6 months imprisonment
- Jason Mullinax, 37, Chilhowie, VA – 36 months imprisonment
- Roger Austin, Jr. a/k/a “Fat Rog”, 52, Glade Spring, VA – 121 months imprisonment
- Angela Surber, 40, Chilhowie, VA – 37 months imprisonment
- Timothy Nickolas Rabara, 26, Marion, VA – 5 years probation
- Albert Hague, 56, Mountain City, TN – 30 months imprisonment
- Kimberly Ann Bradley, 44, Johnson City, TN – 12 months and 1 day imprisonment
- James Poore a/k/a “Danny”, 48, Glade Spring, VA – 18 months imprisonment
- Tony Delp, Glade Spring, VA – 6 months imprisonment
- Katherine Mitchell, 55, Saltville, VA – 78 months imprisonment
- Gary Lee Howell, 53, Saltville, VA – 121 months imprisonment
- Angeline Delp, 53, Saltville, VA – 6 months imprisonment
- Tony Delp, 63, Saltville, VA – 6 months imprisonment
- Angela Surber, 40, Glade Spring, VA – 37 months imprisonment
- Brandi Dunford, 34, Abingdon, VA – 60 months imprisonment
The investigation of this case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Smyth County Sheriff’s Office, Abingdon Police Department, Virginia State Police, Johnson County, Tennessee Sheriff’s Office, Tennessee Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, and the United States Marshals Service. The Smyth County Commonwealth’s Attorney’s Office and the Washington County Commonwealth’s Attorney’s Office also assisted in the investigation and prosecution of this case. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.Eilin Castillo Charged with Illegal Entry, Gun PossessionRead the Press Release
St. Thomas, USVI – A federal grand jury returned a three-count indictment on March 5, 2015, charging Eilin Montano Castillo, 33, of the Dominican Republic with possession of a firearm by an illegal alien, possession of a firearm with an obliterated serial number, and illegal entry by an alien, United States Attorney Ronald W. Sharpe announced.
Castillo was arrested on November 17, 2014, and remains in custody while he awaits arraignment and advice of rights on the indictment. If convicted for possession of a firearm by an illegal alien, Castillo faces a maximum penalty of 10 years in prison. If convicted for possession of a firearm with an obliterated serial number, he faces a maximum penalty of five years in prison, and if convicted on the illegal entry by an alien charge, he faces a maximum of six months in prison.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
This case is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney David White.
Dettelbach to Lead Delegation of U.S. Attorneys to Selma to Commemorate "Bloody Sunday"Read the Press Release
U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach will lead a delegation of 25 U.S. Attorneys from across the country to Selma, Ala., this weekend to commemorate the 50th anniversary of the "Bloody Sunday" march and discuss the state of civil rights in America.
"This weekend we will all remember that freedom is not cheap," Dettelbach said. "That the rights we cherish were paid for with the tears, the sweat and even the blood of brave men and women who came before us and fought for them in places like a bridge in Selma, Alabama. As we continue the struggle to keep those rights, and extend them to every person in this country, it is important that we remember that we owe it both to our past and the future to never give up."
This weekend marks the 50th anniversary of "Bloody Sunday" and the Selma-to-Montgomery march in support of passage of the Voting Rights Act.
Dettelbach chairs the Attorney General's Advisory Committee's Civil Rights subcommittee. This weekend's events will include a speech from President Obama at the Edmund Pettus Bridge. Dettelbach will also be involved in discussions about police-community relations, marriage equality, voting rights, the Americans with Disabilities Act and enforcement of other civil rights.
Couple who Fled to Eastern Europe During Bank Fraud Investigation Enter Guilty PleasRead the Press Release
A King County couple who fled to Moldova, in Eastern Europe before being indicted by a federal grand jury for bank fraud related to loans fraudulently obtained from Westsound Bank, entered guilty pleas today in U.S. District Court in Seattle, announced Acting United States Attorney Annette L. Hayes. ALEKSANDR KRAVCHENKO, 36, pleaded guilty to conspiracy to commit bank fraud and filing a false income tax return. GALINA KRAVCHENKO, 35, pleaded guilty to filing a false income tax return. The couple profited from a mortgage fraud scheme in which ALEKSANDR KRAVCHENKO submitted phony loan applications to Westsound Bank. GALINA KRAVCHENKO acted as the real estate agent in the scheme earning large commissions on the fraudulent sales. ALEKSANDR KRAVCHENKO’s plea agreement estimates the loss amount on the bank fraud scheme at more than $10 million, and the tax loss on the false returns at more than $370,000. Chief U.S. District Judge Marsha J. Pechman scheduled sentencing for June 5, 2015.
According to records filed in the case, the KRAVCHENKOs were indicted in May 2009 for an extensive bank fraud scheme involving straw buyers and false statements on mortgage applications. According to facts admitted in the plea agreements, ALEKSANDR KRAVCHENKO had his wife GALINA, a real estate agent, locate real property that was available for purchase. ALEKSANDR KRAVCHENKO then recruited otherwise unqualified buyers to participate in purchasing and building on the properties. ALEKSANDR KRAVCHENKO submitted false and fraudulent construction loan applications and related documents to Westsound Bank, thereby causing Westsound Bank to make loans. A portion of the fraudulently-obtained loan proceeds were diverted for ALEKSANDR KRAVCHENKO’s personal use and benefit, and to further the fraud scheme. GALINA KRAVCHENKO made substantial real estate commissions on the deals. ALEKSANDR KRAVCHENKO submitted 55 loan packets to Westsound Bank worth $49 million – ultimately the bank suffered a $10.7 million loss on the loans and was closed by regulators on May 8, 2009.
Aware of the investigation, but before the indictment was returned, the two KRAVENCHENKOs fled the U.S. and went to Moldova where ALEKSANDR KRAVCHENKO retains citizenship. The two were out of the reach of U.S. law enforcement until December 2014, when GALINA KRAVCHENKO was returned to the U.S. based on an extradition warrant. GALINA KRAVCHENKO had been arrested in Moldova in September 2014 for having false Moldovan and Russian travel documents. GALINA KRAVCHENKO has been in custody since December 2014. ALEKSANDR KRAVCHENKO returned to the U.S on February 23, 2015 to resolve the criminal charges.
Under the terms of the plea agreements, both the prosecution and defense will recommend a five year prison term for ALEKSANDR KRAVCHENKO. He has agreed to make restitution of $10,759,722 for the bank fraud scheme and $370,541 for filing a false tax return. GALINA KRAVCHENKO is equally responsible for the $370,541 for filing a false tax return. Prosecutors will recommend a sentence of time already served in prison for her.
The case was investigated by the FBI, the Federal Deposit Insurance Corporation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Thomas Woods.
Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Co-Defendants in Scheme to Bribe FBI Agent Sentenced in White Plains Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General of the Justice Department’s Criminal Division, and Michael E. Horowitz, the Justice Department Inspector General, announced that JOHANNES THALER and RIZVE AHMED, a/k/a “Caesar,” were sentenced yesterday in White Plains federal court to 30 months and 42 months in prison, respectively. THALER and AHMED were sentenced in connection with a bribery scheme with a third defendant, former FBI Special Agent Robert Lustyik, who awaits sentencing. The sentences were imposed by the Honorable Vincent L. Briccetti, United States District Judge.
According to the Complaint, the Indictment, court hearings, and yesterday’s proceedings:
Lustyik was a Special Agent with the Federal Bureau of Investigation (“FBI”) who worked on the counterintelligence squad in the White Plains Resident Agency. THALER was Lustyik’s friend, and AHMED was an acquaintance of THALER. From in or about September 2011 through March 2012, Lustyik, THALER, and AHMED engaged in a bribery scheme. As part of the scheme, Lustyik and THALER solicited payments of money from AHMED, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. The documents and information pertained to a prominent citizen of Bangladesh (“Individual 1”). AHMED perceived himself on the opposite side of a political rivalry with Individual 1. AHMED sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, Lustyik and THALER exchanged text messages, including messages about how to pressure AHMED to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told THALER, “we need to push [AHMED] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” THALER responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
For another example, in or about late January 2012, Lustyik, upon learning that AHMED was considering using a different source to obtain confidential information about Individual 1, texted THALER, “I want to kill C . . . . I hung my ass out the window n we got nothing? . . . . Tell [AHMED], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [AHMED and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” Lustyik further texted THALER, “So bottom line. I need ten gs asap. We gotta squeeze C.”
THALER, 51, of New Fairfield, Connecticut, and AHMED, 35, of Danbury, Connecticut, were each sentenced for bribery and conspiracy to commit fraud, to which each previously pled guilty.
Lustyik, 52, of Westchester County, pled guilty on December 23, 2014, to all five counts in the Indictment in which he is charged. Lustyik pled guilty to (1) conspiracy to engage in a bribery scheme; (2) soliciting bribes by a public official; (3) conspiracy to defraud the citizens of the United States and the FBI; (4) theft of government property; and (5) unauthorized disclosure of a Suspicious Activity Report. Lustyik is scheduled to be sentenced by Judge Briccetti on April 30, 2015, at 9:30 a.m.
Mr. Bharara praised the efforts of the Department of Justice Office of the Inspector General, which conducted the investigation in this case.
The prosecution is being handled by the Office’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice. Assistant United States Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.
Cedar Rapids Woman Charged with Filing Fraudulent Tax Returns and Aggravated Identity TheftRead the Press Release
Gwendolyn Murray, 33, from Cedar Rapids, Iowa, has been charged with twelve counts of filing false claims for tax refunds, seven counts of theft of government property, and two counts of aggravated identity theft. The charges are contained in an Indictment unsealed on March 3, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that in 2012 and 2013, Murray, using other names, prepared and filed twelve fraudulent tax returns claiming tax refunds to which no one was entitled. The Indictment further alleges that she stole money from the Internal Revenue Service when she received refunds from seven of the fraudulent returns she filed. Finally, the Indictment alleges Murray stole the identities of two people by using their names, social security numbers, and signatures in furtherance of her theft of government property.
If convicted on all charges, Murray faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of 134 years’ imprisonment, a fine, $2100 in special assessments, and a term of supervised release following any imprisonment.
Murray appeared on March 3, 2015, in federal court in Cedar Rapids and was released on bond. Murray’s 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.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-0015-LRR. Follow us on Twitter @USAO_NDIA.
California Man Pleads Guilty to Possession of Child PornographyRead the Press Release
DES MOINES, IA – On March 5, 2015, David Anthony Lavera, age 33, of San Diego, California, plead guilty to federal possession of child pornography charges before U.S. Magistrate Judge Ross Walters, announced United States Attorney Nicholas A. Klinefeldt. Sentencing has been scheduled for June 5, 2015, at 3:00 p.m., before Chief Judge John A. Jarvey at the United States Courthouse in Des Moines, Iowa.
Lavera pled guilty under a plea agreement that calls for him to serve 63 months in federal prison, to be followed by 10 years of supervised release.
As a factual basis for his plea, Lavera admitted that on June 11, 2014, he knowingly possessed child pornography of a minor that he had produced at a residence in Newton, Iowa, using a hidden camera.
Any persons having knowledge of a child being sexually abused, or of a person committing child pornography crimes, are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
The investigation was conducted by the Jasper County Sheriff’s Office, the Newton, Iowa, Police Department, the Iowa Department of Criminal Investigation, and Homeland Security Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Belleville Man Sentenced for Cocaine Trafficking Conspiracy, Possession of A Firearm in Furtherance of the Conspiracy, and Distribution of Crack CocaineRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 5, 2015, Martez Moore, 40, formerly of Belleville, Illinois, was sentenced for Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (Count 1), Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Count 2), and Distribution of Cocaine Base in the Form Commonly Known as "Crack" (Counts 3 and 4), following his guilty plea to the charges on September 24, 2014. Moore was sentenced to 151 months in federal prison on Counts 1, 3 and 4, the sentences to run concurrently, and 60 months in prison on Count 2, the sentence to run consecutively to the sentence imposed on Count 1, for a total sentence of 211 months in prison. He was also ordered to serve 5 years’ supervised release following service of his term of imprisonment, and to pay a $400 special assessment. Moore has been in custody since his arrest on May 7, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) beginning in April 2013. An ATF special agent posed as a cocaine distributor for a Los Angeles based cocaine trafficking organization which was considering using the Metro East St. Louis area as a hub for distribution. The undercover ATF agent was first introduced to Martez Moore and later to Antwone Johnson, Dewayne Hill, Brian Matthews, Bryant Sawyer, Jaren
Jamison, and former East St. Louis police detective Orlando Ward. The undercover agent’s meetings with Moore culminated in Moore asking the undercover agent to broker the supply of 10 kilograms of cocaine from the Los Angeles organization. In return, Moore agreed to provide armed security for the anticipated delivery of 10 kilograms of cocaine and distributors for the cocaine. Moore recruited Johnson as a distributor, and Matthews, Sawyer and Jamison as armed security. Moore also recruited Dewayne Hill to protect him when he accepted delivery of the cocaine. Finally, Moore recruited Orlando Ward, a then detective with the East St. Louis Police Department, to provide police information and to help the conspiracy avoid law enforcement detection. Moore was the last to be sentenced in the case.
The case was assigned to Assistant United States Attorney Kit Morrissey.