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Tuesday 3 March 2015
Two Former Civilian Military Employees and One Military Contractor Convicted in Bribery Scheme at Georgia Military BaseRead the Press Release
WASHINGTON – Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury today of bribery and fraud charges related to military trucking contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Christopher Whitman, 48, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was convicted of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property. Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was convicted of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice. Bradford Newell, 43, of Sylvester, Georgia, also a former employee at the MCLB-Albany, was convicted of 13 counts of honest services wire fraud, one count of bribery and one count of theft of government property.
According to evidence presented at trial, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including the head of the DLA Traffic Office and McCarty, to obtain commercial trucking business from the base. The transportation contracts were loaded with unnecessary premium-priced requirements, including expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. As a result of these contracts, Whitman’s company grossed more than $37 million over less than four years.
The evidence further demonstrated that Whitman paid approximately $200,000 in bribes to the former inventory control manager of the Distribution Management Center at MCLB-Albany, Newell and others, who used their official positions to help Whitman steal more than $1 million in surplus equipment from the base, including bulldozers, cranes and front-end loaders. In exchange for the bribes, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company. Whitman then arranged to improve and paint the stolen equipment, and sell it to private purchasers.
One former United Logistics employee, a business partner of Whitman’s, two former DLA officials and another MCLB official previously pleaded guilty for their roles in the fraud and corruption scheme.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The associated forfeiture litigation is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the Middle District of Georgia.
Three Worcester Men Convicted in Crack Cocaine Conspiracy TrialRead the Press Release
BOSTON – Following a seven-day trial, three Worcester men were convicted yesterday of distributing crack cocaine in the City of Worcester and surrounding areas.
Sergio Hernandez, 33, James "Speedro" Dunston, 33, and Anthony Wooldridge, 30, were convicted of conspiracy with the intent to distribute over 280 grams of “crack” cocaine. Wooldridge was also convicted of possession with intent to distribute cocaine. A fourth co-defendant, Richard Cruz, aka Compi, 42, of Puerto Rico, pleaded guilty on the second day of trial to conspiring to sell over 500 grams of powder cocaine. U.S. District Court Judge Timothy Hillman scheduled sentencing for May 14, 2015 for Cruz, May 15, 2015 for Wooldridge, May 22, 2015 for Dunston, and May 26, 2015 for Hernandez. The Massachusetts defendants were arrested in September 2012, and Cruz was simultaneously arrested at his residence in Puerto Rico.
The conspiracy charges arose from a year-long investigation into a crack cocaine network run by Hernandez, Dunston and Wooldridge in Worcester. On numerous occasions, Hernandez, Dunston and Wooldridge bought 200-500 gram amounts of powder cocaine from a number of sources inside and outside of Massachusetts. They then cooked down the cocaine into crack and distributed it in and around Worcester. Evidence presented at trial included an undercover officer’s purchases of crack cocaine from the defendants, approximately 30,000 intercepted phone calls and text messages, and the August 2012 seizure of one half kilogram of powder cocaine that Cruz sent from Puerto Rico to Hernandez in Worcester through the U.S. mail.
In total, fourteen individuals were charged as a result of the joint investigation by the Drug Enforcement Administration, Worcester Police Department, and U.S. Postal Inspection Service. Three codefendants -- Shawna Gotsis, Janette Hernandez and Jeneva Hernandez -- previously pleaded guilty to similar federal offenses. The Worcester County District Attorney's Office charged seven other co-conspirators in Massachusetts state court.
The charging statute provides a mandatory minimum sentence of 10 years and no greater than life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $8 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Gary J. Gimme, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Cory S. Flashner and Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Three More Arrest in Las Vegas-To-Anchorage Cocaine and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska –U.S. Attorney Karen Loeffler announced today that the following individuals have been arrested in connection with a drug and money laundering conspiracy investigation involving the smuggling of cocaine to Alaska through Las Vegas McCarron International Airport. The new defendants are:
- CLARENCE ANTHONY HATTON, a/k/a “C-Money”, age 46, of Henderson, NV
- MICHAEL VONTRELL LANGDON, a/k/a "Money mike", age 35, of Renton, Washington
- ANTONIO DEMETRIUS BECKWITH, a/k/a "TWIN”, age 38, of Anchorage, AK
The men join DAREN D. COLE, DEWANE E. BLUE, and BRYAN M. BLEDSOE who have been previously indicted. On February 17, 2015, a grand jury in Anchorage charged HATTON, LANGDON, and BECKWITH with one count of drug conspiracy and one count money laundering conspiracy. Also included in the indictment were criminal forfeiture allegations.
According to the indictment, between approximately March 2012 and June 6, 2014, each of the six men participated in a scheme to acquire and distribute cocaine. HATTON would provide his conspirators with drugs in Las Vegas, Nevada. BLEDSOE had employee credentials that allowed him to bypass security screening at the airport in Las Vegas and bring the drugs into the airport undetected. BLEDSOE would then provide the drugs to others in the conspiracy that had cleared security checkpoints and the drugs would be brought to Alaska, and other states, in carry-on luggage. The drugs were distributed in Alaska and COLE, BECKWITH, and others would use the U.S. Mail, or other parcel delivery services, to send money from Alaska to HATTON, LANGDON, and other conspirators, in Washington State and Nevada.
The indictment alleges a total of 27 acts in furtherance of the drug conspiracy, including a sequence of events that occurred on June 1, 2014 when BLEDSOE brought a bag containing 10 kilograms of cocaine that originated with HATTON into the airport. After bypassing security, BLEDSOE met BLUE in a bathroom and provided BLUE with the cocaine. BLUE then met COLE in another bathroom and provided COLE with the cocaine.
The forfeiture allegations in the indictment seek to forfeit property allegedly derived from or used in the drug or money laundering conspiracies, including over $620,000; one Cadillac Escalade; one BMW; and one Mercedes.
According to Assistant U.S. Attorney Frank V. Russo, if convicted, the defendants face a potential life sentence on the drug trafficking conspiracy, with a mandatory minimum of ten years in prison. The money laundering conspiracy charges carry a maximum penalty of 20 years in prison, as well as fines related to the amount of money laundered. Under the federal sentencing statutes the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
An indictment is only a charging document and is not evidence of guilt. Defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The Drug Enforcement Administration, by both its Anchorage and Las Vegas District Offices, the Internal Revenue Service Criminal Investigative Division, the United States Postal Inspection Service, both in Anchorage and Las Vegas, the FBI Anchorage Safe Streets Task Force, the Anchorage Police Department, the Las Vegas Metropolitan Police Department, the Henderson Police Department, and the North Las Vegas Police Department conducted the investigation leading to the criminal charges in this case. The Clark County Department of Aviation has been assisting authorities with their investigation.
Three Florida Men and a Corporation Convicted for Running Illegal International Gambling EnterpriseRead the Press Release
A federal jury in Oklahoma City convicted three Florida men and a Florida corporation today for their participation in an illegal international gambling and money laundering enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
“In the age of the internet, what used to be a crime conducted by bookies on street corners is now an international criminal enterprise,” said Assistant Attorney General Caldwell. “Operating on-line but off-shore, the individuals convicted in this case raked in more than a billion dollars in illegal gambling proceeds. But as these convictions demonstrate, no matter where or how organized criminals operate, the Criminal Division will bring them to justice.”
“This is a great result in this important case,” said U.S Attorney Coats. “I applaud the tremendous, collaborative efforts of our law enforcement partners and the prosecution team.”
Paul Francis Tucker, 50, of Mount Dora, Florida, Luis Robles, 50, of St. Pete Beach, Florida, and Zapt Electrical Sales Inc., a corporation registered in Florida and owned by Tucker, were found guilty of engaging in a racketeering conspiracy, conducting an illegal gambling business and conspiracy to commit money laundering. Christopher Lee Tanner, 58, of Sarasota, Florida, was found guilty of conducting an illegal gambling ring. A sentencing date will be set by the court in approximately 90 days, and the hearing will take place before U.S. District Judge Stephen P. Friot of the Western District of Oklahoma.
According to evidence presented at trial, from 2003 to 2013, Tanner, Tucker, Robles and Zapt Electrical Sales conspired with others to operate internet and telephone gambling services from Panama City, Panama through an enterprise known as Legendz Sports. The international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events.
The evidence demonstrated that Tanner and Tucker worked as bookies in Florida, and illegally solicited and accepted sports wagers and settled gambling debts. Tucker also used Zapt Electrical Sales and its bank account to launder gambling proceeds collected from losing bettors.
The evidence showed that Robles worked as a runner for the enterprise, delivering cash to Legendz Sports bookies to make payouts and picking up cash profits from the bookies. According to the evidence at trial, bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports all over Central America to launder gambling proceeds.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Three Florida Men and a Corporation Convicted for Running Illegal International Gambling EnterpriseRead the Press Release
WASHINGTON – A federal jury in Oklahoma City convicted three Florida men and a Florida corporation today for their participation in an illegal international gambling and money laundering enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
“In the age of the internet, what used to be a crime conducted by bookies on street corners is now an international criminal enterprise,” said Assistant Attorney General Caldwell. “Operating on-line but off-shore, the individuals convicted in this case raked in more than a billion dollars in illegal gambling proceeds. But as these convictions demonstrate, no matter where or how organized criminals operate, the Criminal Division will bring them to justice.”
“This is a great result in this important case,” said U.S Attorney Coats. “I applaud the tremendous, collaborative efforts of our law enforcement partners and the prosecution team.”
Paul Francis Tucker, 50, of Mount Dora, Florida, Luis Robles, 50, of St. Beach, Florida, and Zapt Electrical Sales Inc., a corporation registered in Florida and owned by Tucker, were found guilty of engaging in a racketeering conspiracy, conducting an illegal gambling business and conspiracy to commit money laundering. Christopher Lee Tanner, 58, of Sarasota, Florida, was found guilty of conducting an illegal gambling ring. A sentencing date will be set by the court in approximately 90 days, and the hearing will take place before U.S. District Judge Stephen P. Friot of the Western District of Oklahoma.
According to evidence presented at trial, from 2003 to 2013, Tanner, Tucker, Robles and Zapt Electrical Sales conspired with others to operate internet and telephone gambling services from Panama City, Panama through an enterprise known as Legendz Sports. The international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events.
The evidence demonstrated that Tanner and Tucker worked as bookies in Florida, and illegally solicited and accepted sports wagers and settled gambling debts. Tucker also used Zapt Electrical Sales and its bank account to launder gambling proceeds collected from losing bettors.
The evidence showed that Robles worked as a runner for the enterprise, delivering cash to Legendz Sports bookies to make payouts and picking up cash profits from the bookies. According to the evidence at trial, bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports all over Central America to launder gambling proceeds.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Statement from the Justice Department on the Criminal Charges Against David PetraeusRead the Press Release
Justice Department Spokesman Marc Raimondi released the following statement Tuesday:
“Three documents – a criminal Information, a plea agreement, and a statement of facts – were filed today in the United States District Court for the Western District of North Carolina’s Charlotte Division in the case of United States v. David Howell Petraeus. The criminal Information charges the defendant with one count of unauthorized removal and retention of classified material, in violation of 18 U.S.C. § 1924. The plea agreement and corresponding statement of facts, both signed by the defendant, indicate that he will plead guilty to the one-count criminal Information."
Petraeus Plea Agreement
Petraeus Factual Basis
Petraeus Bill of Information
St. Johns County Employee Pleads Guilty to ExtortionRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Will Randy Rogers (64, St. Augustine) pleaded guilty yesterday to extortion. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in August 2013, a St. Johns County businessman notified the Federal Bureau of Investigation that Rogers, then a construction inspector employed by St. Johns County, had been extorting money from him in connection with Rogers’s inspections of his various businesses, which shipped products out of the State of Florida. According to the businessman, Rogers harassed him by threatening to report non-existent code violations that, if reported, would have had a negative financial impact on the businesses. Prior to reporting Rogers’s conduct, the businessman had already paid Rogers $1,500. Thereafter, he recorded several conversations with Rogers, and between July 2013 and April 2014, made payments to Rogers totaling $6,000. When meeting with the businessman, Rogers often drove his St. Johns County issued vehicle.
On April 1, 2014, after Rogers took $2,000 from the businessman in order to not report alleged code violations, FBI agents stopped Rogers in his county vehicle and recovered the cash.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Julie Hackenberry.
Santa Rosa Tax Return Preparer Sentenced to 18 Months for Tax Fraud and Failing to Report Foreign Bank Accounts Omitting More than $587,000 of IncomeRead the Press Release
SAN FRANCISCO – Efrain Arturo Jovel was sentenced today to 18 months in prison for filing false tax returns and failing to report his financial interest in foreign bank accounts, U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez, announced.
Jovel pleaded guilty on October 21, 2014, to willfully failing to report his financial interest in several foreign bank accounts, in violation of 31 U.S.C. §§ 5314 and 5322(a), and to knowingly signing his false 2009 and 2010 federal income tax returns. According to the plea agreement, Jovel owned and operated a tax return preparation business for over 30 years, first out of his home, then out of offices on Guerneville Road, both in Santa Rosa, Calif. On average, Jovel prepared approximately 1,800 tax returns per year. Jovel admitted that for the tax years 2009 and 2010, he filed personal U.S. Individual Income tax returns that were false in that he did not disclose his foreign bank accounts at Banco HSBC Salvadoreno, S.A. and Banco Reformador, S.A. In addition, Jovel did not disclose interest income of $35,104 earned in 2009 and 2010 on the funds held in these foreign bank accounts. Jovel additionally admitted that he willfully underreported gross receipts from his tax preparation service of $244,120 and $307,846, respectively. This resulted in a tax loss of $175,023. Jovel further agreed to pay a penalty of $287,896 prior to sentencing.
Jovel, 64, of Santa Rosa, was charged on September 9, 2014, with one count of willfully violating foreign bank account reporting requirements and two counts of subscribing to false tax returns.
The sentence was handed down by the Honorable Richard Seeborg, U.S. District Court Judge. In addition to the 18-month sentence, Jovel was also sentenced to a three-year period of supervised release, ordered to pay restitution of $175,023 and a $10,000 fine.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS - Criminal Investigation.
San Jose Man Sentenced to 14 Years in Prison for Methamphetamine TraffickingRead the Press Release
SAN JOSE – Omar Gonzalez was sentenced today to 174 months in prison for conspiracy to possess with intent to distribute and to distribute methamphetamine, announced United States Attorney Melinda Haag and Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
Gonzalez previously pleaded guilty pursuant to a plea agreement on August 20, 2014 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). According to the plea agreement, Gonzalez admitted that, between May and November of 2012, he conspired with other individuals to distribute methamphetamine in Northern California. When law enforcement officers executed a search warrant at his residence in San Jose, California, on November 30, 2012, they found 2.9 kilograms of methamphetamine that was approximately 99.7% pure.
Gonzalez, 31, of San Jose, Calif., was indicted by a federal grand jury on February 28, 2013, for conspiring to distribute methamphetamine.
The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Court Judge, following a guilty plea on one count in violation of 21 U.S.C. § 841(a)(1). Judge Koh also sentenced Gonzalez to a 5 year period of supervised release. The defendant has been in federal custody since November 30, 2012.
Richard Cheng and Chinhayi Cadet are the Assistant U.S. Attorneys who are prosecuting the case. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Rockford Man Sentenced to More Than 10 Years in Federal Prison for Possessing Heroin, Marijuana and A FirearmRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court to a total of 124 months in federal prison for committing firearms and drug trafficking offenses. JARIMNE FREEMAN, 30, was sentenced by U.S. District Judge Frederick J. Kapala to serve 64 months’ imprisonment for possessing with intent to distribute heroin and marijuana. In addition, the court sentenced Freeman to serve a consecutive term of 60 months’ imprisonment for possessing a firearm in furtherance of his drug trafficking crime. After serving his sentence in federal prison, Freeman will be placed on 3 years of supervised release. Freeman was also ordered to pay a special assessment of $200.
Freeman pleaded guilty on October 21, 2014. According to the written plea agreement, on October 10, 2013, Freeman agreed to meet with an individual who was cooperating with the Winnebago County Sheriff’s Department (“WCSD”) at a location in Rockford and sell the cooperating individual 10 grams of heroin. The plea agreement noted that Freeman was arrested by WCSD deputies when Freeman arrived at the agreed upon location. The plea agreement further noted that at the time Freeman was arrested by WCSD deputies and Freeman’s vehicle was searched, Freeman possessed approximately 8.9 grams of heroin and approximately 57.2 grams of marijuana in plastic bags in the center console, approximately 267 grams of marijuana in two plastic bags in the back seat, and a loaded FEG 9mm pistol under the driver’s side floor mat of Freeman’s vehicle. Freeman also possessed approximately 9.6 grams of heroin in a plastic bag and $1,691 in his front right pants pocket. Freeman admitted that he intended to sell the heroin and marijuana he possessed on October 10, 2013 to other individuals. Freeman further admitted in the plea agreement that he possessed the FEG 9mm pistol on October 10, 2013 to protect his heroin and marijuana and his drug trafficking proceeds. The plea agreement further noted that in the eight months prior to October 10, 2013, Freeman sold approximately 50 grams of heroin per month to his customers for a total of approximately 400 grams of heroin.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Gary Caruana, Winnebago County Sheriff.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rochester Man Sentenced for OnlineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Matthew D. King, 31, of Rochester, N.Y., who was convicted of online enticement of a minor, was sentenced yesterday to 121 months in federal prison to be followed by 15 years of supervised release by U.S. District Court Judge Frank P. Geraci. King was also ordered to register as a sex offender.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in 2012, the defendant was employed as a Youth Care Professional at the Hillside Children’s Center (HCC), a provider of care for youth and families with a wide range of emotional, behavioral, or life-circumstance challenges. In this role, King had direct supervisory responsibility over at risk youth, including the victim who was a 15 year old child.
Between February and August 2012, the defendant came into contact with the child on a regular basis and would frequently discuss sexual topics with the victim. King eventually asked the child to engage in sexual activity, and in fact did engage in sexual activity with the child on several occasions at or around HCC. In August of 2012, the victim reported this activity to HCC staff after King was reassigned as his supervisor. HCC immediately notified the New York State Police who conducted an investigation.
The investigation revealed that the defendant and the child engaged in sexual conduct on multiple occasions. Investigators also learned that on July 23, 2012, King contacted the child over the internet using an online social networking site, to arrange a sexual meeting with the child later that day. The defendant used this online contact to entice the child to engage in sexual conduct, which then took place. State Police contacted Homeland Security Investigations for assistance.
Following the State Police investigation, the defendant was charged with and pled guilty to five counts of Criminal Sexual Act, 3rd Degree (Felony) and two counts of Endangering the Welfare of a Minor (misdemeanor) in State Court related to his contact children under his care.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Investigators with the New York State Police, under the direction of Major Scott Crosier, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Repeat Bank Robber Sentenced to 99 MonthsRead the Press Release
COEUR D’ALENE - Ricky Allen Fisher, 35, of Coeur d’Alene, Idaho, was sentenced today to 99 months in federal prison for bank robberies he committed in Ontario, Oregon and Cottonwood, Idaho, announced U.S. Attorney Wendy J. Olson. U.S. District Court Judge Edward J. Lodge increased Fisher’s sentence from 87 to 99 months because Fisher committed the bank robberies within days of being released from prison. Judge Lodge also ordered Fisher to pay restitution to each of the three banks he robbed. Fisher pleaded guilty to the charges on December 8, 2014.
In his plea agreement, Fisher admitted to being released from federal prison on May 6, 2014. Fisher left the prison and took a bus to Idaho. He arrived on May 9, 2014, and was taken to Ontario, Oregon, where he robbed a Chase Bank of $1,600. Five days later he entered U.S. Bank in Ontario, Oregon, demanded cash and left with $1,334.00. On May 16, 2014, Fisher robbed the U.S. Bank in Cottonwood, Idaho and took $2,324.00. Fisher was driven to each bank by Jennifer Balfe, 19, who previously pled guilty and was sentenced to 27 months in prison.
This case was investigated by the Federal Bureau of Investigation and Lewiston City Police, Idaho State Police, Ontario City Police, Cottonwood City Police and Idaho County Sheriff’s Office.
Reading Man Sentenced to 28 Months in Prison for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 58-year-old Reading man was sentenced to 28 months in prison Friday by U.S. District Court Judge Robert D. Mariani for conspiring with others to distribute heroin in the Monroe-Berks County area in 2013.
According to United States Attorney Peter Smith, the defendant, Richard Carvajal, previously pleaded guilty to participating in the drug conspiracy.
Carvajal was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and Berks County Detectives.
Judge Mariani also ordered Carvajal to serve three years on supervised release following his prison sentence, and to pay a special assessment of $100.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Principals and Associates of Local Environmental Consulting Firm Plead Guilty to Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. Attorney Jim Lewis, Central District of Illinois, announced today that five defendants have recently entered pleas of guilty related to a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. The charges against the men relate to a scheme that, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
The current owner of Environmental Management of Illinois, Inc. (EMI), Michael R. Keebler, 41, of Worthington Chase, Sherman, Ill., entered pleas of guilty late Friday, Feb. 27, to two counts of conspiracy to commit mail fraud. EMI founders, Eric M. Andrews, 51, of Overton Road, Springfield, Ill., and his brother, Joel T. Andrews, 46, of Emerson Road, New Berlin, Ill., each pled guilty yesterday to one count of conspiracy to commit mail fraud. In a separate but related case, Michael Keebler’s brothers, Duane T. Keebler, 42, of Rain Hollow Drive, Maryland Heights, Mo., and Joseph R. Keebler, 44, of South Illinois Ave, Carbondale, Ill., each entered pleas of guilty on Feb. 20, to one count of conspiracy to commit mail fraud.
“These defendants have now admitted that they cheated the taxpayers of this State out of millions of dollars,” said U.S. Attorney Lewis. “We commend the USEPA and the FBI for their determined investigative efforts, in order to bring these defendants to justice.”
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who has remained as the firm’s principal owner and president. EMI is located at 1154 N. Bradfordton Road, Springfield. The environmental consulting firm worked with property owners to cleanup property contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
According to plea agreements filed by the parties, Michael Keebler, and Eric and Joel Andrews each admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, as principals of EMI, they admitted they reached agreements with their vendors to submit two invoices for certain services: one invoice listed the real costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Keebler and the Andrews would also pay certain vendors a reduced rate, but misrepresent to the Illinois IEPA that they had paid full price. At other times they would simply create or modify an existing invoice to reflect a higher charge than was actually paid and would submit that to IEPA for reimbursement.
In 2003, Keebler, Joel and Eric Andrews created a second company, known as Environmental Control Systems (ECS), which they represented as a separate entity performing services as a subcontractor for EMI on cleanup sites. In fact, ECS performed no service, but the principals would direct the actual subcontractors to invoice ECS, and ECS would pay the subcontractors for the work. An ECS invoice with a substantial mark-up was then presented to Illinois EPA as EMI’s cost for the project.
For example, in June 2006, EMI had a contract to clean a service station site in Dupo, Ill. Several subcontractors were hired to dig and haul away a certain amount of soil, and to backfill the site with clean soil. These subcontractors were paid approximately $250,000 for their services. Nevertheless, EMI falsely represented to Illinois EPA that ECS had performed these services at a cost of $694,415.00, which was the amount of reimbursement paid by the State. In total, Keebler and Joel and Eric Andrews split more than $13.6 million in profits from the company known as ECS.
In a separate but related case, Michael R. Keebler pled guilty to the second count of conspiracy to commit mail fraud for a similar scheme worked with his brothers, Duane and Joseph Keebler. Both Duane and Joseph Keebler pleaded guilty to starting their own environmental consulting firm, TKO Environmental Solutions, Inc., and inflating invoices through a different company they owned, known as Total Contracting Services, LLC, both registered businesses in Carbondale, Ill. In addition, Duane and Joseph Keebler purchased properties which had either been contaminated or were being contaminated by leaking underground storage tanks. As property owners, the brothers would then purport to contract with one of their own companies or with EMI to coordinate the cleanup. In doing so, Duane and Joseph Keebler would directly, and through Michael Keebler, disguise and inflate invoices from subcontractors and submit the fraudulent and inflated invoices to Illinois EPA for reimbursement from the LUST fund.
Another defendant, Jeremy L. VanScyoc, 38, of the 400 block of Elle Court, Springfield, waived indictment on Mar. 10, 2014, and pled guilty to one count of conspiracy to commit mail fraud. VanScyoc admitted that after he joined EMI he agreed to engage in the fraud scheme by inflating subcontractor invoices.
Each count of conspiracy to commit mail fraud carries a maximum possible penalty of five years in prison; fines of up to $250,000 or twice the amount of loss; as well as restitution to the Illinois EPA and forfeiture of any profits from fraudulent transactions. According to plea agreements filed with the court, Joel and Eric Andrews and Michael Keebler have agreed to forfeit various pieces of property and bank accounts. The court, however, will make the final determination of the total amount of loss to be repaid following a hearing which is set to begin on August 10, 2015. Sentencing dates will be set for Michael Keebler, Joel Andrews and Eric Andrews following that hearing.
Both Duane and Joseph Keebler have agreed to a loss amount in their cases, and will pay restitution in the total amount of $179,438. They are scheduled to be sentenced before U.S. District Judge Sue E. Myerscough on June 22, 2015. Jeremy VanScyoc is scheduled to be sentenced on April 13, 2015.
The case is being prosecuted by Assistant U.S. Attorneys Patrick D. Hansen and John E. Childress. The charges are the result of a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division. The investigation was initiated by a former Illinois State Police Inspector on contract with the Illinois Environmental Protection Agency.
Photographer Sentenced to Prison for Sexual Exploitation of ChildrenRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 54-year-old McKinney, Texas photographer has been sentenced to federal prison for sexual exploitation of children in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Todd Fleming pleaded guilty on October 2, 2014, to sexual exploitation of children and was sentenced to 240 months in federal prison today by U.S. District Judge Michael H. Schneider. Fleming will be required to register as a sex offender and serve a life term of supervised release upon his release from federal prison.
Fleming was indicted by a federal grand jury on April 17, 2013, and charged with twenty-four counts of sexual exploitation of children and one count of possession of materials involving the sexual exploitation of minors.
According to information presented in court, between 1999 and 2007, Fleming, knowingly employed, used, persuaded, induced, enticed, and coerced eight minor females to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
“Sexually exploiting children is a crime that has traumatic effects on the most vulnerable members of our society," said Katherine Greer, acting Special Agent in Charge of Homeland Security Investigations (HSI) in Dallas. “HSI will continue to work aggressively with our law enforcement partners to identify and apprehend individuals who sexually exploit our children and deprive them of their innocence.
“Today, Todd Fleming received a sentence that was both fair and appropriately severe,” said U.S. Attorney Bales. “I sincerely hope that the punishment, and the shame, experienced by this defendant will serve as a warning to others attempting to victimize our children. We will continue to have zero tolerance for child pornographers in the Eastern District of Texas.”
The investigation leading to the charges was conducted by agents from the U.S. Department of Homeland Security - Homeland Security Investigations (DHS-HSI) and Texas Department of Public Safety - Criminal Investigations Division (DPS-CID). Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.Philadelphia Businessman Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – Sam Kuttab, 55, of Wyncote, Pennsylvania, pleaded guilty today to participating in a scheme to have a Philadelphia Municipal Court Judge use his judicial position to influence the outcome of a small claims case in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. Kuttab, a Philadelphia area businessman, pleaded guilty to an information charging him with one count of mail fraud.
According to documents filed in the case, on September 30, 2011, Kuttab notified former Philadelphia Municipal Court Judge Joseph Waters that he had a small claims case pending in the Municipal Court. Kuttab’s company, Donegal Investment Properties, was sued by another company, identified as Company B, for $2733 in unpaid fees for security services. According to the documents, Waters then used his judicial position to achieve an outcome favorable to Kuttab. Specifically, Waters called two other Municipal Court judges assigned to the case on different dates, explained his relationship with Kuttab, and asked them to rule in Kuttab’s favor. In September 2011, the Municipal Court Judge identified in the information as Judge #1 granted Kuttab’s company a continuance in the case over Company B’s objection after receiving Waters’ call. In November 2011, the Municipal Court Judge identified in the information as Judge #2 adjudicated the case in Kuttab’s favor after Waters called and said that Kuttab was “a friend of mine.” After losing the case, the plaintiff threatened to appeal the verdict, and Waters mediated a settlement in which Kuttab agreed to pay $600 to settle the case. After attorney fees, Company B received $400 rather than the $2733 for which he sued.
Kuttab admitted today that he and Donegal gained a secret advantage through a series of secret ex parte communications between Waters and the other Municipal Court judges, some of which were recorded in FBI wiretaps, and that he participated in the scheme with Waters to cause favorable rulings for Donegal.
In September 2014, Waters plead guilty for his role in fixing this case as well as fixing a criminal case conceived as part of an FBI sting operation. He was sentenced to 24 months in prison.
U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for a date in July 2015 to be determined. Kuttab faces a maximum statutory sentence of 20 years in prison, a fine of up to $250,000 and up to three years of supervised release.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pastor, Alleged Sexual Predator on Marshals' 15 Most Wanted List CapturedRead the Press Release
After only three months on the U.S. Marshals 15 Most Wanted fugitive list, self-proclaimed pastor and accused sexual predator Victor Arden Barnard was arrested Friday, February 27, in Pipa, Brazil. Barnard, 53, is wanted by the Pine County Sheriff’s Office in Pine City, Minnesota, for 59 felony counts of criminal sexual assault stemming from allegations that he sexually abused young girls while acting as their pastor. The U.S. Marshals joined the manhunt for Barnard in April 2014.
The manhunt for Barnard gained momentum when U.S. Marshals developed significant information leading them to believe he was either in Brazil or receiving assistance from his followers there. After a lengthy and thorough investigation, Barnard was located and arrested by Brazilian law enforcement authorities.
The efforts of the Pine County Sheriff’s Office, U.S. Department of Justice, Office of International Affairs, the U.S. Department of State’s Diplomatic Security Service, Interpol Washington, and U.S. Marshals Service all contributed to the successful arrest of Barnard.
Barnard is being held in Brazil pending extradition back to the U.S.
Panama City Man Convicted of Possessing Firearm as a Convicted FelonRead the Press Release
PANAMA CITY, FLORIDA – Late yesterday, a federal grand jury in Panama City, Florida, convicted Sammie Lee Underwood III, 22, of Panama City, of being a felon in possession of a loaded .380 caliber pistol. The verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2014, Panama City police officers were on patrol in the Glenwood neighborhood when Underwood, driving a white Chevrolet Tahoe, ran a stop sign. He then led the officers on a chase through the neighborhood. As officers finally approached Underwood’s still-moving vehicle, he jumped out and fled on foot. The driverless vehicle then collided with a residence on East 13th Court. Under the Tahoe’s driver seat, officers found the loaded firearm and baggies of crack cocaine, bath salts, and marijuana. Testimony from Florida Department of Law Enforcement Crime Laboratory analysts showed that DNA recovered from the firearm matched Underwood.
Underwood faces a maximum of 10 years’ imprisonment. Sentencing has been set for June 3, 2015, at 9:30 a.m. before the Honorable Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City. The case was investigated by the Panama City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Gayle Littleton and Katy Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Panama City Man Convicted of Possessing Firearm as a Convicted FelonRead the Press Release
PANAMA CITY, FLORIDA – Late yesterday, a federal jury in Panama City, Florida, convicted Sammie Lee Underwood III, 22, of Panama City, of being a felon in possession of a loaded .380 caliber pistol. The verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2014, Panama City police officers were on patrol in the Glenwood neighborhood when Underwood, driving a white Chevrolet Tahoe, ran a stop sign. He then led the officers on a chase through the neighborhood. As officers finally approached Underwood’s still-moving vehicle, he jumped out and fled on foot. The driverless vehicle then collided with a residence on East 13th Court. Under the Tahoe’s driver seat, officers found the loaded firearm and baggies of crack cocaine, bath salts, and marijuana. Testimony from Florida Department of Law Enforcement Crime Laboratory analysts showed that DNA recovered from the firearm matched Underwood.
Underwood faces a maximum of 10 years’ imprisonment. Sentencing has been set for June 3, 2015, at 9:30 a.m. before the Honorable Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City. The case was investigated by the Panama City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Gayle Littleton and Katy Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owner and Operator of Yonkers Construction Company Pleads Guilty in Manhattan Federal Court to $800,000 Income and Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CID”), announced today that TARIQ TAHIR, the owner and operator of DNS Construction Corporation, pled guilty today in Manhattan federal court to two counts of tax fraud for failing to pay over $800,000 in income taxes and payroll taxes from 2006 to 2008. TAHIR pled guilty before U.S. District Judge Andrew L. Carter, Jr.
Manhattan U.S. Attorney Preet Bharara said: “As a business owner, Tariq Tahir had a responsibility to pay his fair share in taxes. With his guilty plea today, he has acknowledged that he neglected that responsibility and must face the consequences.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Conducting business in cash for the express purpose of evading taxes does not guarantee that you will avoid detection. Business owners who willfully underreport their business receipts and fail to pay over the correct amount of payroll taxes ultimately place additional burdens on law abiding taxpayers. IRS-Criminal Investigation is committed to ensuring that every taxpayer pays his or her fair share.”
According to the criminal information, other documents filed in Manhattan federal court, and statements made at related court proceedings:
TAHIR owned and operated a Yonkers-based construction company named DNS Construction Corporation (“DNS”). From 2006 through 2008, TAHIR engaged in two tax fraud schemes in order to avoid paying over $800,000 in income taxes and payroll taxes that were due and owing by DNS. To execute the first scheme, TAHIR cashed checks at multiple check-cashing businesses in Manhattan and Brooklyn, rather than depositing those checks into the bank accounts of DNS, so that he could conceal DNS’s true revenues from state and federal tax authorities. To carry out the second scheme, TAHIR paid DNS’s employees primarily in cash so that he would be able to omit these salary payments from DNS’s federal tax returns without detection by tax authorities. By failing to report these payments, TAHIR underpaid the federal payroll taxes due and owing by DNS during this period.
TAHIR, 66, of Yonkers, faces a maximum sentence of three years in prison for each of the tax fraud counts, for a total maximum sentence of six years in prison. As part of his plea agreement, TAHIR is also required to pay more than $771,000 in restitution to the IRS and more than $112,000 in restitution to New York State. He is scheduled to be sentenced by Judge Carter on Friday, June 5, 2015, at 10:00 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation Division. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
U.S. v. Tariq Tahir Information
Orange County Man Sentenced to Twelve Years in Prison for Attempting to Entice Minors to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Jonathan S. Bergeron (30, Orlando) to 12 years in prison for attempting to persuade, induce, and entice two minors he believed to be 12 and 8 years of age to engage in illicit sexual conduct. He pleaded guilty on October 13, 2014.
According to the plea agreement, on July 9, 2014, Bergeron contacted an undercover FBI agent online who was posing as the father of two minors. Over the course of several days, Bergeron solicited sex with the children and said that he was using a website centered on incest to “navigate his way to more locals with young daughters.” Bergeron indicated that he wanted to network with like-minded individuals, and make having sex with children a recurrent event in his life.
On July 10, 2014, Bergeron traveled from Orlando to Lake Mary, where he intended to meet with the minors for the purpose of engaging in illicit sexual conduct. He was subsequently arrested.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United State Attorney Ilianys Rivera Miranda.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio man sentenced to ten years for heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Lemont McClain, 35, of Cleveland, Ohio, was sentenced today to 120 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II announced.
In imposing the ten year prison sentence, a significant upward variance from the applicable advisory sentencing guideline range, the court noted that McClain, an Ohio resident, crossed state lines and targeted the Ohio Valley to operate a drug trafficking operation that amounted to a business enterprise. The court emphasized the necessity of the prison term by noting that McClain continued to sell heroin while on pretrial release.
The Mountaineer Highway Interdiction Team discovered McClain in possession of heroin in Ohio County, West Virginia. He pled guilty in September 2014 to one count of “Possession with Intent to Distribute Heroin.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Ohio man charged with failure to update sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Richard Doman, 46, of Lorain, Ohio, with failing to properly register as a convicted sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Doman was convicted in 2003 of "Statutory Sexual Assault" and "Indecent Assault" in the Court of Common Pleas of York County, Pennsylvania. As a result of that conviction, he is required to register as a sex offender. Doman is alleged to have moved from Ohio to West Virginia in 2014 without updating his sex offender registration.
Doman is charged with one count of "Failure to Update Sex Offender Registration." He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan is prosecuting the case on behalf of the government. The United States Marshals Service is leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ninth Defendant Sentenced in Elk Grove Mortgage Fraud CaseRead the Press Release
SACRAMENTO, Calif. — Dana Faulkner, 48, resident of Oakland, CA, was sentenced today by United States District Judge John A. Mendez to one year in prison for conspiring to commit mail fraud and make false statements in loan applications, United States Attorney Benjamin B. Wagner announced. In addition, Faulkner was ordered to pay over $3 million in restitution to defrauded financial institutions.
Faulkner is the ninth defendant to be sentenced as the result of a large scale mortgage fraud scheme operating out of the Elk Grove headquarters of Liberty Real Estate & Investment Company and Liberty Mortgage Company. Hoda Samuel, the owner and principal operator of both companies, was convicted after a jury trial in January of 2013, and is currently serving a ten year prison sentence.
According to Faulkner’s plea agreement, and to the evidence presented at Samuel’s trial, in 2006 and 2007 the defendants participated in a scheme to defraud whereby misrepresentations were made to various financial institutions to convince them to finance the purchase of residential properties. Loan applications prepared by Liberty Mortgage Company misrepresented borrowers’ abilities to pay back loans, by overstating and/or falsifying employment, income and assets. In addition, the defendants drafted purchase contracts making offers significantly above what the sellers were asking for their properties. The excess amounts were paid back to the purchasers at escrow, disguised as payments for fictional repairs and remodeling to the properties. In many cases, these kickbacks were falsely described as payments to render the properties compliant with the Americans with Disabilities Act. Although the indictment identified 30 such fraudulent residential real estate transactions, the evidence at trial was that the fraud at Liberty was pervasive.
Although she was unlicensed, defendant Faulkner acted as both a real estate agent and loan officer as a Liberty employee. She recruited people to serves as buyers, sometimes of more than one property. She convinced the buyers that they could qualify for home loans, and added that they would receive cash payments at the close of transactions to help cover mortgage payments and pay off other bills. She filled out fraudulent loan applications, and she helped to arrange for the disguised kickback payments to be made to her clients.Almost all of the 30 properties listed in the indictment went into foreclosure, resulting in a loss of over $5 million to financial institutions.
"Mortgage fraud is an incredibly destructive crime that leaves many victims in its wake," said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. "The defendant played a significant role in a scheme that hurt so many people and affected so many of our communities. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes."
“Faulkner made false promises and statements to benefit from a scheme that left ruin in its wake,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “These sorts of schemes damaged neighborhoods and the regional economy, flooding the market with foreclosed homes. The FBI will continue to work with its law enforcement partners to ensure such crimes do not go unpunished.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigations, and the Federal Bureau of Investigation. Assistant United States Attorneys Philip Ferrari and Todd Pickles prosecuted the case.
New York Man Pleads Guilty to Emailing Death Threats to an Employee of an American Islamic OrganizationRead the Press Release
Bernhard Laufer, 58, a resident of Rego Park, Queens, New York, pleaded guilty yesterday in federal court in the Eastern District of New York, to sending threatening communications from New York to an employee of the Council on American Islamic Relations (CAIR) located in Washington, D.C. CAIR is a civil rights and advocacy group with offices nationwide.
According to documents filed with the court and statements made during the guilty plea hearing, Laufer admitted that he sent threatening communications to the employee of CAIR in June 2014. These communications threatened the employee with significant bodily harm and death.
"Those who make violent threats to others because of race, religion or national origin must be held accountable,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department is committed to vigorously prosecuting those who engage in such conduct.”
Laufer faces a maximum sentence of five years imprisonment.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Roy Conn of the Justice Department’s Civil Rights Division and Assistant United States Attorney Hiral Mehta for the Eastern District of New York.
New Jersey Man Charged with Passing Counterfeit Currency at Poconos CasinoRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a criminal information yesterday charging Walter Cruz, Jr., age 36, of Paterson, New Jersey, with passing counterfeit United States currency at the Mount Airy Casino in Mt. Pocono, Pennsylvania, on October 20, 2014. The government also filed a plea agreement with the defendant which is subject to approval by the Court.
According to United States Attorney Peter Smith, the charge is the result of an investigation conducted by the Pennsylvania State Police and the United States Secret Service. Prosecution is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Castle Man Charged with Robbing Two Banks in His HometownRead the Press Release
PITTSBURGH - A Lawrence County resident has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, United States Attorney David J. Hickton announced today.
The two-count indictment named Calvin Smith, 43, as the sole defendant.
According to the Indictment, on Nov. 5, 2014, Smith robbed Huntington Bank located at 101 E. Washington St., in New Castle and on Dec. 2, 2014, Smith robbed First Commonwealth Bank located at 27 E. Washington St., also in New Castle. The banks are both insured by the Federal Deposit Insurance Corporation.
For each count, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the New Castle City Police Department conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Moundsville, WV man charged with methamphetamine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Nicholas S. Dubrowski, 27, of Moundsville, West Virginia, with distributing methamphetamine in Marshall County, West Virginia in January and February 2015, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Dubrowski both manufactured and received shipments of methamphetamine for redistribution and sale.
Dubrowski, also known as "Country," is charged with one count of "Conspiracy to Possess with Intent to Distribute Methamphetamine," and one count of "Possession with Intent to Distribute Methamphetamine." He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each of the two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro is prosecuting the case on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Morgantown CPA charged with tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Certified Public Accountant Gregory N. Cason, 45, of Morgantown, West Virginia, with tax fraud, United States Attorney William J. Ihlenfeld, II, announced.
Cason prepared tax returns for AKA Enterprises, Inc., a business entity operating several business in Morgantown, including a bar and restaurant facility. Cason is alleged to have knowingly underreported income, failed to report expenses paid in cash, and failed to report periodic cash payments to employees.
Cason is charged with one count of "Conspiracy to Defraud the Internal Revenue Service and to Aid and Assist in the Preparation and Filing of False Tax Forms," for which he faces up to five years in prison and a fine of up to $250,000.00. He is further charged with two counts of "Aid and Assist in the Preparation and Filing of False Tax Form." He faces up to three years in prison and a fine of up to $250,000.00 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The Internal Revenue Service – Criminal Investigation is leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to 12 Months Imprisonment for Eighth Illegal Reentry into United StatesRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Santiago Ortiz-Otiz, formerly of New Cumberland, PA, was sentenced yesterday for illegal reentry. U.S. District Court Judge William J. Caldwell sentenced Ortiz-Ortiz to the one year imprisonment followed by 3 years supervised release.
Ortiz-Ortiz, a citizen of Mexico, was arrested by agents from the U.S. Immigration and Customs Enforcement (ICE) at the restaurant where he worked in Etters, PA, on April 23, 2014. Thereafter, Ortiz-Ortiz was indicted by a grand jury in Harrisburg for illegal entry into the United States after a felony conviction in May 2014. Ortiz-Ortiz pleaded guilty to the Indictment in October 2014.
The government’s investigation revealed Ortiz-Ortiz had been deported from the United States on eight prior occasions since 1987. His most recent deportation took place on August 8, 2008.
The case was investigated by the Homeland Security Investigations and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
# # #Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOEL CANUL-CAUICH, age 26, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about January 20, 2015, CANUL-CAUICH was found in the United States after having been officially deported and removed on or about April 20, 2010.
CANUL-CAUICH faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Lance M. Africk set sentencing for April 16, 2015.
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.
Marion Woman Sentenced for Methamphetamine OffenseRead the Press Release
On March 3, 2015, Sarah Lindsey, 30, of Marion, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Lindsey, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 120 months in prison, to be followed by 3 years of supervised release, and fined $200.00. Lindsey was given credit for 10 months previously served on a related state case. The federal offense occurred between 2012 and January 22, 2014, in Williamson and Jackson Counties. Evidence at the plea hearing established that Lindsey was involved with others in the manufacture of methamphetamine. Lindsay obtained pseudoephedrine pills for herself or others to use to manufacture methamphetamine. During a January 22, 2014, Illinois Department of Corrections compliance check, agents located a methamphetamine lab at Lindsey’s Marion residence. At sentencing, the district judge found that Lindsey was responsible for the unlawful possession of more than 479 grams of pseudoephedrine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Illinois State Police/Southern Illinois Drug Task Force, Southern Illinois Enforcement Group, Marion Police Department and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Manhattan U.S. Attorney Announces the Extradition of Defendant from United Kingdom for Providing Material Support to, and Receiving Military Training from, Al Qaeda in the Arabian PeninsulaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Andrew G. McCabe, the Assistant Director-in-Charge of the Washington, D.C., Office of the Federal Bureau of Investigation (“FBI”), announced today the extradition of MINH QUANG PHAM, a/k/a “Amin,” from the United Kingdom. Pham, a Vietnamese national, was indicted in 2012 on charges of providing material support to, and receiving military training from, al Qaeda in the Arabian Peninsula (“AQAP”), a designated foreign terrorist organization, as well as possessing and using a firearm in furtherance of crimes of violence, and other violations. Pham was presented yesterday before U.S. Magistrate Judge Andrew J. Peck, and will be arraigned tomorrow, March 4, 2015, before U.S. District Judge Alison J. Nathan.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Minh Quang Pham surreptitiously traveled from the UK to Yemen in late 2010 and received terrorist training by AQAP. During the half year he spent in Yemen, Pham allegedly vowed to wage jihad, swore bayat, and provided material support to high-level AQAP members, almost always brandishing a Kalashnikov rifle. Through the vigilance and investigative efforts of our British partners and the FBI, Pham is now in the U.S. to face American justice.”
FBI Assistant Director Andrew G. McCabe, said: “Today’s material support charges outline that Minh Quang Pham received military-style training and possessed weapons to commit crimes of violence on behalf of al Qaeda in the Arabian Peninsula. This investigation and subsequent extradition of Pham from the UK speak to the level of commitment of the FBI and our national and international law enforcement and intelligence community partners to bring this dangerous terrorist to face justice in the United States."
According to the Indictment and extradition-related filings:
In December 2010, after informing his wife that he planned to travel to Ireland, PHAM traveled from the United Kingdom, where he resided, to Yemen, the principal base of operations for AQAP. AQAP was designated by the United States Department of State as a foreign terrorist organization in January 2010 based, in part, on its claims of responsibility for attempted terrorist attacks against the United States. For example, AQAP claimed responsibility for the attempted Christmas Day bombing of a Detroit-bound passenger plane from Europe in 2009. Further, AQAP later claimed responsibility for an October 2010 plot to send explosive-laden packages on U.S.-bound cargo flights.
While in Yemen, PHAM met a person who later became a cooperating witness for the United States (“CW-1”). CW-1 knew PHAM as “Amin,” and met face-to-face with him at several AQAP safehouses in Yemen in March and April 2011. According to CW-1, CW-1 first learned about PHAM via email correspondence with a now deceased United States citizen, who was a prominent AQAP member (“American CC-1”). CW-1 first met PHAM at an AQAP safehouse in Yemen in or about March 2011, where CW-1 observed PHAM carrying a Kalashnikov assault rifle. CW-1 stated that he observed PHAM carrying the assault rifle throughout almost all of his interactions with PHAM in Yemen. In conversations with CW-1, PHAM told CW-1 that he had been trained in the use of the Kalashnikov assault rifle while in Yemen by AQAP. Further, PHAM told CW-1 that he (PHAM) had traveled to Yemen in order to join AQAP, and to wage jihad on behalf of AQAP. PHAM also told CW-1 that he (PHAM) had sworn bayat in the presence of an AQAP commander prior to leaving Yemen.
CW-1 also witnessed PHAM’s interactions with American CC-1 and a second United States citizen (“American CC-2”), also now deceased, who was also a prominent AQAP member. CW-1 observed PHAM working closely with American CC-1, who was responsible for editing and publishing Inspire magazine – an English-language publication used by AQAP to distribute propaganda and recruit individuals from Western cultures to join and/or support AQAP. In or about October 2010, AQAP released the second issue of Inspire magazine, which included a feature article entitled “I Am Proud to be a Traitor to America,” written by American CC-2. In addition, PHAM told CW-1 that PHAM was working with American CC-1 and that he (PHAM) had spent time at no fewer than three AQAP safehouses. During CW-1’s time at these AQAP safehouses, CW-1 also spoke with American CC-1 and American CC-2 about PHAM, and understood from them that PHAM was providing valuable assistance to American CC-1 in connection with the production and editing of Inspire magazine.
On July 27, 2011, PHAM returned to the United Kingdom. Upon his arrival at London’s Heathrow International Airport, United Kingdom authorities detained and searched PHAM. Materials recovered from PHAM at this time corroborate CW-1’s account of CW-1’s interactions with PHAM while in Yemen. For example, CW-1 stated that, while in Yemen, CW -1 personally exchanged various electronic documents with PHAM – and PHAM was found in possession of various electronic media that contained computer files forensically identical to those possessed by CW-1. In addition, CW-1 reported that PHAM almost always carried a Kalashnikov in Yemen – and upon his arrival in the United Kingdom from Yemen, PHAM was found to be in possession of a live round of .762 caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle.
The indictment charges PHAM with five separate counts:
- Count One: Conspiracy to provide material support to AQAP;
- Count Two: Providing material support to AQAP;
- Count Three: Conspiracy to receive military-type training from AQAP;
- Count Four: Receiving military-type training from AQAP; and
- Count Five: Use, carrying, and possession of a firearm (machine gun) in furtherance of crimes of violence (Counts One though Four);
If convicted on all counts, PHAM faces a maximum sentence of life in prison, with a mandatory minimum sentence of 40 years in prison. The maximum sentences for each of the charges are reflected in the attached chart. 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 a judge.
PHAM, 32, was arrested in the United Kingdom on June 29, 2012, pursuant to a provisional arrest warrant issued by the United States Attorney’s Office for the Southern District of New York. Since that time, PHAM has challenged his extradition to the United States. On February 3, 2015, a court in the United Kingdom denied PHAM’s challenge, and ordered him extradited to the United States. PHAM arrived in the Southern District of New York on February 26, 2015.
Mr. Bharara praised the extraordinary investigative work of the FBI’s Washington Field Office. He also expressed his gratitude to the New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – for the critical role it played in the investigation. In addition, Mr. Bharara thanked the Department of Defense and the Department of Justice’s National Security Division. He also thanked the Office of International Affairs for its work in pursuing Pham’s extradition from the United Kingdom. Lastly, Mr. Bharara also thanked the British authorities, including New Scotland Yard and the Crown Prosecution Service, for their cooperation in the investigation.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Anna M. Skotko, Sean S. Buckley, and Ian McGinley are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Minh Quang Pham Indictment
Loretto Man Sentenced to 22 Months in Prison for Lying About Employees’ WagesRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of JEFFERY JOHN PLZAK, 52, to 22 months in federal prison for felony false statements in connection with prevailing wage violations. PLZAK pleaded guilty on July 8, 2014, to one count of False Statements and was sentenced on March 3, 2015, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
In addition to the 22-month prison sentence, PLZAK was ordered to pay over $240,000 in restitution, pay a fine, and was placed on one-year of supervised release to follow the prison term. In sentencing PLZAK, Judge Schiltz emphasized the impact of PLZAK’S crime on his employees and on PLZAK’S competitors and their employees, as well as the need to deter similar offenses by PLZAK and others in the future.
According to the defendant's guilty plea and documents filed in court, PLZAK and his spouse run Honda Electric, Inc., a company based in Loretto, Minnesota. Honda Electric bids on construction projects, including highway and road projects, that are federally and state funded. Many of the projects PLZAK bid on required that Honda Electric pay its electricians and other laborers the prevailing wage rate.
On numerous occasions, PLZAK won bids based in part on the representation that Honda Electric employees working on each project would receive the prevailing wage. Those projects required periodic submission by Honda Electric of a certified payroll report. In those reports, PLZAK knew Honda Electric, at his direction, was representing to the United States Department of Transportation – Federal Highway Administration and to the Minnesota Department of Transportation that Honda Electric’s employees were being paid the required prevailing wage.
In fact, as PLZAK knew, in many instances employees were being paid less than half of the prevailing wage rate. For example, PLZAK admitted that in a certified payroll report dated September 24, 2010, Honda Electric stated it was paying prevailing wage on a federally funded project in Ramsey County, Minnesota, when, in fact, he knew the employees were receiving far less than prevailing wage. In total, PLZAK admitted that over a series of projects between 2010 and 2013, Honda Electric underpaid its employees over $241,000.
This case is the result of an investigation by the Minnesota Department of Transportation’s Labor Compliance Unit and the Federal Bureau of Investigation.
Assistant U.S. Attorney David M. Genrich prosecuted the case.
Defendant Information:
JEFFERY JOHN PLZAK, 52
Loretto, Minn.
Convicted:
• False Statements, 1 count
Sentenced:
• 22 months in prison
• $241,000 in restitution
• 1 year supervised releaseLongview Man Sentenced on Federal Drug ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - U.S. Attorney John M. Bales announced today that a Longview man has been sentenced to federal prison for his involvement in a drug conspiracy in the Eastern District of Texas.
Antonio Cortez Gonzales, 35, of Longview, Texas, was sentenced to 136 months in federal prison today by United States District Judge Michael H. Schneider. Gonzales had entered a guilty plea on October 2, 2014, on charges he conspired with others to distribute cocaine and marijuana.
According to information presented in court, Gonzales, along with his co-defendants, distributed drugs including cocaine and marijuana in the Longview, Texas area. Drugs were shipped from an individual in Houston, Texas to Gonzales’ residence in Longview, where he then distributed the drugs to other people.
Gonzales was indicted on August 28, 2013. As part of his sentence, Gonzales was also ordered to forfeit a money judgment in the amount of $336,000, a residence in Longview, Texas, a vehicle, three firearms and ammunition.
This case was investigated by the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI) and the Texas Department of Public Safety. The case is being prosecuted by Assistant United States Attorney Mary Ann Cozby.
Local Resident Guilty of Tax EvasionRead the Press Release
CORPUS CHRISTI, Texas - Amber Wise has pleaded guilty to making a false statement on a tax return, announced U.S. Attorney Kenneth Magidson.
Wise was charged with three counts of making false statements on her tax returns for tax years 2008, 2009 and 2010. Wise’s tax returns for those three years underreported her income by $241,026 resulting in $69,692.76 in unpaid taxes due to the United States.
At today’s hearing before U.S. Magistrate Judge B. Janice Ellington, Wise admitted that while employed as the manager of Trinity Acceptance Finance Corporation, she filed personal tax returns which underreported her income by more than $53,000 in 2008, more than $109,000 in 2009 and more than $78,000 in 2010. Wise entered a plea of guilty to filing a 2009 tax return containing a false statement of her income, but acknowledged that the total tax loss for all three years of $69,692.76 would be considered by the court in determining her sentence.
A sentencing hearing was scheduled for July 1, 2015, at 9:00 a.m. before U.S. District Judge Nelva Gonzales Ramos. At that time, Wise faces a sentence of up to three years in federal prison and a possible $250,000 fine.
The case was investigated by IRS - Criminal Investigation, FBI and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Robert D. Thorpe Jr.
Local Man Charged with Robbing 2 Pittsburgh-area BanksRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery and armed bank robbery, United States Attorney David J. Hickton announced today.
The four-count indictment named Christopher Wallace, 28, formerly of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about Feb. 10, 2015, Wallace robbed two banks with a dangerous weapon: First Commonwealth Bank, located at 5200 Butler Street, in Lawrenceville, and PNC Bank located at 206 Rodi Road in Penn Hills. Both banks are insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lewisburg Federal Prison Inmate Charged with AssaultsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed against Andrew Barnes, who is currently confined at the U.S. Penitentiary, Lewisburg, Pennsylvania.
According to United States Attorney, Peter Smith, Barnes, age 35, is charged in a two-count felony Information with assault with a dangerous weapon. In August 2014, and again in October 2014, Barnes allegedly assaulted two other Lewisburg inmates with homemade weapons.
The government filed a plea agreement with the defendant which is subject to approval by the court.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Wayne P. Samuelson has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statutes is 20 years imprisonment, a term of supervised release following imprisonment, and a fine of $500,000.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not necessarily an accurate indicator of the potential sentence for a specific defendant.
Laguna Pueblo Man Sentenced to Ten Years in Federal Prison for Assaulting Laguna Pueblo Woman and a Federally Commissioned Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Preston Marmolejo, 32, a member and resident of Laguna Pueblo, was sentenced this morning in federal court to 120 months in prison followed by three years of supervised release for assaulting a Laguna Pueblo woman and a federally commissioned tribal police officer. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge William McClure of District IV of BIA’s Office of Justice Services, and Chief Herman D. Silva of the Pueblo of Laguna Tribal Police Department.
Marmolejo was arrested on Dec. 2, 2013, on a criminal complaint charging him with assault with a dangerous weapon and assault on a federal officer. He subsequently was charged in a four-count indictment with assault with a dangerous weapon, assault resulting in serious bodily injury, assaulting a federal officer, and using a firearm in furtherance of a crime of violence.
According to court filings, on Nov. 29, 2013, officers of the Pueblo of Laguna Police Department responded to a domestic violence call reporting that Marmolejo was assaulting his girlfriend, a Laguna Pueblo woman, with a knife. When the tribal officers arrived at Marmalejo’s residence, Marmolejo was holding a shotgun. Marmolejo disregarded the tribal officers’ commands that he put the weapon down and instead fired towards the officers and injured an officer who is federally commissioned by the BIA.
On Aug. 19, 2014, Marmolejo entered guilty pleas to Counts 1 and 3 of the indictment charging him with assault with a dangerous weapon and assaulting a federal officer, respectively. In his plea agreement, Marmolejo admitted assaulting the female victim with a knife and the federal commissioned tribal police officer with a shotgun.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, and the Pueblo of Laguna Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department and Equal Employment Opportunity Commission Sign Memorandum of Understanding to Further the Goals of Title VII of the Civil Rights Act of 1964 in Prohibiting Employment Discrimination in State and Local GovernmentsRead the Press Release
The U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice’s (DOJ) Civil Rights Division yesterday signed a new Memorandum of Understanding (MOU) to further the goals of Title VII of the Civil Rights Act of 1964 in prohibiting employment discrimination in the state and local government sector. The signing ceremony took place on Monday, March 2, at DOJ’s headquarters in Washington, D.C., and included remarks from Assistant Attorney General Vanita Gupta of the Civil Rights Division and EEOC Chair Jenny Yang.
EEOC and DOJ share enforcement authority for public sector employers under Title VII. The EEOC receives, investigates and mediates charges of discrimination against public employers. Where the EEOC finds reasonable cause to believe an unlawful employment practice has occurred, the agency works with the employer to negotiate a mutually agreeable resolution to the charge. If conciliation of a charge fails, the EEOC refers the charge and its investigative file to DOJ, which has sole authority within the federal government to file a lawsuit against public employers under Title VII.
The MOU includes provisions for the coordination of the investigation of charges of discrimination on the basis of any characteristic protected by Title VII, while respecting the distinct responsibilities and enforcement priorities of each agency. Further, the MOU includes provisions for sharing information, as appropriate and to the extent allowable under law.
This MOU codifies a pilot project launched in 2009 by DOJ and EEOC. The pilot, which began with four of EEOC’s district offices, has been expanded over the years and now includes the Chicago, Indianapolis, Los Angeles, New York, Philadelphia and San Francisco District Offices, as well as the Washington, D.C. Field Office, among others. Over the years, the pilot has served to enhance the effectiveness of the nation’s equal employment opportunity enforcement program in the public sector, ensuring the efficient use of resources and a consistent enforcement strategy.
“The MOU brings to life our vision to approach our shared Title VII enforcement responsibilities as a partnership,” said Acting Assistant Attorney General Gupta. “It institutionalizes that partnership and provides a concrete framework for expanding our collaborations and increasing our effectiveness in protecting the employment rights of public sector workers.”
“Our state and local governments provide essential services that affect all of us every day in every part of our lives,” said EEOC Chair Yang. “One of the greatest tools that our public institutions have for inspiring trust and credibility in our communities is to ensure that all public employees enjoy equal opportunity at work. That is the significance of the MOU we sign today.”
There have been several successful examples of the existing partnership between EEOC and DOJ, including the settlement of Murphy-Taylor v. State of Maryland, et al., a sexual harassment and retaliation lawsuit involving the Queen Anne’s County Sheriff, in which the United States intervened; the settlement with the Board of Education, Berkeley School District 87, Cook County, Illinois, over religious accommodation discrimination; and a settlement with Clark County, Nevada, for wage discrimination and retaliation against an African-American female manager resulting in $179,000 in monetary relief.
The MOU is just one example of the enforcement partnership between the EEOC and DOJ. The agencies collaborate on several interagency taskforces and working groups, including the Federal Interagency Reentry Council, the National Equal Pay Enforcement Taskforce, the Curb Cuts to the Middle Class Initiative, the Task Force to Monitor and Combat Human Trafficking, the Interagency Working Group for the Consistent Enforcement of Federal Labor, Employment and Immigration Laws, and most recently an interagency working group on police force diversity.
The MOU and information about Title VII and other federal employment laws is available on the Employment Litigation Section of the Civil Rights Division’s website or the U.S. Equal Employment Opportunity Commission’s website.
Jury Convicts Billings Felon of Unlawfully Possessing a FirearmRead the Press Release
BILLINGS – Following one-and-half days of trial, Mack Edward Harris, 49, of Billings, Montana, was convicted of being a felon in possession of a firearm and possessing a firearm after a misdemeanor conviction for domestic violence. U.S. District Judge Susan Watters presided over the trial. Harris now faces a maximum ten years in prison on each count, a $250,000 fine, and up to three years of supervised release.
Evidence presented at trial by Assistant United States Attorneys Paulette Stewart and Colin Rubich showed that on March 10, 2013, Harris possessed a firearm in Billings, Montana. At the time, he had already been convicted of a misdemeanor crime of domestic violence and a felony. On March 10, 2013, Billings Police Department officers responded to a report of a domestic, physical disturbance in an apartment on Industrial Avenue. The complainant heard fighting, as well as the female reference that the male had a firearm under the mattress.
After officers gained entry into the apartment to investigate, they conducted a safety sweep. On the second sweep, the officers discovered Mack Edward Harris in a cupboard under the sink. Harris denied any knowledge of a firearm in the apartment. After obtaining consent to search the apartment, the officers found a Hi-Point 9mm pistol under the dresser in the bedroom. A trace of the firearm confirmed that it belonged to a man who had sold it to Harris not knowing that Harris was prohibited from owning a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Billings Police Department.
Jesup Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
A man who distributed child pornography pled guilty on March 2, 2015, in federal court in Cedar Rapids.
William Smith, age 33, from Jesup, Iowa, was convicted of one count of distribution of child pornography.
At the plea hearing, Smith admitted that, in June 2013, he used a cell phone to distribute child pornography.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Smith was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Smith faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-140.
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Illegal Alien Sentenced to over Four Years in Prison for Passport Fraud, Aggravated Identity Theft, Alien Harboring, and Registering to Vote in Federal ElectionRead the Press Release
An illegal alien who assumed the identity of a U.S. citizen, obtained a U.S. passport, and voted in the 2012 presidential election was sentenced today to more than four years in federal prison.
Abel Hernandez-Labra, age 44, an illegal alien living in Hampton, Iowa, received the prison term after a November 4, 2014, guilty plea to one count of making false statements in a passport application, one count of aggravated identity theft, one count of making a false claim of U.S. citizenship to register to vote, and one count of harboring an illegal alien.
In a plea agreement, Hernandez-Labra admitted that he is a Mexican citizen who illegally entered the United States. Hernandez-Labra admitted he purchased a birth certificate and social security number of an American citizen born in Puerto Rico and assumed that identity. Falsely claiming to be a United States citizen, Hernandez-Labra used those documents to obtain Iowa driver’s licenses which he in turn used to apply for and fraudulently obtain a U.S. passport in 2008 and to unlawfully register and vote in the 2012 federal election. Hernandez-Labra also admitted that, during 2014, he harbored and encouraged an illegal alien to reside unlawfully in the United States by providing work and a residence and by not reporting the alien to immigration authorities.
Hernandez-Labra was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hernandez-Labra was sentenced to 51 months’ imprisonment and fined $5,000. A special assessment of $400 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Labra is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by agents from the U.S. Department of State, Diplomatic Security Service (DSS) Chicago Field Office; the Department of Homeland Security, Homeland Security Investigations; the Iowa Division of Investigations and Appeals; the Iowa Bureau of Investigation and Identity Protection; the Hampton Police Department; the Webster City Police Department; and the Hamilton County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3036.
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IRS’s Top Ten Identity Theft Prosecutions; Part of Ongoing Efforts to Protect Taxpayers, Prevent Refund FraudRead the Press Release
Department of Justice
Office of Public AffairsIRS YouTube Videos
ID Theft: IRS Efforts on Identity Theft: English | Spanish | ASL
IRS Identity Theft FAQ: First Steps for Victims: English | ASLIR-2015-37, March 3, 2015
WASHINGTON — Continuing its enforcement push against refund fraud and identity theft, the Internal Revenue Service today announced the Top Ten Identity Theft Prosecutions for Fiscal Year 2014 (FY14). The ongoing efforts to bring identity thieves to justice remains a significant priority as part of the IRS’s comprehensive identity theft strategy focusing on preventing, detecting and resolving identity theft cases as soon as possible.
“Identity theft is a crime that carries significant consequences, and these cases send a warning to criminals,” said Richard Weber, Chief, IRS-Criminal Investigation. “Our top 10 cases represent the seriousness of these crimes and the magnitude of the consequences that will be faced by those who victimize honest taxpayers and steal from hard-working Americans.”
Learn more about identity theft and what the IRS is doing to combat it at IRS.gov/identitytheft. You can also read IRS Fact Sheet 2015-1, IRS Combats Identity Theft and Refund Fraud on Many Fronts, and IRS Fact Sheet 2015-2, Identity Theft Information for Taxpayers and Victims.
The summary of the following 10 identity theft cases is based on public information available in court records:
Top Ten Identity Theft Cases
1. Couple Sentenced for False Tax Refund Conspiracy -
On April 24, 2014, in Charlotte, North Carolina, Senita Birt Dill and Ronald Jeremy Knowles, were sentenced to 324 and 70 months in prison, respectively. Both were also ordered to pay $3,978,211 in restitution to the IRS. Dill and Knowles pleaded guilty to false claims of conspiracy and access device fraud. Dill also pleaded guilty to aggravated identity theft. Dill and Knowles used fraudulently obtained personal identification information (including names, dates of birth and social security numbers) to file false tax returns claiming tax refunds. Dill and Knowles used neighboring addresses to fill out the fraudulent tax returns and checked the homes’ mailboxes frequently to retrieve the fraudulent refund checks upon delivery. The defendants also used addresses in Greenville and Greer, S.C., which belonged to Knowles’ businesses. Dill and Knowles filed over 1,000 false tax returns using the fraudulently obtained personal identification information.2. Georgia Man Sentenced for Tax Fraud and Identity Theft -
On Aug. 25, 2014, in Atlanta, Georgia, Mauricio Warner was sentenced to 240 months, three years of supervised release, ordered to pay $5,041,869 in restitution and forfeiture of bank accounts that contained $4,185,455. Warner was convicted on wire fraud, aggravated identity theft, filing false claims, and money laundering. Warner filed over 5,000 false tax returns using the names and social security numbers of unsuspecting victims that were told they could submit an application for an “Obama stimulus payment” or “Free Government Money” by providing their names and social security numbers. In addition to word-of-mouth marketing, Warner used toll-free telephone numbers to collect victims’ personal identifying information.3. Dallas Men Sentenced for Role in Massive Stolen Identity Refund Fraud Scheme -
On May 15, 2014, in Dallas Texas, Ogiesoba City Osula was sentenced to 210 months in prison and ordered to pay $15.9 million in restitution. Osula was convicted on conspiracy to commit wire fraud, mail fraud and bank fraud; presenting fraudulent claims upon the U.S.; access device fraud and aiding and abetting; and aggravated identity theft and aiding and abetting. Previously sentenced were co-defendants: George Ojonugwa, sentenced to 174 months and ordered to pay $15,979,187 in restitution; Eseos Igiebor, sentenced to 96 months and ordered to pay $9,660,658 in restitution; Ebenezer Legbedion, sentenced to 40 months and ordered to pay more than $1 million in restitution; and Evelyn Nyaboke Haley sentenced to 60 months and ordered to pay approximately $5.7 million in restitution. The defendants conspired to defraud the United States by using stolen identity information and false information to create and electronically file false tax returns to claim refunds. On Nov. 8, 2011, police in a Cincinnati suburb questioned Osula and Ojonugwa, who were in a parked car. When the vehicle was searched, police found more than $300,000 in cash and money orders and numerous debit cards. During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.4. Floridian Sentenced in Identity Theft Tax Fraud and Social Security Schemes -
On Sept. 17, 2014, in Miami, Florida, Kevin Cimeus, was sentenced to 156 months in prison and three years of supervised release. Cimeus was convicted of conspiracy to steal government property or money, theft of government money or property, access device theft, and aggravated identity theft. Federal agents found over 2,400 social security numbers and names of real people stored on thumb drives, laptop computers, iPad, and Cimeus’ email account at Cimeus’ residence. Cimeus recruited Miami Dade College students to allow him to use their bank accounts to receive fraudulently obtained tax refunds. Cimeus also used his own bank accounts to receive fraudulently obtained tax refunds. Cimeus filed at least one thousand tax returns from two IP addresses. He also used the two IP addresses to access the Social Security Administration’s web site and create online profiles for social security recipients in order to re-route the victims’ social security payments to other accounts.5. Ohio Man Sentenced for Participation in $3.5 Million Identity Theft Scam -
On Aug. 21, 2014, in Columbus, Ohio, Roma L. Sims was sentenced to 100 months in prison, three years of supervised release, and ordered to pay $3,517,534 in restitution to the IRS. Sims pleaded guilty to aggravated identity theft, wire fraud and conspiring to commit identity theft in a scheme to defraud the IRS. Sims advertised through various means in order to collect personal identification information from low-income or unemployed single parents with children. After tricking the innocent individuals who responded into providing their personal identification information, Sims prepared and filed false income tax returns in their names. Sims also obtained additional personal identification information by conspiring with Robert Earthman, who had access to the Kentucky child support enforcement database, which contained personal identification information of single parents with children who were recipients of child support. In total, Sims was responsible for the preparation and filing of approximately 977 income tax returns for the 2010 - 2012 tax years. Samantha C. Towns was sentenced to three years of probation and ordered to pay $1,312,513 in restitution to the IRS. Robert S. Earthman was sentenced to 24 months in prison, three years of supervised release and was ordered to pay $1,312,513 in restitution to the IRS.6. New York Tax Preparer Sentenced for Filing False Tax Returns and Aggravated Identity Theft
On April 24, 2014, Mahamadou Daffe, a tax preparer in Queens, N.Y., was sentenced to 102 months in prison and three years of supervised release. Daffe was found guilty of conspiracy to steal government funds, theft of government funds, conspiracy to file false claims, wire fraud, and aggravated identity theft in connection with the preparation and filing of nearly 1,000 false income tax returns submitted online using stolen identities.7. Alabama Man Sentenced for Scheme Using Prisoner Identities to Obtain False Tax Refunds
On April 29, 2014, in Montgomery, Ala., Harvey James was sentenced to 110 months in prison, three years of supervised release and ordered to pay $618,042 in restitution. James pleaded guilty to mail fraud and aggravated identity theft. James and his sister, Jacqueline Slaton, obtained stolen identities from various individuals, including one person who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file federal and state tax returns that claimed fraudulent refunds. Vernon Harrison, a U.S. Postal Service employee, provided James with addresses from his postal route, which were used as mailing addresses for the fraudulent prepaid debit cards and state tax refund checks. In total, James filed over 1,000 federal and state income tax returns that claimed over $1 million in fraudulent tax refunds. Slaton was sentenced to 70 months in prison and Harrison was sentenced to 111 months in prison.8. Several Sentenced in $19 Million Tax Fraud Conspiracy -
On December 30, 2013, in Anchorage, Alaska, Joel Santana-Pierna and Abel Santana-Pierna, citizens of the Dominican Republic residing in Alaska, were sentenced to 135 months and 72 months in prison, respectively. In addition, they were ordered to pay $559,755 in restitution to the IRS and agreed to forfeit approximately $130,000 obtained as part of their drug trafficking activities. The brothers pleaded guilty to conspiracy to distribute cocaine and conspiracy to defraud the government. The Santana-Pierna brothers conspired to use more than 3,000 stolen Puerto Rican identities to file false income tax returns and obtain large income tax refunds to which they were not entitled. In total, eleven individuals have been sentenced in this scheme with sentencings ranging from probation to 135 months in prison.9. Woman Sentenced for Tax Fraud and Aggravated Identity Theft -
On Oct. 22, 2014, in Orlando, Florida, Tanya Fox was sentenced to 240 months in prison for conspiracy to defraud the federal government, wire fraud, theft of government property, and aggravated identity theft. Fox was also ordered to pay a money judgment in the amount of $4,055,735. On July 24, 2014, Fox was found guilty by a jury of one count of conspiracy, five counts of wire fraud, ten counts of theft of government property, and ten counts of aggravated identity theft. According to court documents, Fox orchestrated a scheme to file fraudulent tax returns using identities that had been stolen from a variety of sources. Fox directed other individuals to open business bank accounts in the name of a fraudulent tax preparation business and to have the tax refunds deposited into those accounts. She then worked with those individuals to withdraw the funds and she spent the money on several luxury and other vehicles, cosmetic surgery and to open a restaurant in the Orlando area. Four others have been sentenced for providing approximately 2,400 names from the Orange County Health Department to Fox, with sentencing’s ranging from five years to two years and six months in prison.10. Bogus Charity Operator Sentenced for ID Theft and Wire Fraud Scheme -
On June 12, 2014, in Columbus, Ohio, Jonathan Webster was sentenced to 108 months in prison, three years of supervised release and ordered to pay $1,457,936 in restitution. Webster pleaded guilty to wire fraud and aggravated identity theft. Webster purchased advertising in newspapers representing himself as a charity seeking to provide financial assistance to others. Webster set up an online website where individuals responding to the advertisements could provide their names and social security numbers. Webster and a co-conspirator electronically filed more than 500 false income tax returns using the names and social security numbers of the individuals.
Statistical Information
In fiscal year 2014, the IRS initiated 1,063 identity theft related investigations. Criminal Investigation enforcement efforts resulted in 748 sentencings as compared to 438 in FY 2013, an increase of 75 percent. The incarceration rate rose 7.1 percent to 87.7 percent. The courts also imposed more jail time in 2014, with the average months of those being sentenced rising to 43 months as compared to 38 months in FY 2013. The longest sentence was 27 years.
Enforcement Efforts
During FY 2014, Criminal Investigation dedicated significant time and resources to bringing down identity thieves attempting to defraud the federal government.
The nationwide Law Enforcement Assistance Program provides for the disclosure of federal tax return information associated with the accounts of known and suspected victims of identity theft with the express written consent of those victims. There are now more than 755 state/local law enforcement agencies from 47 states participating. Since the start of the program, more than 6,776 requests were received from state and local law enforcement agencies.
The Identity Theft Clearinghouse (ITC) continues to develop and refer identity theft refund fraud schemes to CI Field Offices for investigation. Since its inception in FY 2012, it has received over 7,600 individual identity theft leads. These leads involved approximately 1.47 million returns with over $6.8 billion in refunds claimed.
CI continues to be the lead agency that investigates identity theft and is actively involved in more than 78 multi-regional task forces or working groups including state, local and federal law enforcement agencies solely focusing on identity theft. CI has one of the highest conviction rates in all of federal law enforcement -- at 93.4% -- and is the only federal law enforcement agency with jurisdiction over federal tax crimes. CI is routinely called upon to be the lead financial investigative agency on a wide variety of financial crimes including international tax evasion, identity theft and transnational organized crime.Harrisburg Man Involved in Illegal Sports Gambling Sentenced to ProbationRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Michael Puglisse, 68, of Harrisburg, was sentenced today for conspiracy to engage in illegal gambling. U.S. District Court Judge William W. Caldwell sentenced Puglisse to one year probation and ordered him to pay a fine of $4,000.
According to U.S. Attorney Peter Smith, Puglisse had a role in the illegal sports gambling organization operated by Steven Sheely, Sr. Sheely recently pled guilty, agreed to forfeit roughly $800,000.00 in seized assets, and is awaiting sentencing. Before imposing sentence, Judge Caldwell noted Puglisse’s minor criminal record and limited role in the organization, as well as Puglisse’s military record.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Commonwealth of Pennsylvania’s Department of Agriculture. Assistant United States Attorney William A. Behe prosecuted the case.
Harrisburg Businessman Sentenced to Prison Term for Withholding Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 31-year old Harrisburg man was sentenced today before Senior U.S. District Court Judge William C. Caldwell to six months imprisonment, three years supervised release and payment to the IRS of $216,000, along with penalties and interest.
According to United States Attorney Peter Smith, Howard Ginting was the sole owner of Ginting Enterprises, Inc., a Pennsylvania corporation located in Harrisburg. Ginting Enterprises supplied day laborers to businesses in central and northeastern Pennsylvania. As the owner and operator, Ginting was required to withhold from the wages of employees the Federal Insurance Contributions Act (FICA) taxes on a quarterly basis. From October, 2006 through February, 2008, Ginting Enterprises paid wages totaling approximately $851,553; Gintingfalsely reported to the IRS that he had only paid $68,549. He underpaid the Social Security tax and Medicare taxes owed by GEI by approximately $119,799.
In February, 2008, Ginting shut down Ginting Enterprises and continued his same labor supply business under the name Trojan Services, Inc. Between February, 2008 and May, 2011, Trojan paid wages of approximately $638,477; Gintingfailed to report to the IRS all wages paid to his employees, underpaying Social Security tax and Medicare taxes by approximately $97,047.
This resulted in underreporting the employee and employer share of the Social Security and Medicare taxes in the total amount of approximately $216,846.
Ginting was charged by a grand jury in Harrisburg in an indictment in January 2014, following an investigation by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Gordon Zubrod.
Hardee’s Shooter Thompson Pleads Guilty to Robbery and Gun ChargesRead the Press Release
KNOXVILLE, Tenn. – On Mar. 2, 2015, Stephen Thompson, 25, of Knoxville, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee at Knoxville, to two counts of Hobbs Act robbery and one count of discharging a firearm during the robbery. Sentencing was set for 10:00 a.m., July 8, 2015, in U.S. District Court in Knoxville.
Pursuant to the terms of his plea agreement, Thompson agreed to a term of 30 years in prison, to be followed by a term of supervised release, and he will be ordered to pay restitution. There is no parole in the federal system. The agreed upon sentence is subject to the approval of Chief U.S. District Judge Thomas A. Varlan.
According to facts outlined in his plea agreement on file with the U.S. District Court, Thompson admitted to having committed a total of 13 robberies between March 2009 and October 2014. Notably, during every robbery he committed, Thompson either brandished a real firearm or an object that appeared to be a real firearm and, during the November 2009 robbery of a Hardee’s restaurant, Thompson shot a victim employee in the chest before fleeing with money from the restaurant.
Specifically, Thompson robbed the following locations on the following dates: (1) on Mar. 2, 2009, Thompson robbed the Sports Seasons, located on Kingston Pike in Knoxville; (2) on Sept. 14, 2009, Thompson robbed the Kentucky Fried Chicken restaurant, located on North Cedar Bluff Road in Knoxville; (3) on Oct. 9, 2009, Thompson robbed the Chuck-E-Cheese restaurant, located on Kingston Pike, in Knoxville; (4) on Nov. 9, 2009, Thompson robbed the Pizza Hut restaurant, located on Kingston Pike, in Knoxville; (5) on Nov. 10, 2009, Thompson robbed the Hardee’s restaurant, located on Western Avenue, in Knoxville; (6) on Feb. 14, 2010, Thompson robbed the Captain D’s restaurant, located on Merchants Drive, in Knoxville; (7) on Jul. 21, 2010, Thompson robbed the Hardee’s restaurant, located on Chapman Highway, in Knoxville; (8) on Aug. 5, 2010, Thompson robbed the Kentucky Fried Chicken restaurant, located on North Broadway, in Knoxville; (9) on Oct. 17, 2010, Thompson robbed the Pizza Hut restaurant, located on Cedar Lane, in Knoxville; (10) on May 16, 2013, Thompson robbed the Wendy’s restaurant, located on Kingston Pike, in Knoxville; (11) on Sept. 3, 2013, Thompson robbed the Wendy’s restaurant, located on North Broadway, in Knoxville; (12) on Aug. 11, 2014, Thompson robbed the Petro’s Chili & Chips restaurant, located on Kingston Pike, in Knoxville; and (13) on Oct. 25, 2014, Thompson robbed the Subway restaurant, located on North Cedar Bluff Road in Knoxville.
U.S. Attorney William C. Killian said, “This individual thought he had avoiding detection of committing many serious violent crimes over the course of about five years, but the members of the FBI’s Safe Streets Task Force were determined to solve these cases and bring Thompson to justice. I commend their perseverance and dedication.”
FBI Special Agent in Charge, Knoxville Division, Edward Reinhold stated, “As this five year investigation demonstrates, memories will not fade and freedom is temporary for those who place our community in danger. The Knoxville Police Department and the Knox County Sheriff’s Office devote resources to the Safe Streets Task Force, acting as a force multiplier. The FBI will continue to pool resources and work jointly with city, county, and state law enforcement to ensure that violent crime does not go unchecked in East Tennessee.”
This case was the result of an investigation by the FBI Safe Streets Task Force, which consists of FBI Special Agents, Knox County Sheriff’s Deputies, and Knoxville Police Department Officers. Assistant U.S. Attorney Kelly A. Norris represented the United States.
Gorham Man Sentenced to Six Years in Prison for Receiving Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John Whittenburg, 62, of Gorham, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to six years in prison and six years of supervised release for receiving child pornography. Whittenburg pleaded guilty to the charge on November 21, 2014.
According to court records, in April 2012, investigators looking into the sharing of child pornography over the internet interviewed Whittenburg at his home in Buxton. Whittenburg admitted that he had downloaded child pornography and consented to a search of his residence. Investigators found numerous child pornography files stored on his electronic equipment, including a video file depicting a minor female engaged in sexual activity that he had downloaded in October 2011 using a peer-to-peer file-sharing program.
The investigation was conducted by the Maine State Police Computer Crimes Unit and the U.S. Secret Service.
Gardiner Man Sentenced to 3 Years for Pharmacy RobberyRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Richard, 26, of Gardiner, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 3 years in prison followed by 3 years of supervised release and ordered to pay full restitution for pharmacy robbery. Richard pleaded guilty on October 21, 2014.
Court records reveal that on November 28, 2013 (Thanksgiving Day) Richard entered the Rite Aid pharmacy in Bridgton, Maine wearing a hooded sweatshirt, sunglasses, and a bandana, and handed the pharmacist a note reading, “All your oxycodone now!” The pharmacist handed Richard a bag containing oxycodone pills and Richard absconded in a car with a concealed license plate.
The investigation was conducted by the Federal Bureau of Investigation and the Bridgton Police Department, with additional assistance provided by the Augusta and Gardiner Police Departments, and the Kennebec and Androscoggin County Sheriff’s Departments.
Gallup Man Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Calvin Frank Joe, 41, an enrolled member of the Navajo Nation who resides in Gallup, N.M., was sentenced this morning to 42 months in federal prison followed by three years of supervised release for his involuntary manslaughter conviction.
Joe was arrested on Feb. 19, 2014, on an indictment charging him with second degree murder. The indictment alleged that Joe killed another Navajo man on the Navajo Indian Reservation in McKinley County, N.M., on April 18, 2013.
Joe pled guilty on Nov. 4, 2014, to a felony information charging him with involuntary manslaughter. In his plea agreement, Joe admitted assaulting the victim by striking, beating and wounding him, and acknowledged that the assault resulted in the victim’s death.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.