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16 April 2015
Bowie Man Convicted in Identity Theft Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal jury convicted Kenneth Wayne Watford, age 55, of Bowie, Maryland, today of conspiring to commit wire fraud, four counts of wire fraud and attempted wire fraud, three counts of credit card fraud and attempted credit card fraud, and four counts of aggravated identity theft in connection with the wire and credit card fraud offenses. Watford’s fraud schemes involved using the stolen identities of others to purchase expensive cars and obtaining credit cards in Watford’s businesses’ names backed by other people’s credit. After being charged with the first scheme, and while on federal pre-trial supervision, Watford also used another victim’s stolen identity to obtain and use a credit card to make purchases exceeding $14,300.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department, and Chief John Nesky of the Bowie Police Department.
According to evidence presented at his six day trial, Watford, Flinton Newton and Juan Carlos Willis obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, and then posed as those individuals at automotive dealerships in order to apply for vehicle financing. Watford and his coconspirators filled out credit applications with dealers in Maryland and Virginia, and then used the extended credit to purchase, or attempt to purchase, expensive cars without any intention of making payments on the loans.
On June 23, 2012, Watford, Willis and a coconspirator posing as an identity theft victim used the victim’s identity to complete and submit a credit application for $77,450 in financing to purchase a 2011 BMW 750 at BMW of Silver Spring, Maryland.
On June 29, 2012, Watford used the victim’s identity to apply for an American Express business credit card account in the name of Annie M’s Groceries, a business entity Watford had registered in North Carolina the previous year. Evidence presented at trial also revealed that Watford, Willis and the unidentified co-conspirator also attempted to purchase two Cadillac Escalades using the same victim’s credit from Capitol Cadillac in Greenbelt.
On July 19, 2012, Newton and Willis returned to Capitol Cadillac in Greenbelt. On that day, Newton posed as a second victim whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the second victim’s name. Watford had provided Willis with access to a business auto insurance policy he had established in the name of Annie M’s Groceries, a company which Watford claimed to have owned. Willis used this online access to Watford’s insurance policy to obtain proof of insurance in support of the vehicle purchase.
Later that evening, Newton and Willis drove to Mercedes-Benz of Silver Spring where Newton again posed as the second victim. The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056. They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit, and an insurance policy under the name of Annie M’s Groceries. The dealership manager, however, saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Newton and Willis.
A subsequent search of Willis’ cell phone revealed text messages between Willis and Watford concerning the purchase and use of the BMW, as well as the victim’s personal information. On July 26, 2012, Watford was arrested while driving the BMW in Bowie. Inside the car were the victim's credit reports from three credit bureaus, and a social security card and driver’s license in the name of Watford’s alias, “Abdul Abrams.” Law enforcement executed a search warrant at Watford’s residence and seized credit reports and financial documents in the names of other victims.
The total attempted loss as a result of this fraudulent scheme was between $400,000 and $1 million.
After Watford was charged for the above scheme and released pending trial in 2013, he obtained the personal identifying information of a third victim. Using that identity to guarantee the cards, Watford twice applied for credit cards in the name of a second business entity he controlled, Futranet Coaches of America. Watford’s first attempt, an application to American Express in August 2013, was declined; however, in September 2013 Watford successfully used the third victim’s credit to obtain a $15,000 line of credit with Fleetcor, LLC, a credit-card issuer specializing in fuel cards. During the next month, Watford ran up over $14,300 in purchases on cards issued on that account, including $13,000 paid to a former business associate who was holding several vehicles belonging to Watford as collateral on a large outstanding debt Watford owed him. In addition to being found guilty of two counts of unauthorized credit card use and two counts of aggravated identity theft in conjunction with this post-release conduct, Watford was also found guilty of committing these offenses while on federal pre-trial release, which means that his sentences for these counts must run consecutive to his sentence on the automobile-related fraud charges.
The federal jury acquitted Watford of the charge of being a felon in possession of a gun.
Watford faces a maximum sentence of 20 years in prison for the conspiracy count; 30 years in prison for each wire fraud count; 10 years in prison for being a felon in possession of a firearm; 15 years in prison for each credit card fraud count; and a mandatory minimum of two years in prison consecutive to any other sentence for each aggravated identity theft count. U.S. District Judge Peter J. Messitte scheduled sentencing for July 28, 2015, at 9:30 a.m.
Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty to his participation in the scheme and was sentenced to 42 months in prison for conspiring to commit wire fraud and aggravated identity theft. Juan Carlos Willis, age 41, of Hyattsville, Maryland pleaded guilty to the same offenses on the day before his trial was scheduled to begin, and is awaiting sentencing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service, Montgomery County Police Department and Bowie Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who are prosecuting the case.
Bookie Pleads Guilty to Illegal Gambling and Money LaunderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Paul Borrelli, 70, of Rochester, NY, pleaded guilty to illegal gambling and money laundering before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine. The defendant has forfeited over $3,200,000 in assets.Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Paul Borelli conducted an illegal gambling business with co-defendants Mark Ruff, 40, of Connecticut and Joseph Ruff, 32, of Rochester. The gambling operation involved sports betting through multiple offshore internet gambling websites and involved at least $76 million in gross wagers.
Specifically, between January 13, 2012, and April 25, 2014, Borrelli deposited quantities of United States Currency into a Bank of America account, proceeds of the illegal internet gambling business. On July 5, 2012, Borrelli withdrew and transferred of $14,919.91 from the account by check the defendant made payable to the City of Rochester Treasurer.
Paul Ruff was convicted and sentenced to nine years in prison. Joseph Ruff was also convicted and sentenced to 41 months in prison.
The plea is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which included the Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, the Webster Police Department, under the direction of Acting Chief Joseph Rieger, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for September 8, 2015 at 3:00 p.m. before Judge Geraci.
Belleville Woman Pleads Guilty to Theft of Government FundsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Roshanda J. Story, a/k/a Roshanda J. Guyton, 34, of Belleville, Illinois, pled guilty today to the charge of Theft of Government Funds. Story faces the following maximum penalties: ten years in prison, followed by three years of supervised release, a $250,000 fine, restitution to the child care program and a special assessment of $100. The Court ordered that Story be held without bond until her sentencing on July 24, 2015.
Court records indicate that from December 2012 through May 2013, Story admitted to willfully and knowingly stealing government funds by falsifying application forms in order to receive child care benefits to which she was not entitled. She claimed child care benefits through the Illinois Department of Human Services, which are federally funded by the U.S. Department of Health and Human Services, for being a single parent when in fact she lived with and was assisted in caring for a child with the child’s father. In all, Story improperly received $2,379.25 in child care benefits
The case was investigated by the U.S. Probation and Pretrial Services Office for the Southern District of Illinois with the assistance of the Illinois Department of Healthcare and Family Services, Office of Inspector General, Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Bedford County Felon Charged with Illegally Possessing 19 Firearms and AmmunitionRead the Press Release
JOHNSTOWN, Pa. - A Bedford County resident has been indicted by a federal grand jury in Johnstown on a charge of unlawful possession of firearms by a convicted felon, United States Attorney David J. Hickton announced today.
The one-count indictment named Gene F. Bussard, 40, of Everett, Pa., as the sole defendant.
According to the indictment, on Nov. 7, 2013, Bussard, who had been convicted in 2003 in the Allegany County, Md., of theft, unlawfully possessed 19 firearms and ammunition. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Theft is such a crime.
The law provides for a maximum total sentence of 10 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 of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
According to Mr. Hickton, Bussard is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Beckley man pleads guilty to cocaine chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Bryan Cross, 31, of Beckley, West Virginia, plead guilty yesterday in federal court in Beckley to distributing cocaine. Cross admitted that on September 23, 2014, he sold cocaine to a person who was cooperating with law enforcement authorities. The drug deal took place on Canterbury Drive in Beckley, West Virginia.
Cross faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for August 12, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Bank Teller Charged with FraudRead the Press Release
HOUSTON – Christina Ann Ramirez, 26, of Houston, has appeared in court today on charges of bank fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson.
Ramirez surrendered to authorities yesterday and appeared today before U.S. Magistrate Judge Frances H. Stacy.
The indictment alleges Ramirez used her position as a Wells Fargo Bank teller to cash approximately 95 tax refund checks that had been obtained by applying for refunds using stolen identities. Ramirez allegedly cashed the checks from May 2-25, 2012, which had a combined total of $610,228.48.
If convicted, she faces up to 30 years imprisonment and a $1 million possible fine for bank fraud as well as a mandatory two-year-term for aggravated identity theft which must be served consecutively to any other prison term imposed.
The charges are the result of an investigation by Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawBakersfield Man Charged with Possession with Intent to Distribute 12 Kilograms of CocaineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Jonathan Arturo Alvarez, 25, of Bakersfield, charging him with possession with intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 2, 2015, a California Highway Patrol officer conducted a traffic stop of the vehicle driven by Alvarez in Siskiyou County. A subsequent search of the vehicle led to the recovery of 12 kilograms of cocaine.
This case was the product of an investigation by the California Highway Patrol and the Drug Enforcement Administration. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, Alvarez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Artesia Man Pleads Guilty to Violating the Federal Drug and Firearm LawsRead the Press Release
ALBUQUERQUE – Martin O. Madrid, 25, of Artesia, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges.
Madrid and a co-defendant, Lillian Crosby, 21, of Hope, N.M., were federally charged in Jan. 2015, in a criminal complaint with possession of methamphetamine with intent to distribute. According to the criminal complaint, the two were arrested on related state charges on July 12, 2014, by the Eddy County Sheriff’s Office after deputies found approximately 125 grams of methamphetamine, several scales and pipes, and other drug paraphernalia in a vehicle driven by Madrid with Crosby as his passenger. Madrid was arrested on the federal complaint in Jan. 2015, and Crosby was arrested in Feb. 2015.
During today’s plea hearing, Madrid entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm. Madrid admitted that on July 12, 2014, he and his co-defendant were in a vehicle that contained approximately 125 grams of methamphetamine that he intended to distribute to others. He also admitted possessing a .40 caliber pistol which he was not permitted to possess because he previously had been convicted of a felony.
At sentencing, Madrid faces a statutory minimum sentence of five years and a maximum of 40 years in federal prison followed by a minimum of four years of supervised release. He remains detained pending a sentencing hearing, which has yet to be scheduled.
Crosby has entered a plea of not guilty to the criminal complaint. Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt. A trial date has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force and the Eddy County Sheriff’s Office. Assistant U.S. Edwin Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch office is prosecuting this case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, the Artesia Police Department and the Carlsbad Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Andre Allan Forbes Sentenced for Being A Felon in Possession of A Firearm, Cocaine Trafficking and Witness TamperingRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Andre Allan Forbes, 32, of South Bend, Indiana, was sentenced yesterday, for crack cocaine trafficking, possession of a firearm by convicted felon and witness tampering.
Forbes was sentenced to 18 years imprisonment and 6 years of supervised release.
According to documents in the case, Forbes was previously convicted in 2010 in federal court of possession with intent to distribute cocaine base and possession of a firearm in furtherance of a federal drug trafficking crime. In the Fall of 2013, while he was a convicted felon and while he was engaged in crack cocaine and powder cocaine distribution, Forbes illegally possessed a Kel-Tec pistol in South Bend, Indiana.
Additionally, after Forbes was indicted by a federal Grand Jury and while awaiting his trial in the case, Forbes asked his cousin to lie for him. This became the subject of an additional federal charge that was lodged against Forbes.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Andover Man Sentenced for Social Security FraudRead the Press Release
BOSTON – An Andover man was sentenced today for stealing more than $149,000 in Social Security benefits.
Graeme Griffith, 60, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to four months in prison, two years of supervised release, and a $3,000 fine. Griffith also paid full restitution of $149,285 today. In January 2015, Griffith pleaded guilty to theft of public money.
In 2003, Griffith’s father died, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and his father’s names. From 2003 to 2014, Griffith continued to receive his deceased father’s benefits totaling $149,285.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
One of the ways the Social Security Administration detects this kind of fraud is through the Medicare Non-Utilization Project, in which the agency investigates people receiving benefits who are at least 90 years old and who have not used their Medicare Part B benefits for three or more years. In some instances, the agency learns that such a person is actually deceased, but a surviving child has continued to take the deceased person’s benefits.
Since October 2013, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
Earlier this month, Frances Kenney Moseley, of Boston, was sentenced to three years of probation, including six months of home confinement, 1500 hours of community service, a fine of $5,000, and restitution of $470,188, of which she has paid $124,000. From 2003 to 2010, Moseley stole $222,172 in Social Security benefits and $248,016 in annuity funds paid to her deceased father.
In February 2015, Charles Gerbutavich, of Manchester, was sentenced to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration, which he paid in full in February. Gerbutavich pleaded guilty in connection with taking his deceased father’s Social Security benefits, which were directly deposited into a joint bank account after his death in 1993.
In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement and 10 hours per week of community service, and was ordered to pay a fine of $40,000 and $331,630 in restitution, which she paid in full in October. Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and was ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty, of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The Griffith case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
15 April 2015
West Jordan Woman Sentenced Following Conviction for Using Identifiers of Deceased Individuals to Get Tax ReturnsRead the Press Release
SALT LAKE CITY – Jacquelin Boyd, aka Jacquelyn Boyd, age 37, of West Jordan, who pled guilty in January to making a false claim to the IRS, has been sentenced to a year in federal prison. U.S. District Judge Tena Campbell imposed the sentence Wednesday afternoon.
Judge Campbell also ordered Boyd to serve 36 months of supervised release when she finishes her prison sentence. She must pay $32,243 in restitution to the IRS.
As a part of a plea agreement reached in the case, Boyd admitted that from May 2, 2012, through about Oct. 13, 2012, she worked with others to obtain the names, addresses, social security numbers and other personal identifiers of deceased individuals and used the information to file false and fraudulent tax returns with the IRS.
Boyd admitted that she created false records of employers, wages, and Utah addresses to submit with the returns. She directed that the refunds, based on the fraudulent information, be deposited to various bank accounts under her control. She withdrew the money after it was deposited in the accounts. She pled guilty to a count involving a false tax return filed on Oct. 13, 2012, in the name of A.B., who is deceased. A return of $2,444 was mailed to Boyd.
“Individuals thinking about stealing identities and participating in tax fraud including filing false tax returns should stop and look at the consequences,” stated John Collins, IRS Criminal Investigation Special Agent in Charge of Utah. “These consequences include going to prison, being branded a convicted felon for the rest of their lives, and paying back all the taxes owed plus steep penalties and interest. It’s not worth it.”
Vinalhaven Man Pleads Guilty to Making Hoax Radio Call to Coast GuardRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Owen R. Adair, 23, of Vinalhaven, Maine, pled guilty today in U.S. District Court to a charge of making a false distress message to the United States Coast Guard.
According to court records, on September 30, 2014, Adair initiated a two-way radio conversation using a VHF radio with a radio operator at the United States Coast Guard Sector Northern New England. In ensuing transmissions, Adair repeatedly told the Coast Guard operator that he urgently needed assistance because a crewman on his fishing vessel had sustained a serious injury and was bleeding badly. In fact, the defendant was not aboard a vessel but was ashore on Vinalhaven Island and was using a VHS radio in his truck. There was no injured person. The Coast Guard dispatched a search and rescue vessel from Rockland. After a four-hour search, the Coast Guard abandoned its efforts and concluded that the distress call was a hoax.
Adair faces up to six years in federal prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Coast Guard Investigative Service.
U.S. Navy Officer Pleads Guilty to Selling Classified Ship Schedules as Part of Expanding Navy Bribery ProbeRead the Press Release
A lieutenant commander in the U.S. Navy pleaded guilty to bribery charges in federal court today, admitting that he accepted cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship schedules and other internal Navy information to an executive of a defense contracting firm.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Deputy Inspector General for Investigations James B. Burch of the Defense Criminal Investigative Service (DCIS), Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of the Defense Contract Audit Agency (DCAA) made the announcement.
“Another Navy officer has now pleaded guilty and admitted to taking bribes to reveal classified military information to a major supplier,” said Assistant Attorney General Caldwell. “It is both troubling and disappointing how many Navy officers we have exposed as willingly falling prey to GDMA’s corruption, and our investigation remains active and ongoing. Those who serve in our nation’s military must uphold the public’s trust or pay the consequences for their crimes.”
“The receipt of envelopes of cash and lavish hotel stays by our public officials at whatever level erodes the public’s trust in our institutions and our government,” said U.S. Attorney Duffy. “Today’s guilty plea reflects the next step in our ongoing effort to regain that public trust.”
Todd Dale Malaki, 44, of San Diego, pleaded guilty before U.S. Magistrate Judge Mitchell D. Dembin of the Southern District of California to one count of conspiracy to commit bribery. A sentencing hearing is scheduled for July 6, 2015.
As part of his guilty plea, Malaki admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and chief executive officer of Glenn Defense Marine Asia (GDMA), a company that provided services to the U.S. Navy. As part of the scheme, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors. In exchange, Malaki admitted that Francis provided him with luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute. Malaki admitted that the total value of the benefits he received was approximately $15,000.
Malaki is the eighth individual to plead guilty in this expanding probe into corruption and fraud in the U.S. Navy. GDMA pleaded guilty in January. Two other individuals, Paul Simpkins, formerly a Department of Defense (DOD) contracting officer, and Michael Misiewicz, a Captain-select in the U.S. Navy, have been charged and entered pleas of not guilty.
The ongoing investigation is being conducted by NCIS and DCIS, with substantial assistance from the DCAA. The case is being prosecuted by Senior Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line awww.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Navy Officer Pleads Guilty to Selling Classified Ship Schedules as Part of Expanding Navy Bribery ProbeRead the Press Release
SAN DIEGO – U.S. Navy Lieutenant Commander Todd Dale Malaki pleaded guilty to bribery charges in federal court today, admitting that he accepted cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship schedules and other internal Navy information to an executive of a defense contracting firm.
Malaki, 44, of San Diego, pleaded guilty before U.S. Magistrate Judge Mitchell D. Dembin of the Southern District of California to one count of conspiracy to commit bribery. A sentencing hearing is scheduled for July 6, 2015.
As part of his guilty plea, Malaki admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and chief executive officer of Glenn Defense Marine Asia (GDMA), a company that provided services to the U.S. Navy. As part of the scheme, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors. In exchange, Malaki admitted that Francis provided him with luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute. Malaki admitted that the total value of the benefits he received was approximately $15,000.
“The receipt of envelopes of cash and lavish hotel stays by our public officials at whatever level erodes the public’s trust in our institutions and our government,” said U.S. Attorney Laura Duffy. “Today’s guilty plea reflects the next step in our ongoing effort to regain that public trust.”“Another Navy officer has now pleaded guilty and admitted to taking bribes to reveal classified military information to a major supplier,” said Assistant Attorney General Leslie R. Caldwell. “It is both troubling and disappointing how many Navy officers we have exposed as willingly falling prey to GDMA’s corruption, and our investigation remains active and ongoing. Those who serve in our nation’s military must uphold the public’s trust or pay the consequences for their crimes.”
Malaki is the eighth individual to plead guilty in this expanding probe into corruption and fraud in the U.S. Navy. GDMA pleaded guilty in January. Two other individuals, Paul Simpkins, formerly a Department of Defense (DOD) contracting officer, and Michael Misiewicz, a Captain-select in the U.S. Navy, have been charged and entered pleas of not guilty.
The ongoing investigation is being conducted by Defense Criminal Investigative Service and Naval Criminal Investigative Service, with substantial assistance from the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California and Senior Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 15CR967-WQH Todd Dale Malaki Age: 44 San Diego, California CHARGESConspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater;
INVESTIGATING AGENCIESDefense Criminal Investigative Service
Defense Contract Audit Agency
Naval Criminal Investigative ServiceU.S. Government Concludes Major Public Corruption and Drug Trafficking OperationRead the Press Release
ATLANTA – Federal authorities have concluded an extensive public corruption and drug trafficking investigation that spanned over five years and resulted in the convictions of a Customs and Border Protection Officer from Atlanta’s airport, a DeKalb County Police Officer, and more than 10 drug traffickers who were responsible for the distribution of approximately 1 million pills of 3,4-methylenedioxy-methamphetamine (MDMA) and benzylpiperazine (BZP), a drug similar to ecstasy.
Mark Tomlinson, a/k/a “Supa,” has been sentenced to 16 years in prison, and is the final defendant in this case which involved multiple federal, state and local law-enforcement agencies.
“This case began with a Customs and Border Protection officer taking payoffs to smuggle guns and purported drug money through Atlanta’s airport, and it ended with the dismantling of a large-scale drug trafficking organization and the seizure of hundreds of thousands of ecstasy pills,” said Acting U.S. Attorney John Horn.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “Whether the crimes being committed were public corruption, marriage fraud, or drug trafficking, the coordinated law enforcement response demonstrates how spirited law enforcement cooperation on all levels produce fruitful results. I would like to personally thank everyone who worked tirelessly to make this investigation a success.”
The Department Homeland Security, Office of Inspector General, Special Agent in Charge James E. Ward said: “Today’s announcement sends a strong message, that we remain committed with our law enforcement partners to aggressively pursue such complex investigations. We are pleased with the overall outcome of this investigation; and we will remain vigilant in pursuing the prosecution of criminals, who brazenly defy federal law.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Beginning in late-2009, numerous federal, state, and international agencies conducted an extensive investigation into a corrupt federal and local law enforcement officer with ties to a major drug trafficking organization. The investigation led to the arrest, indictment, and conviction of more than 15 defendants.
Federal Corruption
Former Customs and Border Protection Officer Devon Samuels pleaded guilty to conspiring to launder drug money, attempting to bring guns onto an airplane, and conspiring to commit marriage fraud. The charges against Samuels centered around three undercover sting operations during which he smuggled drug money and guns through Hartsfield‑Jackson Atlanta International Airport.
More specifically, on November 3, 2010, an undercover officer (posing as a drug money launderer) gave Samuels approximately $25,000 in money represented to be from the sale of drugs. By unlawfully using his badge to bypass security and avoid screening, Samuels smuggled the money through Atlanta’s airport and onto a plane bound for Jamaica. Once in Jamaica, Samuels delivered the cash to a Jamaican undercover police officer who was posing as an international drug trafficker.
On November 19, 2010, another undercover officer gave Samuels over $50,000 in purported drug money. Samuels took the money, flew from Atlanta to Jamaica, and then delivered the money to Jamaican undercover police officers. While in Atlanta’s airport, Samuels unlawfully used his badge to bypass security and avoid being screened.
Finally, on November 30, 2010, Samuels accepted five firearms and approximately $20,000 in alleged drug money from an undercover police officer. Samuels smuggled the firearms and money into the airport by using his badge to bypass security. Once inside the airport, Samuels gave the firearms and money to a second undercover officer who had explicitly told Samuels that she was going to transport the firearms and money to Arizona for a meeting with members of a Mexican drug cartel.
On June 2, 2011, Devon Samuels, a/k/a “Smokey,” 49, of Stockbridge, Georgia, was sentenced to eight years in prison, followed by three years of supervised release.
Marriage Fraud
Beginning in November 2009, Samuels and his wife Keisha Jones (a former Delta Airlines employee) used Samuels’ intimate knowledge of immigration policies to commit marriage fraud. In that regard, Samuels and Jones taught Carlton Ferguson and Dahlia McLaren how to deceive U.S. immigration authorities into believing that Ferguson and McLaren’s sham marriage was genuine and legitimate. Samuels and Jones were also paid to falsely complete the immigration paperwork necessary for McLaren to obtain United States citizenship through her sham marriage to Ferguson. Samuels, Jones, Ferguson, and McLaren all pleaded guilty to marriage fraud conspiracy charges. After her plea, McLaren was stripped of her U.S. citizenship and removed from the United States to Jamaica.
The following individuals were convicted on the marriage fraud indictment:
- On June 2, 2011, Samuels was sentenced to five years in prison, followed by three years of supervised release.
- On June 2, 2011, Keisha Jones, a/k/a Platinum, 34, of Stockbridge, Georgia, was sentenced six months of home confinement, three years of probation, and 150 hours of community service.
- On April 11, 2011, Carlton Ferguson, a/k/a “Fergie,” 39, of Decatur, Georgia, was sentenced to three years of probation and 150 hours of community service.
- On April 11, 2011, Dahlia McLaren, a/k/a “Dahlia McLaren Ferguson,” 34, formerly of Decatur, Georgia, was sentenced to three years of probation and was removed from the United States.
Drug Trafficking
In a parallel investigation beginning in February 2010, law enforcement officers started investigating a major drug trafficking organization operating in the Atlanta-metropolitan area and in other areas across the country. The organization was led by Jerome Bushay, Otis Henry, and Mark Tomlinson.
Otis Henry was a major distributor of BZP (a drug similar to ecstasy) and marijuana who provided pills and marijuana to several lower-level drug dealers. Most notably, on October 1, 2010, law enforcement officers obtained a federal warrant to search Henry’s residence located in DeKalb County, Georgia. Inside the home, officers seized approximately 700,000 tablets of BZP – which was one of the largest domestic seizures of the drug in U.S. history. In particular, officers found the pills hidden all over the house, including in the walls of the house, behind insulation, under seat cushions, in crawl spaces, and stuffed into luggage. Officers also recovered a handgun, two pounds of marijuana, almost $40,000 in cash, and over 150 grams of methamphetamine from Henry’s residence. The street value of the pills was estimated at $2.8 million.After agents executed the search warrant, Henry fled from authorities and remained on the run for over a year. Ultimately, in January 2012, Henry was arrested in Tampa, Florida. Thereafter, agents searched Henry’s hotel room and recovered four pounds of marijuana and $3,300 in cash.
Jerome Bushay also organized and supplied countless drug transactions sales, in addition to supervising several lower-level drug traffickers. In total, Bushay distributed over 185,000 pills. Bushay also used former Customs and Border Protection Officer Devon Samuels to transport his drug money through the airport. For example, on November 12, 2010, Bushay had Samuels smuggle $40,000 in drug money into Hartsfield-Jackson Airport. Inside the airport, Samuels used his badge to bypass airport security, which resulted in the bag not being screened. Thereafter, Samuels gave the bag to Bushay’s associate, who was destined for Texas.
On December 15, 2010, law enforcement officers executed a coordinated take-down. As part of the take-down, agents executed a search warrant on Bushay’s home, where they recovered an arsenal of weapons and cache of drug paraphernalia. Specifically, agents recovered: (1) a Cobra 9mm pistol; (2) a .40 caliber semi-automatic pistol; (3) a Bushmaster Assault Rifle; (4) a .22 caliber rifle; (5) a Sturm Ruger Ranch Rifle with a scope; (6) a Glock semi-automatic pistol with a laser sight; (7) a Sten-Type 9mm machine gun; and (8) approximately 700 rounds of ammunition, including ballistic tipped and hollow point rounds. In addition to the weapons, agents found a narcotics ledger, an electronic money counter, two digital scales, and a baseball hat with “Customs and Border Protection” embroidered on it.
Mark Tomlinson also distributed thousands of pills of MDMA and BZP, while simultaneously running Club Intrigue (a nightclub in DeKalb County). In addition, in April 2010, Tomlinson brokered a major marijuana deal, which resulted in the seizure of over $100,000. After law enforcement seized the drug money, Tomlinson and others devised a scheme to make it appear that the money was actually to pay musicians for his nightclub. On December 15, 2010, law enforcement officers searched Tomlinson’s home, where they recovered: (a) a Remington 12 gauge shotgun, (b) a Glock .40 caliber semi-automatic handgun, (c) a Taurus semiautomatic handgun, and (d) a drug ledger. In October 2014, after a one week trial, a federal jury convicted Tomlinson of conspiring to traffic MDMA, BZP, and marijuana.
The following individuals were convicted on the drug trafficking indictment:
- Mark Tomlinson, a/k/a “Supa,” 40, of Stone Mountain, Georgia, was sentenced to 16 years in prison, followed by five years of supervised release.
- Jerome Bushay, a/k/a “Romey,” 36, of Norcross, Georgia, was sentenced to 15 years in prison, followed by five years of supervised release.
- Otis Henry, a/k/a “Wesley Johnson,” 44, of DeKalb County, Georgia, was sentenced to 14 years in prison, followed by five years of supervised release.
- Conrad Harvey, a/k/a “Fowley,” 45, Snellville, Georgia, was sentenced to 10 years, one month in prison, followed by three years of supervised release.
- Roshaun Hood, a/k/a “Shaun,” 33, of Atlanta, Georgia, was sentenced to nine years, three months in prison, followed by five years of supervised release.
- Dave Grant, a/k/a “David Clarke,” a/k/a “Scratchy,” 39, of Lithonia, Georgia; was sentenced to nine years in prison, followed by six years of supervised release.
- Nigel Edwards, a/k/a “Nigel the Barber,” 37, of Stone Mountain, Georgia, was sentenced to four years, four months in prison, followed by three years of supervised release.
- Ricardo Duncan, a/k/a “Ricky,” 32, of Lithonia, Georgia, was sentenced to four years in prison, followed by three years of supervised release.
- Damien Aarons, a/k/a “Damage,” 39, of Covington, Georgia, was sentenced to three years, nine months in prison, followed by three years of supervised release.
- Jermaine Campbell, a/k/a “Fatman,” 35, of DeKalb County, Georgia, was sentenced to three years, one month in prison, followed by three years of supervised release.
- Christopher Williams, a/k/a “Eric Washington,” “Bobby,” “Beagle,” and “Apachee,” 49, of Snellville, Georgia, was sentenced to three years in prison, followed by one year of supervised release.
Local Corruption
During the course of the operation, law enforcement authorities also learned that former DeKalb County Police Officer Donald Bristol abused his law enforcement position to help drug traffickers hide a stolen vehicle; that he unlawfully accessed his police computer; and that he lied to federal agents. More specifically, starting in April 2010, Bristol helped separately-charged defendants Christopher Dixon (currently a fugitive) and Ricardo Duncan hide the fact that the car they were driving was in fact a stolen vehicle. Bristol also misused his access to a sensitive law enforcement database to provide drug traffickers with confidential information, such as whether the drug traffickers had any open warrants. Finally, when questioned about his activities, Bristol made numerous false statements to federal agents.
On October 18, 2011, Bristol, 45, of DeKalb County, Georgia was sentenced to one year and one day of incarceration, followed by three years of supervised release.
This case was investigated by the Immigration Customs Enforcement (ICE); Drug Enforcement Administration; ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigation; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation; United States Marshal’s Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and U.S. Department of State - Bureau of International Narcotics and Law Enforcement Affairs.Assistant United States Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
U.S. Attorney's office establishes website for potential victims of Freedom chemical spillRead the Press Release
CHARLESTON, W.Va. - United States Attorney Booth Goodwin announced today that his office has established a new website to provide information to potential victims of the January 9, 2014, Freedom Industries’ chemical spill. The website is located at http://www.justice.gov/usao-sdwv/chemical-spill. The site may also be accessed from www.justice.gov/largecases.
In accordance with the Crime Victims’ Rights Act and the Attorney General’s Guidelines for Victim and Witness Assistance, the site will provide information to potential victims of the chemical spill. The information on the site will include links to all documents charging the defendants with crimes, dates and times of upcoming public criminal proceedings, and a listing of resources available to those who believe they may have been harmed by the chemical spill.
Anyone who believes that they are a victim of the chemical spill and wishes to receive notice of future developments in the criminal cases related to the spill, submit written information concerning the impact the alleged crimes have had on them, or attend the criminal court proceedings, should visit the website above or contact the United States Attorney’s Office for the Southern District of West Virginia and ask to speak with the Victim-Witness Coordinator. The local number for the United States Attorney’s office is (304) 345-2200, and the toll-free number is (800) 659-8726.
Pending charges are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Keyara Peters, 21, of Rivesville, West Virginia, and Ryan Brooks, 28, of Morgantown, West Virginia, were convicted in federal court today for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Valley Drug and Violent Crime Task Force revealed that Peters and Brooks participated in a drug distribution operation designed to transport heroin and prescription painkillers across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale.
The defendants each pled guilty today to one count of “Aiding and Abetting the Distribution of Oxycodone.” They each face up to 20 years in prison and a fine of up to $1,000,000.00. 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 defendants.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Two Southern Illinois Residents Charged with Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that two southern Illinois residents were charged and appeared in Court today on child pornography offenses which are alleged to have occurred in Jackson and Richland Counties. Joseph R. Washburn, 33, of Murphysboro, Illinois, and Thomas C. Fulk, 46, of Olney, Illinois, were charged in separate cases with using a computer to access and download child pornography images from the internet.
If convicted, each person faces a maximum penalty of 30 years in federal prison, a $250,000 fine and a lifetime of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in the Washburn case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, The United States Marshals Service, the Franklin County Sheriff’s Department, the Benton, Illinois, Police Department, and the Murphysboro, Illinois, Police Department.
The investigation in the Fulk case was conducted by the Richland County Sheriff’s Department, the Richland County State’s Attorney, the Illinois State Police, and the Federal Bureau of Investigation.
The cases are being prosecuted by Assistant United States Attorney Thomas E. Leggans.
Two Men Each Sentenced to 130 Months in Prison for Their Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. –Two Essex County, New Jersey, men were each sentenced to 130 months in prison for robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Lavell Jones, 29, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of Hobbs Act robbery. Darrell A. Carter, 25, or Irvington, New Jersey, previously pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Judge Thompson imposed both sentences in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2012, Jones, Carter, DaQuaan Vaughn, 36, of Newark, New Jersey, and Maryland Liggins III, 30, of Newark, robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
In addition to the prison term, Judge Thompson sentenced Jones to three years of supervised release and Carter to five years of supervised release; both were ordered to pay $54,000 in restitution to Target. All of the defendants have the same restitution obligation until the full $54,000 is satisfied.
Vaughn and Liggins have also pleaded guilty to their roles in the robbery and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel:
Carter: Peter Carter Esq., Newark
Jones: Richie Roberts Esq., Newark
Two Individuals Sentenced on Marijuana ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Charles Palmer, Jr., 31, of Buffalo, NY, who was convicted of possession with intent to distribute, and to distribute, marijuana, was sentenced to one year probation by Senior U. S. District Judge William M. Skretny.
Co-defendant Aleathea Stone, 43, of Buffalo, who was convicted of possession of marijuana, was sentenced to time served and one year supervised release, also by Judge Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between January 2011 and June 2011, Charles Palmer, Jr. conspired with his father, co-defendant Charles Palmer, Sr., to possess and distribute marijuana. The investigation utilized a court authorized wiretap which included multiple phone calls regarding the distribution of marijuana between Charles Palmer, Jr. and Charles Palmer, Sr.
On March 1, 2011, Aleathea Stone received 15 pounds of marijuana from Charles Palmer, Sr. and gave it to another individual.
Charles Palmer, Sr. was also convicted and is scheduled to be sentenced April 22, 2015.
The sentencings are the culmination of an investigation by the Federal Bureau of Investigation.
Two Fairfax Men Charged with Causing Amtrak Train CollisionRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles today announced the indictment and arrest of James Duvall Love, 33, and Deon Dovell Roberts, 34, for conspiracy to commit mail and wire fraud, causing a train wreck, and unlawful interference with a train operator. The Indictment was returned by a Grand Jury sitting in Columbia but was sealed pending the arrests of the defendants, which occurred earlier today. The Indictment alleges that on the early morning hours of September 6, 2013, the two men parked a car in the path of an oncoming Amtrak train, got out of the car prior to the collision, and then returned to the car after the collision, feigning injury, all for the purpose of submitting bogus claims for personal injuries and other losses.
Love, a convicted felon, was also charged in a separate Indictment with unlawful possession of a shotgun and live shells.
The case was investigated by Special Agents with the Federal Bureau of Investigation, Amtrak Office of Inspector General, Bureau of Alcohol, Tobacco and Firearms, the Fairfax Police Department, and the Allendale County Sheriff’s Department. Amtrak Inspector General Tom Howard emphasized that: “The safety of the American railroad system is among the highest priorities of the country’s law enforcement agencies. Those who would seek to interfere with the well-being of Amtrak’s passengers and the commerce of the railroads will be held accountable to the greatest extent allowed under the law.”
Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Two Detroit Women Sentenced for Filing False Tax Returns Using Identities of Dead PeopleRead the Press Release
Two Detroit residents were sentenced yesterday after pleading guilty to charges of wire fraud and aiding and abetting in identity theft, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Acting Special Agent in Charge Jarod Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) announced today.
U.S. District Court Judge Avern Cohn of the Eastern District of Michigan sentenced Brenda Knight to serve 24 months in prison and Adreann Turnage to serve 18 months in prison. Willie Watkins, Knight’s husband, was sentenced on April 29, 2014, to serve 30 months in prison and ordered to pay $410,949 in restitution for wire fraud and identity theft.
“The Tax Division has zero tolerance for stealing the identities of the deceased and other vulnerable members of our communities,” said Acting Assistant Attorney General Ciraolo. “The individuals perpetrating these egregious tax crimes will be identified, their criminal operations will be dismantled and they will be prosecuted and punished to the fullest extent of the law.”
According to court records, Knight and Turnage participated in a scheme with Watkins and others to defraud the United States by using the stolen names and social security numbers of recently deceased individuals to prepare fraudulent income tax returns. The defendants electronically filed more than 700 fraudulent 2010 tax returns falsely claiming the Earned Income Credit, Education Credits and the Making America Work Credit, resulting in refund claims of more than $1.8 million. The returns were transmitted utilizing public access internet connections from various locations including Starbucks and Red Roof Inns. A Comcast Communications account registered to Turnage transmitted 46 fraudulent returns. The refunds were directed to bank accounts, many of which were controlled by Watkins, established for the sole purpose of receiving the refunds. Knight helped recruit individuals to whom Watkins would issue checks written on the accounts, cash them and bring the proceeds back to Watkins for distribution to participants in the scheme.
“Using the identities of deceased individuals to commit crimes for financial gain is particularly egregious,” said Acting Special Agent in Charge Koopman. “Identity theft is a top priority for the IRS-Criminal Investigation and we will continue to detect and investigate these types of cases in order to protect taxpayers from being victimized.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney McQuade thanked the special agents of IRS-CI, who investigated the case, and Assistant U.S. Attorney Ross I. MacKenzie of the Eastern District of Michigan and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case.
Trio of Lynchburg Women Indicted on Federal Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – Three local women are facing federal fraud charges following a grand jury indictment that charges them with mail fraud, wire fraud, student loan fraud, and other charges.
A federal grand jury sitting in Roanoke, Va. has charged Melinda Smith, 42, Catherine Pankey, 61 and Vernetta Johnson, 40, all of Lynchburg, Va., in connection with an alleged scheme to defraud insurance companies and the federal student loan program. Smith has been charged with one count of conspiracy to commit mail and wire fraud, 23 counts of student loan fraud, eight counts of mail fraud, four counts of wire fraud and four counts of aggravated identity theft. Pankey has been charged with one count of conspiracy to commit mail and wire fraud and four counts of student loan fraud. Johnson has been charged with one count of conspiracy to commit mail and wire fraud, nine counts of student loan fraud and eight counts of mail fraud.
According to the indictment, between 2011 and 2014, Smith, Pankey and Johnson allegedly engaged in a scheme to submit Free Applications for Federal Student Aid (FAFSA) in order to get Federal Student Aid (FSA) credit refunds for online classes for the purpose of obtaining money to which they were not entitled. It is alleged that as part of the scheme, Smith completed coursework for certain classes, which she at times shared with others, including Pankey, in order to complete a sufficient amount of courses to maintain enrollment. While enrolled at Liberty University, the indictment alleges that Smith helped Pankey with coursework in exchange for a portion of Pankey’s FSA credit refund.
To further support the scheme, Smith and Johnson allegedly submitted false insurance claims for car accidents that did not occur. In addition, Smith and Pankey submitted a false temporary rental agreement to obtain rental reimbursement in connection with a fire.
The indictment also alleges that Smith committed aggregated identity theft by submitting FAFSA forms and obtaining FSA credit refunds in the names of three other individuals without lawful authority.
As a result of these actions, Pankey was reimbursed for losses from a house fire in excess of the amount to which she was entitled; Smith and Johnson were reimbursed for losses caused by car accident that did not occur; and, all three, Smith, Pankey and Johnson, received Higher One debit cards containing credit refunds to which they were not entitled for online classes in which they never intended to participate.
If convicted, each defendant faces a maximum possible penalty of up to 20 years in prison on the conspiracy to commit mail and wire fraud charges, up to 20 years on each of the wire fraud charges, up to 20 years on each of the mail fraud charges and up to five years on each of the student loan fraud charges. Smith faces an additional consecutive term of two years imprisonment on each count of aggravated identity theft. Each charge in the indictment also carries significant fines and a period of supervised release. Restitution to the victims is mandatory in the event of conviction.
The investigation of the case was conducted by the United States Department of Education- Office of the Inspector General, the United States Secret Service, the Virginia State Police, the Campbell County Sheriff’s Office and the Lynchburg Police Department. Assistant United States Attorney Jennifer R. Bockhorst will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Three Individuals Charged in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has indicted Chad Weishan, 28, Jessica Kazmark, 26, both of Buffalo, NY, and Julie Reed, 41, of Houston, TX on charges of conspiracy to possess with intent to distribute, and to distribute fentanyl and oxycodone, and carisoprodol (Soma) and alprazolam (Xanax). The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment, Weishan and Kazmark obtained prescription medications Reed in Salamanca, NY. In exchange for a cut of the prescriptions, the defendants picked up the drugs, and shipped the partial scripts to Reed in Houston. On at least two occasions, the partial prescription medications were shipped to Reed at the Federal Public Defender’s Office in Houston where she was employed. Julie Reed has not yet been taken into custody but efforts continue.
“This is the second prosecution by our Office today which seeks to combat the growing problem of illegal prescription drug abuse in our area,” said U.S. Attorney Hochul.
Weishan and Kazmark made an initial appearance on April 14, 2015 before U.S. Magistrate Judge Hugh B. Scott and were released on conditions.
The criminal complaint is the culmination of an investigation by the Buffalo and Houston Offices of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Bureau of Indian Affairs, Office of Justice Services, Division of Drug Enforcement, under the direction of Director Darren Cruzan, and the Salamanca Police Department, under the direction of Chief Troy Westfall.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ten Chicago Area People Indicted on Charges of Trafficking Contraband CigarettesRead the Press Release
St. Louis, MO – An indictment was unsealed late yesterday charging the following ten Chicago people involving a conspiracy to buy State of Missouri tax stamped cigarettes and transporting them to Illinois for resale.
According to the indictment, between October 2012 and April 2015, the defendants purchased large amounts of State of Missouri tax stamped cigarettes in the St. Louis, Missouri area, from either a confidential informant or retail business, which they then transported to the Chicago area for resale. The indictment alleges that they then sold the contraband cigarettes themselves or to local distributors. The defendant’s made a profit at the expense of millions of dollars of lost tax revenue for the State of Illinois.
Individuals indicted:
- Mohamad Awadallah
- Khalid Alazzah
- Ibrahim Moghli
- Baraa Awwad
- Wisam Zeidan
- Ahmad Zayed
- Raad Hamdeh
- Suhaib Awwad
- Muath Salah
- Yazan Alsala Ymeh
Each defendant was indicted by a federal grand jury April 8th on one felony count of conspiracy to traffic in contraband cigarettes. The indictment was suppressed until the arrest of some of the defendants Tuesday. They are expected to appear in court Monday, April 20, 2015.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
TDCJ Inmate Sentenced to Federal Prison for Threatening Federal JudgeRead the Press Release
HOUSTON - George Yarbrough, 43, a former resident of Houston, has been ordered to federal prison following his conviction of mailing a threatening communication, announced U.S. Attorney Kenneth Magidson.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Yarbrough a 21-month sentence. Yarbrough’s sentence was ordered to being after he finishes serving his current sentence in the Texas Department of Criminal Justice (TDCJ).
As part of his plea, Yarbrough admitted that on or about Sept. 26, 2014, he knowingly mailed a communication threatening to kill a specific federal judge in Houston. The communication was received at the Bob Casey U.S. Courthouse at 515 Rusk St. in Houston and had a return address implicating Yarbrough, who was an inmate serving a sentence within TDCJ.
In the letter, Yarbrough warned the judge that he intended to kill him as soon as he got out of TDCJ. Yarbrough claimed the judge had ruined Yarbrough’s life and that he had lost of his loved ones. Yarbrough repeated the threat throughout the letter with a final note that “…I’m coming to get you and your family!”
Yarbrough was interviewed on two occasions and never denied sending the letter.
Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier.
He will be returned to state custody. Upon his release from state custody he will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future. Yarbrough was also ordered to serve a three-year term of supervised release upon his release from federal prison, during which he will participate in mental health counseling.
The FBI, U.S. Marshals Service and the TDCJ-Office of Inspector General investigated the case which is being prosecuted by Assistant U.S. Attorney Mel Pechacek.
Spiro Man Sentenced to 262 Months for Drug Conspiracy, Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BILLY DON FULLER, age 48, of Spiro, Oklahoma, was sentenced to 262 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846 and Possession With Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2.
The charge is a result of an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March, 2014 and pled guilty in July, 2014.
The Indictment alleged that from in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, in the Eastern District of Oklahoma, and elsewhere, BILLY DON FULLER, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
South Jersey Man and South Carolina Woman Admit Roles in Conspiracy to Traffic 25 GunsRead the Press Release
CAMDEN, N.J. – A South Jersey man and a woman from South Carolina have admitted their roles in a conspiracy to sell 25 guns without a license, U.S. Attorney Paul J. Fishman announced today.
Shawn Tribbett, 32, of Camden, pleaded guilty to an information charging him with one count of conspiring to deal firearms without a license, two counts of possession of a firearm by a previously convicted felon and one count of distribution and possession with intent to distribute cocaine. Katelynn Schippnick, 25, of Greeley, South Carolina, pleaded guilty to a separate information charging her with one count of conspiring to deal firearms without a license. Both defendants entered their pleas before U.S. District Judge Renée Marie Bumb in Camden federal court.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 2014, both Tribbett and Schippnick conspired with others to illegally sell firearms without a license, including handguns, shotguns and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Tribbett personally sold or participated in the sale of at least six firearms, including handguns, shotguns and an assault-style rifle, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Schippnick assisted in the sale of at least five firearms, including handguns and a shotgun, also to an ATF cooperating witness. On at least one occasion, Tribbett and sold ammunition with the firearms.
In addition to the firearms conspiracy, Tribbett admitted that on several occasions he sold cocaine and oxycodone pills to a witness cooperating with the ATF.
The conspiracy charge to which Tribbett and Schippnick pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charges to which Tribbett pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The distribution of cocaine charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for both defendants is scheduled for July 23, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to the guilty pleas. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel:
Tribbett: Brian O’Malley Esq., Haddon Heights, New Jersey
Schippnick: Martin Isenberg Esq., Gibbsboro, New Jersey
Somerset Man Sentenced to 10 Years in Prison for Distributing MethRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident has been sentenced in federal court to 120 months in prison and five years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Justin D. Carr, 23, of Somerset, Pa.
According to information presented to the court, on Jan. 14, 2013, Carr and a co-defendant possessed with the intent to distribute five hundred (500) grams or more of methamphetamine.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania State Police Troop A Barracks, the Somerset Borough Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Carr.
Second Man Involved in March 2014 Heroin Overdoses SentencedRead the Press Release
HARRISONBURG, VIRGINIA – A Cross Junction, Virginia man, who was responsible for selling heroin that caused the same man to overdose twice in seven days in March 2014, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Colin Patrick Butler, 30, of Cross Junction, Va., previously pled guilty to two counts of distribution of heroin. Today in District Court, Butler was sentenced to 150 months of federal incarceration and three years of supervised released after that. David Josueh Medina, 34, the man who sold the heroin to Butler before the first overdose, was previously sentenced to 14 years in federal prison for his role in the heroin overdoses.
“Heroin continues to pose a real and substantial danger to many communities throughout Virginia,” Acting United States Attorney Anthony P. Giorno said today. “I commend our law enforcement partners in the Northwest Region of the Western District who have made significant progress in identifying and interdicting organizations and individuals who are profiting from heroin trafficking. We will continue to fight this epidemic with the combination of enforcement, education and prevention.”
According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, on March 15, 2014, Medina sold heroin to Butler. In turn, Butler then distributed that same heroin to a friend, J.H.H. The friend was injected with the heroin and overdosed inside a residence in Winchester, Va. Butler, and another resident at the home, attempted CPR on J.H.H. and soon called 911. Emergency medical personnel and law enforcement personnel responded to the scene, and after taking life-saving measures, administered Narcan to J.H.H., who ultimately survived the overdose.
One week later, on March 21, 2014, Butler again distributed heroin to J.H.H. and again J.H.H. suffered an overdose. Again, 911 was called and emergency personnel administered life-saving measures and Narcan to J.H.H. and were able to save J.H.H.’s life.
During both overdoses, Butler disposed of and cleaned up evidence of drug use after J.H.H. collapsed.
The investigation of this case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Elizabeth Wright prosecuted the case for the United States.
Rochester Man Charged with Possession and Distribution of Synthetic CannabinoidsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Mohammed W. Akram, 27, of Rochester, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of, controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that according to the complaint, between January 22, 2015 and April 14, 2015, the defendant sold synthetic cannabinoids out of Best in the West, a store he operated on Jay St. in Rochester.
Following multiple undercover purchases over a period of time, Akram was stopped by law enforcement officers on April 14, 2015, as he was headed to Buffalo from Rochester. During a search of the defendant’s vehicle on the I390, officers recovered three gallons of suspected liquid synthetic cannabinoids.
Subsequently, search warrants were executed at the defendant’s store and residence above the store. During the search, officers found additional synthetic cannabinoids, both liquid form (approximately 850 small bottles) and “spice” form (approximately 2000 packets).
“The public, from parents to police, need to be aware that these synthetic drugs are now being put into electronic cigarettes and ingested, said U.S. Attorney Hochul. “And like all illegal drugs, these substances can pose a serious danger to those who abuse them.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on April 16, 2015 at 2:30 p.m.
The complaint is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, New York, New York Field Division, and the New York State Police, under the direction of Major Craig Hanesworth.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rochester Man Arrested in Louisiana on Bank Robbery ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Ricky Knox, 28, of Rochester, NY, was arrested in Louisiana and charged by criminal complaint with bank robbery. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that according to the complaint, on April 10, 2015, the defendant robbed the Chase Bank on Rochester Street in Scottsville, NY. The defendant approached the teller window and demanded the teller “put 50’s and 100’s up on the counter.” Knox also told the teller to hurry. The defendant fled on foot with a specific amount of money.
The defendant was arrested on April 14, 2015 in Baton Rouge, Louisiana and will be returned to the Western District of New York at a later date.
The criminal complaint is the culmination of an investigation by the Rochester Office of the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ringling Man Sentenced to 37 Months for Illegal Receipt of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CODY BRANSON BARNES, age 22, of Ringling, Oklahoma, was sentenced to 37 months imprisonment and 3 years supervised release for Illegal Receipt of a Firearm by a Person Under Felony Indictment or Information, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D).
The charge arose from an investigation by the Ardmore Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in July, 2014 and pled guilty in October, 2014.
The Indictment alleged that on or about January 31, 2014, within the Eastern District of Oklahoma, the defendant, who was then under indictment and information for a crime punishable by imprisonment for a term exceeding one year, namely, Assault and Battery with a Dangerous Weapon, in the District Court of Jefferson County, Case No. CF-13-37, willfully received a firearm which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Richfield man charged for sale of unregistered securities in which investors lost $7 millionRead the Press Release
A Richfield man was charged in a criminal information with selling unregistered securities in which dozens of investors lost about $7 million, law enforcement officials said.
Jerry A. Cicolani, Jr., 51, worked to recruit investors to KGTA Petroleum, Ltd., which was operated by Kenneth A. Grant and others. Grant and others marketed the company to investors as a petroleum company that earned profits by buying and reselling various crude oils and refined fuel products.
Cicolani was a licensed registered representative with PrimeSolutions Securities, Inc., which had officers in Akron and was registered with the Financial Industry Regulatory Authority. Cicolani concealed his outside business interests from PrimeSolutions and had his commissions from KGTA paid to outside entities, according to the information.
KGTA issued securities which were required to be issued with the Securities and Exchange Commission. At no time did Cicolani, or anyone to his knowledge, file any documentation related to the KGTA with the SEC, according to the information.
Cicolani received approximately $5 million in commission fees for enlisting 39 investors, who collectively lost $7 million from their investments with KGTA in unregistered securities, according to the information.
In a related case, Kelly C. Hood, 36, of Naples, Florida, was charged with one count of structuring. Hood, at Cicolani’s direction, structured commission payments made to himself and Cicolani for the sale of unregistered securities of KGTA. This was done to evade bank reporting requirements, according to the information.
Grant has previously pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering for his role in the scheme. He is scheduled to be sentenced May 20.
These case are being prosecuted by Assistant U.S. Attorney Mark Bennett and Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Removed Alien Charged with Illegally Returning to U.S.Read the Press Release
PITTSBURGH - A resident of Michocan, Mexico, has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Hector Cardenas-Orozco, 37, of Michocan, Mexico, as the sole defendant.
According to indictment, Cardenas-Orozco, an alien who had been deported and removed from the United States on Aug. 18, 2000, was found in the United States on March 25, 2014 without having received permission to reenter from either the Attorney General of the United States or the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of two 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 Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Homeland Security 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.
Previously Deported Mexican National Pleads Guilty to Immigration and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – A previously deported felon from Mexico pled guilty today in federal court in Las Cruces, N.M., to conspiracy to transport illegal aliens and unlawful re-entry into the United States.
Ricardo Rogelio Paez, 26, of Ciudad Juarez, Mexico, was charged on June 3, 2014, in a criminal complaint with attempting to bring illegal aliens into the United States. At the time, Paez himself was an illegal alien who previously had been deported from the United States after being convicted of aggravated felonies. Immigration records reflect that Paez had been deported to Mexico on July 3, 2013, based on two felony convictions for assault with a deadly weapon in Oct. 2007, and for being a felon in possession of a firearm in May 2012.
Paez subsequently was indicted on Dec. 3, 2014, and charged with conspiracy to transport illegal aliens from May 13 through May 16, 2014, two counts of attempting to move and transport illegal aliens within the United States, possession of more than 100 kilograms of marijuana with intent to distribute and unlawful re-entry into the United States. All offenses occurred in Doña Ana County, N.M., in May 2014.
During today’s plea hearing, Paez pled guilty to conspiracy to transport illegal aliens, possession of marijuana with intent to distribute, and unlawful re-entry of a removed alien. In entering his guilty plea, Paez admitted that on May 16, 2014, he conspired with others to drive a vehicle on New Mexico State Road 9 while transporting 14 illegal aliens. He also admitted possessing approximately 264 kilograms of marijuana in the vehicle he was driving on May 16, 2014, which he intended to distribute to others. Finally, Paez admitted that he unlawfully re-entered the United States after previously being deported and without obtaining the consent of the United States.
At sentencing, Paez faces a statutory minimum penalty of five years and a maximum penalty of 40 years in federal prison. Paez will be deported to Mexico after completing his prison sentence.
This case was investigated by the Santa Teresa, N.M., Station U.S. Border Patrol, U.S. Customs and Border Protection, and the Las Cruces office of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Selesia Winston of the U.S. Attorney’s Las Cruces Branch Office.
Pensacola Man Convicted of Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA – A federal trial jury convicted Thomas Victor Sway, 24, of Pensacola, of receipt, attempted receipt, and possession of child pornography. The verdict was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between November 2012 and May 2013, Sway received and possessed child pornography, including videos depicting images of minors less than 12 years of age engaged in sex acts. Undercover law enforcement officers discovered and downloaded the pornographic files from a public file sharing network that could be traced to Sway’s computer. After agents executed a search warrant at Sway’s residence, a forensic analysis of his hard drive revealed at least 140 video files containing images of child pornography. Additionally, the system file history indicated a pattern of Sway using dozens of distinct search terms to locate child pornography on the internet.
Sway faces a minimum of 5 years in prison and a maximum of 20 years in prison. Sentencing has been scheduled for June 30, 2015, before Chief United States Judge Casey Rodgers at the United States Courthouse in Pensacola, Florida.
United States Attorney Marsh praised the work of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. It was prosecuted by Assistant United States Attorney J. Ryan Love.
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.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pennsylvania Man Sentenced to Five Years in Prison on Assault ChargeRead the Press Release
CAMDEN, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for his role in an assault, U.S. Attorney Paul J. Fishman announced.
Garrett Wiseman, 25, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him in connection with his role in traveling from Pennsylvania to New Jersey to commit an aggravated assault in furtherance of an extortion scheme. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On June 09, 2010, Wiseman and two co-defendants were in a car that was used to run down a construction site manager who had been critical of the work being done by a company called Sands Mechanical Inc., a subcontractor on the restoration and rehabilitation of the Marine Corps Reserve Training Center at Joint Base-McGuire-Dix-Lakehurst in Burlington County, New Jersey. Wiseman was driving the vehicle at the time of the assault. The victim suffered serious injuries.
In addition to the prison term, Judge Rodriguez sentenced Wiseman to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia; Naval Criminal Investigative Service – Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont; and the Air Force Office of Special Investigations Detachment 307, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Owner of Harrisburg Diet Supplement Business Charged with Selling Misbranded DrugsRead the Press Release
The U.S. Attorney’s Office of the Middle District of Pennsylvania announced today that a criminal information was filed in U.S. District Court in Harrisburg, Pennsylvania, charging Cheryl Floyd, 52, Harrisburg, owner of Floyd Nutrition LLC, with introducing misbranded drugs into interstate commerce and money laundering.
According to U.S. Attorney Peter Smith of the Middle District of Pennsylvania, Floyd, aka Cheryl Floyd Brown, is owner and operator of an internet-based business known as Floyd Nutrition LLC, based at her Harrisburg residence and warehouse facilities in the Harrisburg area.
The items offered for sale between 2010 and 2014 were allegedly purported all-natural dietary supplements sold as weight loss products. They allegedly contain the drugs sibutramine and phenolphphthalein which are not listed as ingredients in the product labels.
According to U.S. Food and Drug Administration (FDA), sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed increased heart attack and stroke in the studied population. Phenolphphthalein was an over-the-county drug until 1999 when FDA reclassified it as not generally safe because it posed a carcinogenic risk.
The FDA has detained shipments of the products coming from China intended for Floyd’s business. In July 2014, search warrants executed at locations used by Floyd’s business resulted in seizure of a large quantity of the products. The products were sold over the internet under the names such as Slim Trim U, ZXT Slim Bee Pollen, Magic Slim, ZXT Bee Pollen, ZXT Gold Infinity, Lean Body Extreme, Bnew Beauty and Body and Natural Body Solutions.
“When individuals knowingly sell misbranded drugs to the general public and generate significant profits from these sales, IRS Criminal Investigation will diligently work with our fellow law enforcement partners to dismantle the operation and trace the proceeds of the criminal activity, which in this particular matter where seven properties valued at over $2 million,” said Special Agent in Charge Akeia Conner of the Internal Revenue Service Criminal Investigation.
“The manufacturing and selling of products marketed as all natural dietary supplements that actually contain dangerous pharmaceutical ingredients places consumers at risk of serious injury or death,” said Special Agent in Charge Antoinette V. Henry of the FDA Office of Criminal Investigations’ (FDA OCI) Metro-Washington Field Office. “FDA OCI will continue working with the Department of Justice to protect consumers from public health risks and fraud and commends the USAO MDPA and our law enforcement partners for the resolve and commitment they demonstrated in investigating and prosecuting this case.”
The criminal information also charges Floyd with money laundering of the proceeds of the sales of the misbranded products and the government is seeking forfeitures of properties in Harrisburg owned by the defendant, a truck and nine bank accounts.
The government filed a plea agreement with the defendant that included an agreement to forfeit the properties listed in the criminal Information. The agreement is subject to the approval of the U.S. District Court of the Middle District of Pennsylvania.
This case was investigated by the FDA Office of Criminal Investigations, Internal Revenue Service Criminal Investigations and the Dauphin County Drug Task Force. It is assigned to Assistant U.S. Attorney Christy H. Fawcett of the Middle District of Pennsylvania.
Introduction of misbranded drugs in interstate commerce carries a maximum penalty of three years’ imprisonment, a $10,000 fine and a one-year term of supervised release. The maximum penalty for conducting financial transactions with criminally-derived property in excess of $10,000 is ten years’ imprisonment, a $250,000 fine and a three-year term of supervised release.
An Indictment and criminal Information are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA's MedWatch Safety Information and Adverse Event Reporting Program: Complete and submit the report Online: www.fda.gov/MedWatch/report.htm - download the form or call 1-800-332-1088 to request a reporting form, then complete and return to the address on the pre-addressed form, or submit by fax to 1-800-FDA-0178
Owner of Harrisburg Diet Supplement Business Charged with Selling Misbranded DrugsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal Information was filed in U.S. District Court in Harrisburg charging Cheryl Floyd, age 52, Harrisburg, owner of Floyd Nutrition LLC, with introducing misbranded drugs into interstate commerce and money laundering.
According to U.S. Attorney Peter Smith, Floyd, also known as Cheryl Floyd Brown, is owner and operator of an internet-based business known as Floyd Nutrition LLC, based at her Harrisburg residence and warehouse facilities in the Harrisburg area.
The items offered for sale between 2010 and 2014 were allegedly purported all-natural dietary supplements sold as weight loss products. They allegedly contain the drugs sibutramine and phenolphphthalein which are not listed as ingredients in the product labels.
According to U.S. Food and Drug Administration (FDA) sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed increased heart attack and stroke in the studied population. Phenolphphthalein was an over-the-county drug until 1999 when FDA reclassified it as not generally safe because it posed a carcinogenic risk.
The FDA has detained shipments of the products coming from China intended for Floyd’s business. In July 2014, search warrants executed at locations used by Floyd’s business resulted in seizure of a large quantity of the products. The products were sold over the internet under the names such as Slim Trim U, ZXT Slim Bee Pollen, Magic Slim, ZXT Bee Pollen, ZXT Gold Infinity, Lean Body Extreme, Bnew Beauty and Body and Natural Body Solutions.
Akeia Conner, Internal Revenue Service, Criminal Investigation, Special Agent in Charge, said “When individuals knowingly sell misbranded drugs to the general public and generate significant profits from these sales, IRS Criminal Investigation will diligently work with our fellow law enforcement partners to dismantle the operation and trace the proceeds of the criminal activity, which in this particular matter where seven properties valued at over $2,000,000.”
"The manufacturing and selling of products marketed as all natural dietary supplements that actually contain dangerous pharmaceutical ingredients places consumers at risk of serious injury or death," said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations' Metro-Washington Field Office. "FDA OCI will continue working with the Department of Justice to protect consumers from public health risks and fraud and commends the USAO MDPA and our law enforcement partners for the resolve and commitment they demonstrated in investigating and prosecuting this case."
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA's MedWatch Safety Information and Adverse Event Reporting Program: Complete and submit the report Online: www.fda.gov/MedWatch/report.htm - download the form or call 1-800-332-1088 to request a reporting form, then complete and return to the address on the pre-addressed form, or submit by fax to 1-800-FDA-0178.
The criminal Information also charges Floyd with money laundering of the proceeds of the sales of the misbranded products and the government is seeking forfeitures of properties in Harrisburg owned by the defendant, a truck, and nine bank accounts.
The government filed a plea agreement with the defendant that included an agreement to forfeit the properties listed in the criminal Information. The agreement is subject to the approval of the U.S. District Court.
This case was investigated by the FDA Office of Criminal Investigations, Internal Revenue Service Criminal Investigations, and the Dauphin County Drug Task Force. It is assigned to Assistant U.S. Attorney Christy H. Fawcett.
Introduction of misbranded drugs in interstate commerce carries a maximum penalty of three years’ imprisonment, a $10,000 fine, and a one-year term of supervised release. The maximum penalty for conducting financial transactions with criminally-derived property in excess of $10,000 is 10 years’ imprisonment, a $250,000 fine, and a three-year term of supervised release.
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 guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.Owner of Freight Shipping Company Admits Role in A Scheme to Defraud Pharmaceutical Company Out of $3 MillionRead the Press Release
NEWARK N.J. – The owner of a Morris County, New Jersey, freight shipping company today admitted billing a medical devices and pharmaceutical company more than $3 million for services that were never provided, U.S. Attorney Paul J. Fishman announced.
Courtney P. Shorter, 48, of Roselle, New Jersey, and Memphis, Tennessee, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of mail fraud.
According to the documents filed in this case and statements made in court:
Shorter owned Sam Shorter & Son Delivery Service LLC, a freight shipping and trucking company in Long Valley, New Jersey. Company B manufactured and supplied insulated containers to Company A, a medical devices, pharmaceutical and consumer packaged goods manufacturer headquartered in New Brunswick, New Jersey. Company C was a freight invoice processing company headquartered in Fort Myers, Florida, that Company A used to pay trucking companies.
From 2008 through April 2010, Shorter charged Company A for transporting shipments from Company B to Company A when, in fact, those shipments were never made. Shorter admitted that he and others sent Company C more than 1,725 fraudulent invoices for work that was never actually performed. As a result of the invoices, Shorter received $3,039,840 from Company C, which he later deposited into bank accounts he controlled and used for personal expenses, including more than $120,000 in jewelry.
The mail fraud charge to which Shorter pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 28, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Randy P. Davenport Esq. and Steven Brister Esq., Union, New Jersey
Owner and Operator of Charlotte Area Laundromats Pleads Guilty to Tax EvasionRead the Press Release
CHARLOTTE, N.C. – The owner and operator of Charlotte-area laundromats pleaded guilty to tax evasion today, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Teng Lor, 55, of Matthews, N.C., appeared before U.S. Magistrate Judge David S. Cayer and admitted to concealing from the Internal Revenue Service (IRS) significant personal earnings derived from his businesses, “T&C Equipment, Inc.” (T&C Equipment) and “LOR Enterprises, Inc.” (LOR Enterprises).
Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) joins Acting U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and today’s plea hearing, between tax years 2010 and 2012, Lor deposited cash receipts from the two businesses totaling over $1.5 million into his business and personal bank accounts. Court records show that the deposits were structured to avoid the filing of currency transaction reports. According to court records, during the relevant time period, Lor failed to disclose or provide records from all of the bank accounts to his tax return preparer. Court records indicate that for tax years 2010 through 2012, T&C Equipment and LOR Enterprises earned additional gross receipts totaling approximately $744,162 that Lor failed to report on the corporate tax returns filed with the IRS. As a result of the unreported gross receipts, Lor had additional taxable income of $544,261. Court records show that for the same tax years, Lor also failed to report all of his income on his individual state income tax returns.
Lor pleaded guilty to one count of tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine. As part of today’s plea agreement, Lor has agreed to pay restitution, the amount of which will be determined by the Court at Lor’s sentencing hearing, which has not been scheduled yet. Lor was released on bond following his plea hearing.
The investigation of the case was handled by IRS-CI. The case is being prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Omaha Man Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 15, 2015, David V. Roberts, age 42 of Omaha, Nebraska, was sentenced for wire fraud. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Roberts to the custody of the United States Bureau of Prisons for forty-one (41) months. There is no parole in the federal system. After his release from prison, Roberts will begin a three, (3), year term of supervised release. Roberts was also ordered to make restitution in the amount of $91,707.81.
An investigation conducted by the Omaha Police Department and the United States Secret Service determined that from at least June, 2011, and continuing through at least February, 2012, Roberts caused to be transmitted email communications to various individuals located throughout the United States, which emails sought the purchase of material, product or services advertised by victims for sale to the public. Once a purchase price was agreed upon, a check was mailed to the victims for payment of the advertised material, product, or services for sale. The checks were not legitimate and were fraudulently created.
Victims were instructed to electronically wire a portion of the funds credited to their account by virtue of the fraudulent check to Roberts within the District of Nebraska. Victims were provided with Roberts’s name and the location where the funds were to be electronically wired. Victims were told money needed to be wired to Roberts for purposes of paying defendant to pick-up, ship, or assist with transportation of the material or product advertised and purportedly purchased.
Once the victims believed the funds from the fraudulent check had been credited to their bank account, victims would electronically wire a portion of the deposited funds to Roberts within the District of Nebraska using the services of Western Union or MoneyGram. Roberts would travel to Western Union or MoneyGram locations where he would accept the electronically wired payments.
From at least June, 2011, and continuing through at least February, 2012, Roberts personally accepted more than fifty (50) fraudulently obtained electronically wired monetary payments from victims located outside the District of Nebraska in the total amount of $91,707.81.
The case was investigated by the Omaha Police Department and United States Secret Service.
Ohio Man Charged with Committing a $300,000 Mail and Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HOWARD GREGOR, age 52, a resident of Attica, Ohio, was charged today in a two-count Bill of Information for mail and wire fraud.
According to court documents, from November 3, 2008, through on or about April 19, 2013, GREGOR worked for Company A, a New Orleans based company that manufactures conveyor belts for use in food processing and packaging facilities. Company A employed GREGOR as an account manager. His sales work required him to travel frequently and incur business-related expenses. Company A had a policy that allowed account managers to submit expense reports for reimbursement of actual out-of-pocket business expenses. Rather than submitting expense reports for actual expenses, GREGOR devised a scheme and artifice to defraud Company A by creating inflated and fictitious items to put on his expense report to cause Company A to pay him for expenses that he did not actually incur. GREGOR submitted these expense reports via U.S. mail and electronic mail. In all, GREGOR caused Company A to reimburse him for nearly $300,000 of expenses that he did not actually incur, causing a loss to the company.
If convicted, GREGOR faces a maximum term of imprisonment of 20 years, followed by five years of supervised release, and a fine of $250,000, as to each of Counts 1 and 2.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Sharan Lieberman is in charge of the prosecution.
Howard Gregor Bill of Information
North County Woman Indicted on Tax ChargesRead the Press Release
St. Louis, MO – STACI A. MARTIN was indicted for allegedly filing false tax returns for tax years 2008 and 2009.
Martin, Florissant, Missouri, was indicted by a federal grand jury on two felony counts of filing false tax returns. The indictment was returned April 1st, but remained sealed until the arrest of the defendant. She appeared for arraignment in federal court earlier today.
If convicted, each count of the indictment carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Newport News Man Sentenced to Thirteen Years for Receipt of Child PornographyRead the Press Release
Defendant possessed over 600 images of Child Pornography
NEWPORT NEWS, Va. – Isaiah Al’Von Holloman, 22, of Newport News, Va., was sentenced today to 160 months in prison, followed by 25 years of supervised release for Receipt of Child Pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, John S. Adams, Special Agent in Charge of the Norfolk Field Office, and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D. C., made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Holloman plead guilty on January 14, 2015. According to court documents, federal agents identified the defendant via a Peer-to-Peer network on his computer. On May 29, 2014 members of FBI and Homeland Security Investigations executed a search warrant at the defendant’s apartment in Newport News. Holloman was home and agreed to speak to the agents. He admitted he conducted internet activities using on-line applications including Facebook, Instagram, Kik, livechat, Dropbox, anonymous chat, and Sharazza, and that he obtained child pornography using Sharazza. Further, he created and used a Dropbox to obtain and provide images and videos of child pornography. During the search Holloman identified a laptop computer, tablet, and smartphone all belonging to him and all were seized pursuant to the search warrant. A subsequent forensic examination of these devices revealed over 600 images of child pornography.
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr68.
New Jersey defendants plead guilty in biofuels fraudRead the Press Release
PRESS RELEASE
INDIANAPOLIS-Josh J. Minkler, the United States Attorney for the Southern District of Indiana and John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, announced today that Joseph Furando, 49, of Montvale, New Jersey, together with companies he operated in New Jersey, pleaded guilty today for their roles in an Indiana-centered scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives. Today’s plea wraps up the part of this case that involved New Jersey defendants. Three Indiana-based individuals and their company, E-biofuels, are scheduled for trial on May 11, 2015, here in Indianapolis.
“April 15, tax day, is a fitting date for Mr. Furando to accept responsibility for his crimes, which defrauded U.S. taxpayers of tens of millions of dollars that Congress appropriated for energy independence and a cleaner environment for all of us,” said Minkler.
Cruden said, “Incentives for the production of biodiesel help promote independence from foreign petroleum resources, drive innovation in the fuel and agriculture sectors, and have positive environmental impacts. Criminals who would sacrifice those benefits for a quick buck may be sure that significant punishment, including long prison sentences, await them.”
“The Renewable Fuel Standard was created to reduce the nation’s dependence on foreign oil and achieve important greenhouse gas reductions,” said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance at EPA. “This criminal activity undercuts these benefits and puts businesses that follow the law at an unfair disadvantage. Today’s guilty plea upholds program integrity and protects companies that play by the rules.”
From 2007 through 2012, E‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number or “RIN”, that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.
Furando has admitted that sometime in late 2009, he and his companies, New Jersey- based defendants Caravan Trading Company and CIMA Green, began supplying E‑biofuels with biodiesel that was actually made by another company and had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at low prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. Furando knew that once he supplied the product, E‑biofuels and his individual co-defendants would claim to have made it, illegally re-certify it, and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this program of fraud as “Alchemy.”
Furando, his New Jersey-based companies, and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Furando realized his profits through the prices he charged E‑biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145,500,000. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
Today, Furando pleaded guilty to all of the charges against him, which included conspiracy, wire fraud, lying to investigators during a search of his offices, and engaging in prohibited financial transactions (money laundering). He faces up to twenty years of imprisonment on some of the charges, as well as large fines and the requirement that he provide full restitution to the victims of this crime, which include United States taxpayers, truck stop companies, fuel traders, and others. Furando has also agreed to forfeit biodiesel-powered motorcycles, sports cars, real estate, jewelry, watches, a piano, artwork, and other luxury goods that he purchased with the proceeds of this fraud.
United States Attorney Josh J. Minkler said, “This plea represents a step along the way to closing the book on one of the largest fraud schemes in Indiana history. All told, this case involves nearly a dozen defendants and daunting investigative work. The intense, high-quality work of all of the law enforcement agents and prosecutors involved should make those who seek personal profit at taxpayers’ expense think twice before attempting such schemes.”
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division, and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI, and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture.Other defendants are scheduled for trial pursuant to the indictment in this case. An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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New Jersey Companies and Owner Plead Guilty to Biodiesel Fuel Fraud SchemeRead the Press Release
Joseph Furando, 49, of Montvale, New Jersey, together with two companies he operated in New Jersey, pleaded guilty today for their parts in an Indiana-centered scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives, announced Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minker for the Southern District of Indiana.
From 2007 through 2012, e‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was be eligible for a dollar per gallon tax credit as well as a another valuable credit, called a RIN, that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.
“Incentives for the production of biodiesel help promote energy independence, drive innovation in the fuel and agriculture sectors and have positive impacts on our environment,” said Assistant Attorney General Cruden. “Furando engaged in extensive criminal activity to gain advantage, all at the expense of the biofuels program and its benefits to our nation, and for that he has been vigorously prosecuted and convicted.”
“This plea represents a step along the way to closing the book on one of the largest fraud schemes in Indiana history,” U.S. Attorney Minker. “All told, this case involves nearly a dozen defendants and daunting investigative work. The intense, high-quality work of all of the law enforcement agents and prosecutors involved should make those who seek personal profit at taxpayer’s expense think twice before attempting such schemes.”
Furando has admitted that sometime in late 2009, he and his companies, defendants Caravan Trading Company and CIMA Green, began supplying e‑biofuels with biodiesel that had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at low prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. Furando knew that once he supplied product, e‑biofuels and his individual co-defendants would illegally re-certify it and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this program of fraud as “Alchemy.”
Furando, his companies, and his Indiana co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Furando realized his profits through the prices he charged e‑biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
Today, Furando pleaded guilty to all of the charges against him, which included conspiracy, wire fraud, lying to investigators during a search of his offices and engaging in prohibited financial transactions, money laundering. He faces up to twenty years of imprisonment on some of the charges, as well as large fines and the requirement that he provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Furando has also agreed to forfeit biodiesel-powered motorcycles, sports cars, real estate, jewelry, watches and other luxury goods that he purchased with the proceeds of this fraud.
“The Renewable Fuel Standard was created to reduce the nation’s dependence on foreign oil and achieve important greenhouse gas reductions,” said Assistant Administrator Cynthia Giles of EPA for Enforcement and Compliance Assurance. “This criminal activity undercuts these benefits and puts businesses that follow the law at an unfair disadvantage. Today’s guilty plea upholds program integrity and protects companies that play by the rules.”
Today’s plea completes the part of this case involving New Jersey defendants. Four Indiana defendants remain, who face trial in the Southern District of Indiana on May 11, 2015.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture.
Other defendants are scheduled for trial pursuant to the indictment in this case. An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Navajo Woman from Arizona Pleads Guilty to Federal Assault and Child Abuse Charges in New MexicoRead the Press Release
ALBUQUERQUE – Bridget Wilson, 22, an enrolled member of the Navajo Nation who resides in Sawmill, Ariz., pleaded guilty this morning in federal court in Albuquerque, N.M., to assault and child abuse charges.
Wilson was arrested on Feb. 10, 2015, on an indictment charging her with assault resulting in serious bodily injury and abuse of a child. According to the indictment, Wilson committed the offenses on April 4, 2014, within the Navajo Indian Reservation in San Juan County, N.M.
During today’s plea hearing, Wilson pled guilty the indictment and admitted that on April 4, 2014, she assaulted the victim, causing the victim to suffer serious bodily injury. She also acknowledged putting the victim, who was under the age of 18 years, in a situation that endangered the victim’s life or health.
According to the plea agreement, the parties will recommend that Wilson be sentenced to a term of probation to be determined by the court. Wilson’s sentencing hearing has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Monroe County Man Enters Guilty Plea to Federal Methamphetamine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of conspiracy to distribute methamphetamine.
According to United States Attorney Peter Smith, Scott Borushak, age 51, of Sciota, Monroe County, admitted to participating in a conspiracy to distribute methamphetamine in the Monroe County area in 2013 and 2014.
Borushak was one of seven individuals indicted by a federal grand jury in April 2014, after an investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department.
Previously, Jeannine Altemose, age 53, of Stroudsburg, pleaded guilty and admitted to allowing methamphetamine to be stored and distributed from her residence. The charges against the remaining defendants are currently pending.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In this case, the maximum penalty for all charges under the federal statutes is imprisonment for 20 years, 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.