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15 April 2015
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.
Milford Realtor Pleads Guilty to Running $15 Million Ponzi SchemeRead the Press Release
CINCINNATI – Brenda Ashcraft, 45, of Milford, Ohio pleaded guilty in U.S. District Court to defrauding investors of at least $15 million between 2009 and 2013 in a fraudulent investment scheme to purchase and sell real estate through real estate investment trusts known as REITs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service; and Jacqueline Williams, Director of Ohio Department of Commerce, announced the plea entered into today before U.S. District Senior Judge Sandra S. Beckwith.
According to court documents, Aschraft owned and operated French Manor Properties, which she told investors was acting as the REIT Trustee that would “secure residential and commercial real estate at wholesale pricing.” Investors believed that their investments were secured by real estate and Ashcraft promised them 40% annual returns on their investments. These representations were false.
Instead, Ashcraft used new investor money to pay earlier investors and diverted investor funds to her own personal use and benefit, including a $50,000 investor payment that she used to pay for Cincinnati Reds season tickets. Ashcraft would at times send investors checks for returns on their investments but the checks often bounced. After FBI agents seized Ashcraft’s iPhone pursuant to a search warrant, she sent a remote wipe command to destroy evidence stored on her cell phone.
Ashcraft pleaded guilty to one count of wire fraud, one count of securities fraud and one count of destruction of evidence, each punishable by up to 20 years in prison, and one count of money laundering, which is punishable by up to 10 years in prison.
Ashcraft’s case was scheduled to begin trial yesterday, but was delayed when she failed to appear in court. Ashcraft turned herself in late yesterday afternoon.Stewart commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are prosecuting the case.
Michigan Home Health Agency Owner Pleads Guilty in Connection with $2.6 Million Home Health Care SchemeRead the Press Release
The owner of a greater Detroit-area home health care agency pleaded guilty today to fraud and money laundering charges in connection with her role in a $2.6 million home health care scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Rahmat Begum, 49, of Farmington Hills, Michigan, pleaded guilty today – during the second day of her trial – to all charges in a six-count indictment, including one count of conspiracy to commit wire fraud, one count of making false statements relating to health care matters, one count of conspiracy to violate the Anti-Kickback Statute and three counts of money laundering. A sentencing hearing is scheduled for Aug. 18, 2015, before U.S. District Judge Bernard A. Friedman of the Eastern District of Michigan.
According to admissions made as part of her guilty plea, Begum conspired to submit falsified claims to Medicare where the claims were based upon referrals obtained through illegal kickbacks to patient recruiters and physicians. Begum also admitted to conspiring to pay illegal kickbacks to patient recruiters and physicians and to making a false statement to Medicare pledging not to pay kickbacks, when in fact she was paying them. Finally, Begum admitted to laundering the proceeds of the wire fraud conspiracy.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican Man Heads to Federal Prison for Illegally Reentering the United StatesRead the Press Release
McALLEN, Texas – Victor Manuel Blancas-Rosas, 40, of Mexico, has been ordered to prison following his conviction of being unlawfully present in the country after having been previously deported or removed, announced U.S. Attorney Kenneth Magidson. A McAllen federal jury convicted Blancas-Rosas Dec. 3, 2014, after only two hours of testimony and 15 minutes of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Blancas-Rosas a 48-month sentence. At the hearing, additional evidence was presented by the defendant contending he was an incorporated individual under the Uniform Commercial Code and therefore not subject to imprisonment. Judge Crane noted that his claims were not meritorious and proceeded to hand down the sentence. Blancas-Rosas is expected to face deportation proceedings following his release from prison.
On April 20, 2014, a concerned citizen saw possible illegal aliens running from a car on US-281 into the brush between Encino and the U.S. Border Patrol Checkpoint at Falfurrias. Agents quickly apprehended and detained Blancas-Rosas. The investigation revealed Blancas-Rosas had prior felony convictions and had previously been removed from the U.S.
At trial, he admitted he had illegally entered the country, had been deported on four previous occasions and to conducting prior felony criminal conduct.
Representing himself, his defense was that he had renounced his Mexican citizenship, was a citizen of the world and had copywrited his name. The jury ultimately found him guilty as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol investigated. Assistant U.S. Attorney Steven T. Schammel is prosecuting the case.
Member of Young Melph Mafia (YMM) Neighborhood Gang Sentenced to 13 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARIUS WILLIAMS, age 23, a resident of New Orleans, was sentenced yesterday for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.” U.S. District Judge Kurt D. Engelhardt sentenced WILLIAMS to 156 months imprisonment, to be followed by five years of supervised release.
WILLIAMS was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, WILLIAMS and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
U. S. Attorney Polite stated, “This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans. These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
Meat Market Owner Charged with Defrauding Assistance ProgramRead the Press Release
PHILADELPHIA - Saud Saleh, 30, of Philadelphia, PA, was charged by indictment, unsealed today, with wire fraud against the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the federal Food Stamp program, and associated charges, announced United States Attorney Zane David Memeger. The defendant owned and operated Twinz Meat Market, located at 3083 Kensington Avenue in Philadelphia, PA.
According to the indictment, Saleh engaged in the illegal trafficking in of SNAP benefits (formerly known as food stamps) by purchasing those benefits from customers of Twinz Meat Market in exchange for cash. The indictment charges that from approximately July 2010 through approximately December 2012, as a result of his trafficking activities, Saud Saleh sought and received from USDA redemption of approximately $1.125 million in SNAP benefits.
If convicted, Saleh faces a substantial period of incarceration in addition to an additional three years of supervised release, a fine of approximately $1.8 million and restitution.
The case was investigated by the United States Department of Agriculture Office of Inspector General and Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McAlester Man, Woman Sentenced to 65 and 43 Months, $31,000 Restitution for StalkingRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TONI SHNEA FOURKILLER, age 31, and RICHARD ROCKEY BLACKMAN, age 32, both of McAlester, Oklahoma, were sentenced in federal court for Stalking, in violation of Title 18, United States Code, Sections 2261A(1), 2261 and 2.
FOURKILLER, was sentenced to 43 months imprisonment and 3 years supervised release and BLACKMAN was sentenced to 65 months imprisonment and 3 years supervised. The defendants were ordered to pay restitution in the amount of $31,652.86.
The charge arose from an investigation by the McAlester Police Department. The defendants were indicted in September, 2014 and pled guilty in October, 2014.
The Indictment alleged that on or about March 23, 2014, in the Eastern District of Oklahoma, the defendant, left Indian country, with the intent to injure, harass, intimidate, and place under surveillance with intent to injure, harass, or intimidate another person, and in the course of, and a result of such travel, engaged in conduct that placed P.S. in reasonable fear of serious bodily injury to himself and caused P.S. serious bodily injury and substantial emotional distress.
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. At the conclusion of the sentencing hearing, both defendants were remanded into the custody of the United States Marshal Service pending transportation to the designated prison at which they will serve their nonparolable sentences.
Assistant United States Attorney Chris Wilson represented the United States.
Mask-Wearing Robber ConvictedRead the Press Release
PHILADELPHIA – Blair Thomas, Jr., 29, of East Lansdowne, PA, was convicted today of a bank robbery in Springfield, PA, the attempted armed robberies of postal employees in Yeadon and Darby, PA, and with being a convicted felon in possession of a firearm.
In each robbery and robbery attempt, Thomas wore a special effects, movie quality mask as a disguise, and in each robbery attempt, he armed himself with a .45-caliber Ruger semi-automatic handgun. On January 22, 2014, Thomas attempted to rob a United States Postal Service employee at the Yeadon Post Office, located at 709 Church Lane, of money orders. That same day, Thomas brandished a firearm and tried to rob a United States Postal Service employee at the Darby Post Office, located at 801 Main Street, of money orders. On January 23, 2014, Thomas robbed the Wells Fargo Bank, at 888 Baltimore Pike in Springfield, of approximately $1,890.
U.S. District Court Judge L. Felipe Restrepo scheduled a sentencing hearing for July 14, 2015. Thomas faces a mandatory minimum sentence of 30 years in prison with a maximum sentence of life, up to five years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
Thomas is also awaiting trial on separate charges in the District of Delaware.
The case was investigated by the United States Postal Inspection Service and the Springfield, Yeadon, and Darby Police Departments. It is being prosecuted by Assistant United States Attorney Jessica Natali.
Manchester Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Jesse David Kuchta, age 28, of Manchester, Maryland, pleaded guilty today to production and possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees, and Carroll County State’s Attorney Brian DeLeonardo.
According to Kuchta’s plea agreement, on May 14, 2014, a detective with the Carroll County Sheriff’s Office received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning images depicting minors engaged in sexually explicit conduct that had been uploaded to Photobucket, a free image and video hosting website. Based on their investigation of the tip, law enforcement identified Kuchta as the holder of the Photobucket accounts and obtained a search warrant for his address in Manchester. On May 14, 2014, law enforcement executed the search warrant.
During the search, Kuchta arrived at the home and spoke with investigators. He admitted taking the images and videos of a minor female engaged in sexually explicit conduct and uploading them to his Photobucket accounts. Law enforcement seized a flash drive, two micro SD cards and two cell phones used in the production, possession or transportation of child pornography, as well as other items of evidence that were seen in the images and videos that Kuchta produced.
As part of his plea agreement, Kutcha must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Kutcha faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for production of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to lifetime of supervised release. U.S. District Judge George L. Russell, III has scheduled sentencing for August 7, 2015 at 11:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Man Sentenced to 72 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
WICHITA FALLS, Texas — Viviano Nuncio, an Oklahoma man, who was arrested in Wichita Falls, Texas, last year for failing to register as a sex offender, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 72 months in federal prison, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Viviano Nuncio, 50, was arrested on July 30, 2014, and he pleaded guilty in November 2014 to one count of failure to register as a sex offender. The 72-month sentence was an upward departure from the U.S. Sentencing Guidelines.
According to documents filed in the case, Nuncio was convicted in Tillman County, Oklahoma, in December 2005 for lewd molestation, and he was sentenced to 15 years in the Oklahoma Department of Corrections, with all but the first eight years suspended. As a result of this conviction, Nuncio was advised of his requirement to register as a sex offender by the sentencing judge. Nuncio registered as a sex offender upon his release from prison on March 28, 2012. The last time he registered, however, was on September 10, 2013, in Garfield County, Oklahoma.
Nuncio admitted he had moved in with his sister in Wichita Falls the day before Thanksgiving, November 27, 2013. When he was arrested, he admitted he knew he had a duty to register in Texas, but stated that he did not because he was afraid of getting arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Marshals Service investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Adam Rey Gonzalez, 28, of Schenectady, New York, pled guilty today in Albany before Senior United States District Judge Thomas J. McAvoy to one count of distribution of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
"This case demonstrates that even sophisticated traders of child pornography will be identified and prosecuted," stated United States Attorney Richard S. Hartunian. "My office, working with our law enforcement partners, will use every tool at its disposal to track down and prosecute those who share movies and photographs depicting the sexual abuse of young children."
"Today’s guilty plea was the result of a diligent investigation that unraveled the web in which Mr. Gonzalez sought to anonymize his criminal online activities. Others who are engaging in similar online activity should be aware that we can identify them and will pursue criminal charges against them," said Special Agent-in-Charge Andrew W. Vale.
Gonzalez, who has been convicted twice previously for sexual offenses, faces a statutory mandatory minimum term of fifteen years of imprisonment and a maximum sentence of forty years of imprisonment, as well as a lifetime term of supervised release, a maximum fine of $250,000, and mandatory registration as a sex offender. Gonzalez will be sentenced in Albany on August 10, 2015.
As part of his guilty plea, Gonzalez admitted that he used a peer-to-peer file sharing program to distribute movies and photographs of young boys engaged in sexually explicit activity over the Internet. Gonzalez also admitted that he took numerous steps to remain anonymous while trading child pornography online, and that he kept a small computer hidden in his sofa specifically for the purpose of trading child pornography. A forensic examination of that computer ultimately revealed that Gonzalez had nearly a thousand files depicting children as young as age two engaged in sexually explicit conduct that he downloaded from the Internet and regularly traded with others.
This case was investigated by the Federal Bureau of Investigation, Albany Division, and is being prosecuted by Assistant United States Attorneys Wayne A. Myers, Emily T. Farber, and Special Assistant United States Attorney Amanda W. Cox.
Man Indicted for Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Gnoan Pierre Kablan was indicted on April 9 on 16 felony counts of aiding and assisting in the preparation and presentation of false and fraudulent tax returns, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. On each count, Kablan faces a maximum imprisonment term of 3 years, a maximum fine of $100,000, a special assessment of $100, and a maximum term of supervised release of 1 year. As part of any sentence, Kablan may also be ordered to pay to the Treasury Department an amount equaling the tax loss that his conduct is found to have caused.
Kablan, 52, of Latham, was arraigned in Albany on April 13 before the Honorable Randolph F. Treece, United States Magistrate Judge, and released on his own recognizance pending a trial scheduled for June 15 before the Honorable Mae D’Agostino, United States District Court Judge.
According to the indictment, Kablan, a tax preparer working in Rensselaer County during the relevant time period, prepared at least 16 tax returns for 2008 through 2011 containing false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property or energy efficiency credits that gave his taxpayer clients refunds that they were not entitled to.
"The defendant allegedly prepared tax returns that resulted in a tax loss to the U.S. Treasury Department because his clients were not entitled to the deductions and credits that they claimed," stated United States Attorney Richard S. Hartunian. "This being tax-paying season, now is a good time for our citizens to remember that willfully filing a false return can result in civil and criminal liability."
"The investigation of unscrupulous tax return preparers remains a priority for the Internal Revenue Service," said Shantelle P. Kitchen, IRS Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. "We will vigorously pursue the prosecution of them with our partners in the United States Attorney’s Office."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Assistant United States Attorney Michael Barnett is prosecuting this case, which is being investigated by the New York Field Office of the IRS-Criminal Investigation.
Magistrate Judge Detains St. Croix Man Arrested on Child Pornography ChargesRead the Press Release
St. Croix, USVI – U.S. Magistrate Judge George W. Cannon today issued an order detaining Nicolas Mena, 34, of St. Croix, who was arrested Friday on a criminal complaint charging him with one count of receipt of child pornography and one count of possessing child pornography, United States Attorney Ronald W. Sharpe announced. Mena made his initial appearance before U.S. Magistrate Judge Cannon on Friday after his arrest, and had his detention hearing on Monday.
If convicted of receipt of child pornography, Mena faces a mandatory minimum sentence of five years and a maximum of 20 years in prison, and a $250,000 fine. If convicted of possession of child pornography, Mena faces a maximum sentence of 10 years in prison and a $250,000 fine.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
This case is being investigated by U.S. Immigration and Customs Enforcement's HomelandSecurity Investigations. It is being prosecuted by Assistant U.S. Attorney Rami. S. Badawy.
Last of Four “Spice” Conspirators SentencedRead the Press Release
BOISE – Mark Ciccarello, 37, of Boise, Idaho, was sentenced today in U.S. District Court to 37 months in prison, followed by three years of supervised release for conspiring to launder money, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Ciccarello to pay $4.5 million in asset forfeiture, and to pay a $3,000 fine. Ciccarello will self-surrender, as directed by the United States Bureau of Prisons.
Ciccarello is the last of the defendants charged with manufacturing controlled substance analogues and laundering the money from selling these substances nationwide. The Indictment alleged that Ciccarello and three co-conspirators, Troy Palmer, William Mabry, and Robert Eoff, conspired to purchase and import from China chemicals known as AM2201, UR-144, and XLR11, which they use to treat innocuous plant matter to make “spice”Ca synthetic cannabinoid similar to substances—including JWH018—listed in Schedule I of the Controlled Substances Act. The most popular spice product they made was called “Zombie Matter,” which also became the name of the marketing enterprise set up by Ciccarello. The Indictment alleged that they conspired to launder money illegally obtained through spice manufacturing and distribution.
According to court documents, Ciccarello admitted that he was a leader in a conspiracy to conduct financial transactions in connection with a “spice” manufacturing and distribution business, beginning in March 2011. Ciccarello also admitted to knowingly participating in and directing the financial activity of the business by engaging in bank and other financial transactions, through both domestic and foreign financial institutions. The transactions consisted of the proceeds of illegal spice sales and other specified unlawful activity and, in many cases, the transactions conducted through financial institutions separately consisted of criminally derived property of a value greater than $10,000; most of the transactions occurred in Idaho, Washington and California.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Killeen Trio Sentenced to Federal Prison for Tax Refund Fraud SchemeRead the Press Release
Three Killeen, TX, residents were sentenced to federal prison for their roles in a tax refund scheme with an estimated intended loss of $1.8 million announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
Yesterday afternoon in Austin, United States District Judge Lee Yeakel sentenced 34-year-old Albert Powell, 32-year-old Paris Stephens and 34-year-old Ronnie Cole to 54 months, 36 months and 18 months in federal prison, respectively. Judge Yeakel also ordered that Powell and Stephens jointly and severally pay $852,226 in restitution to the IRS; Cole, $121,810 in restitution to the IRS.
According to court records and testimony, from 2010 to 2012, the defendants were involved in a scheme to obtain personal identification information from various sources then used it to file more than 350 fraudulent income tax returns which generally claimed refunds between $3,000 and $7,000. In July 2014, the defendants pleaded guilty to one count of conspiracy to defraud the government with respect to claims and one count of fraudulent use and possession of a means of identification.
“The sentencings of Albert Powell, Paris Stevens and Ronnie Cole should be a reminder to others that IRS-Criminal Investigation is determined to bring down those who use identity theft to enrich themselves,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people's money.”
This Stolen Identity Refund Fraud (SIRF) case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.
KC Man Sentenced to 40 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today on charges related to producing child pornography.
Donald T. Paris, Jr., 28, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 40 years in federal prison without parole.
On March 25, 2014, Paris was convicted at trial of one count of producing child pornography, one count of receiving child pornography over the Internet, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Evidence introduced during the trial indicated that Paris used a child victim, identified in the indictment as “CV,” to produce child pornography in December 2010. Paris also used his e-mail account to receive, transport and possess separate images of child pornography.
According to court documents, Paris was arrested in December 2011 when he was caught printing images of child pornography at the Kansas City Public Library. Paris admitted to law enforcement officers that he used his e-mail account to receive, send and possess images and videos of child pornography. Paris possessed 169 images and 25 movies of child pornography.
Paris also admitted that he had used his cell phone to produce images of child pornography with two separate minors in December 2010 and January 2011. Paris admitted to repeated sexual abuses and molestations of numerous children as young as three years of age over the past decade.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Taney County, Mo., Sheriff’s Department, the North Richland Hills, Texas, Police Department and the Branson, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Asks Federal Court to Shut Down Fraudulent Florida Tax Return PreparerRead the Press Release
The United States has filed a complaint seeking to permanently bar a West Palm Beach, Florida, area man and his business from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint against Paul Jean, which was filed in the U.S. District Court for the Southern District of Florida, alleges that Jean prepares federal income tax returns for customers that understate their correct tax liabilities. The complaint alleges that Jean has operated under the business names Whiz Tax and Rejoice Tax Services.
According to the complaint, Jean intentionally misreports the information he receives from customers in order to fabricate or inflate tax credits, including claiming improper earned income tax credits, education credits or fuel credits. Because some of these credits are refundable, the improper claims often result in larger tax refunds than the customer would otherwise be entitled to, according to the suit.
The complaint alleges that Jean also prepares returns that report false or inflated deductions, such as mortgage interest deduction or contributions to charity, or business expense deductions reported on a Schedule C (Profit or Loss From Business), such as expenditures for supplies or office expenses.
According to the suit, the Internal Revenue Service (IRS) interviewed several of Jean’s customers who stated that they had not provided Jean with information to support a claim for a credit and that they were not aware that the improper credit was claimed on their tax return.
The suit also alleges that in some instances, Jean has prepared two returns for one customer. One return is shown to the customer but is not filed with the IRS, while the other return is filed with the IRS but not shown to the customer. The filed return claims a larger refund than the return shown to the customer by using at least one of the schemes described. Jean then allegedly keeps the fraudulent excess refund reported on the filed return.
The IRS estimates that Jean, directly or indirectly, has prepared and filed more than 3,000 tax returns since 2012, and that Jean’s conduct has potentially caused millions of dollars of harm to the U.S. Treasury, according to the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Investment Advisors Indicted for Operating Ponzi Scheme to Defraud Investors for Millions of DollarsRead the Press Release
Jeffrey Gardner and Stuart Voigt charged with using real estate scheme to steal millions
United States Attorney Andrew M. Luger today announced a superseding indictment charging JEFFERY ALLEN GARDNER, 61, and STUART ALAN VOIGT, 66, for conspiring to defraud individuals and financial institutions. In an indictment unsealed on July 24, 2014, GARDNER was charged with conspiracy to commit mail and wire fraud and other charges. In a superseding indictment filed today, VOIGT is also charged with conspiracy to commit mail fraud and other charges, and both defendants are additionally charged with bank fraud and making a false statement in a loan application.
“Those who hold positions of responsibility in the banking and investment industries are duty- bound to be honest and forthright with their clients,” said U.S. Attorney Luger. “We will continue to work with all of our federal and state partners to protect this important principle.”
According to the indictment and documents filed in court, between 2005 and 2007, GARDNER and VOIGT solicited and raised funds from private investors in connection with GARDNER’S business entity, Hennessey Financial, LLC (Hennessey). Investors were told that their investment would be used for commercial real estate financing and related projects, and were promised returns of between 10 and 20 percent annually. However, according to the superseding indictment, GARDNER, VOIGT, and others misrepresented the true financial circumstances of Hennessey to the victim investors.
According to the indictment and documents filed in court, GARNDER did not use Hennessey’s funds substantially as promised, instead diverting them to unapproved uses, including for repayments to prior investors and preexisting debts incurred by GARDNER and his companies. Moreover, even when GARDNER knew that Hennessey was failing as a business and unlikely to meet its obligations to repay investor funds, his company’s communications still represented to investors that their investments had positive value and were expected to continue to yield previously promised returns.
According to the indictment and documents filed in court, during the time period when Hennessey was failing, GARDNER and VOIGT created new companies, opened bank accounts in the names of new companies, transferred funds from Hennessey accounts, and took other steps to hide income and assets from investors, creditors, and the government.
According to the indictment and documents filed in court, VOIGT knowingly engaged in monetary transactions of criminally derived property, namely multiple payments exceeding $50,000 each drawn from a Hennessey Financial account and made payable to VOIGT. During this same time period, VOIGT was the chairman of the board of First Commercial Bank (FCB). According to the charges, in order to keep Hennessey afloat and provide funds to funnel back to VOIGT, GARDNER and VOIGT secured loans for GARDNER from FCB without truthfully disclosing GARDNER’S financial situation. The defendants filed security interests and took other steps to allow another company to obtain Hennessey assets that GARDNER had presented as security for the loans from FCB, thereby depriving FCB of collateral and reducing the likelihood that FCB would be made whole.
According to the indictment and documents filed in court, GARDNER also misrepresented the reason Hennessey’s CFO resigned in early 2008. He told FCB that the CFO had been dismissed because he was only working 20 hours per week and was having family issues, when in truth, the CFO resigned due to concerns he had about Hennessey’s financial condition and representations made to investors.
According to the indictment and documents filed in court, VOIGT also made false statements to Tradition Capital Bank (TCB) in connection with a personal loan. VOIGT is charged with misrepresenting the value of his assets in personal financial statements made to the bank.
This case is the result of an investigation conducted by the United States Postal Inspection Service, Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Minnesota Department of Commerce – Fraud Bureau.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.
Defendant Information: JEFFERY ALLEN GARDNER, 61
Hopkins, Minn.
Charges: • Conspiracy to commit mail fraud, 2 counts
• Mail fraud, 4 counts
• Bank fraud, 5 counts
• False statement on a loan application, 7 counts
• Monetary transactions in criminally-derived property, 1 count
STUART ALAN VOIGT, 66
Apple Valley, Minn.
Charges: • Conspiracy to commit mail fraud, 2 counts
• Mail fraud, 4 counts
• Bank fraud, 5 counts
• False statement on a loan application, 7 counts
• Monetary transactions in criminally-derived property, 16 counts
• False statement to the FDIC, 2 countsThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Inmate at Stillwater Correctional Facility Indicted for Conspiring to Steal $180,000 from IrsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of ELISEO ORTIZ, 49, STACEY JEAN BERGHAMMER, 33, and SHANNON LEE TROLLEN, 37, for conspiring to file false state and federal tax returns and claim tax refunds. The three defendants are charged with conspiracy to file false claims for income tax refunds. ORTIZ and BERGHAMMER are also charged with filing false claims for income tax refunds, and ORTIZ is additionally charged with procuring a false tax return.
“Eliseo Ortiz is charged with conspiring to file fraudulent tax returns from behind bars,” said U.S. Attorney Luger. “Conspiring with associates on the outside is a nefarious way to steal from the public. I am grateful to the investigators at IRS Criminal Investigation for pursuing cases like these on behalf of honest taxpayers.”
“The defendants who allegedly perpetrated this tax fraud scheme systematically defrauded the government and the taxpaying public,” said Special Agent in Charge Shea Jones, of the St. Paul Field Office IRS Criminal Investigation. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false tax returns in order to obtain refunds.”
According to the indictment and documents filed in court, between 2008 and at least April 28, 2010, ORTIZ was incarcerated at Stillwater Correctional Facility, where he recruited other inmates to provide names and social security numbers for the defendants to use in preparing and filing the false tax returns. These “recruits” were also asked to provide addresses for unincarcerated trusted associates who could transfer money from tax refunds to the defendants and other co-conspirators. ORTIZ provided the information he obtained from the recruits to BERGHAMMER or TROLLEN, who would then complete and file the false tax returns that fraudulently claimed refunds to which the recruits were not entitled.
According to the indictment and documents filed in court, the defendants and other co- conspirators filed tax returns claiming false wages, withholdings, and other information. Many of the fraudulent tax returns falsely claimed that the recruits were entitled to tax credits such as the earned income tax credit, the making work pay credit, and the additional child tax credit. In reality, the recruits had not earned the income that was reported, they had not had any income tax withholdings, they were not eligible for the tax credits listed, and they were not entitled to refunds claimed.
According to the indictment and documents filed in court, the defendants and other co- conspirators obtained payments for their roles in the scheme in various ways. If an income tax refund for a filing co-conspirator was issued by check, payments were sometimes obtained by having the check sent to the address of a trusted associate who was not in prison, cashing the check, and then splitting the money between the co-conspirator, the defendants, and others. If a refund was obtained through a direct deposit or into a debit card, payments to the co-conspirators and defendants were sometimes made by using money orders and wire transfers.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Michael L. Cheever.
Defendant Information: ELISEO ORTIZ, 49
Bartlett, Ill.
Charges: • Conspiracy to file false claims, 1 count
• False Claims, 3 counts
• Procuring a False Tax Return, 1 count
STACEY JEAN BERGHAMMER, 33
Red Wing, Minn.
Charges: • Conspiracy to file false claims, 1 count
• False Claims, 3 counts
SHANNON LEE TROLLEN, 37
Stockholm, Wisc.
Charges: • Conspiracy to file false claims, 1 countThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Hammond Man Sentenced to 13.5 Years for Firearm and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRANDON WATKINS, age 31, a resident of Hammond, was sentenced today after having previously pled guilty to distribution of cocaine and possession and sale of a stolen firearm by a convicted felon.
U.S. District Judge Kurt D. Engelhardt sentenced WATKINS to 162 months of incarceration, to be followed by 3 years of supervised release.
According to court documents, in September and October 2012, WATKINS sold quantities of cocaine and four stolen firearms to an undercover law enforcement agent. Additionally, on July 17, 2013, WATKINS sold oxycodone pills to an undercover law enforcement agent.
Court records revealed that WATKINS was convicted on or about April 24, 2009, of unauthorized entry of an inhabited dwelling in Tangipahoa Parish. As such, he was prohibited from possessing firearm by both state and federal law.
U.S. Attorney Polite praised the work of the Tangipahoa Parish Sheriff’s Office, Hammond Police Department, and the ATF New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
Grove City Man Charged with Using His Dead Mother's Social Security BenefitsRead the Press Release
PITTSBURGH - A Mercer County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Alexander Viskovatoff, 57, of Grove City, PA.
According to the indictment, in and around January 2011, through in and around September 2012, Viskovatoff converted to his own use funds of the Social Security Administration that had been intended to be benefits for his deceased mother.
The law provides for a maximum total sentence of up to ten years in prison, a fine of up to $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.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Granite City Man Sentenced for Distributing MethamphetamineRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on April 14, 2015, Louis R. Dochwat, 38, of Granite City, IL, has been sentenced to 188 months in federal prison for Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine. Upon release from prison, Dochwat will also be required to complete a term of 3 years on supervised release.
At his change of plea hearing in December, Dochwat admitted selling methamphetamine to a DEA informant in Granite City on three separate occasions in 2013 and 2014. In total, Dochwat sold approximately three quarters of an ounce of methamphetamine for $2,000.00.
Because of his substantial criminal record, Dochwat was sentenced as a "career offender." Dochwat has been continuously confined in federal custody since his arrest in October, 2014.
The investigation which resulted in Dochwat’s arrest and conviction was conducted by the Drug Enforcement Administration.
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Glen Burnie Man Sentenced to Four Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Paul Anthony Philip III, age 31, of Glen Burnie, Maryland, today to four years in prison, followed by 15 years of supervised release, for possession of child pornography. Judge Blake ordered that upon his release from prison, Philip must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Philip’s plea agreement, during January and February 2014, Philip logged onto a website designed for video and file sharing. On the website Philip described himself and offered to share child pornography in exchange for “hardcore” pornography involving fathers and daughters. During that time, Philip admits that he received two emails, containing images of children engaged in sexually explicit conduct, including pre-pubescent children. For example, on January 29, 2014, Philip received an email containing two images depicting young toddlers subject to abuse and degradation and displayed in a lascivious manner. Philip also sent emails with images of child pornography. For example, on January 29, 2014, Philip sent an email which included two video files depicting young infants subjected to sadomasochistic activities.
On August 1, 2014, a search warrant was executed at Philip’s home and his cell phone was seized. Philip admitted that he used his cell phone to access the internet in order to solicit, trade, download and view child pornography. A forensic examination of Philip’s phone revealed 3783 digital images and videos, all of which contained visual depictions of minors engaged in sexually explicit conduct. Many of the images included photographs of young children who are bound/restrained and subject to physical and sexual abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Genovese Organized Crime Family Associate Sentenced to 28 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A North Jersey man was sentenced today to 28 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to Count One of the second superseding indictment, charging him with racketeering conspiracy. LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.
According to documents filed in this case and statements made in court:
Since at least 2005, co-defendant Stephen Depiro, 59, of Kenilworth, New Jersey, has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, LaGrasso, Depiro and co-defendant Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president, admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. LaGrasso and Cernadas admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release and fined $25,000. Cernadas was previously sentenced to probation and DePiro is scheduled to be sentenced April 17, 2015.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Michael Critchley Sr., Esq., Roseland
Genovese Organized Crime Family Associate Sentenced to 28 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A North Jersey man was sentenced today to 28 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to Count One of the second superseding indictment, charging him with racketeering conspiracy. LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.
According to documents filed in this case and statements made in court:
Since at least 2005, co-defendant Stephen Depiro, 59, of Kenilworth, New Jersey, has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, LaGrasso, Depiro and co-defendant Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president, admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. LaGrasso and Cernadas admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release and fined $25,000. Cernadas was previously sentenced to probation and DePiro is scheduled to be sentenced April 17, 2015.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Michael Critchley Sr., Esq., Roseland
Former Redstone Township Police Officer Charged with Civil Rights Violation, Falsifying Police ReportRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of Deprivation of Civil Rights and Falsification of a Document, United States Attorney David J. Hickton announced today.
The two-count Indictment named Norman L. Howard, 42, of Grindstone, Pa., as the sole defendant.
According to the Indictment, on or about May 26, 2013, Howard, a police officer of the Redstone Township Police Department, willfully deprived an individual identified as D.N. by punching D.N. in the face, without justification, thereby causing bodily injury to D.N. The Indictment further alleges that on or about May 26, 2013, Howard made false statements in a police report regarding the incident, claiming that the man had shoved him and had resisted arrest.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Former New Jersey Resident Pleads Guilty to Defrauding U.S. Subsidiary of Foreign Investment Bank of More Than $1.5 MillionRead the Press Release
TRENTON, N.J. - A former New Jersey resident who previously worked for the U.S. subsidiary of a foreign investment bank admitted today that he orchestrated a scheme to defraud his former employer out of more than $1.5 million, U.S. Attorney Paul J. Fishman announced.
Michael Lieberman, 43, formerly of New Jersey and currently a resident of Huntersville, North Carolina, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of wire fraud for executing a scheme over the course of two years through which he fraudulently transferred more than $1.5 million from accounts of his former employer to bank accounts he controlled.
According to documents filed in this case and statements made in court:
Lieberman was employed by “Company A,” a United States-based subsidiary of an international investment bank, in its International Settlements Group in Iselin, New Jersey. Company A engaged in and settled cross-border securities transactions and acted as a settlement agent for similar securities transactions entered into by its broker-dealer clients. Company A’s International Settlements Group was responsible for, among other things, wiring funds to settle various securities transactions.
From June 2012 through May 2014, Lieberman devised a scheme to use his position in the International Settlements Group to initiate more than 50 separate fraudulent wire transfers of Company A’s money, directing the proceeds to bank accounts he either owned or controlled. Lieberman then spent Company A’s money for his own purposes, including purchasing a home in North Carolina, making tens of thousands of dollars in credit card payments and spending hundreds of thousands of dollars on hotels, airplane tickets, home furnishings, restaurant tabs and other expenditures.
Lieberman took various steps to conceal his fraudulent activities, including making fictitious entries in Company A’s bookkeeping system and supplying phony documents to others in order to cause them to make false entries in the company’s books and records reflecting fake profits on non-existent transactions.
The wire fraud count to which Lieberman pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to the greatest of $250,000, twice the gain or twice the loss from the offense. As part of the guilty plea, Lieberman must make restitution and forfeit the proceeds of his scheme, including the home in North Carolina he purchased with money from the fraud. Sentencing is scheduled for July 22, 2015.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Richard Frankel in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Paul Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit, Zach Intrater, Chief of the General Crimes Unit, and Barbara Ward of the Asset Forfeiture and Money Laundering Unit, in Newark.
This arrest 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. attorney’s 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.
Defense counsel: Linda Pellegrino Esq., Newton, New Jersey
lieberman_michael_information.pdf
Former Jeweler Sentenced to Nearly Four Years in Prison for Laundering Money by Pawning Diamonds Falsely Reported StolenRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Vestavia Hills man to three years and nine months in prison for laundering money by pawning a 3-carat diamond that was among a cache of jewels he collected a $2.6 million insurance payment on in 2004 after reporting them stolen in a Mountain Brook Jewelry store robbery.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, U.S. Secret Service Special Agent in Charge Craig Caldwell, Vestavia Hills Police Chief Dan Rary and Mountain Brook Police Chief Ted Cook announced the sentence.
U.S. District Judge Karon O. Bowdre sentenced JOSEPH HAROLD GANDY, 65, in accordance with a binding plea agreement the former jeweler entered with federal prosecutors. As part of his sentence, Gandy must pay $20,000 in restitution to the jewelers where he pawned the diamonds. He also must forfeit to the government nearly all the diamonds and jewelry the FBI recovered from him, which includes a rare Blue Diamond worth at least $620,000. The Blue Diamond was among about $1.5 million worth of diamonds and jewelry Gandy falsely reported stolen in 2004. In 2013, Gandy sent a friend to pawn some of those diamonds he had reported stolen.
The U.S. Attorney's Office charged Gandy in October with one count of money laundering for pawning property worth more than $10,000 that he obtained through a criminal act, wire fraud, which he committed when he submitted an insurance claim on diamonds falsely reported as stolen. Prosecutors also charged Gandy with one count of being a convicted felon in possession of firearms for 99 weapons seized in a search of his Vestavia Hills home in November 2013. Gandy is prohibited from possessing weapons because of a 1989 federal mail fraud conviction. Gandy pleaded guilty to both federal counts in November.
Vestavia Hills Police seized the 99 weapons at Gandy's house. The state is prosecuting him on weapons charges and on drug charges based on prescription drugs also seized at his residence in the November search. A state court hearing is scheduled later this month. The Vestavia Hills police are handling forfeiture of the firearms.
According to court documents, Gandy's federal crime unfolded as follows:
Gandy was an owner and the operator of Denman-Crosby Jewelry Store in Mountain Brook in 2004. In December of that year, he reported that two unidentified men robbed the store at gunpoint. At the time, Denman-Crosby was promoting a loose diamond sale for Christmas. It had many diamonds and other jewelry in on consignment from jewelers in New York and elsewhere. The store carried a $2.6 million insurance policy. Gandy had increased the coverage amount with XL Specialty Insurance Company a few weeks before the robbery.
In January and March of 2005, Gandy used interstate wire transmissions to submit insurance claims from the robbery. He included a detailed inventory of jewelry worth about $2.8 million that he reported stolen. XL Specialty paid the policy's limit of $2.6 million.
In July 2013, Gandy began sending a friend to jewelry stores in Jefferson County to pawn diamonds he had reported stolen in 2004. The first effort ended when the jeweler requested documentation on a 1.59-carat diamond, mounted in a platinum setting, and attempted to examine the stone closely. The concern was that the diamond might bear a laser inscription useful in tracing its history. Subsequently, Gandy examined 10 to 12 diamonds under a microscope and selected stones that bore no inscription.
On July 26, 2013, Gandy sent his friend to a Birmingham jewelry store to pawn a 3.01-carat emerald-cut diamond he said was worth about $43,000. Gandy said he wanted at least $15,000 for the stone. The store accepted the diamond in exchange for a $12,000 loan. The diamond was one Gandy reported stolen in the Denman-Crosby robbery. He gave his friend $2,000 for making the transaction.
Between August and November of 2013, Gandy's friend pawned two more diamonds: a 3.45-carat cushion-cut diamond for $8,000; and a 2.16-carat round diamond for $2,000. Both stones were on the stolen inventory list Gandy provided the insurance company in 2005. Gandy gave his friend $1,880 after receiving the $8,000 for the 3.45-carat diamond.
The FBI, Secret Service, Vestavia Hills and Mountain Brook police departments investigated the case. Assistant U.S. Attorney George A. Martin Jr. is prosecuting the case.
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Felon Sentenced to 3 Years in Prison for Illegally Possessing CartridgesRead the Press Release
PITTSBURGH - Elanda Bell has been sentenced in federal court to 34 months imprisonment, to be followed by three years of supervised release, on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Bell, 56, who has no known permanent address.
According to information presented to the court, between Jan. 3, 2008, and June 29, 2013, Bell possessed ten .41 Caliber cartridges. Bell had previously been convicted of manslaughter and aggravated assault in the Court of Common Pleas of Philadelphia. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or firearm.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department for the investigation leading to the successful prosecution of Bell.
Federal grand jury indicts Lasalle street kidnappersRead the Press Release
Six individuals from Detroit, Michigan charged with kidnapping two Indianapolis minors in retaliation for a drug rip off
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that a federal grand jury returned indictments against six Detroit, Michigan, residents for their role in a kidnapping conspiracy. Two victims were kidnapped from their home on the eastside of Indianapolis on March 2, 2015, and taken to Detroit where they were held for ransom by their captors.
“I want to commend the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department for their immediate reaction to this kidnapping,” said Minkler. “As a result of their non-stop efforts, this case was solved in less than 48 hours, the victims were rescued and the defendants arrested. Law enforcement has sent a strong message; when children are involved, we will send the cavalry.”
Charged with two counts of kidnapping and one count of conspiracy to commit kidnapping include:
John Thomas, a/k/a, Jay, 38
Alaa Al-Salehi, a/k/a Big Boi, 23
April Sandell, 26
Bernando Reeves, a/k/a C-Note, 20
Mohammed Karkash a/k/a MJ, 22
Ali Hussain Ashore, 26
According to the indictment, Thomas is an alleged drug dealer from Detroit. On February 28, 2015, Thomas’ former girlfriend (Individual A) stole a large quantity of narcotics and narcotics proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Individual A.
The indictment further alleges that on March 2, 2015, members of the conspiracy conducted a home invasion on Lasalle Street in Indianapolis and kidnapped Individual A’s minor siblings, holding them for ransom. They used a blindfold, towel and a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the fingers of the victim to compel him to reveal the location of Individual A and the narcotics and narcotics proceeds allegedly stolen from Thomas. Both victims were then transported by vehicle to Detroit. Both victims have been returned safely.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
According to Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, who are prosecuting the case for the government, all defendants face up to life in prison, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Federal Grand Jury Returns Superseding Indictment Against Former Colfax County Sheriff’s DeputyRead the Press Release
ALBUQUERQUE – Yesterday a federal grand jury sitting in Albuquerque, N.M., returned a superseding indictment that adds new charges against a former Deputy of the Colfax County Sheriff’s Office previously charged with a drug trafficking offense. In addition to the original drug trafficking offense, the superseding indictment charges Vidal Sandoval, 45, of Cimarron, N.M., with two theft of government property offenses.
Sandoval was arrested by the FBI and the New Mexico State Police on March 13, 2015, on an indictment alleging that on Feb. 28, 2015, Sandoval aided and abetted an attempt to possess cocaine with intent to distribute in Colfax County, N.M. The indictment included forfeiture provisions seeking a money judgment in the amount of at least $19,500.00, the proceeds Sandoval allegedly obtained as a result of his unlawful conduct.
The two new theft of government charges in the superseding indictment allege that Sandoval stole money belonging to the FBI on Dec. 15, 2014 and Jan. 25, 2015. According to affidavits submitted in support of court-approved search warrants that were executed following Sandoval’s arrest, on those two dates, Sandoval allegedly stole money from undercover FBI agents who were posing as drug dealers during two traffic stops. During the Dec. 15, 2014 traffic stop, Sandoval allegedly stole $7,500.00 from the undercover agents, and during the Jan. 25, 2015 traffic stop, he allegedly stole $2,000.00 from them.
At the time of the offenses charged in the superseding indictment, Sandoval was a deputy of the Colfax County Sheriff’s Office. Sandoval resigned following his arrest. Sandoval was released from custody on conditions of release, including pretrial supervision, pending trial which currently is scheduled for June 15, 2015.
If convicted on the drug trafficking charge in the superseding indictment, Sandoval faces a mandatory minimum five years and a maximum of 40 years in federal prison. If convicted on the theft of government property charges, Sandoval faces a statutory maximum penalty of ten years in federal prison on each of the two charges. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police with assistance from the Colfax County Sheriff’s Office. Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case.
Federal Grand Jury Indicts Father for Lying to FBI About Helping Fugitive Son Escape to MexicoRead the Press Release
In El Paso this afternoon, a federal grand jury returned an indictment charging 53-year-old Victor Manuel Solis, a legal permanent resident living in Lancaster, CA, with making a false statement to El Paso FBI agents concerning an ongoing investigation and search for his fugitive son, former Los Angeles Police officer Henry Solis. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.
The indictment alleges that on March 16, 2015, Victor Solis willfully attempted to prevent law enforcement from locating Henry Solis by representing to FBI agents that he, alone, crossed into Mexico on March 14, 2015. Photographs released by the FBI show that Victor Solis, accompanied by Henry Solis, crossed into Juarez, Mexico, from El Paso at the Paso Del Norte Port of Entry on March 14, 2015.
Upon conviction, Victor Solis faces up to five years in federal prison and a maximum $250,000 fine.
Victor Solis remains in federal custody while Henry Solis remains a fugitive from justice. Authorities are seeking to arrest Henry Solis for his alleged involvement in a homicide in Pomona, CA, last month. The FBI is offering a reward of up to $25,000 for information leading directly to the arrest of Henry Solis. Anyone with information as to the whereabouts of Henry Solis is asked to contact their local FBI field office.
The case resulted from a joint investigation by the El Paso and Los Angeles Field Offices of the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Kyle Meyers.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Younges Island Man Indicted for Investment Fraud
James Futch III, age 60, of Younges Island, South Carolina, was charged in a 1-count Indictment with Wire Fraud, a violation of 18 U.S.C. § 1343. The maximum penalty that Futch could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Myrtle Beach Man Indicted for Theft of Government and Tax Fraud
Jose Boyzo, age 49, of Myrtle Beach, South Carolina was charged in a 1-count Indictment with Theft of Government Property involving the cashing of fraudulent tax refund checks, a violation of 18 U. S. C. § 641. The maximum penalty that Boyzo could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Goose Creek Man Indicted for Illegal Reentry of an Alien Felon
Edwin Hernandez Hernandez, age 27, of Goose Creek, was charged in a one-count Indictment with Illegal Reentry of an Alien Felon, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b)(1) respectively. The maximum penalty Hernandez could receive is 10 years imprisonment and a $250,000 fine. The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Ladson Man Charged with Manufacturing and Possessing Counterfeit Currency
Chad John Gilman, age 42, of Ladson, was charged in an Indictment with one count of Manufacturing Counterfeit Currency and two counts of Possession of Counterfeit Currency, in violation of Title 18, United States Code, Sections 471 and 472 respectively. The maximum penalty Gilman could receive is 20 years imprisonment and a fine of $250,000 for each count. The case was investigated by agents of Department of Homeland Security, Secret Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Mother and Daughter Charged with Theft of Government Property
Mary Hayre, age 68, and Pamela Jeridore, age 44, both of North Charleston, were charged in a one-count Indictment with Theft of Government Property, a violation of Title 18, United States Code, Sections 641 and 2. The maximum penalty each defendant could receive is 10 years imprisonment and a fine of $250,000. The case was investigated by agents of the U.S. Department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Charleston Restaurant Owner Charged with False Statement and Obstruction of Proceedings before Department of Labor
Jose Jamie Villalpando, a/k/a Jose Jamie Villapondo, age 47, of Charleston, and owner of Senor Tequila Restaurant in Charleston, was charged in a four-count indictment with one count of False Statement, a violation of Title 18, United States Code, Section 1001(a)(1) and three counts of Obstruction of Proceedings before Departments, in violation of Title 18, United States Code, Section 1505. The maximum penalty Villalpando could receive for False Statement is 5 years imprisonment and a $250,000 fine, and the maximum penalty he could receive for each count of Obstruction of Proceedings before Departments is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of Department of Labor-Office of Investigation (DOL-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Court Sentences Johnson County Man for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On April 14, 2015, David Allen Goodwin, age 35, of Johnson County, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 180 months in prison, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Goodwin was also ordered to serve three years of supervised release following his imprisonment, forfeit the involved firearm, and pay $100 towards the Crime Victims Fund.
On October 9, 2013, Goodwin was found in possession of a Bushmaster model XM15-E2S, .223 caliber semiautomatic rifle at his Johnson County residence. Goodwin had been previously convicted of a felony, and at sentencing was found to be an armed career criminal as the result of three prior convictions for serious drug offenses and a violent felony.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Iowa Sixth Judicial District Department of Corrections. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Farmington, Missouri, Pharmacist Pleads Guilty to Three Medicaid Fraud ChargesRead the Press Release
St. Louis, MO – PATRICIA A. HOEHN, Farmington, Missouri, pled guilty today to three felony counts involving false statements to the Missouri Medicaid program.
Specifically, in her plea agreement, Hoehn, a licensed pharmacist, admitted that she used three prescriptions that falsely stated and represented to Medicaid that a licensed medical doctor had prescribed a cough syrup that contained hydrocodone, a narcotic opioid pain medication, to three children. In reality, the prescriptions were false because no licensed medical doctor had actually prescribed the drugs to these three children on these three dates, and Hoehn knew that the children were not actually receiving these drugs. Further, in the plea agreement, Hoehn admitted that she destroyed her cellular telephone by striking it and placing it in a toilet to prevent law enforcement officers from recovering the telephone and searching it for text messages regarding these false prescriptions.
Hoehn entered her plea before United States District Judge Carol E. Jackson in St. Louis. Sentencing has been set for July 13, 2015.
These charges carry penalties of up to five years in prison and/or fines up to $250,000. The Court can also order restitution to be paid to the Missouri Medicaid program. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri State Highway Patrol, the Mineral Area Drug Task Force, the Drug Enforcement Administration and the Office of Inspector General for the United States Department of Health & Human Services, with assistance from the Medicaid Fraud Control Unit of Missouri Attorney General Chris Koster and St. Francois County, Missouri, Prosecutor Jerrod Mahurin.
Ellettsville man charged with production of child pornographyRead the Press Release
Defendant allegedly placed hidden cameras in the bedroom and bathrooms of victims
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that Mathew K. Fisher, 38, Ellettsville, was indicted on child pornography charges while posing on Facebook as a high school student. Mathew K. Fisher 38, was indicted on charges of production, attempted production and distribution of child pornography.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Producing and distributing child pornography re-victimizes our children every time it is passed from one person to another.”
In December 2012, Fisher allegedly placed small video cameras in the bedroom and bathroom of two minor victims whom he was familiar with. The cameras recorded the two girls in various stages of undress. He then uploaded one of those photos to a website for further distribution.
In November 2014, he victimized a third young girl using Facebook. He friended her posing as a 17 year old high school student, sending her fake photos of himself. He then enticed her to take sexually explicit photos of herself and send them him.
According to Assistant United States Attorney Bradley P. Shepard, who is prosecuting this case for the government, Fisher faces up to 30 years’ incarceration if convicted on all counts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”
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Elkins man convicted of marijuana traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Mark Wesley Lambert, 39, of Elkins, was convicted in federal court of marijuana trafficking in Randolph County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
Lambert pled guilty to one count of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Mountain Region Drug and Violent Crime Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, investigated.
U.S. Magistrate Judge John S. Kaull presided.
Duke Energy Subsidiaries Plea to Criminal Charges and Sentencing Now Set for May 14, 2015Read the Press Release
RALEIGH – The Plea and Sentencing Hearing has been rescheduled for Duke Energy Business Services, LLC, Duke Energy Progress, Inc., and Duke Energy Carolinas, LLC to May 14, 2015 at 10:00 a.m. in the federal courthouse in Greenville, North Carolina. The companies were charged with multiple criminal violations of the Clean Water Act.
Persons directly and proximately harmed as a result of the conduct charged in this matter may have rights under the Crime Victims’ Rights Act. See 18 U.S.C. § 3771. If you believe that you are a crime victim in this matter, please contact the United States Attorney’s Office for the Eastern District of North Carolina at [email protected] no later than April 30, 2015.
The U.S. Attorney’s Offices will have no further comment on this matter until after court proceedings.
District Man Sentenced to 10 Years in Prison for Shooting at Special Police OfficerRead the Press Release
WASHINGTON – Jerrell Jackson, 29, of Washington, D.C., was sentenced today to 10 years in prison on charges stemming from an incident in which he threatened and subsequently shot at a Special Police Officer, Acting U.S. Attorney Vincent H. Cohen, Jr., announced.
Jackson was found guilty in February 2015, in the Superior Court of the District of Columbia, of eight counts, including assault on a police officer while armed, assault with a dangerous weapon, threats, and various firearms offenses. He was sentenced by the Honorable Todd E. Edelman. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on July 27, 2014, at about 5:10 p.m., Jackson was involved in a verbal dispute with another man in the courtyard area of the Benning Courts Apartment Complex in the 1700 block of Benning Road NE. The victim, who was working as a Special Police Officer at the apartment complex, called for back-up assistance to clear the area and avoid an impending physical altercation. Jackson then accused the victim of being scared. When the victim denied being scared, Jackson threatened him by saying words to the effect of, “Oh, you’re not scared? Be here when I get back.”
Jackson left the apartment courtyard on foot. Approximately 15 minutes later, he returned on a bicycle and fired one shot at the victim, who was not injured. Jackson then fled the scene on the bicycle and was arrested pursuant to an arrest warrant on Aug. 4, 2014.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate Jennifer Clark, Information Technology Specialist Anisha Bhatia, and Assistant U.S. Attorneys Jennifer Kerkhoff and Michael Truscott. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.
Dentist Involved in Medicaid Fraud Scheme Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHRAN ZAMANI, DDS, 50, of Pound Ridge, N.Y., pleaded guilty today in Hartford federal court to a federal health care fraud offense stemming from a multimillion Medicaid fraud scheme.
According to court documents and statements made in court, the Medicaid program is a joint federal-state program that provides funds for medical services to lower-income individuals who qualify for benefits. The program is jointly administered by the U. S. Department of Health and Human Services and supervised by the Centers for Medicare and Medicaid Services. In Connecticut, the Medicaid program is administered by the Connecticut Department of Social Services.
In the fall of 2008, ZAMANI was hired by Gary Anusavice to work as a dentist at Landmark Dental, a dental practice in West Haven that Anusavice had opened earlier in the year. At the time, Anusavice was a convicted felon, former dentist, and excluded Medicaid provider. Although Anusavice remained the primary decision maker for the business, ZAMANI became the dentist whose name and license were used as the front for the practice.
In approximately January 2009, ZAMANI signed an application for Landmark Dental to become a Medicaid provider. The application failed to disclose that Anusavice had an ownership interest in Landmark Dental, that he was subject of prior disciplinary and criminal actions, and that he was excluded from the Medicaid program. Even though ZAMANI was aware of Anusavice’s disciplinary history, ZAMANI subsequently signed Medicaid provider applications for two other dental practices operated by Anusavice, Dental Group of Stamford and Dental Group of Connecticut in Trumbull. Both applications also failed to disclose Anusavice’s background and involvement in the practices.
Pursuant to these fraudulent provider applications, from approximately January 2009 to March 2011, ZAMANI submitted or caused to be submitted numerous claims to Connecticut Medicaid pursuant to which Medicaid reimbursement payments were made.
As a result of this fraud, the Connecticut Medicaid program reimbursed Anusavice’s dental practices nearly $21 million.
ZAMANI pleaded guilty to one count of obstructing the administration of a federal health care program. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 6, 2015, at which time he faces a maximum term of imprisonment of three years.
In March 2015, ZAMANI signed a settlement agreement that resolved pending civil matters with the U.S. Attorney’s Office and the State of Connecticut, Office of the Attorney General. Under the terms of the settlement agreement, ZAMANI agreed to pay $200,000, forfeit a dental office he owned at 18 Madison Street in Hartford, and give up all rights to approximately $1.9 million in Medicaid dollars that had been suspended by the Connecticut Department of Social Services.
ZAMANI also agreed to be excluded from all federal health care programs for a period of 10 years.
On June 3, 2013, Anusavice pleaded guilty to health care fraud and tax evasion offenses stemming from his involvement in this scheme. On October 9, 2013, he was sentenced to 97 months of imprisonment. In addition, he was ordered to pay restitution of more than $5.2 million, and back taxes of more than $1.8 million, plus applicable interest and penalties. He also forfeited his Rhode Island residence, a 33-foot yacht, a Mercedes Benz automobile and approximately $91,700 in cash.
Anusavice also has agreed to pay the state $9.9 million, which represents treble damages under the Connecticut False Claims Act and restitution under the Connecticut Unfair Trade Practices Act.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The Connecticut Attorney General’s Office provided assistance and cooperation throughout the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Susan Wines and Richard Molot.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.
Citizen of Dominican Republic Charged with Illegal ReentryRead the Press Release
PHILADELPHIA - Flavio Guzman, a/k/a ADanny Torres,” of Philadelphia, Pennsylvania, was charged today by indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 27, 2015, Guzman, an alien, and a citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about May 5, 2011, and November 19, 2014.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a three-year period of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement Enforcement and Removal Operations (“ERO”) and is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cincinnati Man Charged with Production of Child Pornography, Coercion and EnticementRead the Press Release
Investigators seek help in identifying more victims
CINCINNATI – A federal grand jury has charged Martell A. Lowry, 25, of Cincinnati, with seven counts of production of child pornography involving seven different minors and coercion and enticement in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Hamilton County Sheriff Jim Neal, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), and other members of the Regional Electronics and Computer Investigations Task Force and (RECI) Greater Cincinnati Internet Crimes Against Children Task Force (ICAC), announced the indictment returned today.
A criminal complaint filed against Lowry alleged he used Facebook to contact young teenage boys for the purpose of soliciting sex from the juveniles. Lowry allegedly offered to pay them to either let him perform oral sex on them or to send him nude photos of themselves. Thus far, the investigation has identified more than 25 children as being victimized by Lowry.
According to the indictment, Lowry allegedly enticed and coerced at least 14 minors to engage in sexual activity for which he could be charged with an offense.
The indictment charges Lowry with seven counts of production of child pornography and one count of coercion and enticement.
Each count of production of child pornography is a crime punishable by up to 30 years in prison and coercion and enticement carries a maximum sentence of life in prison. Both crimes include at least five years of supervised release.
Lowry remains in custody.
U.S. Attorney Stewart commended the investigation of this case by the Hamilton County Sheriff’s Office, FBI, RECI and Greater Cincinnati ICAC, and Assistant United States Attorney Christy Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The Regional Electronics Computer Investigations and Greater Cincinnati Internet Crimes Against Children continue to investigate Lowry’s internet and Facebook activity. Detectives have identified several juvenile victims and believe there may be more. If you have information or have been in contact with Lowry, please call investigators at 513-946-8353.
Christopher Lindsey Sentenced to 15 Years in Prison for Orchestrating Elaborate Fraud and Identity Theft ConspiracyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of CHRISTOPHER LINDSEY, 42, to 15 years in prison for orchestrating an identity theft, check, and tax fraud scheme that spanned more than 10 years. The defendant was sentenced on April 13, 2015, before Judge Donovan W. Frank.
“Christopher Lindsey is responsible for compromising the bank accounts of thousands of victims,” said Assistant U.S. Attorney Lola A. Velazquez-Aguilu. “He enlisted countless individuals into his schemes to steal hundreds of thousands of dollars from banks and from taxpayers. The money he stole may never be repaid, but the fifteen-year sentence brings some measure of justice to those people whose lives he impacted.”
According to his guilty plea and documents filed in court, between October 2002 and December 2013, LINDSEY coordinated an elaborate fraud and identity theft scheme. The defendant obtained legitimate bank account information, including names and addresses of businesses and individuals, bank routing and account numbers, check numbers, and signatures, from a variety of sources, including approximately 20,000 stolen checks. LINDSEY used that stolen information to make counterfeit checks, which were later cashed or deposited at various financial institutions and businesses throughout the Twin Cities. In total, LINDSEY and his co-conspirators attempted to steal more than $1 million.
According to his guilty plea and documents filed in court, LINDSEY simultaneously led a conspiracy to submit false tax returns to the IRS. The defendant and his co-conspirators recruited individuals to file fraudulent tax returns. LINDSEY created fraudulent W-2s for the recruits, on which he combined the correct information of his co-conspirators, including names, dates of birth, and social security numbers, along with false information regarding employment, earnings, and withholdings. LINDSEY directed the filing of at least 40 fraudulent claims resulting in losses of more than $270,000.
These fraudulent tax refunds were loaded onto debit cards issued to some of the defendant’s co- conspirators. They, in turn, provided the debit cards to LINDSEY, who used them at make cash withdrawals from ATMs.
The investigation was conducted by the Minnesota Financial Crimes Task Force, which is comprised of the U.S. Secret Service, the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service- Criminal Investigations Division, the Minneapolis Police Department, the St. Paul Police Department, the Edina Police Department, the Duluth Police Department, the Ramsey County Sheriff’s Office, the Mille Lacs County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Assistant United States Attorney Lola A. Velazquez-Aguilu.
Defendant Information: CHRISTOPHER LINDSEY, 42
Brooklyn Park, Minn.
Convicted: • Conspiracy to commit bank and wire fraud, 1 count
• Conspiracy to defraud the United States, 1 count
• Aggravated identity theft, 1 count
Sentenced: • 180 months in prison
• 5 years supervised releaseCfo of Berlin, New Hampshire Business Indicted in Multi-million Dollar Bank Fraud CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, was charged in a nine-count indictment with making false statements to a financial institution in violation of 18 U.S.C. § 1014. Griffin appeared before Chief U.S. District Judge Christina Reiss in Burlington on April 6, 2015 and pled not guilty to the charges. He was released on conditions pending trial.
Griffin was part owner and Chief Financial Officer of Isaacson Structural Steel, Inc. (ISSI), which before its bankruptcy was one of the largest businesses in the North Country of New Hampshire. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, New Hampshire location and then shipped the steel to building sites.
The indictment charges that, between 2007 and 2011, Griffin submitted inflated figures for assets of ISSI to Passumpsic Saving Bank, and other banks participating in loans to the company that totaled over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. In April 2011, the banks learned about issues with ISSI’s asset figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud.
Passumpsic Savings Bank is headquartered in the District of Vermont.
On February 13, 2014, Arnold Hanson, ISSI’s former Chief Executive Officer, who shared ownership of ISSI with Griffin, pled guilty to conspiring to make false statements to a financial institution. Hanson is scheduled to be sentenced on May 27, 2015.
If convicted, Griffin faces a maximum of 30 years in prison and a $1 million fine on each count. His actual sentence, in the event of conviction, would be determined by the court with reference to the advisory federal sentencing guidelines. Acting United States Attorney Cowles stated that the indictment is an accusation only and that Griffin is presumed to be innocent unless and until proven guilty.
The United States is represented in this matter by Assistant U.S. Attorneys Paul J. Van de Graaf and Timothy C. Doherty, Jr. Griffin is represented by Paul S. Volk of the Burlington law firm, Blodgett, Watts & Volk.
The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.
Carmel investor indicted for fraudRead the Press Release
Hundreds of thousands of dollars swindled from unsuspecting investors
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that a federal grand jury has indicted a Carmel financial advisor on 66 counts including wire fraud, money laundering and securities fraud. Jaime C. Lopez 40, Carmel, induced investors into transferring their retirement funds to him which were never invested as promised.
“Stealing from retirement accounts to fund a gratuitous lifestyle is about as low as you can go. The greed of these defendants continues to shock me,” said Minkler. “Hopefully word will get out, the consequences of that greed include getting hit with the hammer of a federal indictment along with federal prison, if convicted.”
Lopez was a financial advisor who conducted business from his home in Carmel. He created various business names, JCL Interest Plus, JCL Capital Inc. and JCL Directs (JCL Entities) to direct funds from the unsuspecting investors. From January 2010-until June 2012, Lopez convinced investors to transfer their Individual Retirement Accounts to self-directed accounts. Lopez would then transfer the money into JCL Entities under his control.
Lopez solicited hundreds of thousands of dollars telling investors he had reinvested the money by loaning it to outside businesses, purchasing corporate bonds and notes or investing in real estate. Additional funds were used by Lopez to pay interest on promissory notes issued to the investors. Later the investors were issued new promissory notes for a longer term of investment and at a much lower rate of interest. Lopez never invested the money as promised, rather spending the money on the purchase of automobiles, home mortgage payments and home landscaping.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State, Securities Division.
Special Agent in Charge Stephen Boyd stated, “Today’s indictment sends a clear message that the business practices of Mr. Lopez will not be tolerated and that he will be held accountable. IRS Criminal Investigation and our law enforcement partners will continue to aggressively pursue the illegal business practices of Mr. Lopez and others who defraud and steal from honest, hardworking Americans.”
“Lopez was not registered to sell securities with my office, which is the number one red flag of fraud,” said Secretary of State Connie Lawson. “Instead of operating as a licensed professional, he preyed on people he knew through church and took advantage of their trust. I hope this case serves as a warning to others to always check with my office before making an investment.”
According to Assistant United States Attorney James M. Warden, who is prosecuting the case for the government, Lopez could face up to 20 years on each count of wire fraud, 10 years for money laundering and 20 years for securities fraud.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Brownwood, Texas, Man Admits Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Robert Lawrence Noll, 40, of Brownwood, Texas, appeared today in federal court before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Noll, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Noll used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Noll located, downloaded, and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Bookie Sentenced for Money Laundering and Extortion ConspiraciesRead 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 Joseph Ruff, 32, of Rochester, NY, who was convicted of conducting an illegal gambling business, conspiracy to commit money laundering and conspiracy to collect extension of credit by extortion, was sentenced to 41 months prison and three years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.The defendant was also ordered to forfeit $1,200,000 and approximately $20,489 in funds on deposit in certain bank accounts; his lakefront residence at on Edgemere Drive in Rochester, $30,000 in lieu of a second piece of real property and any interest in approximately $60,886 seized as part of the case.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Joseph Ruff conducted an illegal gambling business with his brother Mark Ruff, 40, of Connecticut and Paul Borrelli, 66, of Rochester. The gambling operation involved sports betting through multiple offshore internet gambling websites. Joseph Ruff also conspired with Mark Ruff and others to launder $230,000 in illegal gambling proceeds. Joseph Ruff delivered and deposited cash and check payments from bettors into personal bank accounts and/or business accounts of co-conspirators. He also made cash withdrawals from these bank accounts and wrote checks to third party payees from these and other bank accounts. The financial transactions were made with the intent to conceal or disguise the nature, location, source, ownership, or control of the illegal gambling proceeds, and while knowing that the cash payments and checks constituted illegal gambling proceeds.
In one instance, Joseph Ruff induced a bettor to make repayment on the extension of credit by telling the bettor that a third person had threatened to physically harm him (the defendant) if the bettor did not make repayment on the extension of credit. Thereafter, the bettor endorsed and delivered to the him a check for $230,000 as a repayment of the extension of credit for the bettor’s past gambling debt from sports wagers the bettor had placed with the him in connection with the illegal internet gambling business
Mark Ruff was convicted of money laundering and gambling charges and was sentenced to nine years in prison and ordered to forfeit $230,000. Charges against Paul Borrelli are pending. 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.
The sentencing 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.
Bloomington Man Indicted for Using Stolen Identities in Conspiracy to Defraud the Irs Out of $1.8 MillionRead the Press Release
Ayotomide Ajifowobaje filed at least 200 fraudulent tax returns
United States Attorney Andrew M. Luger today announced the indictment of AYOTOMIDE AJIFOWOBAJE, 28, for using the stolen identities of hundreds of victims to file false tax returns throughout the United States. AJIFOWOBAJE is charged with conspiracy to defraud the United States, aggravated identity theft, and wire fraud. The defendant made an initial appearance following the filing of a criminal complaint on February 18, 2015, in United States District Court in St. Paul, Minn.
“This defendant is charged with stealing the identities of more than 200 victims to file false tax returns seeking nearly $2 million in fraudulent tax refunds,” said Assistant U.S. Attorney Michelle E. Jones. “Working with our colleagues at IRS-CI, we will vigorously investigate and prosecute those who victimize others and steal from the public fisc.”
“Today's indictment of Ayotomide Ajifowobaje highlights how seriously IRS Criminal Investigation and the United States Attorney's Office take the issue of identity theft,” said Special Agent in Charge Shea Jones of the St. Paul Field Office IRS Criminal Investigation. “We will continue to investigate those who prey on innocent American taxpayers who steal their identities and file false tax returns. IRS Criminal Investigation is committed to bringing the perpetrators to justice.”
According to the indictment and documents filed in court, between at least May 20, 2014, and February 17, 2015, AJIFOWOBAJE purchased stolen personal identifying information, including names, addresses, dates of birth, and social security numbers, of hundreds of individuals. Using the stolen identities of these victims, the defendant electronically filed tax returns containing false information. For the purpose of collecting the refunds from the IRS, AJIFOWOBAJE purchased debit cards and activated them using the same stolen identities that he used to file false tax returns.
According to the indictment and documents filed in court, in an effort to conceal his identity from law enforcement, AJIFOWOBAJE and his co-conspirators filed some of the false tax returns from hotels using free WiFi.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Michelle E. Jones.
Defendant Information: AYOTOMIDE AJIFOWOBAJE, 28
Bloomington, Minn.
Charges: • Conspiracy to Defraud the United States, 1 count
• Wire Fraud, 18 counts
• Aggravated Identity Theft, 6 countsThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Berkeley County man convicted of unlawful possession of nineteen firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy James Fisher, 48, of Bunker Hill, West Virginia, was convicted in federal court of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
In response to reports that a patient at a local hospital had suffered a gunshot wound, the Berkeley County Sheriff’s Office searched Fisher’s house and discovered nineteen firearms. Fisher was previously convicted of the felony offense of “Second Degree Murder” in the Circuit Court of Anne Arundel County, Maryland in 1996. As a result of that conviction, Fisher is prohibited from possessing the aforementioned firearms.
Fisher pled guilty to one count of “Felon in Possession of Firearms.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office led the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Beckley area man pleads guilty to federal heroin chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that John Lee Jenkins, 51, of Beckley, West Virginia, plead guilty in federal court in Beckley to distributing heroin. Jenkins admitted that on November 11, 2014, he sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
Jenkins 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.