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13 April 2015
Major Egg Producer to Reduce Water Pollution Discharges at Mississippi FacilityRead the Press Release
The U.S. has reached a settlement with Cal-Maine Foods, Inc., one of the nation’s largest egg producers, that resolves Clean Water Act violations at the company’s poultry egg production facility in Edwards, Mississippi, announced the Justice Department’s Environment and Natural Resources Division and the U.S. Environmental Protection Agency (EPA). Under the settlement, Cal-Maine will bring the facility into compliance with its state-issued water discharge permit, significantly reduce nutrient pollution discharges and improve environmental data collection and reporting practices. The company will also pay a $475,000 penalty to be split evenly between the U.S. and Mississippi.
“The Justice Department is committed to protecting clean water for all Americans and ensuring large concentrated animal feeding operations are good neighbors to those communities living near them like Edwards,” said Assistant Attorney General John Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement will bring Cal-Maine into compliance with state and federal laws and cut nutrient pollution discharges into area waterways.”
“Clean Water Act violations from agricultural facilities can impair drinking water sources, transmit disease-causing bacteria and endanger our lakes and rivers,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “When concentrated animal feeding operations discharge pollutants into U.S. waters, the law requires them to have a permit and comply with it. We’re committed to enforcing the law to protect water quality for communities like the one where this facility is located.”
“This is good news for water quality and health for the residents of Edwards by requiring that Cal-Maine's facilities operate in accordance with state and federal laws,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi. “The settlement also represents the commitment by the Justice Department and our federal and state partners to protect water, air and land from health hazards and pollution.”
Today’s settlement, a consent decree filed in federal court in the Southern District of Mississippi, resolves alleged violations of Cal-Maine’s Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit at its facility in Edwards, Mississippi, a large concentrated animal feeding operation that houses more than 2 million chickens. Cal-Maine discharged pollutants from the production area into a tributary of a nearby creek without NPDES permit authorization and applied nitrogen-laden wastewater on fields at the facility during winter months when land application was prohibited and sometimes at rates that exceeded their permit requirements. Cal-Maine also committed hundreds of water sampling, recordkeeping and reporting violations.
The facility is located in a community where close to half of the households have an annual income of less than $25,000. One of EPA's top priorities is to protect communities that are disproportionately affected by pollution.
Too much nitrogen and phosphorus in the water causes algae to grow faster than ecosystems can handle. Large growths of algae, known as algal blooms, contribute to the creation of hypoxia or “dead zones” in water bodies where oxygen levels are so low that most aquatic life cannot survive. Excessive nitrogen and phosphorus that washes into water bodies and is released into the air are often the direct result of human activities and agricultural operations are one of the major sources of nutrient pollution.
Under the settlement, Cal-Maine is already developing and implementing procedures for its egg production and land application areas to achieve compliance with its NPDES permit, an employee training policy and improved recordkeeping and reporting practices. The procedures were submitted to and reviewed and approved by EPA and Mississippi officials over the course of settlement negotiations. Cal-Maine has begun implementing these procedures and must comply with all the terms of the settlement by April 30, 2016.
Once the pollution controls required by the settlement are implemented, EPA estimates Cal-Maine will cut discharges of nitrogen by 89,000 pounds and phosphorous by 20,000 pounds per year. EPA estimates it will cost Cal-Maine approximately $418,000 to implement the settlement requirements and bring the Edwards, Mississippi, facility into compliance with state and federal clean water laws.
Cal-Maine Foods Inc. and Cal-Maine Farms Inc. merged into one corporate entity called Cal-Maine Foods Inc., effective January 1, 2015.
This case is part of EPA’s National Enforcement Initiative to prevent animal waste from contaminating surface and ground water. For more information on that initiative, visit http://www2.epa.gov/enforcement/national-enforcement-initiative-preventing-animal-waste-contaminating-surface-and-ground.
The proposed consent decree is subject to a 30-day public comment period. A copy of the consent decree is available at http://www.justice.gov/enrd/Consent_Decrees.html.
Madison Man Sentenced for Firearm OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on April 13, 2015, Monte D. Perry, 26, Madison, IL, was sentenced for Transfer of a Firearm in Violation of the National Firearms Act and the Unlawful Possession of a Firearm by a Previously Convicted Felon. Perry received 33 months’ imprisonment on each count, to run concurrently; 2 years’ supervised release on each count, also to run concurrently; fined $50 on each count, for a total fine of $100, and ordered to pay a $200 special assessment. The defendant has been detained since his arraignment on the Indictment on September 26, 2014.
The charges arose from a controlled buy of a sawed-off shotgun from Monte Perry, who had been convicted of a felony offense in Madison County in 2009, on July 7, 2014, that had been arranged by agents with ATF using a confidential source for $350. The controlled buy was videotaped. During the buy, Perry is heard discussing the characteristics of the gun, clearly indicating that he knew that the shotgun had been sawed-off, and requesting additional money for the sawed-off shotgun because it was a semi-automatic shotgun rather than a pump. After being paid for the sawed-off shotgun, Perry wiped his prints from it before placing it in the backseat of the confidential source’s vehicle.
The barrel length of the shotgun was measured and determined to be 14 inches in length. Because the barrel length of the shotgun was less than 18 inches, it should have been registered to Perry in the National Firearms Registration and Transfer Record. A check of that database showed that that the weapon was not registered to Perry. Perry therefore violated the National Firearms Act when he transferred the unregistered firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was assigned to Assistant United States Attorney Angela Scott.
Lewiston Man Sentenced to 14 Years on Drug and Firearm ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Lamar Young, 28, of Lewiston, was sentenced today in U.S. District Court by Judge George Z. Singal to 14 years in prison and five years of supervised release for conspiracy to distribute cocaine base and possession of a firearm in furtherance of a drug trafficking crime.
According to court records, in late 2012 and early 2013, Young and other individuals sold cocaine base out of an apartment in Lewiston. Young and other members of the conspiracy contributed money to purchase cocaine base and cocaine powder from suppliers in Massachusetts. The cocaine was transported from Massachusetts to Maine, turned into cocaine base when necessary, packaged for distribution, and sold by members of the conspiracy.
Court records also showed that in March 2014, Young was arrested in the bedroom of an apartment in Lewiston. After his arrest, officers found a digital scale and several plastic bags containing cocaine powder and cocaine base in a dresser drawer in the bedroom. Officers also found a loaded Hi-Point .380 caliber pistol in the bedroom. Young possessed the pistol for the purpose of protecting the drugs, and protecting himself from anyone who might seek to take the drugs from him.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Lewiston Police Department; and the Maine Drug Enforcement Agency.
Last Two Defendants Sentenced in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Evelyn Brigget Sanchez, 32, and Darling Arlette Montalvo, 34, both of Bakersfield, were sentenced today to two years in prison each for their involvement in a mortgage fraud scheme that ran from October 2005 to May 2007, United States Attorney Benjamin B. Wagner announced. Sanchez and Montalvo were convicted at trial of conspiracy to commit mail fraud, wire fraud, and bank fraud. Sanchez was also convicted of 11 counts of mail fraud, and Montalvo was also convicted of 10 counts of mail fraud and one count of money laundering.
According to court documents, between October 2005 and May 2007, Sanchez and Montalvo conspired with co-defendants Eric Hernandez, Monica Hernandez, and Patricia King to defraud mortgage lenders by submitting false loan applications and fraudulent supporting documentation, causing the lenders to fund mortgage loans for the defendants’ benefit on the basis of false and misleading information. During this time, Eric Hernandez and Evelyn Sanchez were employed at mortgage brokerages in Bakersfield. The defendants submitted loan applications to lenders that included material misstatements concerning the borrowers’ income, assets, and employment, and false statements concerning the borrowers’ intent to reside in the properties as owner-occupiers, among other false statements. The defendants also fabricated false supporting documentation and submitted it to lenders in support of the loan applications.
The court also ordered the defendants to pay forfeiture money judgments to the United States in the amounts of $1,412,100 for Sanchez and $1,017,100 for Montalvo. The court set a further hearing on June 22, 2015 to determine the restitution amounts owed to victims of the crime.
Eric Hernandez, Monica Hernandez, and Patricia King previously pleaded guilty and were sentenced for their roles in the scheme. Eric Hernandez was sentenced on Sept. 16, 2013, to 10 years and 10 months in prison. King was sentenced on April 23, 2012, to three years and one month in prison. Monica Hernandez was sentenced on January 5, 2015, to one year in prison.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff and Henry Carbajal III prosecuted the case.
Docket #: 1:10-cr-249 AWI
Justice Department Reminds Taxpayers that No One Is Above the Law or Below the RadarRead the Press Release
With the annual tax filing deadline approaching on Wednesday, April 15, the Justice Department’s Tax Division reminds U.S. taxpayers across the country and around the world of their obligation to file timely and accurate income tax returns.
“As U.S. taxpayers, we enjoy many benefits, including the security provided by our U.S. military, the ability to travel on public roads and highways, and the beauty and enjoyment of national parks and monuments,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division. “Those individuals who choose to accept these benefits and yet turn a blind eye to their federal tax obligations by failing to file required returns, filing false and fraudulent returns, and evading the assessment and payment of tax due will be pursued for their criminal conduct. No one is above the law or below the radar.”
The Justice Department works with the Internal Revenue Service (IRS) and other law enforcement partners to enforce the nation’s tax laws fully, fairly and consistently through both criminal and civil litigation. During the past year, the Tax Division’s prosecutions have included:
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April 2015 – Daniel Porter, a Chino, California, businessman, was sentenced by a federal court in Las Vegas to serve 55 months in prison for conspiring to defraud the United States by promoting and selling fraudulent tax products, including a product called Tax Break 2000. The intended tax loss of the scheme was more than $60 million. Porter designed and sold Tax Break 2000 directly and through other individuals and entities, including NADN, a company in Las Vegas. Alan Rodrigues, NADN’s former general manager and executive vice president, Weston Coolidge, the former president of NADN, and Joseph Prokop, a former NFL punter, were convicted at trial in a separate criminal case. In March 2015, Rodrigues was sentenced to serve 72 months in prison, Coolidge was sentenced to serve 70 months in prison and Prokop was sentenced to serve 18 months in prison to be followed by 30 months home confinement.
- < > 2015 – Arkan Summa, an owner of Happy’s Pizza franchises, was sentenced by a federal court in the Eastern District of Michigan to serve 18 months in prison and ordered to pay $199,847 in restitution for his role in a wide ranging conspiracy to defraud the IRS. The conspiracy involved diverting more than $6.1 million in gross receipts, underreporting wages and understating income and expenses of the pizza franchises. The total tax loss resulting from the scheme was more than $6.2 million. The founder of Happy’s Pizza, Happy Asker, was previously convicted at trial, and three others have also pleaded guilty to related charges.
March 2015 – Jon McBride, owner of a cell phone clip company and a real estate investor in Utah, was sentenced by a federal court in Utah to serve 27 months in prison and ordered to pay $174,684 in restitution following his conviction for filing a false return and tax evasion. McBride filed a false tax return for 2005 that failed to report his gross income. He later filed a false amended return for the same year and again failed to report his gross income. McBride created several nominees to conceal his income and ownership in real properties to evade the payment of his taxes for 1999 through 2002, tried to evade the assessment of his 2006, 2007, and 2009 taxes, filed false 2006 and 2009 returns, and failed to file a return for 2007.
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March 2015 – Paul DiLorenzo, a doctor from Ocean Township, New Jersey, was sentenced by a federal court in New Jersey to serve 46 months in prison and ordered to pay $304,293 in restitution for structuring cash transactions to avoid reporting requirements and for aiding and assisting in the filing of his own false tax returns. The court also ordered DiLorenzo to forfeit nearly $1 million in illegally derived proceeds.
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March 2015 – Yvette Johnson was sentenced by a federal court in Maryland to serve two years in prison for tax evasion. Her husband, Shannon Johnson, was previously sentenced to serve 72 months in prison for his role in the tax evasion and conspiracy to commit mail and wire fraud. Shannon Johnson held himself out as a wealthy international investment banker offering financing to businesses and investors, who wired and mailed advance banking fees to multiple bank accounts in different states controlled by the Johnsons. Shannon Johnson received millions in fees and payments, but never provided the promised financing. Yvette and Shannon Johnson filed false claims for refunds for the 1998 through 2001 tax years based on fictitious Forms W-2, and further evaded their taxes for the 2002 through 2006 tax years. The court also ordered Shannon Johnson to forfeit $3.7 million based on fraud committed against investors.
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February 2015 – Kenneth and Kimberly Horner, who owned and operated Topcat Towing and Recovery Inc., were each convicted by a federal court in Georgia of filing false personal and corporate tax returns. According to the charges and information presented in court, between 2005 and 2008, the Horners skimmed more than $1.5 million in cash receipts from their towing business and deposited that money into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. They owe approximately $400,000 in taxes to the IRS for their unreported income.
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February 2015 – Thair Alwan, the owner of a pizza shop, was sentenced by a federal court in North Carolina to serve 12 months and one day in prison and ordered to pay $237,587 in restitution and a $10,000 fine for filing a false tax return for 2008. According to court filings, Alwan skimmed cash from pizza shops he owned, failed to report the cash on the corporate returns and under-reported his income on his personal income tax returns.
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February 2015 – Fidencio Moreno, owner of a charter bus company, was sentenced by a federal court in California to serve 41 months in prison for conspiring to defraud the United States. Arturo Moreno, also an owner of the company, was sentenced to serve 28 months in prison for conspiring to defraud the United States, and conspiring to commit wire fraud and mortgage fraud. According to court filings, from 2005 until 2010, Fidencio and Arturo Moreno, along with their co-defendant Elena Moreno, conspired to file false and fraudulent corporate and personal income tax returns, on which they failed to report cash receipts from the charter bus company. The defendants also submitted fraudulent loan applications to purchase or refinance real properties. Elena Moreno was sentenced to serve 22 months in prison in January 2015.
- January 2015 – Matthew Libous, an attorney licensed to practice in New York, was convicted by a federal jury in New York of filing false tax returns for tax years 2007, 2008 and 2009. According to court filings, Libous failed to report income from his law practice and tens of thousands of dollars in personal expenses that he caused to be paid by another company he operated.
- January 2015 – Michael Stover, a Michigan businessman, was sentenced by a federal court in Michigan to serve 42 months in prison for tax evasion and wire fraud. From 2004 through 2010, Stover was president of a company from which he embezzled more than $2 million, and he failed to report the income on his tax returns.
- December 2014 – Jesus Pons, a computer-services manager for Miami-Dade County, was sentenced by a federal court in Florida to serve 51 months in prison and ordered to pay $556,254 in restitution for tax evasion. According to court filings, from 2007 to 2011, Pons, who was in charge of managing information technology projects and county vendors, received illegal kickback payments in exchange for approving payments for consulting work that was never done and failed to report this income on his personal income tax returns.
- November 2014 – Joel Field, owner and operator of Cadillac Ranch restaurants and bars in Ohio and elsewhere, was sentenced by a federal court in Ohio to serve 12 months and one day in prison, to be followed by four months in a halfway house and four months of home confinement, and was ordered to pay $349,778 in restitution and a $4,000 fine for tax evasion. According to court documents, Field filed his 1997 through 2001 tax returns but failed to pay the full tax due and owing. While the IRS was attempting to collect his taxes, Field transferred assets into the names of nominees and submitted false IRS Forms 433-A (Collection Information Statements for Wage Earners and Self-Employed Individuals).
- October 2014 – Jeffrey Scott, owner and operator of Greenville Loop Seafood (GLS), a seafood distribution company, was sentenced by a federal court in North Carolina to serve 12 months and one day in prison and was ordered to pay $26,263 in restitution and a $25,000 fine for attempting to evade his 2007 taxes. According to court filings, between 2006 and 2010, Scott paid nearly all of his living expenses with checks from GLS, including his mortgage, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. Scott also purchased five vehicles for more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott did not report these funds as income. He also filed a false corporate tax return for 2011 claiming the painting of his personal residence, plumbing work at his personal residence and vet bills for his family dog as business expenses.
- October 2014 – Michael Mangold, a doctor specializing in emergency medicine and urgent care, was sentenced by a federal court in Wisconsin to serve 18 months in prison for tax evasion and making false statements. According to court filings, Mangold earned income working for various hospitals, emergency rooms, urgent care facilities and state and county correctional facilities. From 1997 through 2007, Mangold concealed his income by filing false tax returns and asserting frivolous legal arguments to the IRS.
- September 2014 – Nick Jodha, also known as Nick Persaud, an owner and operator of contracting company United HVAC Services Inc., was sentenced by a federal court in New York to serve 12 months and one day in prison and ordered to pay $214,529 in restitution for evading his 2007 through 2010 taxes. According to court filings, Jodha cashed checks written to United HVAC at a check-cashing service rather than depositing them into the business bank account. He failed to tell his accountant about these cashed checks, which were not reflected in the statements that the accountant used to prepare United HVAC’s corporate returns, or about the fact that he used a portion of the cashed checks to pay business and personal expenses.
- April 2014 – Amberula Levitt, who owned and operated Tax Time Tax Service, a tax-preparation business with multiple locations throughout Atlanta, was sentenced by a federal court in Georgia to serve 21 months in prison, ordered to pay $620,004 in restitution and ordered to complete 100 hours of community service for filing false tax returns for 2004 and 2005, assisting in filing a false tax return for 2006, and failing to file tax returns for 2007, 2008 and 2009.
Additional highlights from the U.S. Attorneys’ Offices include:
- April 2015 – William M. Weisberg, an attorney from Vienna, Virginia, was sentenced by a federal court in Virginia to serve 12 months and one day in prison and ordered to pay $451,955 in restitution for willful failure to pay tax due and owing. According to court filings, Weisberg filed his income tax returns, but failed to pay his taxes for 2008 and 2010, and paid only a portion of his taxes for 2009. During this time, Weisberg paid approximately $250,000 to rent a house in Vienna, $150,000 for private and parochial schools for his two children, $35,000 for maid service and $130,000 for travel and entertainment. When the IRS tried to work with Weisberg in 2010 to obtain the money he owed, Weisberg falsified a document from his law firm, which told the IRS that the firm was withholding money from his paychecks to give to the IRS, when, in fact, no money was being withheld.
- March 2015 – Gwendolyn Muller, a receptionist previously employed by a medical office in Kearny, New Jersey, was sentenced by a federal court in New Jersey to serve 34 months in prison and ordered to pay $556,000 in restitution for embezzlement, using fraudulent credit cards to obtain goods and services and tax evasion. According to court filings, from 2007 through 2011, Muller used her position at the medical practice to take cash and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
- February 2015 – Don F. Lindner, an attorney from Severna Park, Maryland, pleaded guilty to filing a false return and agreed to pay $341,730 in restitution. According to court filings, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 in gross receipts from his law practice. He also maintained a rental property and falsely reported on his tax returns that he paid more than $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.
- February 2015 – Rebecca Hoff, a former office manager and accounts payable bookkeeper from Ironwood, Michigan, was sentenced by a federal court in Wisconsin to serve 15 months in prison for filing a false income tax return. According to court filings, Hoff used company checks to pay her personal expenses, which included the purchase of a vehicle, home improvements and mortgage payments. Although the employer did not pursue charges for the embezzlement, Hoff never declared the money she embezzled as income on her federal tax returns, resulting in a tax liability of more than $300,000.
- February 2015 – Joel Carlson, an investment advisor, was sentenced by a federal court in Minnesota to serve 42 months in prison for tax evasion. Carlson deposited client investments and additional funds solicited from his father into a Trust Financial Group account, which he treated as his personal bank account. Carlson spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to misappropriating assets, totaling more than $1.5 million, Carlson failed to file personal income tax returns for tax years 2010 and 2011. Carlson will pay approximately $3.1 million total in restitution, which includes $1.2 million in restitution to the IRS.
- November 2014 – Dennis Weiss, formerly a suburban home builder, was sentenced by a federal court in Illinois to serve 30 months in prison and ordered to pay $296,643 in restitution to the IRS for filing a false federal income tax return and making false statements in a bankruptcy petition. According to court documents, Weiss filed false individual federal income tax returns for 2005 through 2009 and failed to file corporate tax returns for both of his companies, Custom Homes by D.R. Weiss Inc. and Reliable Home Solutions Inc. Between 2005 and 2009, Weiss paid personal expenses from a business bank account, accepted cash payments from customers of his businesses and failed to record the receipt of these funds on the books and records of the corporations, resulting in a total federal tax loss of $1,271,280.
- October 2014 – Patrick J. Belzner, also known as Patrick McCloskey, a home builder residing in Selbyville, Delaware, was sentenced by a federal court in Maryland to serve 15 years in prison and ordered to pay $19.8 million in restitution on charges of wire fraud conspiracy, wire fraud and tax evasion. According to court filings, Belzner worked for the McCloskey Group, a real estate development business, and conspired with others to defraud investors through a fraudulent investment scheme. Belzner admitted that investor funds were used to pay personal and business expenses, as well as to make partial repayments to earlier lenders and to pay fees to some of the victim investors to keep them from demanding the return of their money. In addition, Belzner admitted to stealing more than $1 million from former employers and failing to report those sums on his federal tax returns. He further admitted evading the payment of the tax due and owing by placing his residences, other real estate and automobiles in the names of corporations that he formed, as well as by paying his personal expenses – including his mortgage, ground rent for a vacation home, construction costs on a house that he built, car payments, Baltimore Ravens season tickets and private school tuition – from bank accounts he opened in the names of the corporations or from payments out of the real estate development business. In 2006 and again in 2009, Belzner submitted forms to the IRS falsely claiming that he did not have sufficient income to make any payments on the assessed back taxes, penalties and interest. By August 2013, the total assessed tax, interest and penalties due and owing by Belzner exceeded $2.6 million.
The Justice Department will continue to vigorously pursue and prosecute those engaged in tax crimes. These efforts of the department, the IRS and its other law enforcement partners are critical to the continued integrity of our national tax system, and send a strong message to those individuals who make good faith efforts to comply with their tax obligations that we will hold accountable those who do not.
More information about the Tax Division’s civil and criminal enforcement efforts in these and other areas is available on the division’s website.
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Jury in Del Rio Convicts Eagle Pass Businessman on Federal Drug ChargesRead the Press Release
On Saturday, April 11, 2015, a federal jury in Del Rio returned a guilty verdict against Felipe Carmona-Rodriguez for narcotics distribution in Eagle Pass, Texas, announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Joseph Arabit of the DEA’s Houston Division, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
Jurors convicted 50-year-old Felipe Carmona-Rodriguez, of Eagle Pass, Texas, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from January 1, 2009 until March 21, 2014, and two counts of possession with intent to distribute less than 500 grams of cocaine. Evidence presented at trial showed that Carmona-Rodriquez used his two businesses, Felipe’s Auto Detail Shop and Felipe’s Auto Sales to sell cocaine and launder drug proceeds. Additionally, Carmona-Rodriguez sold cocaine from his home and had others sell cocaine for him from a local Eagle Pass bar. Carmona-Rodriguez hired others to sell cocaine for him and collected the street tax from these dealers on behalf of the Mexican Mafia. During recorded calls played at trial Carmona-Rodriguez stated he had been involved in the distribution of narcotics for twenty-eight (28) years.
Carmona-Rodriguez’s potential punishment range for his conspiracy to possess with the intent to distribute 500 grams or more of cocaine is 5 to 40 years in prison. For his conviction for possession with the intent to distribute less than 500 grams of cocaine, Carmona-Rodriguez faces up to 20 years for each conviction.
Carmona-Rodriguez is scheduled to be sentenced on October 15, 2015, before United States District Judge Alia Moses.
The case resulted from a joint investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Timothy Duree.
International Gathering Marks Inauguration of INTERPOL Global Complex for InnovationRead the Press Release
SINGAPORE – Ministers and senior police officials from around the world have gathered at the official opening of the INTERPOL Global Complex for Innovation (IGCI) which is set to empower law enforcement officers worldwide with cutting-edge tools and knowledge against 21st century crime.
With the IGCI marking the transition of global policing into the digital age, Singapore’s Deputy Prime Minister, Coordinating Minister for National Security and Minister for Home Affairs, Teo Chee Hean, addressed its opening ceremony after chairing a ministerial cybercrime meeting involving INTERPOL’s President Mireille Ballestrazzi and Secretary General Jürgen Stock.
Underlining the growing complexity of today’s safety and security threats, Deputy Prime Minister Teo said: “Police and law enforcement agencies in the region can access INTERPOL’s tools and programs through the IGCI, to train and equip their officers to combat new and emerging threats, thereby enhancing collective regional safety and security.”
“The IGCI can use Singapore’s location in the heart of Asia to reach out to the rest of the region and beyond. Through the IGCI, INTERPOL can also gain a better understanding of Asian perspectives and expertise, to shape its research and development and operational responses against transnational threats,” added Singapore’s Deputy Prime Minister.
The opening ceremony also included representatives from international organizations and strategic partner organizations from the private sector. These include Entrust Datacard, Kaspersky Lab, NEC, Safran Morpho and Trend Micro Ltd.
INTERPOL President Ballestrazzi said that collaboration with the public and private sectors would allow the IGCI to benefit from the culture, innovation and dynamic spirit of all those involved.
“Today’s inauguration of the IGCI marks the end of a process that has mobilized our member countries and partners in a joint effort to strengthen the abilities of INTERPOL and law-enforcement agencies as they face the realities of modern crime. It also marks our joint resolve to build a safer world,” said President Ballestrazzi.
Highlighting Singapore’s thriving spirit as it celebrates its 50th anniversary, INTERPOL Secretary General Jrgen Stock said that the IGCI was born out of the Organization’s commitment to adapt to changes in the threat landscape.
“By establishing the IGCI, INTERPOL will ensure that it is best placed to help police around the world address emerging threats through innovation and training. The work of the IGCI will provide operational and forensic support, build capacity and identify cyber threats,” said Mr. Stock.
In this respect, the audience heard that intelligence from a prominent IT actor had led to an IGCI-coordinated operation which dismantled the Simda botnet through a joint international effort by law enforcement and the private sector.
“These achievements highlight the value of the IGCI and how it will help police adopt new technology and practices to outsmart cybercriminals,” added Mr. Stock.
In addition to cybercrime and capacity building and training, the IGCI’s Command and Coordination Centre operations room represents its third central pillar. It recently coordinated its first border security initiative, Operation Sunbird, leading to the arrest of international fugitives attempting to travel across ASEAN countries.
The IGCI inauguration begins a week of INTERPOL events in Singapore, including the INTERPOL World 2015 exhibition and the 22nd INTERPOL Asian Regional Conference.
Illegal Aliens Arrested in Southeast Texas on Federal ViolationsRead the Press Release
BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that 18 individuals have been arrested on federal violations in the Eastern District of Texas.
On Apr. 7-8, 2015, a combined task force of federal, state and local law enforcement arrested 18 illegal aliens working under false identities at various refineries, industrial plants and shipyards in Jefferson, Galveston and Liberty counties.
A federal grand jury returned 18 indictments on Apr. 2, 2015, charging each individual with either illegal reentry after deportation, identity theft, and or making false claims of United States citizenship in order to obtain jobs at numerous refineries, industrial plants and shipyards over the past six years. The defendants, who are in the United States illegally, were all allegedly working under assumed names obtained through the possession of fraudulently obtained legitimate social security numbers and matching birth certificates, primarily issued in Puerto Rico. With such primary identifying information the defendants obtained State issued identification cards from Louisiana, Arkansas, Texas, and other states. The use of such documents allowed the illegal aliens to pass the E-verify systems used by their employers to ascertain U.S. citizenship or alien lawful work permits. The documents allowed some individuals to obtain Transportation Worker Identification Credentials allowing access to ports and other sensitive work sites. HSI knew the actual identities of several of the aliens because they had been previously deported. One alien was previously deported after a felony drug conviction. Fifteen other aliens were identified after being arrested under their assumed names.
If convicted of the charges, defendants face up to 20 years in federal prison and deportation.
These cases are being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement and Removal Operations (ERO) offices in Beaumont, Houston, and Galveston, as well as the U.S. Marshals Service, Social Security Administration Office of Inspector General, Coast Guard Investigative Service, Beaumont Police Department, and Port Arthur Police Department. These cases are being prosecuted by Assistant U.S. Attorney Robert L. Rawls.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Identity Theft Task Force Created in ColumbusRead the Press Release
In 2013, Columbus, Georgia was the #2 location in the country for stolen identity affidavits filed with the Federal Trade Commission (FTC).
As a result, an identity theft task force is being created and will be a combined effort among the Internal Revenue Service, the United States Attorney’s Office, the United States Secret Service, the Postal Inspector, Harris County Sheriff’s Department, and the Columbus Police Department.
There has been an increase in theft of Personal Identifying Information (PII) from several large employers in and around the Columbus area, as well as stolen U.S. Treasury checks being cashed by various local banks and/or check cashers.
Identity theft includes such schemes as stealing Personal Identifying Information and using the information to file fraudulent tax returns, check cashing runners who transfer the fraudulent tax refund checks from the fraudulent tax return filer to the check cashers (check cashing runners are paid a percentage of the fraudulent tax refund check cashed), and check cashers knowingly cashing fraudulent tax refund checks and charging higher percentages than allowed by states or receiving a kickback for cashing the checks.
Inquiries regarding the task force should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Click here to view news story on WJTV Columbus.
press_conference_april_13_transcript.docx
Husband and Wife “Pill Mill” Operators Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Warren and Aigoul Gold to 12 months and one day, and six months in federal prison, respectively, for drug trafficking and money laundering charges. The Court also ordered a money judgment in the amount of $713,570 and forfeiture of $61,232 in a bank account, both of which are traceable to proceeds of the offenses. The Golds pleaded guilty on July 24, 2014.
According to court documents, beginning in early 2010, the Golds became the owner-operators of a pain clinic (“Clinic”) located in the Middle District of Florida. As the owner-operators of the Clinic, the Golds organized, managed, operated, maintained, and relocated the Clinic to various locations during 2010. In that time, the Clinic served as a high-volume, cash-only, pill-prescription operation that sometimes handled more than 100 patients in a single day, with a large number of those patients residing out of state, many from Kentucky.
At each of the Clinic’s locations, doctors prescribed patients a similar drug "cocktail," consisting mostly of large amounts of oxycodone and other Schedule II narcotics. The Golds knew that many of the patients were not legitimate pain patients. Rather, most of these “patients” were seeking the oxycodone cocktail to fuel their own addictions or to unlawfully distribute those drugs to other dealers and/or addicts.
The Golds also laundered the unlawful proceeds from the Clinic in a variety of ways, including making cash deposits of less than $10,000 to banks for the purpose of avoiding reporting requirements. Once the proceeds had been deposited, the Golds spent some of those funds in a manner that concealed the unlawful nature of the Clinic. For example, they diverted some of the proceeds in the Clinic’s account into other accounts that were wholly unrelated to the operation of the Clinic. They also used proceeds from the Clinic to promote their pain business. Among other ways, the Golds used profits to pay the doctors cash bonuses based upon the number of patients seen in a given day.
This case was investigated by the U.S. Marshals Service and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Hurricane man gets probation for stealing more than $24,000 from Social SecurityRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Vallas Paul Bell, 31, of Hurricane, West Virginia, received five years of probation today for stealing more than $24,000 of his mother’s Social Security Benefits after her death. The Social Security payments for Bell’s mother were deposited in her checking account at City National Bank. For over a year and a half after her death, Bell used a debit card to withdraw money from his mother’s account and spend it on himself. As part of his sentence, Judge Thomas Johnston ordered Bell to make full restitution to the Social Security Administration.
The investigation was conducted by the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Blair L. Malkin and Erik S. Goes were responsible for the prosecution.
Huntington man sentenced in federal court for distributing heroinRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who distributed heroin in May of 2014 was sentenced today to 12 months and one day in federal prison, announced U.S. Attorney Booth Goodwin. Thomas Edward Hill, 41, previously pleaded guilty in January of 2015 to distributing heroin.
On May 21, 2014, officers using a confidential informant (CI), arranged a drug deal with Clarence Edward House II, also known as “Nitty.” The informant contacted House and negotiated the purchase of 7.5 grams of heroin in exchange for $800. Thereafter, House and Hill met with the CI in House’s vehicle where Hill distributed the heroin to the CI at House’s direction.
The FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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 U.S. 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.
Houston Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – Michael Brandon Garza, 33, has been ordered to prison following his convictions for receiving and possessing child pornography, announced U.S. Attorney Kenneth Magidson. Garza pleaded guilty Sept. 2, 2014.
Today, U.S. District Judge Kenneth M. Hoyt handed Garza 168 and 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. Garza will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Garza will also be ordered to register as a sex offender.
Garza is considered a savvy computer user. He admitted he utilized multiple email addresses and online identities to communicate with underage females and obtain child pornography images and videos via the Internet. Specifically, he contacted underage females in Pennsylvania and New Mexico, both of whom believed Garza was a teenager.
Garza was identified during the investigation and law enforcement subsequently executed a search warrant at his Houston residence on Dec. 11, 2012. At that time, Garza acknowledged the email address that law enforcement had received from the underage girls and that he had he had received videos containing child pornography.
Several electronic media devises were seized which resulted in the discovery of numerous images/videos.
Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Garza were the result of an investigation conducted by members of the Houston Area Cyber Crimes Task Force of the FBI, which focuses its attention on, among other things, investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Greenbrier Man Arrested for Aggravated Identity TheftRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, today announced the unsealing of a federal complaint charging a Greenbrier, Ark., man with multiple counts related to an identity theft that had been continuously occurring for more than 20 years. On April 9, 2015, federal agents with the Office of the Inspector General, the United States Secret Service, and the Federal Bureau of Investigation, along with assistance from the Faulkner County Sheriff’s Office, arrested William Marshall, 51, at his home in Greenbrier. Upon arrest, agents executed a federal search warrant on Marshall’s residence and vehicle.
Later that day Marshall appeared for arraignment in front of Federal Magistrate Judge Beth Deere. On April 10, 2015, Marshall was released on bond. The arrest stemmed from a federal complaint signed by Judge Deere that charged Marshall with aggravated identity theft, misrepresentation of a social security number, and providing a false statement to a federal agency.
“The extent of damage to the true victim’s identity is beyond measure,” Thyer said. “Thanks to security measures that the Social Security Administration has in place while filing for disability benefits, Marshall’s scheme was finally identified and stopped. These types of crimes continue to plague not only businesses and government entities, but individuals as well. Our office, along with our law enforcement partners, will continue to vehemently seek justice for those who are victimized by these crimes.”
The investigation began when Marshall allegedly fraudulently applied for Social Security benefits under a false identity earlier this year at the Conway, Ark., Social Security office. The subsequent investigation revealed that Marshall has been living under the false identity of the true victim for more than 20 years. The investigation also revealed that Marshall moved back to Arkansas in 1992, where he has lived as a fugitive from California.
This case was investigated by the Office of the Inspector General—Social Security Administration with the assistance of the Arkansas Department of Insurance—Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
The charges of misrepresentation of a social security number and providing a false statement to a federal agency each carry a statutory penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. Aggravated identity theft has a maximum statutory penalty of two years’ imprisonment consecutive to any other sentence imposed, not more than a $250,000 fine, and not more than one year of supervised release.
The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these charges. Marshall is presumed innocent until proven guilty.
Four Former Blackwater Employees Sentenced to Decades in Prison for Fatal 2007 Shootings in IraqRead the Press Release
One former security guard for Blackwater USA was sentenced today to a term of life in prison, and three others were each sentenced to prison terms of 30 years and one day for their roles in the Sept. 16, 2007, shooting at Nisur Square in Baghdad, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by the U.S. Attorney’s Office for the District of Columbia and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The defendants are Nicholas Abram Slatten, 31, of Sparta, Tennessee; Paul Alvin Slough, 35, of Keller, Texas; Evan Shawn Liberty, 32, of Rochester, New Hampshire; and Dustin Laurent Heard, 33, of Maryville, Tennessee. All were found guilty by a jury on Oct. 22, 2014, following a two and one-half-month trial. They were sentenced by the Honorable Senior Judge Royce C. Lamberth of the District of Columbia.
Slatten, who was accused of firing the first shots, was sentenced to life in prison. The jury had found him guilty of one count of first-degree murder.
Slough, Liberty and Heard were each sentenced to prison terms of 30 years and one day. The jury had found Slough guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter and one firearms offense. Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter and one firearms offense. Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter and one firearms offense.
At a day-long sentencing hearing, Judge Lamberth said that the sentences reflected the seriousness of the crimes and the large number of victims. He said that the U.S. government “should be commended for finding and exposing the truth of what happened in Nisur Square.”
In a statement, the U.S. Attorney’s Office said the prosecution reflected the commitment of the American justice system to the rule of law and expressed hope that the sentencing of the four defendants will bring some comfort to survivors of the shootings and the family members of those who died or were injured. “In killing and maiming unarmed civilians, these defendants acted unreasonably and without justification,” the statement said. “In combination, the sheer amount of unnecessary human loss and suffering attributable to the defendants’ criminal conduct on Sept.16, 2007, is staggering.”
“These sentencings are the result of the enduring resolve by law enforcement to protect victims of violent crime,” said Assistant Director in Charge McCabe. “Because this crime scene was so large and required international travel, both by witnesses and by investigators, this case required a tremendous amount of resources, time and investigative expertise. The results of this case demonstrate that the FBI will investigate violations of U.S. law no matter where they occur in order to bring justice to innocent victims.”
Another Blackwater security guard, Jeremy P. Ridgeway, pleaded guilty in December 2008 to voluntary manslaughter and attempt to commit manslaughter. Ridgeway, who testified as a government witness in the trial, has not yet been sentenced.
The defendants worked for Blackwater USA, a private security contractor that was paid by the U.S. government to provide protective services to U.S. officials.
The trial began June 17, 2014. Over the next 10 weeks, the government presented testimony from 71 witnesses, including 30 from Iraq. This represented the largest group of foreign witnesses ever to travel to the United States for a criminal trial. The witnesses included 13 people who were wounded in the shootings, as well as relatives of many of those who died. The government’s witnesses also included nine members of “Raven 23,” the Blackwater team that was on the scene on the day of the shootings.
According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including the four defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad. When they stopped shooting, 14 Iraqi civilians were dead. Those killed included 10 men, two women and two boys, ages 9 and 11. Another 18 victims were injured.
The four defendants and 15 other Blackwater security contractors were assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.” Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team. Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.
Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone. While occupying the southern part of the traffic circle, seven of the 19 members of Raven 23, including the four defendants and Ridgeway fired their weapons resulting in the deaths or injury of the unarmed Iraqi civilians there. While leaving the traffic circle, Slough continued to fire his weapon resulting in additional deaths and injuries.
Finally, further away, north of the traffic circle, Slough and Ridgeway again fired their weapons resulting in the injury of three more unarmed Iraqi civilians.
The first to be killed was Ahmed Haithem Ahmed Al Rubia’y, 21, an aspiring doctor, who was driving his mother to an appointment. His mother, Mahassin Mohssen Kadhum Al-Khazali, 44, a medical doctor, also was killed. Others who died included Ali Mohammed Hafedh Abdul Razzaq, 9, who was traveling with his family; Osama Fadhil Abbas, 52, a businessman who sold used cars and who was enroute to a business meeting; Mohamed Abbas Mahmoud, 47, a delivery truck driver, and his 11-year-old son, Qasim Mohamed Abbas Mahmoud; Sa’adi Ali Abbas Alkarkh, 52, a businessman; Mushtaq Karim Abd Al-Razzaq, 18, an Iraqi soldier who was standing at a military checkpoint; Ghaniyah Hassan Ali, 55, who was traveling with her daughter on a public bus, and who was in the area to get documentation for a trip to holy sites; Ibrahim Abid Ayash, 77, a gardener, who was traveling in another bus; Hamoud Sa’eed Abttan, 33, and his cousin, Usday Ismail Ibrahiem, 27, who were out looking for work with the Iraqi Army; Mahdi Sahib Nasir, 26, a taxi driver, and Ali Khalil Abdul Hussein, 54, a motorcyclist who was commuting to work.
The jury considered charges involving injuries to 14 men and three women. Because of travel issues, witnesses to support an 18th charge of attempted manslaughter did not appear at the trial and the charge related to that victim’s injuries was dismissed by the government.
This case was investigated by the FBI’s Washington Field Office. The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.
The case was prosecuted by Special Assistant U.S. Attorneys Anthony Asuncion, Christopher R. Kavanaugh and T. Patrick Martin, and Assistant U.S. Attorneys John Crabb Jr. and David Mudd, of the National Security Section of the U.S. Attorney’s Office of the District of Columbia. The case was originally indicted by Assistant U.S. Attorneys Jonathan M. Malis and Kenneth Kohl of the District of Columbia.
Former UPS Driver Who Stole Shipments of Guns, Jewelry and Phones Is Sentenced to 41 Months in Federal PrisonRead the Press Release
RIVERSIDE, California – A former United Parcel Service driver who was convicted of federal gun trafficking charges for stealing dozens of guns going through the shipping company’s Ontario hub and providing them to another man who sold the weapons on the street was sentenced today to 41 months in federal prison.
Curtis Ivory Hays II, 37, of Rancho Cucamonga, was sentenced by United States District Judge Virginia A. Phillips. During the time of the offenses, Hays was a package truck driver for UPS who made deliveries in the Rancho Cucamonga area.
Hays was found guilty in January of 15 counts – conspiracy, six counts of theft of firearms, six counts of receipt and possession of stolen firearms, and two counts of theft of interstate shipments.
The associate who allegedly sold some of the firearms – Dennis Dell White Jr., 35, of Moreno Valley – pleaded guilty last year to one count of theft of firearms. White is scheduled to be sentenced by Judge Phillips on May 4, at which time he faces a statutory maximum sentence of 10 years in federal prison.
According to the evidence presented during a six-day trial, Hays stole a series of packages containing guns that were supposed to be delivered to Turner’s Outdoorsman in Rancho Cucamonga. From May through October of 2012, Hays stole six shipments containing a total of 72 firearms.
Hays gave the stolen firearms to White, who illegally sold the weapons to other individuals, and some of the guns then were sold to others. The firearms included 12-gauge shotguns and .45-caliber handguns.
In a sentencing memorandum filed with the court, prosecutors illustrated the danger Hays’ conduct posed to public safety by noting that one of the stolen firearms made its way to Isaac Arriaga, who used the .22-caliber handgun to shoot at three police officers at the conclusion of a high-speed chase in Baldwin Park in 2012.
“By sheer luck no officers or civilians were hurt during Arriaga’s pursuit,” prosecutors wrote. “But individuals like Arriaga would not be able to pose such an extreme threat to the community if they did not have access to black market firearms. [Hays] not only stole the firearms in this case, which [was] reprehensible enough, but he partnered with White to supply the black market and directly contributed to
Arriaga’s actions.”Hays also stole shipments containing jewelry and mobile phones that were supposed to be delivered to Costco in Rancho Cucamonga, and this merchandise also was given to White.
The investigation into the stolen firearms was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Ontario Police Department and the Riverside County Sheriff’s Department. Substantial assistance was provided by the San Bernardino County District Attorney’s Office.
Release No. 15-033
Former Texas State Judge Pleads Guilty in Federal Judicial Corruption CaseRead the Press Release
ALBUQUERQUE – Angus Kelly McGinty, 51, a former Texas state district court judge in Bexar County, Texas, pleaded guilty today to an honest services wire fraud charge and admitted depriving the State of Texas and citizens of Bexar County of his honest services by soliciting and accepting bribes intended to influence his judicial decisions. McGinty’s guilty plea was announced by Damon P. Martinez, U.S. Attorney for the District of New Mexico, and Christopher H. Combs, Special Agent in Charge of the FBI’s San Antonio Division.
In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “Independent and impartial judges are essential to the proper administration of justice. The Department of Justice is committed to rooting out corruption and maintaining confidence in public institutions. This case should serve as a reminder to those who occupy positions of public trust that they must act with integrity and in conformity with the highest ethical standards. Individuals who abuse positions of public trust for private gain will be held accountable.”
“Despite Judge McGinty’s obligation to fairly and impartially carry out his duties as an elected judge, he engaged in serious criminal activity,” said FBI Special Agent in Charge Christopher H. Combs. “Regardless of whether someone is a judge or any other public official, the FBI is committed to investigating and exposing public corruption.”
McGinty initially was charged with conspiracy to commit federal programs bribery, federal programs bribery, extortion under color of official right, and honest services wire fraud in an indictment filed in the U.S. District Court for the Western District of Texas in June 2014. In Feb. 2015, a five-count superseding indictment was filed charging McGinty with conspiracy to commit honest service wire fraud, three counts of honest services wire fraud, and extortion under color of official right. At the time of the events underlying the charges in the indictments, McGinty was a state district court judge in the criminal division of the 144th Judicial District Court in Bexar County, Texas. According to the superseding indictment, between Jan. 2013 and Sept. 2013, McGinty solicited and accepted bribes from an attorney who appeared before him in exchange for favorable rulings for the attorney’s clients. McGinty resigned from the bench on Feb. 14, 2014.
According to court documents, from Jan. 2013 through Sept. 2013, McGinty solicited and accepted bribes from Alberto Acevedo, Jr., an attorney in San Antonio, in exchange for favorable judicial rulings that benefited Acevedo and his clients. Acevedo’s bribes to McGinty included cash, car repairs, arranging the sale of McGinty’s vehicle, and registering a vehicle purchased by McGinty. In exchange, McGinty provided the favorable judicial rulings requested by Acevedo, including lenient sentences and less restrictive conditions of release for Acevedo’s clients. According to the indictments, McGinty received gifts, payments and other things of value totaling more than $6,655.00 from Acevedo.
Today McGinty entered a guilty plea to Count 3 of the superseding indictment. In his plea agreement, McGinty proffered the following statements in support of his guilty plea:
“On or about January 1, 2011, I assumed office as judge of the 144th Judicial District Court, located in Bexar County, Texas. During my term of service as judge of the 144th Judicial District Court, I knowingly participated in a scheme to defraud the State of Texas and citizens of Bexar County, Texas of their right to my honest services inasmuch as I solicited and accepted things of value from Alberto Acevedo, Jr., including vehicle repairs to my two Mercedes Benz, my 1992 Mercedes Benz 300CE and my 2001 Mercedes Benz S430. I accepted these benefits knowing that the purpose behind them was to influence me to exercise my official discretion as judge of the 144th Judicial District Court in favor of Mr. Acevedo and his clients. From at least January 2013 to September 2013, Mr. Acevedo paid for repairs and services to my two Mercedes. I took steps to cover up my dealing with Mr. Acevedo by failing to report the benefits I had received from him on my Personnel Statement for 2013. On May 20, 2013 at 7:02 p.m., I sent Mr. Acevedo a text message to make arrangements to drop off my 2011 Mercedes Benz S430 at his law firm so that he could take it to his mechanic for repairs. That text message traveled in interstate commerce. “
Under the terms of the plea agreement, McGinty will be sentenced to 24 months in federal prison followed by a term of supervised release to be determined by the court. McGinty’s sentencing hearing is scheduled for July 15, 2015.
Acevedo pled guilty on March 17, 2014, to a felony information charging him with bribery involving a program receiving federal funds. In entering his guilty plea, Acevedo admitted that he corruptly influenced a state court judge by giving him things of value. In his plea agreement, Acevedo admitted giving gifts, payments and other things of value totaling more than $6,655.00 to the state court judge in exchange for favorable judicial rulings that benefitted him and his clients. At sentencing, Acevedo faces a maximum statutory penalty of ten years in prison and a $250,000.00 fine. Acevedo is released on bond pending his sentencing hearing, which has yet to be scheduled.
U.S. Attorney Damon P. Martinez praised the investigative work of the San Antonio Division of the FBI. The prosecution of this case in federal court in San Antonio, Texas, is being handled by Special Attorneys Mark A. Saltman and Brock E. Taylor of the U.S. Attorney’s Office for the District of New Mexico. The U.S. Attorney’s Office for the Western District of Texas is recused.
Former Stone Child College President Pleads Guilty to Tax FraudRead the Press Release
GREAT FALLS – Former Stone Child College President Melody Henry, 50, of Box Elder, and her husband, Frank Gregory Henry, 51, the former Facilities Manager at the College, entered guilty pleas to federal income tax fraud during a hearing today before U.S. District Judge Brian Morris in Great Falls. The Henrys face a potential sentence of three years imprisonment, a $100,000 fine and a year of supervised release, together with the costs of prosecution. Sentencing has been set for July 27, 2015, in the Missouri River Courthouse in Great Falls.
The Henrys had been indicted for taking almost a quarter of a million dollars in kick-backs from Hunter Burns and Hunter Burns Construction between October of 2010 and November of 2012. Melody Henry had approved $530,242 in contracts to Hunter Burns Construction in her role as President of Stone Child College. The payments were never disputed but the Henrys claimed that he had, in addition to his full-time employment at the College, done work at the College on behalf of Hunter Burns Construction and therefore the payments were not kick-backs but payments for services rendered. A federal jury acquitted the Henrys after a three day trial in February.
In the tax fraud indictment, prosecutors alleged that the Henrys had attempted to evade payment on the monies received by them from Hunter Burns Construction by claiming business expenses in an amount that would eliminate any tax liability. For the tax year 2012 the Henrys claimed their salaries from Stone Child College—totaling $246,586—and business income from Hunter Burns Construction in the amount of $124,537 for a total annual income of $371,124. On a Schedule C (Profit or Loss From Business) the Henrys claimed $135,146 in business expenses which completely off-set the income received from Hunter Burns Construction and resulted in a business loss.
In an offer of proof filed by the government to support the defendants’ pleas, the United States Attorney told the Court that the Henrys claimed $20,283 in vehicle expenses, $15,000 in contract labor, $6000 in insurance costs, $3000 in office expenses, $3,600 in office rental, $15,998 in repairs and maintenance, $9,035 in supplies, $10,000 in employee wages, $35,500 in newly purchased equipment, and $4,200 in telephone costs. A forensic financial review of the defendants’ bank account records by the Internal Revenue Service did not reveal any expenditures consistent with the expenses claimed on Schedule C. Prosecutors have agreed that if the civil IRS review indicates that some of the expenses claimed were legitimate they would reduce the restitution award which will be, by stipulation of the parties, $47,301 in tax due and owing for 2012. All other tax liability, for other years, will be dealt with directly by the IRS.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.
Former Real Estate Agent Pleads Guilty in Connection with Investment Fraud SchemeRead the Press Release
FRESNO, Calif. — Kenneth Manuel Martin, 66, formerly of Modesto, pleaded guilty today to one count of wire fraud in connection with a Guatemalan real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
Between a date unknown and August 2008, Martin induced individuals to give him money by saying that he would cause the money to be used to fund mortgage loans to borrowers in Guatemala so borrowers could purchase homes in that country. Among several false representations, Martin represented that his company would provide a real estate attorney in Guatemala who would be able to protect investor funds and would hold a grant deed in favor of the investors secured by Guatemalan real estate. He also represented that his company would provide investors who invested in his Guatemalan real estate venture a high interest rate of return and consistent monthly interest payments. Martin provided investors with conflicting explanations concerning the lack of consistent interest payments and his failure to return the investment principal of investors who requested such a return. As a result of Martin’s conduct, investors lost approximately $258,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General. Assistant United States Attorneys Henry Z. Carbajal III and Grant B. Rabenn are prosecuting the case.
Martin is scheduled to appear before Senior U.S. District Judge Anthony W. Ishii on July 21, 2015, for an evidentiary hearing on sentencing issues. The maximum statutory penalty for a violation of wire fraud is 20 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Docket #: 1:11-cr-219 AWI
Former Inmate Sentenced to 42 Years for Distributing Child Porn from PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former California prison inmate, incarcerated for state sex offenses, was sentenced in federal court today for using a smuggled cell phone to distribute child pornography over the Internet.
Eric Lee Bederson, 37, formerly an inmate at the California Medical Facility in Vacaville, Calif., was sentenced by U.S. Chief District Judge Greg Kays to 42 years in federal prison without parole.
On Aug. 12, 2014, Bederson pleaded guilty to two counts of distributing child pornography. At the time he committed these offenses, Bederson was serving a 16-year state sentence in California for a charge involving the aggravated sexual abuse, sexual abuse, and abusive sexual conduct of a minor. Bederson, then a 21-year-old day care center teacher, had been arrested following an investigation into suspicions that he was molesting multiple children and possessed child pornography. According to court documents, Bederson molested at least 20 children. A civil lawsuit resulted in a judgment of more than $10 million in damages.
Bederson used smuggled cell phones to distribute numerous images and videos of child pornography while he was incarcerated. As his release date approached, Bederson began communicating with other traders of child pornography via e-mail. He amassed upwards of 40 gigabytes of images and videos in his multiple e-mail accounts, which he used to actively trade, receive, and distribute to others – including an undercover federal agent based in Kansas City, Mo. According to court documents, these images and videos constitute violent and disturbing child pornography, including minors as young as five years old.
Between Sept. 29 and Oct. 8, 2011, he sent six e-mails to an undercover agent with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), which included a total of 164 images and 10 videos of child pornography. Bederson sent this child pornography with the hope and expectation that the undercover HSI agent (and others) would reciprocate in sending child pornography back to him in return. Bederson also admitted that his e-mail accounts contained multiple gigabytes of e-mails and attachments of child pornography.
For example, on Sept. 29, 2011, Bederson sent an e-mail with 24 attached images of child pornography to the undercover federal agent. On Oct. 1, 2011, Bederson sent another e-mail to the undercover federal agent, which contained a video of child pornography.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the California State Prison security office.
Former Chester County Man Admits to Selling Illegal ExplosivesRead the Press Release
PHILADELPHIA - Ryan Joseph Hribick, 34, of Minersville, formerly of Coatesville, Pennsylvania, pleaded guilty today to all four counts in the pending indictment charging him with one count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice, and one count of witness tampering. United States District Judge Robert F. Kelly scheduled sentencing for Hribick on July 17, 2015.
From about March 2009 to about February 2013, Hribick possessed, manufactured, and sold improvised explosive devices (“IEDs”), including PVC pipes (some containing nails, screws, and/or rocks) and cardboard tubes, all center primed with flash powder. After federal agents searched his home, Hribick instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury.
In addition, Hribick attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence. Specifically, Hribick advised the witness to lie and conceal from the federal grand jury the fact that the witness had destroyed and concealed evidence according to Hribick’s instructions. At this time, Hribick knew that the federal grand jury was actively investigating his conduct.
Hribick faces a maximum possible sentence of 60 years in prison, a $1 million fine, 3 years of supervised release and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, the Chester County District Attorney’s Office, the Maryland State Police, and the North Carolina State Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.
Former Campaign Treasurer Sentenced to Prison Term for Tax Evasion and Filing False Campaign Reports Related to Diverting Money from Campaign's Bank AccountRead the Press Release
WASHINGTON – Hakim J. Sutton, 33, of Washington, D.C., was sentenced today to 16 months in prison for evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen, Jr., Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department (MPD), and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C., Field Office.
Sutton pleaded guilty on Oct. 23, 2014, in the U.S. District Court for the District of Columbia to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. He was sentenced by the Honorable Richard J. Leon. Under the plea agreement, Sutton is required to pay full restitution of $18,231 in taxes and interest to the IRS. Sutton was also ordered to three years of supervised release following his 16 month prison sentence.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
In announcing the sentence, Acting U.S. Attorney Cohen and Acting Assistant Attorney General Ciraolo commended the Metropolitan Police Department and the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case.
They also thanked Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet, and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia, for their assistance.
Former Campaign Treasurer Sentenced for Tax Evasion and Filing False Campaign Reports Related to Diverting Money from Campaign's Bank AccountRead the Press Release
Defendant Worked on Unsuccessful Campaign of Washington, D.C., Council Candidate
A 33-year-old Washington, D.C., man was sentenced today to serve 16 months in prison for evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C., Field Office.
Hakim J. Sutton pleaded guilty on Oct. 23, 2014, in the U.S. District Court for the District of Columbia to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. He was sentenced by the Honorable U.S. District Judge Richard J. Leon. Under the plea agreement, Sutton is required to pay full restitution of $18,231 in taxes and interest to the IRS. Sutton was also ordered to three years of supervised release following his 16 month prison sentence.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Cohen commended the Metropolitan Police Department and the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case. Ciraolo and Cohen thanked Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia, for their assistance.
Final Two Defendants Sentenced to 440 and 348 Months in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” WatsonRead the Press Release
Two Colombian nationals were sentenced to decades in U.S. federal prison today for their roles in the kidnapping and murder of former Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogotá, Colombia, on June 20, 2013.
Attorney General Eric Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Bill A. Miller, Director, U.S. State Department’s Diplomatic Security Service (DSS) made the announcement.
“With these sentencings, all seven defendants involved in the kidnapping and murder of Special Agent Terry Watson have been found, prosecuted, and brought to justice,” said Attorney General Holder. “Special Agent Watson was a courageous patriot, a principled law enforcement agent, and a proud defender of the rule of law. Our nation owes him and his loved ones a debt we can never repay. And although our prosecution of his heinous attackers has come to its rightful close, the Department of Justice will never rest in our efforts to honor Special Agent Watson’s life of service and sacrifice by upholding the values that he served to protect.”
“DEA is grateful that the final two defendants connected to Terry Watson’s murder faced justice in a U.S. court of law for their heinous crime," said Administrator Leonhart. “Terry will be remembered for his bravery, dedication and loyalty to our agency’s mission, and his presence is missed every day by the men and women of DEA. Throughout this ordeal, the Watson family has remained in our thoughts and prayers, and we will never forget their sacrifice.”
Édgar Javier Bello Murillo, 28, and Omar Fabián Valdes Gualtero, 28, were sentenced today to 440 months in prison and 348 months in prison, respectively, by U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia. Both pleaded guilty to second degree murder and conspiracy to kidnap an internationally protected person on Dec. 19, 2014.
In the statements of facts filed with their plea agreements, Valdes Gualtero and Bello Murillo admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in which victims were lured into taxi cabs, kidnapped and then robbed. Both admitted that, on the evening of June 20, 2013, they were a part of a six-person robbery crew that targeted Special Agent Watson. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Bello Murillo admitted that he entered the taxi in which Special Agent Watson was riding and stabbed him multiple times. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
In total, seven defendants were arrested and extradited from Colombia to the United States to face charges in connection with Special Agent Watson’s murder and the subsequent attempt to cover up the crime. Six defendants pleaded guilty for their respective roles in the kidnapping and murder: Julio Estiven Gracia Ramírez, 32; Héctor Leonardo López, 34; Andrés Álvaro Oviedo García, 22; Edwin Gerardo Figueroa Sepúlveda, 40; Valdes Gualtero; and Bello Murillo. On Dec. 12, 2014, Gracia Ramírez was sentenced to 27 years in prison, López was sentenced to 25 years in prison and Oviedo García was sentenced to 20 years in prison. On Feb. 18, 2015, Figueroa Sepúlveda was sentenced to 30 years in prison. A seventh defendant, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice for cleaning the taxi cab in which the attack occurred before turning it in to the Colombian National Police. On Feb. 18, 2015, Peralta-Bocachica was sentenced to 40 months in prison.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Criminal Division’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Federal inmate sentenced to life in prison for murder of fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal inmate at the U.S. Penitentiary in Hazelton, West Virginia, pleaded guilty and was sentenced to life in prison today for the murder of another inmate, announced U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Patrick Andrews, 34, formerly of Washington, D.C., pleaded guilty to one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris. U.S. District Judge Irene M. Keeley of the Northern District of West Virginia sentenced Andrews to life in prison on both counts.
According to his plea agreement, Andrews and fellow inmate, Kevin Bellinger, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s June 2014 trial in this case, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Andrews was serving a sentence of 35 years to life in prison for two murders that took place in 1997 and 2000, and Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.
Bellinger was convicted in this case by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility. On Oct. 8, 2014, he was sentenced to life in prison.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by and Assistant U.S. Attorney Andrew Cogar of the Northern District of West Virginia and Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section.
Federal Tax Prosecutions Serve as Reminder to Taxpayers to Comply with Tax Obligations as April 15 Deadline ApproachesRead the Press Release
CHICAGO -- Eleven Chicago and suburban residents, among others, are facing federal prosecution for alleged federal income tax crimes in various separate cases filed recently. Defendants from Bolingbrook and Palatine were charged with evading income taxes by funneling hundreds of thousands of dollars to bank accounts that they controlled and using the money for their own personal purposes. A tax preparer from Lockport was charged with assisting clients in obtaining over $1 million in fraudulent refunds and other defendants from Chicago were indicted in an alleged scheme to use stolen identities to fraudulently claim and obtain tax refunds based on fictitious returns.
“The IRS Criminal Investigation Division is focused on ensuring that taxpayers pay their fair share,” said Stephen Boyd, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “Tax fraud does not know a season -- IRS special agents pursue criminals year round, not only at filing deadlines. Taxpayers who might be thinking about cheating should think twice or they will risk the consequences,” he said.
“Federal tax prosecutions occur throughout the year but at this time of year it is especially prudent to remind taxpayers of the importance of voluntary compliance with their tax obligations,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
In addition to criminal penalties, including incarceration, fines, and the costs of prosecution, convicted defendants remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed, Mr. Fardon noted. And those making false claims against the government may be required to pay restitution or may be sued civilly for an amount greater than the fraudulent claims, he added.
LEOPOLDO RODRIGUEZ, 42, of Bolingbrook, was indicted April 9 on 3 counts of tax evasion and 3 counts of filing false federal income tax returns. Rodriguez worked at Chicago Pallet Service, which was a business that bought and sold pallets, and the indictment alleges that Rodriguez diverted income from the sale of pallets by his employer to bank accounts that he maintained and controlled, including a bank account maintained in the name of a business he operated called Sugar Daddy Stables. Specifically, the indictment alleges that Rodriguez diverted approximately $230,000 in 2010, approximately $370,000 in 2011, and approximately $530,000 in 2012. Rodriguez also allegedly filed false individual tax returns for each of those years when he failed to report the income that he diverted from his employer on his personal returns. Rodriguez will be arraigned at a date to be determined by the district court. Each count of filing false returns carries a maximum sentence of 3 years in prison and each count of tax evasion carries a maximum sentence of 5 years in prison. Each of the counts also carries a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. Assistant U.S. Attorney Brian Hayes is representing the government.
WILLIAM DADDANO, 58, of Palatine, was indicted April 7 on 2 counts of tax evasion and 2 counts of filing false federal income tax returns. Daddano, who owned real estate appraisal businesses, allegedly evaded payment of taxes by having his appraisal companies issue checks to a defunct company and funneling the money through a bank account maintained under the name of the defunct company, Real Property Valuation, and then using the money as his own personal income. The indictment alleges that Daddano used Real Property Valuation to divert over $350,000 in 2008 and over $280,000 in 2009, and that he filed false corporate and personal returns for each of those years. Daddano will be arraigned on a date to be determined by the district court. Each count of tax evasion carries a maximum sentence of 5 years in prison and each count of filing a false income tax return carries a maximum sentence of 3 years in prison. Each of the counts also carries a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. The government is represented by Assistant U.S. Attorney Sheri Mecklenburg.
Two additional defendants were indicted on April 2, 2015 in an alleged scheme to fraudulently claim tax refunds in excess of $290,000. EBONY RICHARDSON, 34, of Chicago and LATASHA WEATHERALL, 35, of Chicago, were each charged with 4 counts of wire fraud and 2 counts of theft of government funds in an 8-count indictment. According to the indictment, Richardson and Weatherall caused over 120 fraudulent tax returns to be filed on behalf of various taxpayers without the taxpayer’s knowledge or consent and then caused refunds exceeding $290,000 to be deposited into various accounts controlled by the defendants. The indictment alleges that the fraudulent returns contained false amounts related to items of income, wages, pension distributions, federal tax withholdings, Earned Income Credits, and education and other credits. Richardson and Weatherall each allegedly had control and access to multiple accounts into which the fraudulent refunds were deposited as part of the scheme. Each count of wire fraud carries a maximum sentence of 20 years in prison, each count of theft of government funds carries a maximum of 10 years, and all counts carry a maximum fine of $250,000 or twice the gross gain to the defendants or loss to the government. Assistant U.S. Attorney Michelle Petersen is representing the government.
Other recently charged cases include the following:
TIFFANY EICHELBERGER-MYERS, 32, formerly of Lockport, was charged April 10 with 2 counts of willfully assisting in the preparation of false income tax returns. Eichelberger-Myers worked as a tax preparer at Shelby Investment, LLC and managed a branch location that did business under the name “Tiff’s Taxes.” The information alleges that she fraudulently obtained over $1,100,000 in tax refunds for clients for tax years 2010 through 2012 by falsely claiming, among other things, business losses and education expenses on behalf of her clients. Each count of assisting in the preparation of false returns carries a maximum sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Sarah Streicker)
DAVID A. BROWN, 47, of Country Clubs Hills, was charged April 9 on 27 counts of wire fraud, 33 counts of filing false claims, and 4 counts of filing false income tax returns. Brown, who owned and operated a tax preparation business under the name of Tax Professional Consultant Agency, Inc. in Chicago, allegedly prepared and filed returns on behalf of clients that falsely claimed business losses, casualty and theft losses, and Schedule A deductions, in addition to false claims of entitlement to Earned Income Credits and Educations Credits for the 2008 through 2012 tax years. Brown was also charged with filing false individual tax returns on his own behalf for tax years 2010 through 2013. Brown will be arraigned on a date to be determined by the district court. Each count of wire fraud carries a maximum sentence of 20 years in prison, each count of filing a false claim carries a sentence of 5 years in prison, each count of filing a false tax return carries a sentence of 3 years in prison, and all counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. The United States Secret Service also participated in the investigation. (Assistant U.S. Attorney Bolling Haxall)
SOL K. WINER, 75, of Highland Park was charged April 10 with filing a false income tax return. The information alleges that Winer substantially underrepresented his total income for tax year 2011. The charge carries a sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Patrick King)
DYONE DORSEY, 39, and JANET DORSEY, 42, of Chicago, were charged on April 2, 2015 in a 35-count indictment with preparing and assisting in the preparation of false income tax returns. According to the indictment, the Dorseys owned and operated a tax return preparation business in Chicago that did business under the name “Dorsey’s Tax Service.” Between 2009 and 2011, the Dorseys allegedly assisted in the preparation of income tax returns on behalf of clients that falsely claimed business losses as well as other deductions and credits to which the clients were not entitled. The indictment also charged the Dorseys with filing a false joint income tax return on their own behalf for tax year 2010 as well as charging the Dorseys individually for filing false income tax returns on their own behalf for tax years 2008 and 2009. Each of the charges carries a sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Ryan Fayhee)
RONALD TAYLOR, 49, of Evanston, was charged on April 1, 2015 in a 4-count indictment with filing false claims and theft of government funds. The indictment alleges that Taylor filed three income tax returns for trusts for the 2007, 2008, and 2009 tax years falsely claiming entitlement to refunds totaling $900,000 and stealing a tax refund of $300,000. Each count of filing a false claim carries a maximum sentence of 5 years in prison, each count of theft of government funds carries a maximum sentence of 10 years in prison, and all counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Jeremy Daniel)
SOLOMON SMITH, JR., 56, of Berkeley, was charged on April 1, 2015 in a 2-count indictment with filing and assisting in the preparation of filing of false tax returns. According to the indictment, Smith filed income tax returns for trusts that falsely claimed, among other things, income and tax withholding amounts, and falsely claimed entitlement to a refund of $381,180 for 2008 and $381,213 for 2009. Each count carries a maximum sentence of 3 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the government. (Assistant U.S. Attorney Stephen Heinze)
In each case, if convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that criminal charges are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Inmate Sentenced to Life in Prison for Murder of Fellow PrisonerRead the Press Release
A federal inmate at the U.S. Penitentiary in Hazelton, West Virginia, pleaded guilty and was sentenced to life in prison today for the murder of another inmate, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia.
Patrick Andrews, 34, formerly of Washington, D.C., pleaded guilty to one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris. U.S. District Judge Irene M. Keeley of the Northern District of West Virginia sentenced Andrews to life in prison on both counts.
According to his plea agreement, Andrews and fellow inmate, Kevin Bellinger, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s June 2014 trial in this case, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Andrews was serving a sentence of 35 years to life in prison for two murders that took place in 1997 and 2000, and Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.
Bellinger was convicted in this case by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility. On Oct. 8, 2014, he was sentenced to life in prison.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar of the Northern District of West Virginia.
Essex County, New Jersey, Carjacker Sentenced to 135 Months in PrisonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man who was identified by the “find my iPhone” feature on a cell phone he stole during an armed carjacking was sentenced today to 135 months in prison, U.S. Attorney Paul J. Fishman announced.
Lee Caraballo, 28, was previously convicted of both counts in the indictment against him: theft of a motor vehicle by force, violence and intimidation and use of a firearm in furtherance of a crime of violence. Caraballo was convicted following a three-day trial before U.S. District Esther Salas, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Nov. 30, 2012, Caraballo carjacked a Rutgers law student at gunpoint in the driveway of the student’s home. After stealing the victim’s wallet and cell phone, Caraballo fled in the victim’s Toyota Corolla. A Roselle Park police officer stopped Caraballo, who was driving his own car, later that day. In that car, law enforcement found the victim’s cell phone and car keys as well as various items of clothing the victim later identified. While Caraballo was in police custody, the carjacking victim located his phone remotely using the “find my iPhone” feature and called the police station. He later identified the defendant.
In addition to the prison term, Judge Salas sentenced Caraballo to five years of supervised release.
U.S. Attorney Fishman credited detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the N.J. State Police, Newark Police Department and Roselle Park Police Department, as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to today’s sentencing.
The government is represented Assistant U.S. Attorneys Barry A. Kamar and Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Gary Leo Cutler Esq., Newark
Delaware County Man Charged Federally in Child Exploitation CaseRead the Press Release
John Corcoran IV, of Glenolden, PA, is charged by Indictment with numerous counts of child exploitation, announced United States Attorney Zane David Memeger. Corcoran is charged with 20 counts of using or inducing a child to pose for child pornography, and one count of possession of child pornography. He is currently in custody awaiting trial.
Corcoran is charged in this federal indictment with abusing 11 children at his home in Glenolden, at the children’s homes throughout Delaware County, and at the Ridley YMCA in Ridley, Pennsylvania. He faces additional charges – involving additional victims – in Delaware County.
If convicted of all charges in federal court, Corcoran faces a maximum possible sentence of 610 years in prison, and a mandatory minimum of 15 years.
The case was investigated by Federal Bureau of Investigation, Delaware County District Attorney’s Office, the Glenolden Police Department, the Darby Police Department, and the Folcroft Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
DEA Seizes Large Quantity of Heroin, Cocaine, and a Firearm from Boston Drug TraffickersRead the Press Release
BOSTON – Two Boston men were arrested Friday, April 10, 2015, on federal drugs charges for their roles in trafficking large quantities of heroin and cocaine. In the raid conducted by the DEA on the three locations used by the drug traffickers, federal agents seized six kilograms of heroin, one-and-a-half kilograms of cocaine, a handgun, and a large sum of cash.
Yamal Gonzalez, 33, of Boston, was charged with distribution of heroin, and Jose Polanco, 33, of Boston, was charged with conspiracy to possess heroin with intent to distribute and possession of heroin with intent to distribute. Gonzalez and Polanco are scheduled for detention hearings on Monday, April 20, 2015 at 2:00 p.m. before U.S. District Court Magistrate Judge Judith G. Dein.
According to the criminal complaint, the DEA conducted a three-month investigation into Gonzalez who sold heroin to a cooperating witness on three occasions. The investigation revealed that the drug traffickers utilized three locations in their operation: 1431 Commonwealth Avenue, Apartment 9, in Brighton; 15 School Street, Apartment 2, right side, Dorchester; and 457 Massachusetts Avenue, Apartment 2, Roxbury.
On Friday, April 10, 2015, federal agents observed Gonzalez and Polanco exit the School Street apartment in Dorchester together and walk towards their vehicles. Officers converged on the two men, and Gonzalez was arrested, searched, and found to be in possession of 80 grams of heroin and one-half ounce of cocaine. Officers confronted Polanco, who initially fled as they approached, but was quickly arrested and found to be in possession of a plastic corn starch container with 300 grams of heroin inside. Agents executed a federal search warrant at the School Street apartment and seized, among other things, a Smith and Wesson; .40 caliber, semi-automatic handgun containing ammunition; additional rounds of 9mm ammunition; six kilograms of heroin; one and one-half kilograms of cocaine; drug packaging materials; drug “presses” used to package narcotics; cash; and scales. Agents also executed a federal search warrant at the Commonwealth Avenue apartment in Brighton and seized 50 grams of heroin and 20 grams of cocaine. At the Massachusetts Avenue apartment in Roxbury, agents seized a large quantity of cash.
The charging statutes provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million.
The details contained in the complaints are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was investigated by the DEA; the Massachusetts State Police; the Somerville, Cambridge, Arlington, Ipswich, and Boston Police Departments; and the Essex County Sherriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Glenn A. Mackinlay of Ortiz’s Organized Crime and Gang Unit.
Colombian Nationals Sentenced to 36 and 29 Years in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” WatsonRead the Press Release
ALEXANDRIA, Va. – Omar Fabian Valdes Gualtero, 28, and Edgar Javier Bello Murillo, 28, both Colombian citizens, were sentenced today for their roles in the kidnapping and murder of former Drug Enforcement Agency (DEA) Special Agent James “Terry” Watson in Bogata, Colombia, on June 20, 2013. Gualtero was sentenced to 348 months in prison and five years of supervised release. Murillo was sentenced to 440 months in prison and five years of supervised release.
Attorney General Eric H. Holder; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente, Eastern District of Virginia; DEA Administrator Michele M. Leonhart; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS), made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
“These two defendants bear responsibility for the kidnapping and murder of a courageous federal agent,” said Attorney General Eric Holder. “With this sentencing, they face justice for their involvement in this brutal crime. Our nation owes a great debt to Special Agent Terry Watson and his loved ones. We will never rest in our determination to honor his profound sacrifices, to pursue all who would threaten our brave men and women in law enforcement, and to carry on the vital work for which he gave his life.”
“Today’s sentencing is another important step in bringing justice to those responsible for the murder of Special Agent Terry Watson,” said DEA Administrator Michele M. Leonhart. “Terry was a respected and dedicated DEA Special Agent and we will not rest until all those involved in this heinous act are sentenced. Our thoughts and prayers continue to go out to the Watson family as this case moves towards a final resolution.”
Both Gualtero and Murillo previously pleaded guilty to murder of an internationally protected person and conspiracy to kidnap an internationally protected person.
In the statements of facts filed with their plea agreements, as well as other evidence presented in open court, Gualtero and Murillo admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in which victims in Bogotá, Colombia, were lured into taxi cabs, kidnapped and then robbed. Both admitted that on the evening of June 20, 2013, they were a part of a robbery crew that included five other individuals who targeted Special Agent Watson. Gualtero was the ring leader, who organized the robbery crew. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Murillo entered the taxi carrying Special Agent Watson and stabbed him multiple times. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
A total of six defendants were charged in this case for their involvement in the murder and kidnapping of Special Agent Watson: Héctor Leonardo López, 34; Julio Estiven Gracia Ramírez, 32; Andrés Álvaro Oviedo García, 22; Fabián Valdes Gualtero, 28; Edwin Gerardo Figueroa Sepulveda, 40; and Wilson Daniel Peralta Bocacachica, 30.
Defendant Name & Age
Charge(s)
Sentencing Information
Héctor Leonardo López, 34
Guilty to Conspiracy to Kidnap and Aiding and Abetting the Murder of an Internationally Protected Person.
December 12, 2014. 25 years in prison.
Julio Estiven Gracia Ramírez, 32
Same as above.
December 12, 2014. 27 years in prison.
Andrés Álvaro Oviedo García, 22
Same as above.
December 12, 2014. 20 years in prison.
Edwin Gerardo Figueroa Sepulveda, 40
Same as above.
February 18, 2015. 30 years in prison.
Omar Fabian Valdes Gualtero, 28
Same as above.
April 13, 2015. 29 years in prison.
Edgar Javier Bello Murillo, 28
Same as above.
April 13, 2015. 36 years in prison.
Wilson Daniel Peralta Bocacachica,
Obstruction of justice.
February 18, 2015. 40 months in prison.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorney Michael P. Ben’Ary and Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:13-cr-310.
Civil Rights Orientation and TrainingRead the Press Release
Click here for the slideshow from the training.
Charleston man pleads guilty to defrauding timeshare ownersRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that David Brandon Ball, 35, of Charleston pled guilty in federal court today to his role in defrauding timeshare owners throughout the United States and Canada. Ball admitted that he and his associate, David Andrew Glynn, formed Mountain State Resales, LLC (MSR) a bogus company used to defraud timeshare owners of money. Ball and his associates advised timeshare owners that MSR had a buyer for their timeshares, and asked them to front money to MSR in South Charleston, to cover fees and expenses necessary to facilitate the sales. MSR had no buyers for the timeshares and Ball knew that the timeshare owners would not receive anything in return for money sent to MSR.
Ball and his associates, including Glynn, also posed as “agents” and contacted timeshare owners who previously lost money in other timeshare fraud schemes and represented that they were affiliated with a non-existent organization named “Internal Revenue Recovery Associates” and were investigating timeshare fraud schemes. Ball admitted that he and his coconspirators told the timeshare owners to send money to MSR to assist “agents” in recovering the lost funds.
At his plea hearing, Ball admitted that neither MSR nor Internal Recovery Associates were legitimate businesses and were used to defraud timeshare owners. Ball also admitted that MSR received at least $80,346 from the conspiracy. Ball further admitted that in 2013, he operated a Florida-based company called International Transfers and Documents (International Transfers), that like MSR, was created and used to defraud timeshare owners of more than $145,000.
Ball has agreed to pay restitution to the victims of both MSR and International Transfers. Ball is scheduled to be sentenced on July 8, 2015. Glynn has already pled guilty and been sentenced for his role in the offense.
Today’s plea stems from an investigation being conducted by the West Virginia State Police, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Meredith George Thomas is handling the prosecution.
Champaign Property Developer Charged with Bank FraudRead the Press Release
Urbana, Ill. – A Champaign, Ill., real estate developer, Gene T. Hardwick, 72, is scheduled to appear for arraignment on April 27, 2015 in Urbana, following an indictment returned last week charging him with one count of bank fraud related to a $3.9 million loan.
The indictment alleges that Hardwick obtained a $3.9 million bank loan in 2007 to construct a 64-unit apartment building at 611 East Park Street, Champaign. From 2007 into at least 2009, Hardwick allegedly diverted funds from the stated purpose of the loan to fund other projects including approximately $800,000 toward a senior living facility in Tuscola, and additional funds to pay personal expenses such as real estate taxes and credit card bills.
If convicted, bank fraud carries a penalty of up to 30 years in prison and a fine of up to $1 million.
The charge is the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Jason M. Bohm is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Central Florida Businessman Sentenced to Nine Years in Prison for $44 Million Bank Fraud ConspiracyRead the Press Release
Orlando, FL – Senior United States District Judge Gregory J. Presnell sentenced Pedro “Pete” Benevides (45, Astatula) today to nine years in federal prison. In addition, Benevides was ordered to forfeit $44,059,565.00, including several bank accounts containing approximately $40 million in cash and two exotic sports cars: a 2008 Lamborghini Murcielago and a 2009 Audi R8. He will also be ordered to pay full restitution to the financial institutions that were the victims of his offense. The amount will be determined at a later hearing. Benevides pleaded guilty on July 14, 2014.
According to court documents, from about 2005 through September 2008, Benevides obtained 20 commercial and residential loans and lines of credit from several federally insured financial institutions totaling approximately $44,059,565. He obtained the fraudulent loans by providing the financial institutions with documents that, among other things, contained false information concerning his income and assets or the business that he used to obtain the loans and lines of credit. During that time, Benevides controlled several Central Florida businesses, including a private jet charter service, an exotic car rental service, and hotels in Orange County and Pinellas County, Florida. Those companies included Superior International Investment Corporation; ABC Auto Wholesalers, Inc.; Skyview Aviation, Inc.; Fidelity Investment Group LLC; PBJB Best Investment LLC; Divello Family LLC; and Leesburg Title and Escrow Company. Benevides then used the fraudulently obtained funds for his own purposes, including paying the interest and principal on other, earlier loans that he had obtained in order to continue the fraudulent scheme, paying business expenses, paying the other co-conspirators involved in the scheme, and funding living expenses for himself and his family.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, and the St. Cloud IRS-USSS Federal Financial Crimes Task Force. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Carson City Man Sentenced to Prison for Possessing and Distributing Images and Videos of Child Pornography and RapeRead the Press Release
RENO, Nev. – A man who was found in possession of 6,000 images and 20 videos of child pornography, including child rape, has been sentenced to 10 years in prison, lifetime supervised release, and ordered to pay $25,000 in restitution to various victims, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Andrew Wayne Hamrick, 30, of Carson City, Nev., who pleaded guilty on July 28, 2014, to one count of distribution of child pornography and one count of receipt of child pornography, was sentenced on April 6, by U.S. District Judge Miranda M. Du. Hamrick has been in custody since he was arrested in April 2014.
“As the investigation in this case demonstrates, there are persons trolling the Internet 24 hours-a-day looking for accomplices and innocent children to harm,” said U.S. Attorney Bogden. “Thanks to the dedication and skills of these investigators and prosecutors, we are able to identify, arrest and successfully prosecute these dangerous predators.”
According to the court records, in October 2013, Hamrick engaged in a series of email and text message conversations with an FBI special agent who was posing undercover as an adult female interested in incest. Hamrick provided the undercover agent with instructions on how to teach the undercover agent’s fictional six-year old niece to engage in sexual activity. During the chat sessions, Hamrick emailed approximately 10 images of child pornography to the undercover agent. In March 2014, a federal search warrant was executed at Hamrick’s home in Carson City, and agents recovered two cellular telephones that, upon forensic examination, were found to contain a total of approximately 6,000 images and 20 videos of child pornography. The images and videos included depictions of child rape, bestiality, sadistic or masochistic conduct, and bondage-related activities with both young boys and girls. Agents obtained a federal arrest warrant for Hamrick, and he was arrested in Carson City while driving his vehicle. Law enforcement officials recovered another cellular telephone from Hamrick that had been activated only a few hours after the search warrant was served on his home. Several more images of child pornography were recovered from the new phone. Hamrick worked as a locksmith in Carson City.
The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham. It was investigated by the FBI, Nevada Attorney General’s Office, and Northern Nevada Internet Crimes Against Children Task Force, and 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."
California Man Sentenced to Prison for Odometer Fraud SchemeRead the Press Release
A Tarzana, California, man was sentenced today in U.S. District Court in Los Angeles to serve two years in prison on charges related to an odometer tampering scheme, the Department of Justice announced.
Shamai Salpeter, 66, was sentenced by Chief Judge George H. King in the Central District of California to serve 24 months in prison followed by three years of supervised release. He was also ordered to pay $421,666 in restitution to victims who purchased vehicles without knowing the odometer readings were incorrect.
In November 2014, Salpeter pleaded guilty to one count of conspiracy and one count of tampering with an odometer. Salpeter admitted that from July 2008 through January 2012, he used electronic odometer tampering tools to alter hundreds of odometers at his residence in Woodland Hills, California. For a payment of $100 to $400, he reset the odometers to any mileage requested by his customers. Frequently, his customers were trying to avoid penalties for exceeding the maximum mileage for their vehicle lease or to make their vehicle more valuable as a trade-in. Many of the vehicles were subsequently sold to unsuspecting consumers who had no way to detect that the odometer readings were inaccurate.
“Each time this defendant altered an odometer with an electronic odometer tampering tool, he violated federal law,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to prosecute individuals engaged in odometer tampering to protect innocent purchasers from odometer fraud.”
Many of Salpeter’s customers were referred to him by Jeffrey Levy, a salesman at Galpin Ford in North Hills, California. Levy also pleaded guilty to conspiracy to commit odometer fraud. On March 16, Levy was sentenced to serve one year in prison and ordered to pay $115,818 in restitution.
“Tampering with odometers is a crime that puts consumers’ lives and wallets at risk,” said Administrator Mark Rosekind of the U.S. Department of Transportation (DOT) National Highway Traffic Safety Administration (NHTSA). “We will continue to work with our Department of Justice and state DOT partners to deter odometer fraud and inform consumers of the potential signs and dangers associated with this crime.”
This case is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch. The case was investigated by the NHTSA’s Office of Odometer Fraud Investigation and California’s Department of Motor Vehicles Investigations Division.
The NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA’s website, and tips on detecting and avoiding odometer fraud are available at this page.
California Felon Convicted of Conspiracy and Distribution of Methamphetamine in Western KentuckyRead the Press Release
Nearly 4 pounds of pure meth found hidden inside SUV engine
Faces up to life in prison
PADUCAH, Ky. – A felon from the Los Angeles, California area was convicted by a federal jury in Paducah, Kentucky, recently of conspiracy to distribute and distribution of methamphetamine in McCracken County, announced Acting United States Attorney John E. Kuhn, Jr.
“Methamphetamine continues to destroy so many lives; it has become a toxic scourge within our communities,” stated U.S. Attorney John Kuhn. “This conviction helps by putting a drug dealer behind bars and removing pounds of this poison from our streets.”
Jose Manuel Jimenez, age 34, of Hemet, faces a mandatory minimum sentence of twenty years in prison and could be sentenced to life in prison for his role in attempting to distribute nearly four pounds of pure methamphetamine with a street value of $160,000. There is no parole in the federal system.
The trial lasted three days and jurors deliberated under one hour before returning a guilty verdict on April 8, 2015, on both counts of the October 14, 2014, superseding indictment. Jimenez is in the custody of the U.S. Marshals Service and will be sentenced before Senior Judge Thomas B. Russell.
Evidence presented at trial included photographs of the methamphetamine hidden inside the engine of a Dodge Durango SUV and cellular phone records. Testimony indicated that the meth had been shipped to Western Kentucky from Arkansas, but the shipment may have originated in Southern California.
Co-defendant Rodolfo Benitez pleaded guilty to possession with the intent to distribute meth, on July 22, 2014 and is scheduled for sentencing on April 14, 2015 at 12:30pm before Senior Judge Russell.
This case was prosecuted by Assistant United States Attorneys Larry E. Fentress and Nute A. Bonner and was investigated by the McCracken County Sheriff’s Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
C.W. Matthews Agrees to Pay $1 Million to Settle Allegations That it Violated the False Claims ActRead the Press Release
ATLANTA - C.W. Matthews Contracting Company (“C.W. Matthews”), a Marietta, GA based construction firm, has agreed to pay $1 million dollars to settle allegations that it violated the False Claims Act by submitting false and misleading certifications to the Government regarding: (1) work performed on several federally funded highway construction projects; as well as (2) the company’s compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program (“DBE Program”).
Additionally, C.W. Matthews has reached a separate settlement with the U.S. Federal Highway Administration, pursuant to which the company has agreed to: (1) adopt an ethics code and a corporate compliance program; (2) appoint a compliance officer; and (3) retain an independent monitor to assess its performance.
“To receive the tangible and intangible benefits that it contracts for, the United States expects companies that actively seek and obtain federally funded contracts to be diligent and forthright in fulfilling their contractual obligations to the Government,” said Acting U.S. Attorney John Horn.
The settlement concerns false certifications that C.W. Matthews provided the Government regarding its compliance with requirements associated with the DBE Program. Pursuant to the DBE Program, federally funded construction contracts contain DBE clauses, which require that a specified percentage of the work be sub-contracted to firms meeting the statutory definition of a Disadvantaged Business Entity (“DBE”).
As a precondition to bidding, a contractor must acknowledge the project’s DBE goals, and then identify the DBE that it proposes to subcontract with if awarded the contract. Additionally, DBE regulations require “real and substantial” work performed by a “viable” and “independent” DBE firm, and state that “there cannot be a contrived arrangement for the purpose of meeting DBE goals.” See, 49 C.F.R. § 26.55. The DBE Program is intended to ensure that DBEs are able to compete for federal construction contracts.
Between 2006 and 2007, C.W. Matthews was awarded several highway construction contracts that contained DBE clauses. In bidding on the contracts, C.W. Matthews promised to subcontract with a DBE firm called Longoria Trucking (“Longoria”) to satisfy the contracts’ DBE goals. As work progressed, C.W. Matthews submitted the requisite DBE Reports to the Government, which: (1) described work Longoria had purportedly performed; and (2) quantified the monetary amounts purportedly paid to Longoria.
The Government’s investigation revealed that the DBE Reports submitted by C.W. Matthews were false and misleading as, in truth, it was a non-DBE trucking firm called G.E. Robinson – not Longoria – that performed most of the work, and received most of the payments, described in the reports. Indeed, the investigation revealed that G.E. Robinson used Longoria as a “front” to obtain, and receive payment under, the applicable contracts. As a non-DBE firm, G.E. Robinson was ineligible to even bid on these subcontracts. To circumvent this restriction, G.E. Robinson assumed the identify of, and controlled, Longoria, which did little work and was paid a small fee by G.E. Robinson for its complicity.The investigation revealed C.W. Matthews either knew, or should have known, of the scheme between Longoria and G.E. Robinson. However, despite this knowledge, C.W. Matthews continued issuing false and misleading certifications to the Government regarding Longoria’s role in the applicable highway projects.
In certifying that Longoria was performing work under the contracts, despite clear signs that the work was actually being performed by G.E. Robinson, C.W. Matthews, at minimum, was either reckless or deliberately indifferent.
This matter was investigated by the U.S. Department of Transportation – Office of the Inspector General.
Assistant United States Attorney Paris A. Wynn handled this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Brooklyn Man Sentenced to 5 Years in Prison for Conspiring to Pass Counterfeit U.S. CurrencyRead the Press Release
PITTSBURGH -- A resident of Brooklyn, New York, has been sentenced in federal court to 60 months of probation, which shall include 10 months of home detention with electronic monitoring, on his conviction of conspiracy and passing counterfeit United States Currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Marcus Taylor, age 32.
According to information presented to the court, Taylor conspired and passed counterfeit U.S. currency during the period Nov. 9, 2012, through Nov. 30, 2012.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Taylor.
Brooklyn Man Arrested and Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARCELLO TREBITSCH was arrested this morning on wire fraud and securities charges stemming from his alleged scheme to defraud multiple investors of approximately $7 million through a fraudulent investment scheme that he allegedly perpetrated for at least five years. Among other false and misleading statements, TREBITSCH allegedly lied to investors by telling them that he would use their money to trade in securities through an investment fund that he controlled, generating double-digit returns with very low risk. Instead, TREBITSCH allegedly invested only a portion of the investors’ money and suffered enormous trading losses, which he failed to disclose to the investors. TREBITSCH allegedly used the remainder of the investors’ money for his own personal benefit and to pay back other investors.
TREBITSCH was presented today before United States Magistrate Judge Debra Freeman.
U.S. Attorney Preet Bharara said: “Investing in securities entails certain risks, but should not include the risk of being defrauded by one’s investment manager. Investment fraud is a high priority for this Office. I want to thank the FBI for working with us to protect investors and their money.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Trebitsch took $7 million in investor money under false pretenses. Allegedly promising double digit returns to investors, Trebitsch suffered losses on what money he did invest. Trebitsch finds himself under arrest on securities and wire fraud charges.”
According to the allegations in the two-count Complaint unsealed today in Manhattan federal court:
From 2009 through December 2014, TREBITSCH engaged in a multimillion-dollar fraudulent investment scheme, during which he solicited money from investors based on materially false and misleading representations. Specifically, TREBITSCH told the investors that he would use their money to purchase large-cap stocks through an investment fund called Allese Capital LLC, which TREBITSCH co-owned with his wife, who was a certified public accountant. TREBITSCH told the investors that he would purchase and sell stocks on a daily basis, with little or no funds invested in the market at the end of each trading day, which would minimize the risk of loss, and result in double-digit annual returns in the range of 14 to 16 percent. In fact, TREBITSCH invested only a portion of the investors’ money, and instead principally used the investors’ money for his own personal benefit, including to repay other investors.
With respect to the portion of investor funds that he did use to purchase securities, TREBITSCH suffered net trading losses, which he did not disclose to the investors. Rather, TREBITSCH sent the investors false and misleading monthly account statements and tax forms, which purported to show positive annual returns in range of 15 to 19 percent on the investors’ investment in Allese.
During the course of the fraudulent scheme, TREBITSCH solicited more than $7 million from multiple investors.
TREBITSCH, 37, of Brooklyn, New York, is charged with one count of wire fraud and one count of securities fraud. The wire fraud count and the securities fraud count each carry a maximum sentence of 20 years in prison; the wire fraud charge carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, and the securities fraud charge carries a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel S. Goldman and Amy Lester are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
Trebitsch, Marcello Complaint
Brazoria Man Arrested on Child Pornography ChargesRead the Press Release
GALVESTON, Texas – Joseph Saunders, 34, of Brazoria, has been arrested on two charges related to child pornography, announced U.S. Attorney Kenneth Magidson.
The two-count indictment was returned under seal March 11, 2015, and unsealed upon his arrest this afternoon. He is expected to make his initial appearance before U.S. Magistrate John R. Froeshner in Galveston at 10:00 a.m. tomorrow, at which time the government expects to request he be detained pending further criminal proceedings.
Saunders is charged with one count each of receipt and possession of child pornography.
If convicted, he faces up to 20 years in federal prison for the receipt and a maximum of 10 years for the possessing of child pornography.
The investigation was conducted by the Houston Metro Internet Crimes Against Children Task Force and Homeland Security Investigations.
This case, being prosecuted by Assistant U.S. Attorney Carrie Wirsing, is being 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."
Another Member of Local 401 Sentenced to Prison TermRead the Press Release
PHILADELPHIA- Greg Sullivan, 50, of Philadelphia, PA, was sentenced today to 27 months in prison for conspiracy to maliciously damage property by means of fire, and Hobbs Act Extortion. Sullivan pleaded guilty on September 23, 2014. He participated in the Grays Avenue arson and the attempted arson in Malvern. In addition to the prison term, United States District Court Michael Baylson ordered restitution of $10,306.80 – half of which must be paid within 30 days – three years of supervised release and a $100 special assessment. He has 30 days to report to prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Akron man pleads guilty to operating dog-fighting ventureRead the Press Release
An Akron man pleaded guilty in federal court to operating a dog-fighting venture and related counts, law enforcement officials said.
Alvin Banks, 56, is scheduled to be sentenced June 30. He pleaded guilty to five counts: sponsoring and exhibiting a canine in an animal fighting venture; buying, selling, delivering, possessing, training and transporting canines for participation in an animal fighting venture; attending an animal-fighting venture; being a felon in possession of firearms and ammunition and possession with intent to manufacture and distribute less than 50 marijuana plants.
The plea was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Akron Police Chief James Nice, Summit County Sheriff Steve Barry and Summit County Prosecutor Sherry Bevan Walsh.
Banks is the last of 10 people to plead guilty in federal court related to a dog-fighting operation uncovered in Akron last year.
Federal and local authorities raided a home on Cordova Avenue in Akron on Nov. 15, 2014 as part of an investigation into dog fighting. In addition to firearms, narcotics and more than $52,000 in cash, investigators discovered a blood-stained 16x16 foot ring used as part of an animal fighting venture, as well as two “break sticks” used to pry a dog’s mouth and teeth off another dog when the fight is finished. They also found eight pit bull or pit bull mixes, two of which were covered in blood and had fresh wounds from a fight that occurred just prior to the execution of the search warrant, according to court documents.
The investigation preceding the indictment was conducted by the Akron Police Department, the Federal Bureau of Investigation and the Summit County Sheriff’s Office, with assistance from the Summit County Prosecutor’s Office and the Humane Society of Greater Akron. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
10 April 2015
Ypsilanti Man Sentenced for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
An Ypsilanti man was sentenced yesterday for his involvement in a scheme to defraud the Internal Revenue Service, announced United States Attorney Barbara L McQuade.
McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Receiving the sentence from U.S. District Judge Gershwin A. Drain was Antonio R. Lundy, 43. Lundy pleaded guilty before Judge Drain in December 2014. Judge Drain sentenced Lundy to 18 months in prison and three years’ supervised release and ordered him to pay restitution to the IRS in the amount of $251,900.
According to court records, Lundy participated in a scheme to defraud the Internal Revenue Service through the filing of numerous income tax returns in the names of individuals whose personal identification information (PII) had been either obtained with their consent or obtained illegally. From September 2011 through April 2012, Lundy provided the home addresses and PII of individuals to others members of the scheme. The information provided by Lundy was used to prepare and file fraudulent federal income tax returns, which requested refunds based on reported tax withholdings that were false. The refunds were loaded onto Turbo Tax Visa debit cards and mailed to the home addresses provided by Lundy. Lundy used the debit cards to withdraw cash at ATMs, and his cash withdrawals totaled $251,900. Overall, the scheme involved approximately 180 fraudulent returns that requested approximately $1.7 million in refunds.
“IRS-CI is committed to working with our law enforcement partners to combat identity theft. Investigating and prosecuting identity thieves who attempt to defraud the government by filing fraudulent income tax returns remains a top priority for the IRS,” said IRS Criminal Investigation Special Agent in Charge Koopman.
The case was investigated by special agents of the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Washington County Man Sentenced to Prison for Fraud Scheme Targeting the ElderlyRead the Press Release
PITTSBURGH - A Washington County resident has been sentenced in federal court to 30 months imprisonment, three years supervised release, and ordered to pay $405,717.78 in restitution on his conviction of wire fraud and filing false tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on James Grimes, 35 of Lawrence, Pa.
According to information presented to the court, Grimes misappropriated $313,000.00 funds belonging to clients of his brokerage firm. He also failed to report the income realized on his tax return for the years 2007-2009.
Prior to imposing sentence, Judge Fischer explained that Grimes had preyed on the elderly and committed serious crimes. However, his remorse and understanding of the need to make amends justified a slight reduction in sentence..
Assistant United States Attorney James Y. Garrett prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Grimes.
Victoria Man Gets Maximum Sentence for Sexual Exploitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Jason Paul Tijerina, 30, of Victoria, has been ordered to prison for the sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Tijerina pleaded guilty in December 2014.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, sentenced Tijerina to the statutory maximum of 30 years in federal prison to be immediately followed by 25 years of supervised release. He must also register as a sex offender.
In January 2014, Victoria Police Department responded to Tijerina’s residence in reference to a sexual assault. The victim was identified and confirmed the abuse. Authorities conducted a search warrant and seized Tijerina’s cellular telephone from his residence which resulted in the discovery of 10 thumbnail files and one video of a child involved in sexually explicit conduct.
Tijerina has remained in custody since his arrest and will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Tijerina was the result of an investigation conducted by Homeland Security Investigations and Victoria Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Val Verde County Commissioner Indicted on Federal ChargesRead the Press Release
In Del Rio this morning, 62-year-old Val Verde County Precinct 1 Commissioner Ramiro Ramon surrendered to authorities based on federal charges alleging that he accepted bribes totaling more than $68,000 in exchange for actions performed in his official capacity. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and IRS-Criminal Investigation Special Agent in Charge William Cotter.
A 23–count federal grand jury indictment, returned on Wednesday and unsealed today, charges Ramon with nine counts of wire fraud and theft of honest services; three counts of bribery; seven counts of Travel Act violations (use of interstate communication facilities to aid in racketeering); and four counts of making a false statement on an income tax return. The indictment alleges that since November 2005, the defendant solicited and accepted bribes from three different entities in exchange for favorable official action including casting votes, arranging meetings between the entities and City of Del Rio officials, and advocating for the approval of measures which would benefit the entities and their Val Verde County real estate project called “the Ranch.”
Specifically, Ramon allegedly accepted close to $50,000 in payments from a San Antonio developer; approximately $9,300 from a group of New Braunfels business owners; and $5,000 from a California businessman.
According to the indictment, Ramon also took steps to hide, conceal and cover up his affiliation with the entities including the failure to report payments he received on his electronically filed federal income tax returns for 2011 and 2012. The indictment also alleges that Ramon made false statements on his income tax returns in which he underreported his total income to the IRS for calendar years 2008-2011.
Upon conviction, Ramon faces up to 20 years in federal prison for wire fraud; up to ten years imprisonment for bribery; up to five years for violating the Travel Act; and, up to three years imprisonment for making a false statement on an income tax return.
Ramon, who has served as Val Verde County Precinct 1 Commissioner since 2003, had his initial appearance this morning in Del Rio before United States Magistrate Judge Collis White and was released on bond.
This indictment resulted from an investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorneys Jay Hulings, William R. Harris and Goran Krnaich are prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
United States Settles False Claims Act Allegations Against Jacksonville-Based Fertility ClinicRead the Press Release
Jacksonville, FL - The United States has settled allegations that a Jacksonville-based fertility practice knowingly billed the government for services that were “up-coded,” or billed at a rate higher than medically necessary, and billed for certain claims when the physician-owner was out of the country. The allegations resolved included liability under the False Claims Act (FCA).
The government announced today that it has reached a settlement with the Jacksonville Center for Reproductive Medicine (Center), and the physician who owned the practice – Dr. Michael Fox. In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until February 2013, Dr. Fox operated a fertility practice that billed for services at a higher rate of reimbursement than appropriate. At issue, in particular, was the misuse of “incident to” billing provisions. In general, the government allows medical professionals to bill for the services of physician assistants and nurse practitioners as fully compensable claims when those services are “incident to” a physician’s course of treatment. In this case, the government alleged that the Center routinely misused the “incident to” provisions when it billed for work performed by a physician assistant or nurse practitioner. In many instances, it appeared that physician involvement was minimal such that the “incident to” provision would not be applicable. The government agreed to accept $98,838.98 to resolve these allegations.
“TRICARE and other federal health care programs are dependent upon healthcare providers honestly reporting the work that they do,” said A. Lee Bentley, III, U.S. Attorney for the Middle District of Florida. “Claiming reimbursement for treatments not provided, or at higher rates than authorized by regulation, defrauds taxpayers and depletes limited funds available to provide medical care to deserving patients. By bringing False Claims Act cases such as this, we recover funds stolen from the government and deter others from attempting similar schemes.”
Today’s settlement involved false claims submitted to the TRICARE Program. This case was developed by proactively mining healthcare reimbursement data. In mining through this data, the Center was identified as a top biller of fertility related treatments. In addition, through this data mining, government investigators were able to determine that the Center had billed for services allegedly rendered by Dr. Fox – the owner of the practice – even when he was out of the country.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Departments of Justice and Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS will actively analyze, inquire, and challenge health care providers that overcharge the DoD, mistakenly or otherwise. We do this to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees."
This case was investigated by Defense Criminal Investigative Services, Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney's Office for the District of Colorado Recovers $66,000 Resolving Allegations That Slawson Exploration Company Violated the False Claims ActRead the Press Release
DENVER -- John Walsh, United States Attorney for the District of Colorado, today announced the recovery of more than $66,000 to settle allegations that Slawson Exploration Company violated the Federal False Claims Act by failing to properly value gas produced from Indian leases and pay royalties to the Department of the Interior’s Office of Natural Resources Revenue (“ONRR”).
Slawson isa privately held oil and gas exploration company headquartered in Wichita, Kansas. In 2011, Slawson was the lessee for seven leases located on the Fort Berthold Indian Reservation in North Dakota and one lease located on the Fort Peck Indian Reservation in Montana (“the Leases”). As a lessee of these Indian leases, Slawson is required to comply with regulations mandating proper valuation and pricing when calculating and paying royalties to ONRR on any gas removed from these leases. This matter was handled by the Colorado U.S. Attorney’s Office because all energy companies that have a federal or Indian lease from which they obtain oil and gas resources are required to submit reports of their production and corresponding royalty payments to ONRR in Lakewood, Colorado.
ONRR acts as a trustee for royalty payments owed to Indian tribal and individual leaseholders. After receiving the royalty payments from lessees like Slawson, ONRR verifies that the payments are correct and then passes these monies on for distribution to the Indian leaseholders.
According to the Settlement, the United States contends that Slawson knowingly failed to properly adjust the value of gas production on the Leases in 2011, and thus, underreported royalties to ONRR. The United States alleges that Slawson has a history of underpaying royalties on the Leases, and had been penalized by ONRR in the past for failing to properly report and pay royalties. Slawson denies the allegations.
“When gas companies tell the federal government what they owe for the natural resources taken from Indian lands, they need to understand that ‘close enough’ is not ‘good enough’,” said U.S. Attorney, John Walsh. “We stand ready with our law enforcement partners to hold these companies accountable when they don’t tell the whole truth about what they are required to pay the government.”
“The Office of the Inspector General for the Department of the Interior continues to support ONRR and the Department of Justice in recovering oil and gas royalties owed to Indian mineral owners,” said Matthew Elliott, Deputy Inspector General for Investigations at the Office of the Inspector General. “This settlement should stand as a reminder that our Energy Investigations Unit is poised to respond when Indian mineral interests are compromised or ignored.”
“A company's timely and accurate submission of royalty reports and payments is essential,” said Greg Gould, Director of the Office of Natural Resources Revenue. “To ensure that we collect every dollar due, ONRR will continue to insist that companies report and pay the proper royalties for these American Indian assets.”
The United States Attorney’s Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today’s recovery. Special thanks are extended to both the Office of Natural Resources Revenue and the Energy Investigations Unit of the Department of the Interior’s Office of Inspector General. The United States Attorney’s Office in Denver, Colorado works closely with both of these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.Assistant U.S. Attorney Amanda Rocque handled the matter on behalf of the United States.