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10 April 2015
Fairview Heights Man Sentenced to over Ten Years in Prison for Robbery of Regions Bank in Granite CityRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that George E. Haberhehl, Jr., 51, of Fairview Heights, Illinois, was sentenced in federal district court in East St. Louis, on April 9, 2015, for the crime of Bank Robbery, to 125 months in federal prison, to be followed by 3 years of supervised release, a $100 special assessment, and restitution of $3400. On August 9, 2013, Habermehl approached a teller in Regions Bank, Granite City, giving her a note that read: "I want 35 $100 bills in a bank envelope. Don’t hit the alarm or give me bait money or I will shoot." In response, the teller gave Habermehl $3400.
On August 20, 2013, Habermehl was arrested in a bar in St. Louis County, Missouri, after robbing the Pulaski Bank in Richmond Heights, Missouri, of $2897. Habermehl admitted to robbing both banks. He was sentenced to 10 years in prison in St. Louis County for the Pulaski Bank robbery on June 23, 2014.
The judge in the federal case imposed the 125-month sentence to run 65 months concurrent with the St. Louis County sentence, and 60 months consecutive to the St. Louis County sentence.
The case was investigated by members of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Stephen B. Clark.
Final Defendant Sentenced in “Operation New Moon Rising”Read the Press Release
Jackson, Miss - Marzett Jordan, 45, of Philadelphia, Mississippi, was sentenced on April 2, 2015 by U.S. District Judge Henry T. Wingate to six months in federal prison for making false statements, announced U.S. Attorney Gregory K. Davis and Jerome R. McDuffie, Acting Special Agent in Charge of IRS Criminal Investigation. The government and Jordan also agreed to a substitute of assets settlement of $130,000 which was paid by Jordan to the U.S. Department of Treasury.
Jordan pled guilty to the charge on October 31, 2005. He was the final defendant to be sentenced under the Organized Crime and Drug Enforcement Task Force ("OCDETF") Operation "New Moon Rising", an extensive investigation into illegal narcotics distribution and money laundering in the Philadelphia, MS area. The Operation resulted in the indictment of Jordan and others on various counts of conspiracy to distribute cocaine base, laundering drug proceeds and making false statements on mortgage applications.
Other defendants in this case included Spencer Jordan, who pled guilty to conspiracy to distribute cocaine and conspiracy to launder monetary instruments. He was sentenced in December, 2009 to 135 months in prison followed by five years of supervised release. Annie Mae Jordan pled guilty to a Criminal Information charging her with misprision of a felony. She was sentenced on January 25, 2006 to 8 months in prison followed by one year of supervised release.
Jerome R. McDuffie, Acting Special Agent in Charge for IRS – Criminal Investigation, stated, "Spencer Jordan conspired with multiple family members including his brother, Marzett Jordan, to launder drug proceeds through real estate purchases. The money laundering and forfeiture aspects of this case were particularly intricate, and included the dissection of financial transactions related to properties purchased with the drug proceeds of Spencer Jordan. The properties were purchased in the name of Marzett Jordan, who is a former bank employee. As a result of his participation in the money laundering conspiracy, Marzett Jordan agreed to forfeit $130,000.00 in currency. Taking apart drug and money laundering enterprises such as these are
often the culmination of many investigative efforts and resources. The special agents of IRS – Criminal Investigation are especially excited to utilize our investigative skills to assist in these types of cases. The length of time it often takes to settle the money laundering aspects of the case in court is well worth it compared to the benefits received by the community. Jordan and his cartel represented a large threat to the Philadelphia, MS area. Former Philadelphia Police Chief, David Edwards, estimated that, during the period related to the investigation, Spencer Jordan and his cartel were responsible for trafficking as much as 60 to 70 percent of the drugs entering the local community. It is a great victory for law enforcement that they have all been held accountable for their actions."
This OCDETF operation was led by the DEA and Mississippi Bureau of Narcotics with assistance from IRS Criminal Investigation and the Philadelphia Police Department. It was prosecuted by Assistant U.S. Attorney Erin Chalk.
FBI and Ross Township Police Seek the Public’s Assistance in Identifying Ross Township Bank Robbers and Offers up to $10,000 Reward for Information That Leads to Their ArrestRead the Press Release
The Federal Bureau of Investigation (FBI) Pittsburgh Division and the Ross Township Police are seeking the public’s assistance in identifying the two (2) unknown males responsible for robbing the First Niagara Bank, 6203 Babcock Boulevard, Ross Township, PA, at approximately 9:15 a.m. on Friday, April 10, 2015. They were seen leaving in a gray, newer model 4-door Toyota Corolla.
Robber #1 is described as follows:
- Sex: Male
- Race: White
- Height: Approximately 5'8-5'9" tall
- Build: Medium Build
- Male #1 was last seen wearing a dark blue Pitt sweatshirt and dark blue sweatpants with gold writing vertices down one leg.
Robber #2 is described as follows:
- Sex: Male
- Race: White
- Height: Approximately 5'8-5'9 tall
- Build: Larger Build
- Male #2 was last seen wearing a black hooded sweatshirt, black ski mask and hat.
Bank surveillance photographs from First Niagara Bank on Friday, April 10, 2015:
Link to Internet Wanted posterTHESE TWO (2) MALES SHOULD BE CONSIDERED ARMED AND DANGEROUS
Anyone with information regarding this robbery should contact the FBI Pittsburgh Field Office, 24 hours a day, at telephone number (412) 432-4000 or the Ross Township Police at 412-931-9070. Tipsters may remain anonymous
District Man Sentenced to More Than Six Years in Prison for Series of Crimes During 30-Day PeriodRead the Press Release
WASHINGTON – Desmond Chapman, 35, of Washington, D.C., has been sentenced to a prison term of six years and one month for a series of crimes, including a robbery, two thefts, and an assault on a police officer, that took place over a 30-day period last year, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
Chapman pled guilty in February 2015, in the Superior Court of the District of Columbia, to one count of attempted robbery; one count of second-degree theft with a felony enhancement, and one count of felony assault on a police officer. He was sentenced on April 9, 2015, by the Honorable Juliet J. McKenna. Upon completion of his prison term, Chapman will be placed on three years of supervised release.
According to the government’s evidence, the series of crimes began with a robbery incident on May 3, 2014. That day, at approximately 6:30 a.m., the victim got out of a taxicab near First and Kennedy Streets NW. As the victim was walking, Chapman and another individual, who remains unidentified, attacked him. The victim was blindsided, hit on the side of the face, and had a T-shirt placed over his head. As the attack continued, the victim was struck several more times in the face and body, while the T-shirt remained over his head. The victim eventually fell to the ground. The victim later learned that his wallet containing $200 and credit cards were missing from his back pants pocket.
Less than two weeks later, on May 15, 2014, at approximately 6:55 p.m., Chapman entered a liquor store in the 5500 block of South Dakota Avenue NE, grabbed two half-gallon bottles of gin, and fled without paying. On May 23, 2014, at approximately 11:45 a.m., Chapman returned to the liquor store and once again snatched two half-gallon bottles of gin, fleeing without paying. Chapman was later identified as the thief from store surveillance footage. He has at least two prior theft convictions; therefore, he qualified for the felony enhancement at sentencing.
Finally, on May 31, 2014, at approximately 8:15 a.m., an officer with the Metropolitan Police Department (MPD) saw Chapman at the intersection of First and Kennedy Streets NW. The officer knew that Chapman had several outstanding warrants. Chapman saw the officer and walked away. She broadcast a look-out for him, and caught up with him after a brief chase that ended in the 5500 block of Kansas Avenue NW. As the officer attempted to apprehend Chapman, he physically resisted, causing her to fall to the ground and hit her head. Then, as she and another officer struggled with Chapman, he bit her on the left arm and left leg. Additional officers arrived to aid with Chapman’s apprehension. The officer, who also suffered injuries to her neck, back, and shoulders, was taken to a hospital for treatment.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ali D. Kargbo, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter; former Assistant U.S. Attorney Shane Waller; and Paralegal Specialist Debra McPherson.
District Man Sentenced to 38 Years to Life in Prison for 2000 Slaying of Government WitnessRead the Press Release
WASHINGTON – Anthony Gray, 37, of Washington, D.C., was sentenced today to a prison term of 38 years to life for the July 2000 murder of a government witness, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Robert D. MacLean, Chief of the United States Park Police.
Gray was found guilty on Dec. 2, 2014, of first-degree premeditated murder while armed, kidnapping, and felony murder while armed, as well as the aggravating circumstances that the murder was committed during the course of a kidnapping and was committed because the victim was a government witness. The jury verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston.
In sentencing the defendant, the judge declared: “The court system relies on the community to come forward. When one does that, the court takes it especially seriously if that person is murdered because of the citizen’s willingness to do what we expect of all citizens.”
According to the government’s evidence, Gray was part of a violent crew that operated in the Alabama Avenue SE area, known as “Simple City,” in the mid to late 1990s-2000s. The crew focused on selling drugs, committing violent crimes, and intimidating witnesses. Gray played an active role in the crew and committed a number of crimes on its behalf.
Specifically, in 1999, a murder was committed by two crew members in the area of Texas Avenue SE. Robert McManus, 20, was a reluctant witness to this murder. On July 5, 2000, as trial was approaching for the two crew members, Anthony Gray and another crew member kidnapped Mr. McManus from his bicycle for the purpose of preventing him from testifying at the trial. After kidnapping Mr. McManus, Gray and the other crew member drove him to the 4800 block of E Street SE, marched Mr. McManus into the woods, and shot him one time in the head. The following day, Mr. McManus’s body was recovered in a wooded area, executed.
After the murder of Mr. McManus, Gray bragged to multiple witnesses that he killed him because he was “hot.” According to Gray, Mr. McManus was “hot and he had to go.”
“Anthony Gray will spend decades in prison for executing a young man who had the courage to tell the truth about another murder committed by Gray’s crew,” said Acting U.S. Attorney Cohen. “This prison sentence should send a message to criminals who even think about harming a witness. The consequences of choosing to obstruct justice with violence will be harsh.”
In announcing the sentence, Acting U.S. Attorney Cohen, Chief Lanier, and Chief MacLean commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines, who indicted the matter; former Lead Paralegal Specialist Phil Aronson; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Meridith McGarrity, Fern Rhedrick, and Vanessa Trent-Valentine; Intelligence Analyst Zachary McMenamin; Supervisory Witness Security Specialist Michael Hailey; Witness Security Specialists Debra Cannon and Wanda Queen, and Information Technology Specialist Leif Hickling.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Laura R. Bach and Shana L. Fulton, who tried the case.
Designer of Fraudulent Tax Promotion Product Sentenced to PrisonRead the Press Release
A Chino, California, businessman was sentenced to serve more than four years in prison yesterday in the U.S. District Court in Las Vegas for his role in a conspiracy to promote and sell fraudulent tax products, including a product called Tax Break 2000, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Daniel William Porter pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Judge Miranda Du sentenced Porter to serve 55 months in prison and three years of supervised release following his prison sentence. As part of his plea agreement, Porter agreed to cooperate with the government and assist with its ongoing investigation into entities and individuals involved in the sale and promotion of Tax Break 2000.
“Today’s sentence sends a clear and powerful message to those individuals who, like Mr. Porter, seek to evade and help others evade their federal tax obligations, that they will be prosecuted, convicted and sentenced to substantial terms of incarceration,” said Acting Assistant Attorney General Ciraolo. “No individual is above the law, and the Tax Division, working with its partners at IRS-Criminal Investigation and the Offices of the U.S. Attorneys, will hold accountable those who engage in criminal conduct at the expense of honest taxpayers and the U.S. Treasury.”
According to court documents and court statements, Porter conceived and designed Tax Break 2000, which purported to be an online shopping website. By at least November 2000 and continuing through at least July 2002, Porter conspired with others to promote and sell Tax Break 2000 to customers throughout the United States. Customers were falsely and fraudulently told that purchasing Tax Break 2000 would allow them to claim legitimate income credits and deductions under the Americans with Disabilities Act (ADA) by modifying the website each customer was provided to make it accessible to the disabled. The National Audit Defense Network (NADN) charged $10,475 for the product to maximize the fraudulent income tax credits and deductions that customers would claim on their federal income tax returns. However, the customers only paid between $2,000 and $2,695 for the product. The remainder of the cost was covered by a promissory note that customers were not expected to repay.
Porter sold Tax Break 2000 directly through Oryan Management and by contracting with other individuals and entities, including Donald Hicks, a tax return preparer in Gladstone, Missouri, and NADN in Las Vegas. Through Hicks and NADN, Tax Break 2000 was sold to thousands of customers. Alan Rodrigues, NADN’s former general manager and executive vice president, Weston Coolidge, the former president of NADN, and Joseph Prokop, the national director of marketing for Oryan Management and a former NFL punter, were convicted at trial in the District of Nevada for their roles in the sale and promotion of Tax Break 2000 in a separate criminal case.
On March 10, at the sentencing of Rodrigues, Coolidge and Prokop, Judge Du found that the intended tax loss to the Internal Revenue Service (IRS) associated with NADN’s sale of Tax Break 2000 was more than $60 million and that the fraud loss to the customers who purchased Tax Break 2000 was more than $36 million. 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. All three defendants were ordered to pay restitution of more than $35 million to customers of NADN who purchased the fraudulent tax product. Donald Hicks, who promoted the fraudulent tax products in Missouri, pleaded guilty in a separate criminal case in the Western District of Missouri.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and former Trial Attorneys Timothy J. Stockwell, Katherine L. Wong and Mark L. Williams, and Paralegal Larry Garland of the Tax Division, who prosecuted the case. Ciraolo also thanked the U.S. Attorney’s Office in the District of Nevada in Las Vegas for their substantial assistance.
Cortez Woman Sentenced to Prison for Filing False Tax Returns Relating to Theft of FundsRead the Press Release
DENVER – Lisa Kay Balderrama, age 50, of Cortez, Colorado, was sentenced earlier this week by Chief U.S. District Court Judge Marcia S. Krieger to serve 12 months in federal prison for filing a false tax return, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Steven A. Osborne announced. Following her prison sentence, Balderrama was ordered to serve 1 year on supervised release. Balderrama was also ordered by Chief Judge Krieger to pay $64,477 in restitution to the IRS. The defendant was ordered to report to a Bureau of Prisons facility within 48 hours of designation. Balderrama waived her right to indictment, and thus was charged by Information on October 20, 2014. She pled guilty before Chief Judge Krieger on December 4, 2014.
According to information contained in the stipulated facts of the plea agreement as well as the Information, Lisa Balderrama began working for Empire Electric Association in Cortez, Colorado in December 2005 as a Customer Services Representative. At the end of October 2012, accounting employees for Empire noted that the manual check register was not reconciling with internal bookkeeping and that the two were off by over $200,000. These employees brought this to Balderrama's attention, questioning whether certain deposits had been made. Balderrama convinced the other employees that deposits had gone into the bank, that everything was okay, and that she would find the discrepancy.
In mid-December 2012, the defendant was again questioned about the discrepancy and about a $277,000 electronic transaction she had posted on October 22, 2012. The following Monday, Balderrama reported to work and confessed to her superiors that she had stolen approximately $280,000 from Empire Electric. The investigation revealed that from approximately 2009 through 2012, Balderrama stole money from customers who paid cash for their electric bills. Empire’s accountant conducted an investigation into their books and found that $277,035 in adjustments had been made to 184 accounts in order to cover the shortages due to Balderrama’s thefts.
Balderrama failed to report a combined total income of $277,035 on her tax returns in 2010, 2011, 2012 and 2013. The tax loss to the IRS which resulted from Balderrama's false statements totaled $64,477.
“As the defendant Balderrama learned in this case, regardless of the source of income, if you don’t pay taxes on it, you will be held criminally accountable,” said U.S. Attorney John Walsh. “With tax day approaching, this case serves as a reminder that we all report our taxable income, and pay any taxes due.”
“As we approach the end of tax filing season, this is a reminder that all taxpayers should file complete and accurate tax returns or they will be held accountable; all income regardless of the source is taxable,” said Steven A. Osborne, Acting Special Agent In Charge for IRS Criminal Investigation, Denver Field Office.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Cortez City Police Department. Balderrama is being prosecuted by Assistant U.S. Attorney Dondi Osborne in the Colorado U.S. Attorney’s Durango Branch Office.
Convicted Felons Sentenced to Lengthy Prison Terms for Possessing Stolen FirearmsRead the Press Release
Waycross, GA – Benjamin Robert Taylor, 36, of Hortense, Georgia, was sentenced last week to 110 months in prison by Chief United States District Court Judge Lisa Godbey Wood after pleading guilty to possessing stolen firearms. Co-defendant Brian James Wilson, 27, of Brunswick, Georgia, was earlier sentenced to 120 months in prison by Judge Wood after pleading guilty to the same charge. Following their stays in prison, both Taylor and Wilson will be required to serve three years of supervised release.
According to evidence presented at the guilty plea and sentencing hearings, following a traffic stop, a search of the vehicle in which Taylor and Wilson were passengers led to the discovery and seizure of multiple stolen firearms, including a pistol, two semi-automatic rifles, and two shotguns. Further investigation revealed that all of the firearms seized during the traffic stop had been stolen in a burglary committed the day before along with multiple other firearms. Both Taylor and Wilson were multi-convicted felons at the time.
This case was jointly investigated by the ATF, the Brantley County Sheriff’s Office and the Glynn County Police Department. Assistant United States Attorney T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Colorado Man Convicted of Kidnapping a Toddler and Producing Child PornographyRead the Press Release
A Colorado man was convicted by a federal jury of kidnapping a toddler and producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner of the Eastern District of California.
Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty following a four-day trial of four counts of sexual exploitation of a child and two counts of kidnapping. Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California presided over the trial, and a sentencing hearing was scheduled for July 27, 2015.
According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddler out of the house and recorded his sexual abuse of the toddler in a nearby motel, outdoors and in his truck. McCormack then returned the toddler to the house before the parents awoke. The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services.
According to the evidence presented at trial, Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts. The agents were able to identify the date, time and hotel room where one of the videos had been produced. When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created. During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s Field Offices in Bakersfield, California, Colorado Springs, Colorado, and Boston, Massachusetts, the Bakersfield Police Department, the Colorado Springs Police Department, Toronto Police Services, and the FBI.
The case is being prosecuted by Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Christopher Blattner Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Blattner, 35, of Albuquerque, N.M., pleaded guilty earlier today to violating the federal firearms laws. Under the terms of the plea agreement, Blattner will be sentenced to 30 years in federal prison to be followed by up to five years of supervised release. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
U.S. Attorney Damon P. Martinez said that Blattner was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Noting that Blattner’s prior criminal history includes four prior narcotics trafficking convictions in the 2nd and 13th Judicial District Courts for the State of New Mexico, U.S. Attorney Martinez said, “Blattner is the precisely the type of offender targeted by this federal initiative. Our families, friends and neighbors are safer when career criminals like Blattner are removed from our communities.”
“The streets are safer and people can sleep a little easier knowing that there is one less armed drug dealer poisoning our neighborhoods,” said ATF Special Agent in Charge Thomas G. Atteberry. “ATF and the Albuquerque Police Department are committed to reducing violent crime and arresting those who seek to reduce the quality of life in our community. The sentence to be imposed on Christopher Blattner sends the strong message that we will not tolerate the criminal use of firearms.”
“Today’s guilty plea sends a clear message to habitual criminals that the Albuquerque Police Department is working closely with ATF and federal prosecutors to hold them accountable for their crimes in our community,” said APD Police Chief Gorden Eden, Jr. “This case is a great example of how the Department’s cooperative enforcement efforts with our federal partners enhance public safety in Albuquerque.”
Blattner was charged in Feb. 2013, with violating the federal narcotics and firearms laws in a five-count indictment. Counts 1 and 5 of the indictment charged Blattner with distributing methamphetamine in Bernalillo County, N.M., on Aug. 6, 2012 and Aug. 17, 2012, respectively. Count 2 charged Blattner with possessing a firearm during and in relation to a drug trafficking crime on Aug. 6, 2012. Counts 3 and 4 charged Blattner with being a felon in possession of firearms and ammunition on Aug. 6, 2012 and Aug. 17, 2012.
In Aug. 2014, a federal grand jury filed an eight-count superseding indictment in the case which added Blattner’s wife, Brittany Blattner, 27, as a co-defendant. The superseding indictment charged Chris Blattner with two counts of methamphetamine distribution; two counts of using and carrying a firearm in relation to a drug trafficking crime; and three counts of being a felon in possession of firearms and ammunition. It also charged Blattner and Brittany Blattner with one count of jointly distributing methamphetamine. According to the indictment, Blattner and his wife committed the crimes charged in Bernalillo County, N.M., in Aug. 2012.
During today’s proceedings, Blattner entered a guilty plea to Counts 2 and 5 of the superseding indictment, each of which charged him with possessing a firearm in furtherance of a drug trafficking crime. In his plea agreement, Blattner admitted possessing two Glock semi-automatic pistols on Aug. 6, 2012, in furtherance of a methamphetamine trafficking crime. Blattner also admitted possessing two different Glock semi-automatic pistols on Aug. 17, 2012, in furtherance of another methamphetamine trafficking crime. Blattner remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
On March 24, 2015, Brittany Blattner entered a guilty plea to a felony information charging her with simple possession of methamphetamine. In entering the guilty plea, she admitted possessing methamphetamine on Aug. 17, 2012, in Bernalillo County. Brittany Blattner remains on conditions of release pending her sentencing hearing, which has yet to be scheduled. At sentencing she faces a maximum of two years in federal prison followed by at least one year of supervised release.
This case was investigated by ATF’s Albuquerque office and APD, and is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez.
Chittenden County Man Sentenced to Three Years of Supervised Release for FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on March 30, 2015, Jeffrey Devoid, 53, of Winooski, Vermont, was sentenced to three additional years of federal supervised release after Devoid admitted that he had violated the conditions of his federal supervised release by committing fraud. U.S. District Court Judge William K. Sessions III, sitting in Burlington, also ordered that Devoid pay his victims restitution in the amount of $13,600 and perform 120 hours of community service.
According to court records, in 2003 Devoid pled guilty to failure to pay child support–a federal misdemeanor–in the United States District Court for the Central District of California. For that offense, he was sentenced to 5 years of probation. In 2007, after he moved from California to Vermont, responsibility for supervising Devoid was transferred to the U.S. Probation Office in the District of Vermont.On August 28, 2008, a federal grand jury in Vermont returned an indictment charging Devoid with multiple counts of wire fraud. Devoid pled guilty and on November 2, 2009, Judge Sessions sentenced Devoid to 27 months in prison, followed by three years of federal supervised release. In that case, Devoid defrauded a number of New England printing companies where he had been employed as a salesman. Judge Sessions ordered him to pay his victims $207,838 in restitution. Judge Sessions also ordered that Devoid pay the remaining $53,113 he owed in unpaid child support.
According to court records, while serving the three-year term of supervised release imposed for his 2009 wire fraud conviction, Devoid continued to engage in fraudulent activity in Vermont. Beginning in approximately December of 2011, Devoid would meet women via internet dating websites, court them romantically, and falsely claim that he was a wealthy businessman who had sold a successful printing company in California. On the basis of this false information, Devoid induced his victims to lend him money and then failed to pay them back.
As Devoid admitted, this fraudulent conduct violated the terms of his federal supervised release, which prohibited him from violating federal, state and local law.
Acting United States Attorney Cowles commended the efforts of the Federal Bureau of Investigation on this matter. The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Devoid is represented by William R. Norful of the Norful Law Office in Winooski, Vermont.
Cahokia Man Sentenced for Firearm OffenseRead the Press Release
Marico T. Bratcher, 42, from Cahokia, Illinois, was sentenced on April 10, 2015, in federal court in East St. Louis, Illinois, for possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Bratcher was sentenced to 51 months in prison, three years of supervised release, fined $250 and ordered to pay $100 special assessment. Bratcher, who had previously pled guilty, admitted that a .9mm semi-auto pistol found in a bedroom closet by law enforcement officials conducting a surveillance of his residence, while looking for a fugitive in Cahokia, Illinois, on or around June 14, 2014, belonged to him.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF) and prosecuted by Special Assistant United States Attorney Jonathan S. Drucker.
Bucks County Man Sentenced for Child ExploitationRead the Press Release
PHILADELPHIA - Thomas Silber, 51, of Yardley, PA, was sentenced yesterday to 14 years in prison for knowingly receiving, and attempting to receive, visual depictions, that is, DVD movies, depicting child pornography. Between February 2007 and October 2010, Silber received 10 DVD movies, using the internet, which were shipped and transported in interstate and foreign commerce and contained materials that had been shipped and transported in interstate and foreign commerce. The producing of these visual depictions involved the use of minors engaging in sexually explicit conduct, and such visual depictions were of minors engaging in sexually explicit conduct. He pleaded guilty on December 18, 2014.
The DVDs that Silber purchased were produced by a company in Canada. After ordering the DVDs, Silber contacted the videos’ producer and arranged to meet with at least one of the children depicted, who lived in Ukraine. Silber then traveled to Ukraine on multiple occasions to engage in sexual activity with that child. Locally, Silber was employed as a school bus driver, Little League baseball umpire, and youth wrestling referee.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered five years of supervised release, a $5,000 fine, and a $1,000 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Postal Inspection Service, the Pennsylvania Office of the Attorney General, and the Lower Makefield Township Police Department. It was prosecuted by Assistant United States Attorney Michelle Morgan.
Bristol Resident Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Mathew S. Antignano, 31, of Bristol, faces a minimum of 5 years and up to 30 years in federal prison when he is sentenced in June following his guilty plea in federal court in Providence today to one count each of possessing child pornography and distributing child pornography, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police, and Coventry Police Chief Bryan J. Volpe.
According to information presented to the court, Antignano was arrested in July 2014 following an investigation by the Rhode Island State Police Internet Crimes Against Children (ICAC) task force which determined that Antignano had downloaded and shared numerous files of child pornography.
According to information presented to the court, a Coventry Police Department detective assigned to the ICAC task force was investigating activity on a peer-to-peer file-sharing network when he detected an IP address used by Antignano sharing files of child pornography. Based on information developed by the Coventry Police detective and other members of the ICAC task force, a search warrant was issued and executed at Antignano’s residence. The search resulted in the seizure of a laptop computer, tablet and digital storage devices. A forensic examination of the electronic equipment seized resulted in the discovery of approximately 7,750 images and 180 videos depicting child pornography.
Antignano, who was arrested on July 27, 2014, and who is presently detained in federal custody, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 30, 2015. Distribution of child pornography is punishable by a statutory minimum sentence of 5 years imprisonment and a maximum sentence of 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of between 5 years and up to life; possession of child pornography is punishable by a statutory penalty of up to 10 years imprisonment, a fine of up to $250,000 and a term of supervised release of between 5 years and up to life.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact: 401-709-5357
[email protected]Boston Woman Sentenced for Social Security and Tax FraudRead the Press Release
BOSTON – A Boston woman was sentenced today for taking more than $220,000 in Social Security payments to which she was not entitled and failing to pay taxes on that income.
Frances Kenney Moseley, 66, was sentenced by U.S. District Judge Indira Talwani to three years of probation, including six months of home confinement, 1500 hours of community service, a fine of $5,000, and restitution of $470,188. In September 2014, Moseley pleaded guilty to theft of public money and tax evasion.
Following the death of Moseley’s father in 2003, and, unaware that he was deceased, the Social Security Administration continued to deposit his retirement benefits into his bank account. Moseley, who was not entitled to the benefits, regularly withdrew the deposited Social Security funds after her father’s death. Between 2003 and 2010, Moseley withdrew approximately $222,172 in Social Security funds paid to her deceased father. Moseley also failed to report the money as income on her federal income taxes.
During the same period of time, TIAA-CREF, a private investment/annuity company, unaware that Moseley’s father had died, continued to deposit annuity payments into the father’s account. Between 2003 and 2010, Moseley regularly withdrew the annuity payments, totaling approximately $248,016. Under the terms of the annuity, the payments were to have ceased upon the death of Moseley’s father.
This case is brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
Since October 2013, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
In February 2015, Charles Gerbutavich, of Manchester, was sentenced to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration, which he paid in full in February. Gerbutavich pleaded guilty in connection with taking his deceased father’s Social Security benefits, which were directly deposited into a joint bank account after his death in 1993.
In January 2015, Graeme Griffith, of Andover, pleaded guilty to taking his deceased father’s Social Security benefits totaling $149,285, which were directly deposited into a joint bank account after the father’s death in 2003. Griffith is scheduled to be sentenced on April 16, 2015.
In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement and 10 hours per week of community service, and ordered to pay a fine of $40,000 and $331,630 in restitution, which she paid in full in October. Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty, of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The Moseley case is being prosecuted by Assistant U.S. Attorney David G. Tobin and Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Battle Creek Man Convicted of Possessing Unregistered and Stolen FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today the conviction of Scott Lynn Dillard, 26, of Battle Creek, Michigan on two felony charges following a two-day jury trial in Grand Rapids, Michigan. A federal jury found Dillard guilty of possessing unregistered firearms, including an MP5 machinegun and two silencers, and possessing stolen firearms, including a .308 caliber sniper rifle.
The firearms were stolen from a Battle Creek Police Department vehicle on June 21, 2013, and then sold by Dillard and an associate. Law enforcement recovered the weapons the next day. Dillard now faces a maximum sentence of ten years’ imprisonment and a $250,000 fine for each of the two charges.
The U.S. Attorney’s Office for the Western District of Michigan was assisted in the investigation by the Battle Creek Police Department, Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.U.S. Attorney Patrick Miles praised federal, state, and local authorities for quickly locating and recovering the stolen firearms. “Prompt action in recovering these weapons prevented this theft from turning into a tragedy. Mr. Dillard will now be held accountable for his role in possessing these unregistered and stolen firearms.”
The sentencing hearing for Dillard is scheduled for July 24, 2015. This case was prosecuted by Assistant U.S. Attorneys Russell A. Kavalhuna and Clay M. West.
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Barre Man Sentenced to 76 Months in Federal Prison for Armed Convenience Store RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 10, 2015, Lee Jay Manning, 28, of Barre, Vermont, was sentenced to 76 months in federal prison after his guilty plea to charges that he used a handgun to rob a Cumberland Farms convenience store in Barre on February 12, 2014. Chief U.S. District Court Judge Christina Reiss also ordered that Manning serve three years of supervised release following his prison term.
According to court records, Manning robbed the Cumberland Farms convenience store in Barre on the evening of February 12, 2014 with a loaded semi-automatic handgun. He was apprehended by law enforcement, in possession of the handgun, shortly after the robbery. No one was injured during the incident.
For his crimes, Manning faced a mandatory minimum term of 60 months in prison and a maximum term of life. The United States Sentencing Guidelines, which are advisory, recommended that Manning receive a prison term between 90 and 97 months. In determining that a 76-month sentence was appropriate in this case, Judge Reiss considered the seriousness of the offense, Manning’s history of substance abuse, and his recent efforts at rehabilitation, among other factors.
Acting United States Attorney Cowles commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Barre Town Police Department, the Berlin Police Department, and the Vermont State Police for their investigation into this matter.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Manning is represented by defense attorney Natasha Sen.
Aurora Man Found Guilty of Gun and Drug Charges Following Jury TrialRead the Press Release
DENVER – Michael Eugene Simpson, age 35, of Aurora, Colorado, was found guilty yesterday of gun and drug charges, following a three day jury trial before U.S. District Court Judge Philip A. Brimmer, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Luke Franey announced. The jury deliberated for approximately five hours before reaching their verdicts.
Simpson was charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury on June 30, 2014. The U.S. Attorney’s Office obtained a Superseding Indictment on January 7, 2015. The jury trial began on April 6, 2015, with a verdict being rendered on April 9, 2015. The jury found the defendant guilty of one count possession with intent to distribute cocaine (with a penalty of not more than 20 years in prison, and up to a $1,000,000 fine per count); three counts of possession of a firearm and ammunition by a prohibited person (with a penalty of not more than 10 years in prison, and up to a $250,000 fine per count), one count of possession of an unregistered firearm (with a penalty of not more than 10 years in prison, and up to a $250,000 fine), and eight counts of possession of ammunition by a prohibited person (with a penalty of not more than 10 years in prison, and up to a $250,000 fine per count).
According to facts that came out trial, on June 19, 2014, at approximately 3:00 a.m., law enforcement special agents and officers executed a search warrant in Aurora, Colorado. The address was the residence of Michael Simpson. Aurora Police Department and ATF had previously received information that Simpson, a convicted felon, was in possession of numerous firearms and was participating in drug activity. That morning, upon approaching the residence, law enforcement officials found Simpson in a vehicle in the driveway. He did not comply with commands and instead turned the vehicle on and tried to flee. He attempted to back out the driveway but could not because a law enforcement vehicle was parked directly behind him. He proceeded to back up into the vehicle several times until law enforcement officers broke the driver side window and tased him.Agents and officers then conducted a lawful search of the residence, law enforcement officers found: (1) a loaded .40 Smith and Wesson firearm in a vehicle outside the house; (2) a loaded, Cobray 12 gauge Streetsweeper shotgun in the garage; (3) a loaded, .380 Bersa handgun in a safe from a downstairs closet; and, (4) 19.9 grams of cocaine in a plastic bag on the kitchen counter. In the same safe where the .380 Bersa handgun was found, law enforcement officers found over 100 rounds of ammunition, a digital scale, a beaker, and plastic bags used to distribute cocaine. Law enforcement officers found ammunition in two kitchen cabinets, on top of the refrigerator, and on a desk downstairs. A razor blade, digital scale, and plastic bags were also found in a kitchen cabinet.
Simpson, a member of the 83 Gangster Crips, has previous drug-related felony convictions. His felony convictions prohibit him from legally possessing firearms or ammunition.
This case was investigated by the ATF and the Aurora Police Department.
The defendant is being prosecuted by Assistant U.S. Attorneys Jason St. Julien and Robert Brown.
Arkansas Woman Sentenced in New Mexico to 60 Months in Federal Prison for Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Shelia Villegas, 47, of Manila, Ark., was sentenced late yesterday afternoon in federal court to 60 months in federal prison followed by three years of supervised release for her conviction on methamphetamine and cocaine trafficking charges.
Villegas was arrested on April 29, 2014, on a criminal complaint alleging methamphetamine and cocaine trafficking charges. She subsequently was indicted in a two-count indictment charging her with possession of methamphetamine with intent to distribute and possession of cocaine with intent to distribute.
On Jan. 7, 2015, a jury returned a guilty verdict on both counts of the indictment after a two- day trial. The evidence at trial established that on April 29, 2014, an officer of the Albuquerque Police Department (APD) conducted a routine traffic stop on Villegas for failure to maintain a single lane. After issuing a citation to Villegas, the officer asked and received Villegas’ consent to a search of her vehicle. The officer then deployed a narcotics canine on the vehicle. After the canine alerted and thus indicated the presence of drugs, the officer and HSI agents searched Villegas’ vehicle and found 19 bundles, 18 of which contained an aggregate of 20 pounds of methamphetamine and one which contained more than 700 grams of cocaine.
The evidence at trial included the APD officer’s recording of his encounter with Villegas. In addition, an agent with Homeland Security Investigations (HSI) testified that Villegas made a post-arrest statement in which she acknowledge that she was transporting drugs from Calif. to Ark. in exchange for $10,000.00 plus $500.00 in travel expenses.
This case was investigated by the Albuquerque office of HSI and APD and was prosecuted by Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Jon Ganjei.
9 April 2015
Woman Convicted and Man Sentenced in Houston Armored Car RobberyRead the Press Release
HOUSTON – Emeral Watson, 19 of Houston, has entered a plea of guilty in relation to an attempted robbery of an armored car operating in and around Houston, announced U.S. Attorney Kenneth Magidson. Co-defendant Effron Williams, 22, of Houston, was previously convicted and was ordered to prison yesterday as a result of his guilty plea.
U.S. District Judge Keith Ellison ordered Williams to serve a total of 130 months for his convictions of conspiracy and interference with commerce by robbery and discharging of a firearm during the commission of a crime of violence.
Garda Cash Logistics., who operated the truck during the robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Watson and Williams were charged along with Christopher Brandon Pietrie, 19, also of Houston, for their involvement in the March 10, 2013, attempted robbery of a Garda Cash Logistics armored truck at the Chase Bank located at 10411 North Freeway in Houston. Watson drove to the location, while Williams and Pietrie got out of the car and approached the armored car guard who was in the process of filling an ATM machine. The guards and the defendants exchanged gunfire, but no one was injured and no money was obtained.
Pietrie also previously pleaded guilty and is set for sentencing July 29, 2015. Watson will be sentenced July 1, 2015. Both face up to 20 years in prison as well as a possible $250,000 fine for their convictions of conspiracy to interfere with commerce by robbery.
The case was investigated by the FBI’s Bank Robbery Task Force, which includes the Harris County Sherriff’s Office and Houston Police Department. Assistant U.S. Attorney Jennie Basile is prosecuting the case.Wilkes-Barre Man Sentenced for Heroin Trafficking and Firearm ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Wilkes-Barre man was sentenced to 360 months in prison today by U.S. District Court Judge Robert D. Mariani in Scranton, for charges involving trafficking in excess of 100 grams of heroin and related firearm offenses.
According to United States Attorney Peter Smith, the defendant, Terrell Stevenson, a/k/a “Inf”, was found guilty following a 5-day trial before Judge Robert D. Mariani.
Stevenson and his co-defendants were first charged in a criminal complaint filed in 2012 and were subsequently indicted by a federal grand jury in Scranton. The others charged include: William Nelson, age 42, and Merisol Merry, age 42, both of Brooklyn, New York; Lamar Thomas, age 40, Gregory Bush, age 52, both from Scranton; Michael Blondell, age 35, of Blakely; Christopher Taylor, age 26, of Binghamton, New York; and Sean Martinelli, 29, of Philadelphia. All co-defendants previously pleaded guilty and have been sentenced.
This case was investigated by the Drug Enforcement Agency Scranton office, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Wayne Man Pleads Guilty to VA FraudRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lawrence A. Stewart, 48, of Wayne, Maine, pled guilty yesterday in U.S. District Court to theft of public money.According to court records, from about October 2011 until January 2015, Stewart received additional Veterans Administration (“VA”) disability compensation based on unemployability when he was, in fact, gainfully employed. Stewart provided falsified documentation to the VA, underreporting the extent of his employment and the income he had received. In all, Stewart received overpayments of over $53,000 to which he was not entitled.
Stewart faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the VA Office of the Inspector General.
Two Mississippi Women Sentenced for Their Roles in a Conspiracy to Commit Racially Motivated Assaults, Culminating in the Killing of an African-American Man Run over by TruckRead the Press Release
The Justice Department announced today that Shelbie Brooke Richards, 21, of Pearl, Mississippi, and Sarah Adelia Graves, 22, of Crystal Springs, Mississippi, were sentenced today in U.S. District Court in Jackson for their roles in a federal hate crime conspiracy involving racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011. Richards had previously pleaded guilty to one count of conspiracy and one count of misprision for her role in the conspiracy and the cover-up. Graves previously pleaded guilty to one count of conspiracy for her role. Richards was sentenced to 96 months in prison and Graves was sentenced to 60 months in prison. A restitution hearing will be set for a later date.
Six other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, Dylan Wade Butler, 23, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, all of Brandon, Mississippi, and William Kyle Montgomery, 25, of Puckett, Mississippi, were previously sentenced to 600 months, 220 months, 78 months, 48 months, 48 months, and 224 months, respectively, for their roles in the conspiracy. Two other defendants involved in related cases—John Louis Blalack, 21, and Robert Henry Rice, 24, both of Brandon, Mississippi—are awaiting sentencing.
“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope that the prosecution of those responsible for this horrific crime will help provide some measure of closure to the victim’s family and to the larger community affected by this heinous crime.”
“This prosecution sends a clear message that this office, in partnership with the DOJ Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
“The FBI takes very seriously its responsibility to uphold the civil rights of all citizens,” said Special Agent in Charge Donald Alway of the FBI in Mississippi. “Together with its law enforcement partners, the FBI will continue its efforts to aggressively pursue and bring to justice all those individuals who conspire to deprive others of their civil rights merely because of the color of their skin."
In prior court hearings, the defendants had admitted that beginning in the spring of 2011, they and others conspired with one another to harass and assault African Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans. They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults.
Richards and Graves admitted their involvement in two racially motivated assaults, including the beating and killing of James Craig Anderson. Specifically, they admitted that in the early morning hours of June 26, 2011, they and five other co-conspirators agreed to carry out their plan to find, harass and assault African Americans. At around 4:15 a.m., Montgomery, John Aaron Rice, Blalack, and Butlers drove to west Jackson in Montgomery’s white Jeep with the understanding that Richards, Graves and Dedmon would join them a short time later.
At approximately 5:00 a.m., the four occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue. They decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated. Rice and Blalack got out of the Jeep to distract Anderson while they waited for the Richards, Graves, and Dedmon to arrive. After Richards, Graves and Dedmon arrived in a Ford F250 truck, Rice and Dedmon physically assaulted Anderson. After the assault, the four occupants of the Jeep left the motel parking lot in the Jeep. Dedmon then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death. Richards initially falsely told law enforcement officials that she did not know the reason for the assault and did not encourage Dedmon to hit the victim with the truck. Richards later admitted that she knew that the assault was racially motivated and that she and Graves encouraged Dedmon to commit the fatal assault.
This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Two Members of El Dorado Drug Trafficking Organization Sentenced to a Combined Total of over 14 Years in PrisonRead the Press Release
El Dorado, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Kendall J. Dykes, aka “KD”, age 43, of El Dorado, Arkansas, and Jewel E. Easter, age 34, of Little Rock, Arkansas, were sentenced today to a combined total of over 14 years in federal prison. Dykes was sentenced to 84 months in prison, followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Easter received a sentence of 92 months in prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in El Dorado.
U.S. Attorney Eldridge commented, “Like many towns in South Arkansas, El Dorado has been plagued by drug trafficking. With this operation, these two defendants, along with numerous others, have been prosecuted and will spend a significant portion of their lives in federal prison. Cleaning up drug activity is critical to the success and growth of El Dorado, as it is for all communities. We appreciate the hard work and dedication on behalf of the law enforcement agencies involved in the investigation of this case, and we will continue to vigorously prosecute drug traffickers across the Western District of Arkansas. ”
“These sentencings are a result of the concentrated efforts by United States Attorney’s Office, the FBI, the FBI Task Force and the 13th Judicial Drug Task Force, who partner together to disrupt and dismantle drug networks that threaten our neighborhoods,” commented David T. Resch, Special Agent In Charge of the Little Rock FBI, “Together we will continue to diligently investigate the movement and sale of drugs in our state.”
According to court records, beginning in January, 2013, agents with the FBI and FBI Task Force initiated an investigation targeting gang members who were involved in the trafficking of narcotics and firearms in El Dorado, Arkansas and surrounding areas. During the investigation, agents identified Antoine Cook and his drug trafficking organization as a major distributor of methamphetamine in and around Union County, Arkansas. Jewell Easter was identified as one of Cook’s sources of supply for methamphetamine, while Kendall Dykes was identified as a distributor of the methamphetamine for the organization. During the summer of 2013, pursuant to a court order, agents intercepted numerous wire and electronic communications of a cell phone used by Antoine Cook. During the course of the court-ordered interception, investigators intercepted communications between Cook and Easter discussing the distribution of pound quantities of methamphetamine, and between Cook and Dykes in which Dykes discussed the purchase and distribution of ounce quantities of methamphetamine from Cook. In many of the wire and electronic communications between Cook and the defendants, coded language was used in an attempt to disguise their drug trafficking activities. Throughout the investigation, agents conducted numerous controlled purchases of ounce quantities of methamphetamine from Dykes, and were able to determine through physical surveillance and cell phone recordings that Dykes obtained methamphetamine directly from Cook for distribution. Additionally, during the investigation, agents learned that Easter was responsible for the distribution of multiple pound quantities of methamphetamine to Cook in the Western District of Arkansas. Dykes was arrested on October 10, 2013, and pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on August 27, 2014. Easter was arrested on October 3, 2013, and pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on December 9, 2014.
Information regarding defendants related to this case follows:
Antoine C. Cook, aka “Twan”, pleaded guilty to one count of Conspiracy to Distribute More than 500 grams of Methamphetamine on February 4, 2014, and was sentenced to 168 months in federal prison.
Amos K. Moore, aka “Johnny”, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on March 10, 2014, and was sentenced to 130 months in federal prison.
Ronald E. Brown, aka “Caveman”, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on April 24, 2014, and was sentenced to 130 months in federal prison.
Jeffery Ekowa pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on January 27, 2014, and was sentenced to 33 months in federal prison.
Varten Jaqoub Varentian pleaded guilty to one count of Distribution of Methamphetamine on September 8, 2014, and is currently awaiting sentencing.
These cases were investigated by the FBI, the FBI Task Force, and the 13th Judicial Drug Task Force. Assistant United States Attorney Ben Wulff prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
United States Sues Two Other Companies and Three Individuals for Similar Violations
Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia, and Singulex Inc., of Alameda, California, have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today. Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million. The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex. As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia. “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests. This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”
As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
“Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.
The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions. The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.
Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest.
The government’s actions illustrate its 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 Attorney General and the Secretary of 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 $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of South Carolina, the District of Columbia and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
WASHINGTON – Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Va., and Singulex Inc., of Alameda, Calif., have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today.
Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million. The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.
“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests. This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex. As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
“Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.
The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions. The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.
Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest.
The government’s actions illustrate its emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of 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 $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of Columbia, the District of South Carolina, and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
Contact Person: James Leventis (803) 929-3000
COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles announced today that Health Diagnostics Laboratory, Inc. (HDL), of Richmond, Virginia, has agreed to pay $47 million, and laboratory Singulex, Inc. of Alameda, California, has agreed to pay $1.5 million to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing. The government has intervened in three False Claims Act lawsuits based on similar allegations by laboratory Berkeley HeartLab, Inc.; marketing company BlueWave Healthcare Consultants, Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former Chief Executive Officer of HDL, Latonya Mallory.
“This marks the culmination of a three year investigation into these corporations, and the individuals that benefited from this fraud can now expect to receive our full attention,” said U.S. Attorney Bill Nettles.
The United States alleged that laboratories HDL, Singulex, and Berkeley induced physicians to refer patients to them for blood tests by paying them process and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. The government also alleged that HDL and Singulex conspired with BlueWave to offer kickbacks to physicians on behalf of HDL and Singulex. As a result of those kickbacks, physicians referred patients to HDL, Singulex, and Berkeley for medically unnecessary tests. HDL, Singulex, and Berkeley then submitted claims to federal health care programs, including Medicare, for payment for the medically unnecessary tests. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The government actions announced today stem in large part from two whistleblower complaints filed in the District of South Carolina by Dr. Michael Mayes, Scarlett Lutz, and Kayla Webster under the qui tam provisions of the False Claims Act. Under that Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The Act also permits the United States to intervene in the lawsuits and take over the allegations, which were not the subject of the settlements announced today.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud brought to our attention by whistleblowers,” said U.S. Attorney Nettles. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
As part of these settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
Two of the lawsuits separately allege that the former Chief Executive Officer of Singulex, Phillipe Goix, and Quest Diagnostics, Inc., parent of Berkeley, are liable for the scheme; the government has declined to intervene in the allegations against Mr. Goix and Quest.
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 Attorney General and the Secretary of 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 $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the U.S. Attorney’s Office for the District of South Carolina, the U.S. Attorney’s Offices for the District of Columbia and the Middle District of North Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; HHS-OIG; the FBI; the U.S. Office of Personnel Management Office of Inspector General and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.); and United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
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Trussville Tax Preparer Sentenced to a Year in Custody for Tax FraudRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Trussville woman to six months in prison and six months home confinement for preparing fraudulent tax returns for herself and others in a Tarrant business she ran with her sister, announced U.S. Attorney Joyce White Vance and IRS, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Abdul K. Kallon sentenced LUGENIA L. "Gigi" CONNER, 32, on five counts of preparing fraudulent tax returns and one count of making a false return. Conner pleaded guilty to the charges in January. The judge ordered Conner to pay $56,908 in restitution to the IRS. She must report to prison June 12.
"Tax return preparers who concoct schemes to collect inflated refunds are stealing from the U.S. Treasury and cheating the millions of hard-working Americans who pay their due share of taxes each year," Vance said. "The U.S. Attorney's Office will continue to work with the IRS to prosecute tax fraud and protect the sanctity and integrity of the tax system."
“Refund fraud is an egregious offense that affects honest taxpayers. Lugenia Conner blatantly stole from the United States Treasury for personal gain,” Hyman-Pillot said. “As we embark upon the close of filing season, I hope this sentence sends a message that the Internal Revenue Service Criminal Investigation Division has a zero-tolerance policy for refund fraud. Anyone who chooses to play a role in this crime will be investigated and ultimately prosecuted,” she said.
A federal grand jury last year indicted Conner and her sister, KANESHIA L. "Kiki" CONNER-GOODGAME, 35, of Birmingham, on charges that they worked together in their Taxes 'N More business to prepare fraudulent tax returns for the 2008 tax year, often falsely claiming a credit for first-time homebuyers.
Conner-Goodgame pleaded guilty in January to two counts of preparing fraudulent tax returns and one count of making a false return. She is scheduled for sentencing May 27.
Both sisters acknowledged in plea agreements with the government that they owned and operated Taxes 'N More and worked there as tax preparers, inflating refunds for their clients in 2009 by falsifying information submitted on clients' 2008 returns. The sisters claimed the First Time Home Buyer's Credit of up to $7,900 on returns they prepared for other taxpayers, knowing those taxpayers were not entitled to the credit. The women also prepared third-party tax returns claiming itemized deductions or business expenses that clients neither had provided information for, nor were entitled to receive. Both women also assisted taxpayers with the illegal practice of buying and selling dependents.
Conner and Conner-Goodgame also created and submitted 2008 personal tax returns on which they claimed the homebuyers' credit, knowing they were not entitled to that deduction.
IRS Criminal Investigation investigated the case, which Assistant U.S. Attorneys Amanda Wick and Robin Beardsley Mark are prosecuting.
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Three Alabama Men Sentenced for Participation in Stolen Identity Refund Fraud SchemeRead the Press Release
Three Montgomery, Alabama, men were sentenced to prison today in the U.S. District Court for the Middle District of Alabama for their participation in a stolen identity refund fraud (SIRF) tax scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Cruz Castillo Burnett, 28, Jacorey Giddens, 27, and Rodrickus Howard, 24, were each sentenced to serve 40 months in prison and three years of supervised release. Burnett was ordered to pay restitution in the amount of $209,041, Giddens was ordered to pay restitution in the amount of $151,260 and Howard was ordered to pay restitution in the amount of $220,136. Each defendant previously pleaded guilty to one count of conspiracy to defraud the government and one count of aggravated identity theft.
According to plea documents, Burnett, Giddens and Howard conspired to acquire the names, social security numbers and dates of birth of individuals without their knowledge or consent. The indictment alleged that from March 2011 to April 2013, the defendants used these stolen identities to file more than 500 false federal income tax returns that claimed refunds from the Internal Revenue Service (IRS). As part of the scheme, the defendants requested more than $1 million in refunds from the IRS. The defendants received the refunds in various forms, including U.S. Treasury checks, direct deposits to bank accounts and direct deposits onto prepaid debit cards in the names of identity theft victims.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tahlequah Woman Sentenced to 12 Months for RacketeeringRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ELIZABETH PORTUGAL, age 28, of Tahlequah, Oklahoma, was sentenced to12 months imprisonment and 3 years supervised release for Interstate Travel or Transportation in Aid of Racketeering Enterprises, in violation of Title 18, United States Code, Section 1952(a)(3).
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney. The defendant was indicted in July, 2014 and pled guilty in October, 2014.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Sprint Communications, Inc. Agrees to Pay $15.5 Million to Resolve Allegations of Overcharging Law Enforcement Agencies for Court-Ordered WiretapsRead the Press Release
SAN FRANCISCO – Sprint Communications, Inc., formerly Sprint Nextel Corporation, has agreed to pay the government $15.5 million to resolve allegations it defrauded federal law enforcement agencies when recovering its costs of carrying out court-ordered wiretaps, pen registers, and trap devices, announced United States Attorney Melinda Haag and the U.S. Department of Justice Office of Inspector General (“OIG”), Special Agent in Charge M. Elise Chawaga.
A joint investigation by the U.S. Attorney’s Office and the OIG revealed that from 2007 to 2010, Sprint improperly included in its intercept charges the costs of making certain upgrades to its system. Like other telecommunications carriers, Sprint is authorized by statute to bill law enforcement agencies for the reasonable expenses it incurs in providing facilities or assistance to accomplish a court-ordered wiretap, pen register, or trap device. In 1994, Congress passed the Communications Assistance in Law Enforcement Act (“CALEA”), which required telecommunications carriers to upgrade their equipment, facilities, or services to ensure they were capable of enabling the government, pursuant to a court order, to intercept and deliver communications and call-identifying information. In 2006, the Federal Communications Commission ruled that carriers were prohibited from passing on the costs of their CALEA upgrades to law enforcement agencies in their intercept bills. The investigation by OIG and the U.S. Attorney’s Office revealed that from 2007 to 2010, in violation of the FCC’s ruling, Sprint nevertheless included in its intercept charges the hidden costs of financing its CALEA upgrades. In the settlement agreement, Sprint agreed to pay $15.5 million to resolve the allegations in the complaint but did not admit to any wrongdoing or liability.
Assistant U.S. Attorneys Steven J. Saltiel and Kimberly Friday handled the matter on behalf of the U.S. Attorney’s Office. The settlement with Sprint Communications, Inc. was the result of a coordinated effort by the United States Attorney’s Office, and the OIG.
Sentencings for April 3 - April 8, 2015Read the Press Release
Preston Umbach, 35, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 8, 2015, for conspiracy to distribute 50 grams or more of methamphetamine, and heroin. He received 109 months imprisonment, concurrent to a previous state sentence, and was ordered to pay a $400.00 fine and a $100.00 special assessment. After serving his term of imprisonment, Umbach will be placed on supervised release for five years. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the U.S. Drug Enforcement Administration and the Wyoming Division of Criminal Investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Kent Satake, 40, of Laramie, Wyoming, was sentenced by Chief United States Magistrate Judge Kelly H. Rankin on April 6, 2015, for theft of public money involving Satake submitting time sheets to his employer, Developmental Preschool & Day Care Center, that resulted in billings to and payments by Wyoming Medicaid for services that were not provided. He received one year unsupervised release, was ordered to pay restitution in the amount of $2,864.61, and a $25.00 special assessment. This case was investigated by the Medicaid Fraud Control Unit.
Anthony McEntee, 19, of Cheyenne, Wyoming, was sentenced by Chief United States Magistrate Judge Kelly H. Rankin on April 6, 2015, for destruction of mail. McEntee received one year of supervised release, was ordered to pay restitution in the amount of $210.00, a $100 fine, and a $100.00 special assessment. This case was investigated by the United States Postal Inspection Service, and the Veteran Administration Office of Inspector General.
Jeremiah Grove, 26, of Billings, Montana, was sentenced by Federal District Court Judge Alan B. Johnson on April 3, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Grove was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Santa Fe Man Sentenced to Forty-Six Months in Federal Prison for Oxycodone Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Phillip Anaya, 38, of Santa Fe, N.M., was sentenced today in federal court in Santa Fe, N.M., to 46 months in federal prison followed by three years of supervised release for his Oxycodone trafficking conviction. Anaya is one of five Santa Fe residents charged in Sept. 2013, with participating in an Oxycodone trafficking ring in a 16-count indictment.
Anaya and his co-defendants, Ashraf Nassar, 31, Daniel Trujillo, 32, Krystal Holmes, 28, and Sarah Romero, 35, were arrested as part of a multi-agency law enforcement operation that included the execution of search warrants at three residences and a business in Santa Fe. The investigation, “Operation High Desert Bash,” was initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, N.M., the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults.
Operation Desert Bash investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming. Officers seized approximately 7300 mg of Oxycodone during the investigation.
Count 1 of the 16-count indictment charged the five defendants with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 of the indictment charged Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, and all five defendants were charged with using telephones to facilitate drug trafficking crimes in Counts 5 through 16.
Anaya pled guilty on Nov. 19, 2014, to Count 1 of the superseding indictment. Anaya admitted that from Dec. 8, 2012 through Sept. 26, 2013, in Santa Fe, N.M., he would frequently receive Oxycodone from Nassar which Anaya would then redistribute.
Two of Anaya’s co-defendants also have been sentenced after entering guilty pleas to charges in this case. Trujillo pled guilty on Jan. 30, 2015, and Romero pled guilty on Oct. 28, 2014; each admitted participating in the Oxycodone trafficking conspiracy charged in the indictment. Trujillo was sentenced on April 2, 2015, to 18 months in prison followed by three years of supervised release. Romero was sentenced on March 26, 2015, to 18 months in federal prison followed by three years of supervised release.
Nassar and Holmes have entered pleas of not guilty and are awaiting trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Sandersville Drug Dealer ConvictedRead the Press Release
On April 8, 2015, a jury in U.S. District Court in Macon, Georgia convicted Antonio Donyal Tarver, age 39, from Sandersville, Georgia, of one count possession with intent to distribute more than 28 grams of cocaine base (“crack”) and one count possession with intent to distribute cocaine.
The Government’s evidence at trial proved that on July 3, 2013, a Georgia State Patrol Trooper attempted to stop Mr. Tarver on Highway 24 in Eatonton, Georgia for speeding. Instead of pulling over, Mr. Tarver led the Trooper on a chase. Mr. Tarver eventually ran a red light and gained some distance on the Trooper. Mr. Tarver then made an abrupt turn into the industrial area of Horton Components where he turned behind a van trailer and abandoned his vehicle. When the Trooper turned the corner by the van trailer, he saw Mr. Tarver’s abandoned vehicle continue forward and crash into a pole. The Trooper was able to locate Mr. Tarver following a foot chase.
A few hours later, an employee at Horton Components contacted the Putnam County Sheriff’s Office about a shopping bag he observed on the roof of the van trailer where Mr. Tarver had abandoned his vehicle. The Putnam County Sheriff’s Office arrived and retrieved the bag, finding what was later confirmed to be 143.33 grams of cocaine base (“crack”) and 292.98 grams of cocaine. The bags that the cocaine was packaged in were processed by the GBI for latent prints and a GBI latent print examiner confirmed that Mr. Tarver’s left ring finger and right thumb print were present on two of the bags.
A sentencing date has not yet been set. At sentencing, Mr. Tarver faces a mandatory minimum sentence of ten years up to a possibility of life imprisonment.
“Not only did Mr. Tarver put the Trooper and the public in danger when he fled from the law, he jeopardized the well-being of the people of Middle Georgia by possessing cocaine with the intention to distribute it. His drug activities have now landed him in prison. I want to especially thank the GBI for its work on the fingerprint analysis in this case. Some people mistakenly think that fingerprints can’t be recovered from a plastic bag. They obviously don’t know the quality of the investigative work done by the Georgia Bureau of Investigation,” said U.S. Attorney Michael Moore.
This case was investigated by the Georgia State Patrol, the Georgia Bureau of Investigations, the Putnam County Sheriff’s Office, and the Eatonton Police Department. The case was prosecuted but Assistant United States Attorneys Beth Howard and Charles Calhoun.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Salvadorian National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS ADALBERTO MORADIAGA, age 44, a citizen of El Salvador, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the indictment, MORADIAGA reentered the United States after having been previously deported on August 25, 2000. If convicted, MORADIAGA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Luis Adalberto Moradiaga Indictment
Rockville Man Admits to Trafficking over 400 Kilograms of Marijuana and Laundering over $2.5 Million of Drug ProceedsRead the Press Release
Baltimore, Maryland – Issa Haddad, age 24, of Rockville, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute 100 kilograms or more of marijuana, and conspiring to commit money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from March 2010 to April 10, 2014, Haddad provided addresses in Montgomery County, Maryland and elsewhere to which co-conspirators in California would ship marijuana. Haddad and others received packages of marijuana in Maryland, and Haddad was responsible pursuant to the conspiracy for sending, receiving, and preparing for distribution between 400 and 700 kilograms of marijuana in Maryland.
Members of the conspiracy provided Haddad with bank account numbers into which the proceeds from the sale of the marijuana were deposited. Haddad and others deposited cash in amounts less than $10,000 into the provided banks accounts which were controlled by co-conspirators. These deposits of less than $10,000 were structured to evade IRS reporting requirements and conceal from the government large cash transactions by narcotics dealers.
Haddad admitted that his role in the conspiracy involved the laundering of between $2.5 million and $7 million of drug proceeds.
Haddad has agreed to forfeit at least $2.5 million.
To date, seven defendants have pleaded guilty to their participation in the drug and/or money laundering conspiracies, and await sentencing: Bianca Rosales, age 26, of New York, New York, pleaded guilty on July 7, 2014; Raymond Dixon, age 27, of San Francisco, California, pleaded guilty on July 25, 2014; Alnisha Hooks, age 23, of Los Angeles, California, pleaded guilty on August 5, 2014; David Fahrali-Simonson, age 24, of San Francisco, pleaded guilty on February 20, 2015; Ramon Rodriguez-Cruz, age 28, of Silver Spring, Maryland, pleaded guilty on February 23, 2015; and Sebastian St. John, age 23, of Silver Spring, Maryland, pleaded guilty on March 26, 2015.
Haddad faces a maximum sentence of 40 years in prison for the drug conspiracy and 20 years in prison for the money laundering conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 25, 2015 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Mara Zusman Greenberg, who are prosecuting the case.
Postal Worker Convicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – The final person has been convicted in an eight-defendant conspiracy in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced U.S. Attorney Kenneth Magidson. Edward Dwayne Vallier, 42, of Houston, entered his guilty plea to wire fraud and conspiracy to commit mail fraud this morning.
According to court records, Vallier was a U.S. Postal Service carrier in Houston that was recruited by co-conspirator Jalan Willingham, 35, of Houston, in October 2012, in order to aid and abet the conspirators in carrying out their scheme. Vallier was to provide fictitious addresses on his postal route where the false returns would be mailed. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under Vallier’s control. He would then retrieve the debit cards with the fraudulent returns on them from his route and turn it over to the co-conspirators.
From 2010 through 2013, the co-conspirators used the stolen personal identifying information to file thousands of fraudulent tax returns claiming more than $12 million in refunds. According to IRS records, the National Treasury paid out more than over $6 million before the scheme was discovered.
Willingham previously pleaded guilty for his role in the scheme as did Travis White, 32, also of Houston; Kerry Lionel Ruffin, 32, Calvin Shelton, 39, and Shawn Phillip Thornton, 37, all of Atlanta, Ga.; and Tangela R Jackson-Lezeau, 36, of Port Saint Lucie, Fla. The case against the eighth defendant - Dwayne Biggs, 29, of Atlanta, Ga. - was transferred to another jurisdiction for final adjudication.
The matter was investigated by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case
United States District Judge Keith P. Ellison, who accepted the plea today, has set sentencing for July 1, 2015. At that time, Vallier faces up to 20 years in federal prison and a maximum $250,000 fine. The remaining defendants will also be sentenced on that date.Philadelphia Man Sentenced for Sex Trafficking ConspiracyRead the Press Release
PHILADELPHIA - Adrian Palmer, 49, of Philadelphia, PA, was sentenced today to 80 months in prison for conspiring in the sex trafficking of girls under the age of 18. Palmer pleaded guilty on October 18, 2013 to one count of conspiracy, one count of sex trafficking of minors, and one count of attempted sex trafficking of a minor. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered Palmer to pay restitution of $1,400, a $300 special assessment, and to complete five years of supervised release. Palmer will also be required to register as a sex offender upon his release.
Between June 1, 2012 and June 14, 2012, Palmer, who worked as a security guard at a Days Inn motel on Roosevelt Boulevard in Philadelphia, provided protection and assistance to sex traffickers operating at the motel in exchange for a daily fee. Craig Johnson, the operator of the sex trafficking venture, recruited female juveniles to work as prostitutes. Johnson paid Palmer between $60 and $100 a day in exchange for advice about Johnson’s sex trafficking organization, including Johnson’s Backpage.com advertisements. Palmer also provided protection for Johnson so that law enforcement authorities would not be alerted to the sex trafficking operation. In August 2013, Palmer accepted $100 from a confidential witness in exchange for protecting him from law enforcement so he could engage in the sex trafficking of a (fictitious) 16-year-old minor.
The case was investigated by the Federal Bureau of Investigation with assistance from the First Judicial Court Warrant Unit. It was prosecuted by Assistant United States Attorney Michelle L. Morgan.
Pennsylvania Priest Indicted for Traveling to Honduras and Sexually Abusing Minor BoysRead the Press Release
WASHINGTON- On April 7, 2015, Joseph D. Maurizio, Jr., a resident of Central City, Pennsylvania, was indicted in a superseding indictment by a federal grand jury in Johnstown, Pennsylvania on charges of engaging in illicit sexual conduct in foreign places and on international money laundering offenses, Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division and U.S. Attorney David J. Hickton announced today. The investigation was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and Internal Revenue Service's (IRS) Criminal Investigation, Pittsburgh
Joseph D. Maurizio, Jr., 69, a priest of the Diocese of Altoona-Johnstown, was originally indicted on October 7, 2014 on charges relating to his 2009 travel to Honduras and illicit sexual conduct with a minor boy. Maurizio was also charged with the possession of child pornography.
According to the superseding indictment, Maurizio made yearly trips to Honduras between 2004 and 2009, and engaged in the sexual exploitation of two additional minor boys. Prior to three of his trips to Honduras, Maurizio transferred funds totaling $8,000 from accounts located in the Western District of Pennsylvania to accounts and individuals located in Honduras, with the intent to promote the carrying on of his illicit sexual conduct with minor victims who were living at an organization that provided services to orphaned and abandoned children.
The case is being prosecuted by Criminal Division Trial Attorney Amy E. Larson of the Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stephanie Haines of the US Attorney's Office in the Western District of Pennsylvania
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orange, Texas Man Sentenced for Attempted Enticement of a ChildRead the Press Release
BEAUMONT, Texas – A 44-year-old Orange, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joseph Lloyd White pleaded guilty on Dec. 4, 2014, to attempted sexual enticement of a child and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on May 28, 2014, law enforcement officers were alerted by a parent of possible child exploitation after discovering sexually explicit photos on their 9-year-old child’s cellular phone. A forensic analysis of the phone and investigation revealed White had met the child using an online messenger site, and even after learning the child was a minor, had continued to send sexually explicit photos of himself to the child and persuaded the child to send photos containing nudity to him. A detective, pretending to be the child, began communicating with White and verified White knew the child was only nine years old. On June 6, 2014, White traveled to an apartment complex in Beaumont where he was arrested. White admitted that he had come to the apartment complex for the purpose of having sex with the 9-year-old child. White was indicted by a federal grand jury on Aug. 6, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Okeechobee Man Sentenced for Preparing False Tax ReturnsRead the Press Release
An Okeechobee man was sentenced to 24 months in prison, followed by one year of supervised release, and was ordered to pay $238,734.00 in restitution, by United States District Judge Robin L. Rosenberg, for his participation in a tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Wyman Pittman, 47, of Okeechobee, previously pled guilty to aiding in the preparation and presentation of false tax returns.
According to court documents, Pittman was a paid tax preparer who, together with his former partner Ventrell Bouie, of Fort Pierce, Florida, operated a tax preparation service business, First Premium Financial Services (FPFS), in Okeechobee, Florida. From 2008 through 2012, Pittman prepared individual income tax returns. Pittman assisted in the preparation of multiple, fraudulent tax returns by supplying false income and deduction figures, failing to review them in detail with the taxpayers, and then electronically filing them for the taxpayers.
Specifically, Pittman filed a Form 1040 income tax return for the 2008 tax filing year that falsely itemized a taxpayers’ deductions for, among other things, medical and work expenses. As a result, the taxpayer received an inflated and unmerited tax refund payment. Pittman knew that the taxpayer had not claimed, or provided to Pittman, the information regarding those deductions for inclusion in the tax return.
Maria Garcia began working in 2008 for FPFS and was trained and supervised by Pittman and Bouie. Garcia, as a paid tax preparer, prepared false returns for customers based on false Schedules A and C, false education credits, and false child and dependent care credits. Additionally, Garcia filed three false returns for herself for tax years 2008, 2009, and 2010.
Garcia learned the tax preparation business, while working under Bouie and Pittman. Pittman taught Garcia how to fraudulently inflate deductions and refunds on client taxpayer returns. Using that knowledge, Garcia started her own tax preparation business where she too prepared false returns.
Bouie was charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14025-CR-Martinez. Bouie was sentenced to 24 months in prison.
Garcia was also charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14026-CR-Graham. Garcia was sentenced to 18 months in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Novato Woman Charged with Filing False Tax ReturnsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Marina Zuk with three counts of filing false tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, from 2008 to 2010, Zuk, of Novato, California, owned and operated a landscaping and yard maintenance business named Growing Works. She also was the sole signatory on a bank account in her deceased grandmother’s name after the death of her grandmother in 2006. Zuk underreported the gross receipts from Growing Works and interest income from the bank account in her grandmother’s name on her 2008, 2009, and 2010 individual federal income tax returns (Forms 1040). Specifically, Zuk reported that Growing Works received gross receipts of $166,808 for 2008; $146,279 for 2009; and $105,618 for 2010. During these years, Zuk also did not report any interest income for the bank account in her grandmother’s name. According to the indictment, Zuk knew when she submitted the tax returns that the company received gross receipts in addition to the amounts stated and that the bank account earned interest income during that period.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of three years in prison and a fine of $250,000 or twice the gain or loss resulting from each count of filing false tax returns in violation of 26 U.S.C. § 7206(1). However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney José A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
North Platte Woman Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Julie R. Thiemann, 34, formerly of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, to 23 years in prison by Senior United States District Judge Richard G. Kopf, for producing child pornography. After her release from prison Thiemann will serve an additional 25 years under supervised release, and be required to register as a sex offender for the remainder of her life.
In November of 2013, one of the child victims in this case, (there were three), revealed to a therapist that he believed another child had been sexually assaulted by Thiemann's live-in boyfriend, Billy Schrader. The information was reported to the North Platte Police Department and a search warrant was obtained for Schrader's residence. At the time the search was performed, law enforcement officers seized computer equipment and other items. Thiemann and Schrader were also interviewed at that time and both were subsequently arrested and lodged in jail. After a forensic examination of the equipment seized during the search warrant, over 75,000 images of child pornography produced by Thiemann and Schrader were identified.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Platte Police Department and the Lincoln County Sheriff's Office and prosecuted jointly with the Nebraska Attorney General's Office.
New London Man Sentenced to 30 Months in Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDGARDO CENTENO, 43, of New London, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics also were obtained from sources in New York City and Rhode Island.
CENTENO regularly purchased cocaine from Juan G. Cheverez, also known as “Guinchi,” who had received the drug from individuals in Puerto Rico via the U.S. Mail. CENTENO then sold cocaine in smaller quantities to his own customers.
On August 20, 2014, CENTENO pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
On February 18, 2015, Cheverez was sentenced to 77 months of imprisonment.
This matter was investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
New Jersey Man Sentenced to 28 Years for Child ExploitationRead the Press Release
PHILADELPHIA - Christopher Steibing, 34, of Ewing, New Jersey, was sentenced today to 28 years in prison for coercion and enticement of a minor to engage in sexual conduct. Between September 2009 and August 2012, the defendant used the Internet to persuade, induce, entice and coerce a child to engage in illegal sexual activity. In addition to the prison term, U.S. District Court Judge Harvey Bartle, III, ordered 20 years of supervised release, and a $100 special assessment. The defendant must also register under the Sex Offender Registration and Notification Act and shall be subject to any applicable state sex offender registration requirements.
When she was approximately 13 years old, the victim began receiving messages on AOL from a user claiming to be a 15 year old girl named “Amanda” who would be moving near the victim. The victim had numerous online conversations which “Amanda,” in which “Amanda” repeatedly brought up the topic of sexual intercourse, pressed the victim for information about her sexual history, and claimed to have dated the defendant. “Amanda” also introduced the victim to “Cory,” whom “Amanda” claimed was a 14 year-old male friend whom the victim should talk to. In truth, “Amanda” and “Cory” were actually the defendant, who was using the AOL screen names “AMANDAFOX93” and “NEWJERSEYSTONER” for these fictional personas. Eventually, the victim believed that she was dating “Cory” in an online relationship. The defendant sent the victim several images that purported to be pictures of “Cory’s” naked body and asked the victim to send him nude pictures of her. The victim ultimately agreed, taking photographs of herself in poses suggested by the defendant, including images of child pornography.
Ultimately, the defendant threatened to send nude photographs of the victim to others, including her family, if she did not send him more images. The defendant then made good on this threat and sent degrading and humiliating images of the victim to her family. After the victim decided to stop communicating with “Cory,” she received contacts from other AOL screen names whose language resembled “Cory’s.” In fact, the defendant was the one sending these messages as well. The defendant stored some of his images of the victim on a laptop computer, which, in March 2012, he kept at a girlfriend’s home in Bucks County. He later transported the laptop to his mother’s house in Ewing, New Jersey where, on May 1, 2012, police executed a search warrant and seized the laptop, along with an iPod Touch, which collectively contained hundreds of image files depicting the victim. During their searches, the police and FBI also discovered that the defendant had kept and distributed numerous images of child pornography in which the face of his own daughter, who was no older than 11 years old at the time, had been digitally “morphed” onto the bodies of other minors engaged in sexually explicit conduct.
The case was investigated by the Falls Township Police Department, the Ewing, New Jersey Police Department, Bucks County District Attorney’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Joe Khan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nash County Farmer Sentenced in Federal Crop Insurance Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on April 6, 2015 CLAY TAYLOR STRICKLAND, 74, of Spring Hope, North Carolina, was sentenced by Chief United State District Judge James C. Dever III, to 6 months imprisonment to be followed by 3 years of supervised release. STRICKLAND was ordered to make restitution in the amount of $233,559 to the United States Department of Agriculture Risk Management Agency and $64,856 to the United States Department of Agriculture Farm Service Agency. STRICKLAND was also fined $10,000. STRICKLAND previously pled guilty to conspiring to make false statements, to make material false statements, to commit mail fraud and wire fraud, and to structuring transactions all in violation of Title 18, United States Code, Section 371 and aiding and abetting the making of false statement in connection with the Federal Crop Insurance Program, in violation of Title 18, United States Code, Section 1014.
Mr. Walker stated, “As a farmer, STRICKLAND understood the importance of the federal crop insurance program as a safety net to the community in times of disaster and yet, he stole from that same program. The sentence imposed today reflects the seriousness of his offense and should serve as a deterrent for others.”
The Criminal Information, filed on October 2, 2014, alleges that STRICKLAND was engaged in the business of farming, doing business as Clay T Strickland Farms, Inc. The Information goes on to allege that STRICKLAND filed a false crop insurance claim in that he hid tobacco production from USDA by selling tobacco for cash to a tobacco warehouseman who then sold the tobacco in nominee names. STRICKLAND profited under the scheme because he was paid twice for each pound of tobacco; once through the false crop insurance claim and also from the sale of the “hidden” tobacco for cash. To conceal the conspiracy, STRICKLAND made false statements to law enforcement officers during the investigation.
Investigation of this case was conducted by the United States Department of Agriculture - Office of Inspector General, Investigations; the United States Department of Agriculture - Risk Management Agency, Special Investigations Branch, and the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Banumathi Rangarajan served as prosecutor for the government.
Nanci Mae Dusso Pleads Guilty to Using Stolen Identities to Obtain Prescription OpiatesRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of NANCI MAE DUSSO, 50, who obtained Hydrocodone, Oxycodone, and other prescription drugs by using false names, dates of birth, and social security numbers. DUSSO pleaded guilty to obtaining a controlled substance by fraud and social security fraud. She entered her plea today before Judge Donovan W. Frank in United States District Court in St. Paul, Minn.
“Prescription drug abuse is both a crime and a serious health problem in Minnesota,” said U.S. Attorney Luger. “This defendant deceived doctors and nurses in multiple states in order to obtain these powerful opioids. Working closely with our law enforcement colleagues and health care organizations throughout the region, we are dedicated to preventing the kind of prescription drug diversion seen in this case.”
According to the defendant’s guilty plea and documents filed in court, between January 2013 and November 2013, DUSSO used at least 31 aliases to obtain or attempt to obtain prescription opiates from health care providers at Mayo Clinic satellite locations in Minnesota and Wisconsin. She commonly used out-of-state identities when visiting health care providers, often employed a story in which she complained of shoulder pain, and indicated that she was visiting a family member suffering from cancer. If DUSSO successfully convinced a health care provider to prescribe medication, a physical therapy or pain management appointment would also be arranged for her. However, the defendant did not attend these appointments.
According to DUSSO’s guilty plea and documents filed in court, DUSSO may have obtained more than 6,000 prescription opiates since as early as 2008, and visited more than 150 doctors in at least 11 different health care providers’ offices in Minnesota and Wisconsin. When defrauding these health care providers, DUSSO used stolen social security numbers of people both living and deceased and from numerous states. At different health care appointments, DUSSO listed her address as from Colorado, Utah, Oregon, and Kentucky.
According to the defendant’s guilty plea and documents filed in state court, a nurse practitioner at one Mayo Clinic satellite location became suspicious of DUSSO and reported her to Mayo Security. Mayo Clinic sent a system-wide notice to all employees alerting them of the alleged criminal activity. At least two Mayo Clinic satellite locations subsequently reported DUSSO for attempting to obtain prescription pain pills.
This case is the result of an investigation conducted by the Rochester Police Department, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, and Social Security Administration.
U.S. Attorney Luger thanked the Mayo Clinic, Olmsted Medical Center, Allina Health, HealthEast Care, and Park Nicollet for their assistance in the investigation.
Assistant U.S. Attorney Richard A. Newberry is prosecuting the case.
Defendant Information: NANCI MAE DUSSO, 50
Eyota, Minn.
Convicted: • Obtaining a controlled substance by fraud, 1 count
• Social Security fraud, 1 countMuskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JORDAN WAYNE PARKS, age 24, of Muskogee, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in March, 2015.
The Indictment alleged that on or about June 17, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine on both.
Assistant United States Attorney Dean Burris represented the United States.
Monroe County Man Pleads Guilty to Multi-County Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Effort resident pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine and other drugs during a four-year time period in Monroe, Montgomery, and Berks Counties.
According to United States Attorney Peter Smith, the defendant, Ramon Baez, admitted to regularly obtaining drugs from suppliers in Reading and New York, and distributing those drugs to other dealers in Reading and the Monroe County area.
The charge against Baez resulted from an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in July 2015.
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Monroe County Man Pleads Guilty to Multi-County Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Effort resident pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine and other drugs during a four-year time period in Monroe, Montgomery, and Berks Counties.
According to United States Attorney Peter Smith, the defendant, Ramon Baez, admitted to regularly obtaining drugs from suppliers in Reading and New York, and distributing those drugs to other dealers in Reading and the Monroe County area.
The charge against Baez resulted from an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in July 2015.
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